Loading...

Lumentum Holdings

DB:LU2
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LU2
DB
$5B
Market Cap
  1. Home
  2. DE
  3. Tech
Company description

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The last earnings update was 71 days ago. More info.


Add to Portfolio Compare Print
  • Lumentum Holdings has significant price volatility in the past 3 months.
LU2 Share Price and Events
7 Day Returns
2.8%
DB:LU2
-9%
DE Communications
2.4%
DE Market
1 Year Returns
12.6%
DB:LU2
18.5%
DE Communications
-6.2%
DE Market
LU2 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lumentum Holdings (LU2) 2.8% 24.7% 35.4% 12.6% 141.5% -
DE Communications -9% -2.5% 23.5% 18.5% 1.8% 52.6%
DE Market 2.4% 3% 7.4% -6.2% 9.6% 14.1%
1 Year Return vs Industry and Market
  • LU2 underperformed the Communications industry which returned 18.5% over the past year.
  • LU2 outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
LU2
Industry
5yr Volatility vs Market
Related Companies

LU2 Value

 Is Lumentum Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lumentum Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lumentum Holdings.

DB:LU2 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:LU2
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.09 (1 + (1- 21%) (18.12%))
1.165
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.165 * 5.96%)
7.17%

Discounted Cash Flow Calculation for DB:LU2 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lumentum Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:LU2 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.17%)
2019 270.65 Analyst x2 252.54
2020 384.75 Analyst x2 334.98
2021 478.59 Est @ 24.39% 388.80
2022 560.63 Est @ 17.14% 424.97
2023 628.29 Est @ 12.07% 444.39
2024 681.79 Est @ 8.52% 449.96
2025 722.90 Est @ 6.03% 445.17
2026 753.91 Est @ 4.29% 433.19
2027 777.06 Est @ 3.07% 416.62
2028 794.29 Est @ 2.22% 397.36
Present value of next 10 years cash flows $3,987.97
DB:LU2 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $794.29 × (1 + 0.23%) ÷ (7.17% – 0.23%)
$11,465.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $11,465.25 ÷ (1 + 7.17%)10
$5,735.68
DB:LU2 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,987.97 + $5,735.68
$9,723.65
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,723.65 / 76.10
$127.77
DB:LU2 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:LU2 represents 0.89267x of NasdaqGS:LITE
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89267x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 127.77 x 0.89267
€114.06
Value per share (EUR) From above. €114.06
Current discount Discount to share price of €54.23
= -1 x (€54.23 - €114.06) / €114.06
52.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lumentum Holdings is available for.
Intrinsic value
>50%
Share price is €54.23 vs Future cash flow value of €114.06
Current Discount Checks
For Lumentum Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lumentum Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Lumentum Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lumentum Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lumentum Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LU2 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-29) in USD $1.52
NasdaqGS:LITE Share Price ** NasdaqGS (2019-04-18) in USD $60.75
Germany Communications Industry PE Ratio Median Figure of 5 Publicly-Listed Communications Companies 27.71x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lumentum Holdings.

DB:LU2 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LITE Share Price ÷ EPS (both in USD)

= 60.75 ÷ 1.52

39.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lumentum Holdings is overvalued based on earnings compared to the DE Communications industry average.
  • Lumentum Holdings is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Lumentum Holdings's expected growth come at a high price?
Raw Data
DB:LU2 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 39.91x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
46.3%per year
Europe Communications Industry PEG Ratio Median Figure of 13 Publicly-Listed Communications Companies 0.96x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:LU2 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 39.91x ÷ 46.3%

0.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lumentum Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Lumentum Holdings's assets?
Raw Data
DB:LU2 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-29) in USD $20.49
NasdaqGS:LITE Share Price * NasdaqGS (2019-04-18) in USD $60.75
Germany Communications Industry PB Ratio Median Figure of 7 Publicly-Listed Communications Companies 1.53x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.85x
DB:LU2 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LITE Share Price ÷ Book Value per Share (both in USD)

= 60.75 ÷ 20.49

2.96x

* Primary Listing of Lumentum Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lumentum Holdings is overvalued based on assets compared to the DE Communications industry average.
X
Value checks
We assess Lumentum Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Lumentum Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LU2 Future Performance

