LITE Stock Analysis: Lumentum Holdings | NASDAQ
Communication Equipment | NASDAQ, USA | Market Cap: 84.466m USD | 12M Return: 539.4% | US55024U1097 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 4.26B
EPS Trend: 59.8%
Qual. Beats: 0
Rev. Trend: 82.7%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 11.2 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Lumentum Holdings Inc. (NASDAQ: LITE) designs and manufactures optical and photonic products sold across the Americas, Asia-Pacific, Europe, the Middle East, and Africa. Its product portfolio is split between component products-such as semiconductor laser chips, laser sub-assemblies, line subsystems, and wavelength management systems-and system products, including optical modules, optical circuit switches, and industrial lasers such as short-pulse solid-state lasers and kilowatt-class fiber lasers.
The companys components and systems serve end markets including cloud computing, artificial intelligence and machine learning (AI/ML), telecommunications, consumer electronics, and industrial applications. Optical transceivers and related photonic components are foundational building blocks for high-speed data center interconnects and telecom networks, making suppliers like Lumentum key enablers of bandwidth growth driven by AI workloads and cloud expansion. Lumentum is classified within the GICS Information Technology sector under the Communications Equipment sub-industry, was incorporated in 2015, and is headquartered in San Jose, California.
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| Net Income: -6.94b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 10.02 > 1.0 |
| NWC/Revenue: 55.79% < 20% (prev 80.52%; Δ -24.73% < -1%) |
| CFO/TA 0.10 > 3% & CFO 751.4m > Net Income -6.94b |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.68 > 1.5 & < 3 |
| Outstanding Shares: last quarter (74.6m) vs 12m ago 3.61% < -2% |
| Gross Margin: 41.67% > 18% (prev 27.96%; Δ 13.71% > 0.5%) |
| Asset Turnover: 52.30% > 50% (prev 38.99%; Δ 13.31% > 0%) |
| Interest Coverage Ratio: -328.0 > 6 (EBIT TTM -7.15b / Interest Expense TTM 21.8m) |
| A: 0.23 (Total Current Assets 4.16b - Total Current Liabilities 2.48b) / Total Assets 7.31b |
| B: -1.07 (Retained Earnings -7.80b / Total Assets 7.31b) |
| C: -1.24 (EBIT TTM -7.15b / Avg Total Assets 5.76b) |
| D: 1.74 (Book Value of Equity 4.64b / Total Liabilities 2.66b) |
| Altman-Z'' = -8.48 = D |
| DSRI: 1.14 (Receivables 520.3m/250.0m, Revenue 3.01b/1.65b) |
| GMI: 0.67 (GM 27.96% / 41.67%) |
| AQI: 0.65 (AQ_t 0.27 / AQ_t-1 0.41) |
| SGI: 1.83 (Revenue 3.01b / 1.65b) |
| TATA: -1.05 (NI -6.94b - CFO 751.4m) / TA 7.31b) |
| Beneish M = -2.94 (Cap -4..+1) = A |
As of October 04, 2026, the stock is trading at USD 1085.42 with a total of 4,663,824 shares traded. Over the past week, the price has changed by +15.27%, over one month by +24.68%, over three months by +49.03% and over the past year by +539.42%.
Current recommended Stop Loss: 924.60 (which is 14.8% or 2.4 ATR below the current price).
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 | 1149.4 | 5.9% |
P/E Forward = 42.9185
P/S = 28.0246
P/B = 18.0988
P/EG = 0.6304
Revenue TTM = 3.01b USD
EBIT TTM = -7.15b USD
EBITDA TTM = -7.02b USD
Long Term Debt = 40.5m USD (from longTermDebt, last quarter)
Short Term Debt = 1.61b USD (from shortTermDebt, last quarter)
Debt = 1.71b USD (from shortLongTermDebtTotal, last quarter) + Leases 33.8m
Net Debt = -1.03b USD (calculated: Debt 1.71b - CCE 2.74b)
Enterprise Value = 83.4b USD (84.5b + Debt 1.71b - CCE 2.74b)
Interest Coverage Ratio = -328.0 (Ebit TTM -7.15b / Interest Expense TTM 21.8m)
EV/FCF = 151.6x (Enterprise Value 83.4b / FCF TTM 550.5m)
FCF Yield = 0.66% (FCF TTM 550.5m / Enterprise Value 83.4b)
FCF Margin = 18.26% (FCF TTM 550.5m / Revenue TTM 3.01b)
Net Margin = -230.1% (Net Income TTM -6.94b / Revenue TTM 3.01b)
Gross Margin = 41.67% ((Revenue TTM 3.01b - Cost of Revenue TTM 1.76b) / Revenue TTM)
Gross Margin QoQ = 47.43% (prev 44.16%)
Tobins Q-Ratio = 11.42 (Enterprise Value 83.4b / Total Assets 7.31b)
Interest Expense / Debt = 1.28% (Interest Expense 21.8m / Debt 1.71b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -5.65b (EBIT -7.15b * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.68 (Total Current Assets 4.16b / Total Current Liabilities 2.48b)
Debt / Equity = 0.37 (Debt 1.71b / totalStockholderEquity, last quarter 4.64b)
Debt / EBITDA = 0.15 (negative EBITDA) (Net Debt -1.03b / EBITDA -7.02b)
Debt / FCF = -1.88 (Net Debt -1.03b / FCF TTM 550.5m)
Total Stockholder Equity = 2.31b (last 4 quarters mean from totalStockholderEquity)
RoA = -120.3% (out of range, set to none)
RoE = -300.1% (Net Income TTM -6.94b / Total Stockholder Equity 2.31b)
RoCE = -304.1% (out of range, set to none) (EBIT -7.15b / Capital Employed (Equity 2.31b + L.T.Debt 40.5m))
RoIC = -89.86% (negative operating profit) (NOPAT -5.65b / Invested Capital 6.29b)
WACC = 17.06% (E(84.5b)/V(86.2b) * Re(17.38%) + D(1.71b)/V(86.2b) * Rd(1.28%) * (1-Tc(0.21)))
Discount Rate = 17.38% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 72.72 | Cagr: 4.00%
[DCF] Terminal Value 51.00% ; FCFF base≈550.5m ; Y1≈552.8m ; Y5≈585.6m
[DCF] Fair Price = 52.53 (EV 3.68b - Net Debt -1.03b = Equity 4.71b / Shares 89.7m; r=17.06% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: 59.81 | EPS CAGR: 62.84% | SUE: 0.28 | # QB: 0
Revenue Correlation: 82.68 | Revenue CAGR: 29.11% | SUE: 3.99 | # QB: 1
EPS current Quarter (2026-09-30): EPS=4.21 | Chg30d=-0.04% | Revisions=+87% | Analysts=22
EPS next Quarter (2026-12-31): EPS=5.02 | Chg30d=+0.12% | Revisions=+78% | Analysts=22
EPS current Year (2027-06-30): EPS=21.67 | Chg30d=+0.22% | Revisions=+88% | GrowthEPS=+150.0% | GrowthRev=+109.6%
EPS next Year (2028-06-30): EPS=34.52 | Chg30d=+4.57% | Revisions=+80% | GrowthEPS=+59.3% | GrowthRev=+52.2%
[Analyst] Revisions Ratio: +93% (up=72, down=1)