LUMENTUM HOLDINGS INC(NASDAQ:LITE) stock Fundamental Analysis

Fundamental Rating

Overall LITE gets a fundamental rating of 3 out of 10. We evaluated LITE against 51 industry peers in the Communications Equipment industry. While LITE seems to be doing ok healthwise, there are quite some concerns on its profitability. LITE is valied quite expensively at the moment, while it does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

LITE had positive earnings in the past year.

LITE had a positive operating cash flow in the past year.

In multiple years LITE reported negative net income over the last 5 years.

In the past 5 years LITE always reported a positive cash flow from operatings.

1.2 Ratios

LITE's Return On Assets of -13.18% is on the low side compared to the rest of the industry. LITE is outperformed by 72.00% of its industry peers.

Looking at the Return On Equity, with a value of -59.93%, LITE is doing worse than 72.00% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-13.18%
ROE	-59.93%
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

1.3 Margins

LITE has a Gross Margin of 20.39%. This is amonst the worse of the industry: LITE underperforms 90.00% of its industry peers.

In the last couple of years the Gross Margin of LITE has declined.

LITE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	20.39%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

LITE does not have a ROIC to compare to the WACC, probably because it is not profitable.

The number of shares outstanding for LITE has been increased compared to 1 year ago.

LITE has less shares outstanding than it did 5 years ago.

The debt/assets ratio for LITE is higher compared to a year ago.

2.2 Solvency

LITE has an Altman-Z score of 1.07. This is a bad value and indicates that LITE is not financially healthy and even has some risk of bankruptcy.

The Altman-Z score of LITE (1.07) is comparable to the rest of the industry.

A Debt/Equity ratio of 2.94 is on the high side and indicates that LITE has dependencies on debt financing.

LITE has a worse Debt to Equity ratio (2.94) than 86.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.94
Debt/FCF	N/A
Altman-Z	1.07

ROIC/WACCN/A

WACC7.51%

2.3 Liquidity

LITE has a Current Ratio of 4.76. This indicates that LITE is financially healthy and has no problem in meeting its short term obligations.

LITE's Current ratio of 4.76 is amongst the best of the industry. LITE outperforms 90.00% of its industry peers.

LITE has a Quick Ratio of 3.60. This indicates that LITE is financially healthy and has no problem in meeting its short term obligations.

Looking at the Quick ratio, with a value of 3.60, LITE belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	4.76
Quick Ratio	3.6

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for LITE have decreased strongly by -52.74% in the last year.

The earnings per share for LITE have been decreasing by -24.97% on average. This is quite bad

Looking at the last year, LITE shows a decrease in Revenue. The Revenue has decreased by -1.72% in the last year.

LITE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.78% yearly.

EPS 1Y (TTM)-52.74%

EPS 3Y-45.55%

EPS 5Y-24.97%

EPS Q2Q%31.25%

Revenue 1Y (TTM)-1.72%

Revenue growth 3Y-7.95%

Revenue growth 5Y-2.78%

Sales Q2Q%9.65%

3.2 Future

LITE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 72.84% yearly.

The Revenue is expected to grow by 20.75% on average over the next years. This is a very strong growth

EPS Next Y74.7%

EPS Next 2Y94.92%

EPS Next 3Y72.84%

EPS Next 5YN/A

Revenue Next Year19.29%

Revenue Next 2Y23.96%

Revenue Next 3Y20.75%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 69.15, which means the current valuation is very expensive for LITE.

LITE's Price/Earnings ratio is in line with the industry average.

LITE is valuated expensively when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.

A Price/Forward Earnings ratio of 16.95 indicates a correct valuation of LITE.

