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LUMENTUM HOLDINGS INC (LITE) Stock Fundamental Analysis

NASDAQ:LITE - Nasdaq - US55024U1097 - Common Stock - Currency: USD

83.98  +6.07 (+7.79%)

After market: 84.36 +0.38 (+0.45%)

Fundamental Rating

3

Overall LITE gets a fundamental rating of 3 out of 10. We evaluated LITE against 51 industry peers in the Communications Equipment industry. The financial health of LITE is average, but there are quite some concerns on its profitability. LITE is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year LITE was profitable.
LITE had a positive operating cash flow in the past year.
In multiple years LITE reported negative net income over the last 5 years.
LITE had a positive operating cash flow in each of the past 5 years.
LITE Yearly Net Income VS EBIT VS OCF VS FCFLITE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M

1.2 Ratios

LITE has a Return On Assets of -14.13%. This is in the lower half of the industry: LITE underperforms 68.63% of its industry peers.
Looking at the Return On Equity, with a value of -62.62%, LITE is doing worse than 76.47% of the companies in the same industry.
Industry RankSector Rank
ROA -14.13%
ROE -62.62%
ROIC N/A
ROA(3y)-3.99%
ROA(5y)0.67%
ROE(3y)-18.73%
ROE(5y)-5.66%
ROIC(3y)N/A
ROIC(5y)N/A
LITE Yearly ROA, ROE, ROICLITE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

Looking at the Gross Margin, with a value of 18.33%, LITE is doing worse than 90.20% of the companies in the same industry.
LITE's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for LITE so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 18.33%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-25.6%
GM growth 5Y-7.42%
LITE Yearly Profit, Operating, Gross MarginsLITE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40

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4

2. Health

2.1 Basic Checks

LITE does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LITE has more shares outstanding
Compared to 5 years ago, LITE has less shares outstanding
Compared to 1 year ago, LITE has a worse debt to assets ratio.
LITE Yearly Shares OutstandingLITE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
LITE Yearly Total Debt VS Total AssetsLITE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of 1.15, we must say that LITE is in the distress zone and has some risk of bankruptcy.
LITE has a Altman-Z score (1.15) which is in line with its industry peers.
A Debt/Equity ratio of 2.87 is on the high side and indicates that LITE has dependencies on debt financing.
LITE has a Debt to Equity ratio of 2.87. This is amonst the worse of the industry: LITE underperforms 86.27% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.87
Debt/FCF N/A
Altman-Z 1.15
ROIC/WACCN/A
WACC7.9%
LITE Yearly LT Debt VS Equity VS FCFLITE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

LITE has a Current Ratio of 5.36. This indicates that LITE is financially healthy and has no problem in meeting its short term obligations.
LITE's Current ratio of 5.36 is amongst the best of the industry. LITE outperforms 90.20% of its industry peers.
A Quick Ratio of 4.04 indicates that LITE has no problem at all paying its short term obligations.
LITE has a Quick ratio of 4.04. This is amongst the best in the industry. LITE outperforms 92.16% of its industry peers.
Industry RankSector Rank
Current Ratio 5.36
Quick Ratio 4.04
LITE Yearly Current Assets VS Current LiabilitesLITE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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4

3. Growth

3.1 Past

LITE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.52%.
LITE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.97% yearly.
Looking at the last year, LITE shows a very negative growth in Revenue. The Revenue has decreased by -12.63% in the last year.
The Revenue has been decreasing by -2.78% on average over the past years.
EPS 1Y (TTM)-73.52%
EPS 3Y-45.55%
EPS 5Y-24.97%
EPS Q2Q%-48.57%
Revenue 1Y (TTM)-12.63%
Revenue growth 3Y-7.95%
Revenue growth 5Y-2.78%
Sales Q2Q%6.08%