 How is Lumentum Holdings expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
46.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lumentum Holdings expected to grow at an attractive rate?
  • Lumentum Holdings's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Lumentum Holdings's earnings growth is expected to exceed the Germany market average.
  • Lumentum Holdings's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LU2 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LU2 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 46.3%
DB:LU2 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 15.9%
Germany Communications Industry Earnings Growth Rate Market Cap Weighted Average 24.7%
Europe Communications Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LU2 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LU2 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 3,099 1
2022-06-30 2,695 1
2021-06-30 2,111 286 5
2020-06-30 2,000 464 286 15
2019-06-30 1,592 310 139 15
DB:LU2 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-29 1,328 292 97
2018-09-29 1,359 295 281
2018-06-30 1,248 248 242
2018-03-31 1,169 223 154
2017-12-30 1,126 144 95
2017-09-30 987 58 -93
2017-07-01 1,002 85 -103
2017-04-01 1,021 85 -34
2016-12-31 995 89 14
2016-10-01 949 112 3
2016-07-02 903 87 -3
2016-04-02 870 87 -33

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lumentum Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Lumentum Holdings's revenue is expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LU2 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Lumentum Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LU2 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 3.26 3.26 3.26 1.00
2020-06-30 3.34 4.36 2.23 4.00
2019-06-30 1.83 2.45 1.40 4.00
DB:LU2 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-29 1.52
2018-09-29 4.48
2018-06-30 3.88
2018-03-31 2.49
2017-12-30 1.55
2017-09-30 -1.52
2017-07-01 -1.71
2017-04-01 -0.57
2016-12-31 0.24
2016-10-01 0.05
2016-07-02 -0.05
2016-04-02 -0.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lumentum Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Lumentum Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lumentum Holdings has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LU2 Past Performance

  How has Lumentum Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lumentum Holdings's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lumentum Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Lumentum Holdings's 1-year earnings growth is less than its 5-year average (4.5% vs 59.4%)
  • Lumentum Holdings's earnings growth has not exceeded the Europe Communications industry average in the past year (4.5% vs 23.7%).
Earnings and Revenue History
Lumentum Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lumentum Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LU2 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-29 1,327.70 97.20 133.40 154.10
2018-09-29 1,358.60 280.90 128.70 155.10
2018-06-30 1,247.70 241.50 123.40 156.80
2018-03-31 1,169.30 153.70 121.50 153.70
2017-12-30 1,126.30 95.10 116.40 152.80
2017-09-30 986.70 -93.10 111.70 147.70
2017-07-01 1,001.60 -103.40 110.20 148.30
2017-04-01 1,020.60 -34.10 113.70 149.30
2016-12-31 995.20 14.20 113.60 147.30
2016-10-01 948.50 3.20 108.40 143.60
2016-07-02 903.00 -3.20 117.30 141.10
2016-04-02 870.20 -33.10 126.10 140.40
2015-12-26 838.50 -13.00 129.90 140.10
2015-09-26 830.70 -17.70 135.30 140.20
2015-06-27 837.10 -3.40 129.60 140.80
2015-03-28 829.20 5.70 121.60 141.70
2014-12-27 844.00 2.20 117.70 142.70
2014-09-27 835.20 10.65 111.50 138.75
2014-06-28 817.90 10.70 108.20 134.90
2013-06-29 769.90 6.50 102.60 113.70
2012-06-30 727.90 2.60 93.70 107.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lumentum Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lumentum Holdings used its assets more efficiently than the DE Communications industry average last year based on Return on Assets.
  • Lumentum Holdings has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Lumentum Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lumentum Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LU2 Health

 How is Lumentum Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lumentum Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lumentum Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lumentum Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lumentum Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lumentum Holdings Company Filings, last reported 3 months ago.

DB:LU2 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-29 1,559.70 837.90 684.10
2018-09-29 1,073.80 343.90 734.30
2018-06-30 1,014.30 341.90 711.50
2018-03-31 972.60 339.90 692.80
2017-12-30 939.60 337.90 624.50
2017-09-30 724.30 328.90 532.50
2017-07-01 706.20 317.50 555.30
2017-04-01 719.10 313.40 577.90
2016-12-31 580.40 0.00 155.90
2016-10-01 564.50 0.00 166.80
2016-07-02 543.50 0.00 157.10
2016-04-02 512.50 0.00 157.20
2015-12-26 506.70 0.00 161.90
2015-09-26 500.80 0.00 142.10
2015-06-27 380.60 0.00 14.50
2015-03-28 382.90 0.00 10.60
2014-12-27 342.90 0.00 19.50
2014-09-27 335.60 0.00 19.90
2014-06-28 335.60 0.00 19.90
2013-06-29 281.80 0.00 7.80
2012-06-30
  • Lumentum Holdings's level of debt (53.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 53.7% today).
  • Debt is well covered by operating cash flow (34.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14x coverage).
X
Financial health checks
We assess Lumentum Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lumentum Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LU2 Dividends

