(LITE) Lumentum Holdings - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US55024U1097

Optical, Photonic, Laser, Module, Component

Stock: Communications Equipment
Age 10.5y

MCap 24,342m
Avg Vol 3.75M (1.29B USD)

Beta 2.481
Volatility 88.85%

EPS (Earnings per Share)

EPS CAGR: -19.51%
EPS Trend: -54.8%

Last SUE: -4.00
Qual. Beats: 0

Revenue

Rev. CAGR: 4.86%
Rev. Trend: -4.4%

Last SUE: 0.29
Qual. Beats: 0

Dividends

Currently no dividends paid

Risk via 5d forecast
Volatility	88.9%
Value at Risk 5%th	135%
Relative Tail Risk	-7.59%

Reward TTM
Sharpe Ratio	1.96
Alpha	228.08
CAGR/Max DD	1.50

Character TTM
Hurst Exponent	0.427
Beta	2.481
Beta Downside	2.640

Drawdowns 3y
Max DD	50.63%
Mean DD	16.70%
Median DD	16.04%

Description: LITE Lumentum Holdings January 10, 2026

Lumentum Holdings Inc. (NASDAQ:LITE) designs, manufactures, and sells optical and photonic components worldwide, serving customers across the Americas, APAC, Europe, the Middle East, and Africa. The firm operates two primary segments: Cloud & Networking, which supplies chips, modules and subsystems for data-center and AI/ML infrastructure; and Industrial Tech, which provides short-pulse solid-state, fiber, diode and gas lasers for semiconductor, solar, display, and electric-vehicle/battery production.

In fiscal 2023 the company reported roughly $1.6 billion in revenue, with the Cloud & Networking segment contributing about 58 % and Industrial Tech the remaining 42 %. Operating margins hovered near 10 % after a 2022-23 restructuring that reduced SG&A expenses by ~12 %. Free cash flow turned positive in Q4 2023, supporting a modest share-repurchase program announced in early 2024.

Key growth drivers include (1) the accelerating build-out of hyperscale data centers, where total capex is projected to rise ~10 % YoY through 2026, fueling demand for high-speed transceivers and photonic integration; (2) the surge in AI/ML workloads, which pushes network bandwidth requirements and creates a tail-winds for Lumentum’s advanced optical modules; and (3) expanding semiconductor and EV-battery manufacturing, which underpins the Industrial Tech laser market-global laser-based wafer processing equipment is expected to grow at a CAGR of ~8 % over the next five years.

Given these dynamics, a deeper quantitative dive-such as the one offered by ValueRay’s analyst platform-could help you assess whether LITE’s valuation reflects its growth prospects and risk profile.

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income (112.5m TTM) > 0 and > 6% of Revenue (6% = 110.5m TTM)

FCFTA -0.02 (>2.0%) and ΔFCFTA 0.09pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 30.37% (prev 103.2%; Δ -72.78pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.03 (>3.0%) and CFO 144.6m > Net Income 112.5m (YES >=105%, WARN >=100%)

Net Debt (2.51b) to EBITDA (183.0m) ratio: 13.70 <= 3.0 (WARN <= 3.5)

Current Ratio 1.37 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (78.3m) change vs 12m ago 14.64% (target <= -2.0% for YES)

Gross Margin 30.59% (prev 20.02%; Δ 10.57pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 42.92% (prev 32.51%; Δ 10.41pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio -2.92 (EBITDA TTM 183.0m / Interest Expense TTM 22.4m) >= 6 (WARN >= 3)

Altman Z'' -0.14

(A) 0.12 = (Total Current Assets 2.09b - Total Current Liabilities 1.53b) / Total Assets 4.61b

(B) -0.19 = Retained Earnings (Balance) -857.0m / Total Assets 4.61b

(D) -0.22 = Book Value of Equity -837.1m / Total Liabilities 3.83b

Total Rating: -0.14 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 28.29

1. Piotroski 4.50pt

2. FCF Yield -0.33%

3. FCF Margin -4.80%

4. Debt/Equity 4.20

5. Debt/Ebitda 13.70

6. ROIC - WACC (= -14.70)%

7. RoE 12.27%

8. Rev. Trend -4.38%

9. EPS Trend -54.78%

What is the price of LITE shares?