LITE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LITE is cheaper than 62.00% of the companies in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, LITE is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	69.15
Fwd PE	16.95

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

LITE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

LITE's earnings are expected to grow with 72.84% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.93

PEG (5Y)N/A

EPS Next 2Y94.92%

EPS Next 3Y72.84%

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5. Dividend

5.1 Amount

No dividends for LITE!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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LUMENTUM HOLDINGS INC

NASDAQ:LITE (3/3/2025, 8:00:02 PM)

After market: 65.69 0 (0%)

65.69

-4.64 (-6.6%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupTechnology Hardware & Equipment

GICS IndustryCommunications Equipment

Earnings (Last)02-06 2025-02-06/amc

Earnings (Next)05-05 2025-05-05/amc

Inst Owners108.34%

Inst Owner Change2.75%

Ins Owners0.58%

Ins Owner Change0.37%

Market Cap4.55B

Analysts76.52

Price Target101.66 (54.76%)

Short Float %14.04%

Short Ratio4.66

Dividend

		Industry Rank	Sector 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)28.5%

Min EPS beat(2)15.02%

Max EPS beat(2)41.98%

EPS beat(4)4

Avg EPS beat(4)37.04%

Min EPS beat(4)9.1%

Max EPS beat(4)82.06%

EPS beat(8)7

Avg EPS beat(8)21.93%

EPS beat(12)11

Avg EPS beat(12)17.26%

EPS beat(16)13

Avg EPS beat(16)14.04%

Revenue beat(2)2

Avg Revenue beat(2)1.4%

Min Revenue beat(2)1.17%

Max Revenue beat(2)1.64%

Revenue beat(4)3

Avg Revenue beat(4)0.41%

Min Revenue beat(4)-1.58%

Max Revenue beat(4)1.64%

Revenue beat(8)3

Avg Revenue beat(8)-0.29%

Revenue beat(12)3

Avg Revenue beat(12)-0.72%

Revenue beat(16)4

Avg Revenue beat(16)-0.95%

PT rev (1m)6.95%

PT rev (3m)14.64%

EPS NQ rev (1m)18.79%

EPS NQ rev (3m)18.6%

EPS NY rev (1m)10.69%

EPS NY rev (3m)10.52%

Revenue NQ rev (1m)1.57%

Revenue NQ rev (3m)1.5%

Revenue NY rev (1m)1.48%

Revenue NY rev (3m)1.54%

Valuation

		Industry Rank	Sector Rank
PE	69.15
Fwd PE	16.95
P/S	3.22
P/FCF	N/A
P/OCF	49.2
P/B	5.21
P/tB	N/A
EV/EBITDA	N/A

EPS(TTM)0.95

EY1.45%

EPS(NY)3.88

Fwd EY5.9%

FCF(TTM)-0.97

FCFYN/A

OCF(TTM)1.34

OCFY2.03%

SpS20.43

BVpS12.61

TBVpS-10.46

PEG (NY)0.93

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-13.18%
ROE	-59.93%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	20.39%
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 Turnover0.36

Health

		Industry Rank	Sector Rank
Debt/Equity	2.94
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	52.5%
Cap/Sales	11.28%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	4.76
Quick Ratio	3.6
Altman-Z	1.07

F-Score4

WACC7.51%

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)-52.74%

EPS 3Y-45.55%

EPS 5Y-24.97%

EPS Q2Q%31.25%

EPS Next Y74.7%

EPS Next 2Y94.92%

EPS Next 3Y72.84%

EPS Next 5YN/A

Revenue 1Y (TTM)-1.72%

Revenue growth 3Y-7.95%

Revenue growth 5Y-2.78%

Sales Q2Q%9.65%

Revenue Next Year19.29%

Revenue Next 2Y23.96%

Revenue Next 3Y20.75%

Revenue Next 5YN/A

EBIT growth 1Y-16.27%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year636.63%

EBIT Next 3Y146.8%

EBIT Next 5YN/A

FCF growth 1Y-134.13%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-69.86%

OCF growth 3Y-67.78%

OCF growth 5Y-40.46%

LUMENTUM HOLDINGS INC (LITE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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