 What is Lumentum Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Lumentum Holdings dividends. Estimated to be 0% next year.
If you bought €2,000 of Lumentum Holdings shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Lumentum Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Lumentum Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LU2 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Europe Communications Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LU2 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.00 2.00
2020-06-30 0.00 2.00
2019-06-30 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Lumentum Holdings has not reported any payouts.
  • Unable to verify if Lumentum Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Lumentum Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Lumentum Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Lumentum Holdings's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Lumentum Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lumentum Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lumentum Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LU2 Management

 What is the CEO of Lumentum Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alan Lowe
COMPENSATION $6,768,186
AGE 56
TENURE AS CEO 3.8 years
CEO Bio

Mr. Alan S. Lowe has been the Chief Executive Officer and President of Lumentum Holdings Inc. since July 2015. Mr. Lowe has over 20 years experience in general management, operations, sales and business development. He served as the President of Commercial Optical Products and President of Communications at JDS Uniphase Corporation (now known as Viavi Solutions Inc.) since October 2008. He has extensive business, management, and leadership skills from his roles at Viavi, Asyst Technologies and Read-Rite and has broad and deep experience with Lumentum and its businesses. Mr. Lowe served as Head of Communications and Commercial Optical Products Business Segment at JDS Uniphase Corp. He served as Head of Commercial Lasers Business of JDS Uniphase Corp., since September 2007 and its Executive Vice President and President of Communications and Commercial Optical Products business since October 2008. He was responsible for JDS Uniphase Corp.'s Commercial Laser Products Group. He focused his efforts on margin expansion initiatives, lean manufacturing initiatives and working with customers as the industry continues its transition from gas to solid-state laser platforms. Before joining JDSU in September 2007, he served as Senior Vice President, Global Business Solutions Group of Asyst Technologies, Inc. from August 29, 2005 to September 14, 2007, Head of Customer Solutions division from February 6, 2007 to September 14, 2007 and also served as its senior vice president, Customer Solutions Group. From 1989 to 2000, Mr. Lowe served in roles of increasing responsibility at Read-Rite, including Chief Operating Officer and Senior Vice President, Customer Business Units. He served as Chief Executive Officer of Read-Rite Corp. since June 2000 until 2003 and served as its President since May 1997 until 2003. He joined Read Rite Corp. in 1989. He served as Vice President for Sales at Read-Rite from November 1991 to August 1994, as Vice President for Customer Programs from August 1994 to November 1995 and as Senior Vice President for Customer Programs from November 1995 to October 1996. He was Senior Vice President for Customer Business Units at Read-Rite from October 1996. Mr. Lowe served as Chief Executive Officer of Scion Photonics from 2000 to 2001, a majority-owned subsidiary of Read-Rite that supplied application-specific photonic components and subsystems to the telecommunications industry. Before joining Read-Rite, he served in various sales positions with Microcom Corporation and IBM Corporation. He has been a Director of Lumentum Holdings Inc. since August 2015. He served as a Director of Scion Photonics, Inc. He served as a Director of Read-Rite Corp. since February 2000. He is a Member of the Advisory Board at ETM Electromatic Incorporated. Mr. Lowe holds a BA Degree in Computer Science and Business Economics from the University of California at Santa Barbara and also completed the Stanford Executive Program in 1994.

CEO Compensation
  • Alan's compensation has been consistent with company performance over the past year.
  • Alan's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Lumentum Holdings management team in years:

1.3
Average Tenure
49
Average Age
  • The average tenure for the Lumentum Holdings management team is less than 2 years, this suggests a new team.
Management Team

Alan Lowe

TITLE
President
COMPENSATION
$7M
AGE
56
TENURE
3.8 yrs

Judy Hamel

TITLE
Senior VP
COMPENSATION
$1M
AGE
52
TENURE
3.8 yrs

Jason Reinhardt

TITLE
Executive Vice President of Global Sales
COMPENSATION
$2M
AGE
44
TENURE
3.2 yrs

Vince Retort

TITLE
Executive VP & GM of 3D Sensing
COMPENSATION
$3M
AGE
64
TENURE
1.3 yrs

Chris Coldren

TITLE
Senior Vice President of Business Development
COMPENSATION
$1M
AGE
46
TENURE
0.2 yrs