As of January 17, 2026, the stock is trading at USD 324.25 with a total of 3,779,441 shares traded.
Over the past week, the price has changed by -7.73%, over one month by +2.56%, over three months by +98.65% and over the past year by +262.86%.

Is LITE a buy, sell or hold?

Lumentum Holdings has received a consensus analysts rating of 4.19. Therefore, it is recommended to buy LITE.

Strong Buy: 8
Buy: 4
Hold: 3
Sell: 1
Strong Sell: 0

What are the forecasts/targets for the LITE price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	303.1	-6.5%
Analysts Target Price	303.1	-6.5%
ValueRay Target Price	345.8	6.7%

LITE Fundamental Data Overview January 17, 2026

P/E Trailing = 213.2112
P/E Forward = 58.4795
P/S = 13.2158
P/B = 31.1759
P/EG = 0.97
Revenue TTM = 1.84b USD
EBIT TTM = -65.3m USD
EBITDA TTM = 183.0m USD
Long Term Debt = 2.16b USD (from longTermDebt, last quarter)
Short Term Debt = 1.09b USD (from shortTermDebt, last quarter)
Debt = 3.28b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.51b USD (from netDebt column, last quarter)
Enterprise Value = 26.50b USD (24.34b + Debt 3.28b - CCE 1.12b)
Interest Coverage Ratio = -2.92 (Ebit TTM -65.3m / Interest Expense TTM 22.4m)
EV/FCF = -299.4x (Enterprise Value 26.50b / FCF TTM -88.5m)
FCF Yield = -0.33% (FCF TTM -88.5m / Enterprise Value 26.50b)
FCF Margin = -4.80% (FCF TTM -88.5m / Revenue TTM 1.84b)
Net Margin = 6.11% (Net Income TTM 112.5m / Revenue TTM 1.84b)
Gross Margin = 30.59% ((Revenue TTM 1.84b - Cost of Revenue TTM 1.28b) / Revenue TTM)
Gross Margin QoQ = 34.00% (prev 33.26%)
Tobins Q-Ratio = 5.74 (Enterprise Value 26.50b / Total Assets 4.61b)
Interest Expense / Debt = 0.17% (Interest Expense 5.70m / Debt 3.28b)
Taxrate = 19.23% (1.00m / 5.20m)
NOPAT = -52.7m (EBIT -65.3m * (1 - 19.23%)) [loss with tax shield]
Current Ratio = 1.37 (Total Current Assets 2.09b / Total Current Liabilities 1.53b)
Debt / Equity = 4.20 (Debt 3.28b / totalStockholderEquity, last quarter 780.8m)
Debt / EBITDA = 13.70 (Net Debt 2.51b / EBITDA 183.0m)
Debt / FCF = -28.33 (negative FCF - burning cash) (Net Debt 2.51b / FCF TTM -88.5m)
Total Stockholder Equity = 916.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.62% (Net Income 112.5m / Total Assets 4.61b)
RoE = 12.27% (Net Income TTM 112.5m / Total Stockholder Equity 916.8m)
RoCE = -2.12% (EBIT -65.3m / Capital Employed (Equity 916.8m + L.T.Debt 2.16b))
RoIC = -1.44% (negative operating profit) (NOPAT -52.7m / Invested Capital 3.66b)
WACC = 13.25% (E(24.34b)/V(27.62b) * Re(15.02%) + D(3.28b)/V(27.62b) * Rd(0.17%) * (1-Tc(0.19)))
Discount Rate = 15.02% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 7.46%
Fair Price DCF = unknown (Cash Flow -88.5m)
EPS Correlation: -54.78 | EPS CAGR: -19.51% | SUE: -4.0 | # QB: 0
Revenue Correlation: -4.38 | Revenue CAGR: 4.86% | SUE: 0.29 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.53 | Chg30d=+0.012 | Revisions Net=+0 | Analysts=19
EPS current Year (2026-06-30): EPS=5.73 | Chg30d=+0.038 | Revisions Net=+0 | Growth EPS=+177.9% | Growth Revenue=+58.7%
EPS next Year (2027-06-30): EPS=8.56 | Chg30d=+0.381 | Revisions Net=+0 | Growth EPS=+49.6% | Growth Revenue=+32.5%

Additional Sources for LITE Stock

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