(LITE) Lumentum Holdings - NASDAQ
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 71.697m USD | Total Return: 848% in 12m
Avg Turnover: 5.24B
Qual. Beats: 5
Rev. Trend: 59.8%
Qual. Beats: 0
Warnings
P/E ratio 161.4
Share dilution 38.8% YoY
Below Avwap Earnings
Tailwinds
Rs Leader, Idiosyncratic Leader, Confidence
Lumentum Holdings Inc. (NASDAQ: LITE) is a U.S.-based manufacturer of optical and photonic products, headquartered in San Jose, California. The company sells its products globally across the Americas, Asia-Pacific, Europe, the Middle East, and Africa, operating through two reporting segments: Cloud & Networking and Industrial Tech.
The Cloud & Networking segment supplies optical and photonic chips, components, modules, and subsystems to cloud data center operators, AI/ML infrastructure providers, and network equipment manufacturers. Demand drivers in this segment include the buildout of hyperscale data centers and next-generation telecom networks, where high-bandwidth optical interconnect technology is a critical enabler of AI workloads and cloud computing capacity.
The Industrial Tech segment produces short-pulse solid-state lasers, kilowatt-class fiber lasers, diode lasers, and gas lasers. These products are used in advanced manufacturing applications across semiconductor fabrication, solar cell production, display manufacturing, and electric vehicle and battery production.
The company was incorporated in 2015 and trades as a large-cap stock within the Information Technology sector (Communications Equipment sub-industry), with a market capitalization of approximately $71.7 billion USD.
- AI hyperscaler capex accelerates Cloud & Networking segment growth
- Industrial Tech laser demand softens on weak semiconductor capex cycle
- Coherent competition and 1.6T transition pressures optical component pricing
| Net Income: 439.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 6.51 > 1.0 |
| NWC/Revenue: 21.31% < 20% (prev 89.25%; Δ -67.94% < -1%) |
| CFO/TA 0.06 > 3% & CFO 452.4m > Net Income 439.9m |
| Net Debt (173.3m) to EBITDA (552.2m): 0.31 < 3 |
| Current Ratio: 1.14 > 1.5 & < 3 |
| Outstanding Shares: last quarter (96.2m) vs 12m ago 38.82% < -2% |
| Gross Margin: 37.71% > 18% (prev 23.86%; Δ 13.86% > 0.5%) |
| Asset Turnover: 45.23% > 50% (prev 37.05%; Δ 8.19% > 0%) |
| Interest Coverage Ratio: 12.61 > 6 (EBIT TTM 297.7m / Interest Expense TTM 23.6m) |
| A: 0.08 (Total Current Assets 4.40b - Total Current Liabilities 3.87b) / Total Assets 7.03b |
| B: -0.09 (Retained Earnings -634.6m / Total Assets 7.03b) |
| C: 0.05 (EBIT TTM 297.7m / Avg Total Assets 5.50b) |
| D: 0.73 (Book Value of Equity 2.97b / Total Liabilities 4.05b) |
| Altman-Z'' = 1.33 = BB |
| DSRI: 1.05 (Receivables 452.5m/255.7m, Revenue 2.49b/1.47b) |
| GMI: 0.63 (GM 23.86% / 37.71%) |
| AQI: 0.59 (AQ_t 0.23 / AQ_t-1 0.40) |
| SGI: 1.69 (Revenue 2.49b / 1.47b) |
| TATA: -0.00 (NI 439.9m - CFO 452.4m) / TA 7.03b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
As of June 20, 2026, the stock is trading at USD 850.00 with a total of 8,360,800 shares traded.
Over the past week, the price has changed by -4.45%,
over one month by -4.50%,
over three months by +10.09% and
over the past year by +848.03%.
Lumentum Holdings has received a consensus analysts rating of 4.19. Therefore, it is recommended to buy LITE.