3.2 Future

LITE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 60.31% yearly.
The Revenue is expected to grow by 19.50% on average over the next years. This is quite good.
EPS Next Y57.57%
EPS Next 2Y92.28%
EPS Next 3Y60.31%
EPS Next 5YN/A
Revenue Next Year17.55%
Revenue Next 2Y22.99%
Revenue Next 3Y19.5%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
LITE Yearly Revenue VS EstimatesLITE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
LITE Yearly EPS VS EstimatesLITE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 98.80 indicates a quite expensive valuation of LITE.
LITE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.51, LITE is valued quite expensively.
With a Price/Forward Earnings ratio of 22.27, LITE is valued on the expensive side.
LITE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LITE is cheaper than 60.78% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, LITE is valued rather cheaply.
Industry RankSector Rank
PE 98.8
Fwd PE 22.27
LITE Price Earnings VS Forward Price EarningsLITE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
LITE Per share dataLITE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

LITE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as LITE's earnings are expected to grow with 60.31% in the coming years.
PEG (NY)1.72
PEG (5Y)N/A
EPS Next 2Y92.28%
EPS Next 3Y60.31%

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0

5. Dividend

5.1 Amount

LITE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LUMENTUM HOLDINGS INC

NASDAQ:LITE (1/30/2025, 8:00:02 PM)

After market: 84.36 +0.38 (+0.45%)

83.98

+6.07 (+7.79%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-06 2025-02-06/amc
Inst Owners113.59%
Inst Owner Change0.1%
Ins Owners0.79%
Ins Owner Change-0.99%
Market Cap5.77B
Analysts74.78
Price Target92.18 (9.76%)
Short Float %16.71%
Short Ratio6.27
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)62.02%
Min EPS beat(2)41.98%
Max EPS beat(2)82.06%
EPS beat(4)4
Avg EPS beat(4)34.31%
Min EPS beat(4)4.11%
Max EPS beat(4)82.06%
EPS beat(8)7
Avg EPS beat(8)21.61%
EPS beat(12)10
Avg EPS beat(12)15.97%
EPS beat(16)13
Avg EPS beat(16)13.27%
Revenue beat(2)2
Avg Revenue beat(2)1.02%
Min Revenue beat(2)0.41%
Max Revenue beat(2)1.64%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)1.64%
Revenue beat(8)2
Avg Revenue beat(8)-0.71%
Revenue beat(12)2
Avg Revenue beat(12)-0.96%
Revenue beat(16)3
Avg Revenue beat(16)-1.17%
PT rev (1m)4.4%
PT rev (3m)47.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.4%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)5.06%
Valuation
Industry RankSector Rank
PE 98.8
Fwd PE 22.27
P/S 4.19
P/FCF N/A
P/OCF 86.63
P/B 6.44
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.85
EY1.01%
EPS(NY)3.77
Fwd EY4.49%
FCF(TTM)-1.22
FCFYN/A
OCF(TTM)0.97
OCFY1.15%
SpS20.07
BVpS13.04
TBVpS-10.76
PEG (NY)1.72
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -14.13%
ROE -62.62%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 18.33%
FCFM N/A
ROA(3y)-3.99%
ROA(5y)0.67%
ROE(3y)-18.73%
ROE(5y)-5.66%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-25.6%
GM growth 5Y-7.42%
F-Score4
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 2.87
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 49.49%
Cap/Sales 10.9%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.36
Quick Ratio 4.04
Altman-Z 1.15
F-Score4
WACC7.9%
ROIC/WACCN/A
Cap/Depr(3y)50.68%
Cap/Depr(5y)50.49%
Cap/Sales(3y)7.56%
Cap/Sales(5y)6.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-73.52%
EPS 3Y-45.55%
EPS 5Y-24.97%
EPS Q2Q%-48.57%
EPS Next Y57.57%
EPS Next 2Y92.28%
EPS Next 3Y60.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.63%
Revenue growth 3Y-7.95%
Revenue growth 5Y-2.78%
Sales Q2Q%6.08%
Revenue Next Year17.55%
Revenue Next 2Y22.99%
Revenue Next 3Y19.5%
Revenue Next 5YN/A
EBIT growth 1Y-102.16%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year633.3%
EBIT Next 3Y143.68%
EBIT Next 5YN/A
FCF growth 1Y-125.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-84.07%
OCF growth 3Y-67.78%
OCF growth 5Y-40.46%