Wajid Ali

TITLE
Executive VP & CFO
AGE
45
TENURE
0.2 yrs

Matt Sepe

TITLE
VP of Finance
TENURE
0.8 yrs

Shreyas Shah

TITLE
Chief Information Officer & Senior VP of IT

Sharon Parker

TITLE
Senior Vice President of Human Resources

Doug Alteen

TITLE
Senior VP & GM of Telecom Transport
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Lumentum Holdings board of directors in years:

3.7
Average Tenure
56.5
Average Age
  • The tenure for the Lumentum Holdings board of directors is about average.
Board of Directors

Marty Kaplan

TITLE
Chairman of the Board
COMPENSATION
$336K
AGE
81
TENURE
3.7 yrs

Alan Lowe

TITLE
President
COMPENSATION
$7M
AGE
56
TENURE
3.7 yrs

Hal Covert

TITLE
Director
COMPENSATION
$286K
AGE
71
TENURE
3.7 yrs

Penny Herscher

TITLE
Director
COMPENSATION
$281K
AGE
57
TENURE
3.7 yrs

Brian Lillie

TITLE
Director
COMPENSATION
$261K
AGE
54
TENURE
3.7 yrs

Samuel Thomas

TITLE
Director
COMPENSATION
$261K
AGE
66
TENURE
3.8 yrs

Julie Johnson

TITLE
Director
COMPENSATION
$239K
AGE
52
TENURE
1.4 yrs

Ian Small

TITLE
Director
AGE
53
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Lumentum Holdings insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
28. Feb 19 Sell Martin Kaplan Individual 22. Feb 19 22. Feb 19 -3,025 €42.96 €-129,966
22. Feb 19 Sell Jason Reinhardt Individual 22. Feb 19 22. Feb 19 -9,575 €44.43 €-425,418
15. Feb 19 Sell Harold Covert Individual 14. Feb 19 14. Feb 19 -3,017 €40.81 €-123,113
28. Aug 18 Sell Christopher Coldren Individual 23. Aug 18 23. Aug 18 -3,416 €55.61 €-189,954
25. Aug 18 Sell Judy Hamel Individual 22. Aug 18 22. Aug 18 -2,495 €54.52 €-136,024
25. Aug 18 Sell Matthew Sepe Individual 24. Aug 18 24. Aug 18 -2,000 €55.86 €-111,710
18. Aug 18 Sell Martin Kaplan Individual 16. Aug 18 16. Aug 18 -7,000 €52.66 €-368,634
16. Jul 18 Sell Matthew Sepe Individual 16. Jul 18 16. Jul 18 -1,466 €49.86 €-73,098
21. May 18 Sell Alan Lowe Individual 18. May 18 18. May 18 -5,863 €53.04 €-310,984
18. May 18 Sell Vincent Retort Individual 17. May 18 17. May 18 -521 €53.58 €-27,917
18. May 18 Sell Judy Hamel Individual 16. May 18 17. May 18 -541 €53.91 €-29,047
X
Management checks
We assess Lumentum Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lumentum Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LU2 News

Simply Wall St News

LU2 Company Info

Description

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments, Optical Communications and Commercial Lasers. The Optical Communications segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and text data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; optical transceivers for fiber channel and Ethernet applications; integrated fiber optic transceivers; vertical-cavity surface-emitting lasers; distributed feedback and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers for use in original equipment manufacturer applications. It serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, graphics and imaging, and remote sensing, as well as in precision machining, such as drilling in printed circuit boards, wafer singulation, glass cutting, and solar cell scribing. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in Milpitas, California.

Details
Name: Lumentum Holdings Inc.
LU2
Exchange: DB
Founded: 2015
$4,110,838,290
76,100,000
Website: http://www.lumentum.com
Address: Lumentum Holdings Inc.
400 North McCarthy Boulevard,
Milpitas,
California, 95035,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LITE Common Stock Nasdaq Global Select US USD 23. Jul 2015
DB LU2 Common Stock Deutsche Boerse AG DE EUR 23. Jul 2015
LSE 0JVV Common Stock London Stock Exchange GB USD 23. Jul 2015
BMV LITE * Common Stock Bolsa Mexicana de Valores MX MXN 23. Jul 2015
Number of employees
Current staff
Staff numbers
2,930
Lumentum Holdings employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 22:02
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/29
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.