- StrongBuy: 8
- Buy: 4
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 1111.3 | 30.7% |
P/E Trailing = 161.394
P/E Forward = 60.6061
P/S = 28.8126
P/B = 24.1129
P/EG = 0.6304
Revenue TTM = 2.49b USD
EBIT TTM = 297.7m USD
EBITDA TTM = 552.2m USD
Long Term Debt = 43.2m USD (from longTermDebt, last quarter)
Short Term Debt = 3.25b USD (from shortTermDebt, last quarter)
Debt = 3.35b USD (from shortLongTermDebtTotal, last quarter) + Leases 31.9m
Net Debt = 173.3m USD (calculated: Debt 3.35b - CCE 3.17b)
Enterprise Value = 71.9b USD (71.7b + Debt 3.35b - CCE 3.17b)
Interest Coverage Ratio = 12.61 (Ebit TTM 297.7m / Interest Expense TTM 23.6m)
EV/FCF = 262.5x (Enterprise Value 71.9b / FCF TTM 273.8m)
FCF Yield = 0.38% (FCF TTM 273.8m / Enterprise Value 71.9b)
FCF Margin = 11.00% (FCF TTM 273.8m / Revenue TTM 2.49b)
Net Margin = 17.68% (Net Income TTM 439.9m / Revenue TTM 2.49b)
Gross Margin = 37.71% ((Revenue TTM 2.49b - Cost of Revenue TTM 1.55b) / Revenue TTM)
Gross Margin QoQ = 44.16% (prev 36.08%)
Tobins Q-Ratio = 10.23 (Enterprise Value 71.9b / Total Assets 7.03b)
Interest Expense / Debt = 0.71% (Interest Expense 23.6m / Debt 3.35b)
Taxrate = 21.55% (39.6m / 183.8m)
NOPAT = 233.6m (EBIT 297.7m * (1 - 21.55%))
Current Ratio = 1.14 (Total Current Assets 4.40b / Total Current Liabilities 3.87b)
Debt / Equity = 1.13 (Debt 3.35b / totalStockholderEquity, last quarter 2.97b)
Debt / EBITDA = 0.31 (Net Debt 173.3m / EBITDA 552.2m)
Debt / FCF = 0.63 (Net Debt 173.3m / FCF TTM 273.8m)
Total Stockholder Equity = 1.43b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.00% (Net Income 439.9m / Total Assets 7.03b)
RoE = 30.68% (Net Income TTM 439.9m / Total Stockholder Equity 1.43b)
RoCE = 20.15% (EBIT 297.7m / Capital Employed (Equity 1.43b + L.T.Debt 43.2m))
RoIC = 3.71% (NOPAT 233.6m / Invested Capital 6.29b)
WACC = 15.69% (E(71.7b)/V(75.0b) * Re(16.40%) + D(3.35b)/V(75.0b) * Rd(0.71%) * (1-Tc(0.22)))
Discount Rate = 16.40% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 93.21 | Cagr: 16.82%
[DCF] Terminal Value 54.11% ; FCFF base≈273.8m ; Y1≈274.9m ; Y5≈291.2m
[DCF] Fair Price = 23.70 (EV 2.02b - Net Debt 173.3m = Equity 1.84b / Shares 77.8m; r=15.69% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.21 | # QB: 5
Revenue Correlation: 59.82 | Revenue CAGR: 14.92% | SUE: -0.12 | # QB: 0
EPS next Quarter (2026-09-30): EPS=3.61 | Chg30d=N/A | Revisions=+62% | Analysts=21
EPS current Year (2026-06-30): EPS=8.22 | Chg30d=-0.26% | Revisions=+83% | GrowthEPS=+299.3% | GrowthRev=+81.9%
EPS next Year (2027-06-30): EPS=18.13 | Chg30d=+0.67% | Revisions=+74% | GrowthEPS=+120.4% | GrowthRev=+85.9%
[Analyst] Revisions Ratio: +83%