(LITE) Lumentum Holdings - Overview
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 76.024m USD | Total Return: 1148.3% in 12m
Industry Rotation: +10.0
Avg Turnover: 5.05B
EPS Trend: -2.5%
Qual. Beats: 5
Rev. Trend: 44.8%
Qual. Beats: 0
Warnings
P/E ratio 171.1
Share dilution 38.8% YoY
Altman Z'' 0.38 < 1.0 - financial distress zone
Tailwinds
Supp Ema20, Leader, Tailwind, Confidence
Lumentum Holdings Inc. (LITE) is a San Jose-based manufacturer specializing in optical and photonic solutions across two primary business segments: Cloud & Networking and Industrial Tech. The company provides critical hardware components, including chips and modules, to data center operators and AI/ML infrastructure providers, as well as high-performance lasers for industrial applications like semiconductor and electric vehicle manufacturing.
Operating within the Communications Equipment sub-industry, Lumentum functions as a Tier 2 supplier, providing the essential light-based technology required for high-speed fiber optic data transmission. The business model relies heavily on research and development to maintain a competitive edge in the photonics sector, where rapid advancements in artificial intelligence drive demand for increased bandwidth and lower latency in cloud environments.
Investors can further evaluate these market dynamics and company fundamentals on ValueRay.
- AI/ML infrastructure demand drives high-speed optical transceiver and chip revenue growth
- Cloud data center expansion accelerates demand for 800G and 1.6T optical modules
- Industrial laser segment performance hinges on electric vehicle and semiconductor manufacturing cycles
- Integration of Cloud Light acquisition impacts margins and overall networking segment profitability
- Geopolitical tensions and trade restrictions pose risks to Asia-Pacific manufacturing and supply chains
| 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 (695.9m) to EBITDA (537.8m): 1.29 < 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 0.24%; Δ 3.75k% > 0.5%) |
| Asset Turnover: 45.23% > 50% (prev 37.05%; Δ 8.19% > 0%) |
| Interest Coverage Ratio: 12.00 > 6 (EBITDA TTM 537.8m / 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 283.3m / Avg Total Assets 5.50b) |
| D: -0.15 (Book Value of Equity -627.5m / Total Liabilities 4.05b) |
| Altman-Z'' Score: 0.38 = B |
| DSRI: 1.05 (Receivables 452.5m/255.7m, Revenue 2.49b/1.47b) |
| GMI: 0.63 (GM 37.71% / 23.86%) |
| 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-Score: -3.07 (Cap -4..+1) = AA |
Over the past week, the price has changed by +7.40%, over one month by +17.80%, over three months by +61.67% and over the past year by +1148.33%.
- StrongBuy: 8
- Buy: 4
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 1104.7 | 13.8% |
P/E Forward = 59.5238
P/S = 30.5538
P/B = 23.6482
P/EG = 0.6304
Revenue TTM = 2.49b USD
EBIT TTM = 283.3m USD
EBITDA TTM = 537.8m USD
Long Term Debt = 43.2m USD (from longTermDebt, last quarter)
Short Term Debt = 3.25b USD (from shortTermDebt, last quarter)
Debt = 3.31b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 695.9m USD (from netDebt column, last quarter)
Enterprise Value = 76.17b USD (76.02b + Debt 3.31b - CCE 3.17b)
Interest Coverage Ratio = 12.00 (Ebit TTM 283.3m / Interest Expense TTM 23.6m)
EV/FCF = 278.2x (Enterprise Value 76.17b / FCF TTM 273.8m)
FCF Yield = 0.36% (FCF TTM 273.8m / Enterprise Value 76.17b)
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 = 10.84 (Enterprise Value 76.17b / Total Assets 7.03b)
Interest Expense / Debt = 0.19% (Interest Expense 6.20m / Debt 3.31b)
Taxrate = 21.55% (39.6m / 183.8m)
NOPAT = 222.3m (EBIT 283.3m * (1 - 21.55%))
Current Ratio = 1.14 (Total Current Assets 4.40b / Total Current Liabilities 3.87b)
Debt / Equity = 1.11 (Debt 3.31b / totalStockholderEquity, last quarter 2.97b)
Debt / EBITDA = 1.29 (Net Debt 695.9m / EBITDA 537.8m)
Debt / FCF = 2.54 (Net Debt 695.9m / 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 = 19.18% (EBIT 283.3m / Capital Employed (Equity 1.43b + L.T.Debt 43.2m))
RoIC = 4.91% (NOPAT 222.3m / Invested Capital 4.53b)
WACC = 15.87% (E(76.02b)/V(79.34b) * Re(16.56%) + D(3.31b)/V(79.34b) * Rd(0.19%) * (1-Tc(0.22)))
Discount Rate = 16.56% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 18.16%
[DCF] Terminal Value 43.77% ; FCFF base≈273.8m ; Y1≈179.8m ; Y5≈82.2m
[DCF] Fair Price = 0.30 (EV 719.2m - Net Debt 695.9m = Equity 23.3m / Shares 77.8m; r=15.87% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -2.53 | EPS CAGR: 13.58% | SUE: 1.21 | # QB: 5
Revenue Correlation: 44.78 | Revenue CAGR: 18.92% | SUE: -0.12 | # QB: 0
EPS next Quarter (2026-09-30): EPS=3.61 | Chg30d=+11.56% | Revisions=+62% | Analysts=21
EPS current Year (2026-06-30): EPS=8.25 | Chg30d=+5.95% | Revisions=+83% | GrowthEPS=+300.3% | GrowthRev=+81.6%
EPS next Year (2027-06-30): EPS=18.00 | Chg30d=+15.42% | Revisions=+74% | GrowthEPS=+118.3% | GrowthRev=+85.0%
[Analyst] Revisions Ratio: +83%