company background image
LITE

Lumentum HoldingsNasdaqGS:LITE Stock Report

Market Cap

US$6.2b

7D

-1.1%

1Y

-3.8%

Updated

04 Dec, 2021

Data

Company Financials +
LITE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends0/6

LITE Stock Overview

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa.

Lumentum Holdings Competitors

Cisco Systems

NasdaqGS:CSCO

US$237.2b

Arista Networks

NYSE:ANET

US$37.2b

Juniper Networks

NYSE:JNPR

US$10.2b

Ciena

NYSE:CIEN

US$9.5b

Price History & Performance

Summary of all time highs, changes and price drops for Lumentum Holdings
Historical stock prices
Current Share PriceUS$85.90
52 Week HighUS$112.08
52 Week LowUS$65.67
Beta0.84
1 Month Change-1.05%
3 Month Change-3.52%
1 Year Change-3.82%
3 Year Change104.96%
5 Year Change102.59%
Change since IPO405.29%

Recent News & Updates

Nov 29

Lumentum Holdings: Strategic Acquisitions, Bright Future

Lumentum Holdings has surprisingly garnered the attention of investors with a pretty substantial price movement, with the current share price at least 124% higher than in 2018. Lumentum’s acquisition of NeoPhotonics to boost optical networking speed and scalability is a significant strategic move into an addressable market that’s worth $20 billion. Tracing a three-year share price growth, Lumentum Holdings managed to achieve compound earnings per share growth at 8.3%. This is a company with a rare potential to offset its debts, not relying on its profits but on direct earnings.

Nov 02
These 4 Measures Indicate That Lumentum Holdings (NASDAQ:LITE) Is Using Debt Safely

These 4 Measures Indicate That Lumentum Holdings (NASDAQ:LITE) Is Using Debt Safely

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

LITEUS CommunicationsUS Market
7D-1.1%1.4%-2.7%
1Y-3.8%29.1%16.6%

Return vs Industry: LITE underperformed the US Communications industry which returned 29.1% over the past year.

Return vs Market: LITE underperformed the US Market which returned 16.6% over the past year.

Price Volatility

Is LITE's price volatile compared to industry and market?
LITE volatility
LITE Average Weekly Movement3.7%
Communications Industry Average Movement6.4%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: LITE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LITE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20155,618Alan Lowehttps://www.lumentum.com

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 in two segments, Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.

Lumentum Holdings Fundamentals Summary

How do Lumentum Holdings's earnings and revenue compare to its market cap?
LITE fundamental statistics
Market CapUS$6.21b
Earnings (TTM)US$411.70m
Revenue (TTM)US$1.74b

15.1x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LITE income statement (TTM)
RevenueUS$1.74b
Cost of RevenueUS$869.60m
Gross ProfitUS$869.20m
ExpensesUS$457.50m
EarningsUS$411.70m

Last Reported Earnings

Oct 02, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.69
Gross Margin49.99%
Net Profit Margin23.68%
Debt/Equity Ratio60.7%

How did LITE perform over the long term?

See historical performance and comparison

Valuation

Is Lumentum Holdings undervalued compared to its fair value and its price relative to the market?

45.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LITE ($85.9) is trading below our estimate of fair value ($157.92)

Significantly Below Fair Value: LITE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LITE is good value based on its PE Ratio (15.1x) compared to the US Communications industry average (28.2x).

PE vs Market: LITE is good value based on its PE Ratio (15.1x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: LITE is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: LITE is overvalued based on its PB Ratio (3.2x) compared to the US Communications industry average (2x).


Future Growth

How is Lumentum Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LITE's forecast earnings growth (3.4% per year) is above the savings rate (2%).

Earnings vs Market: LITE's earnings (3.4% per year) are forecast to grow slower than the US market (13.8% per year).

High Growth Earnings: LITE's earnings are forecast to grow, but not significantly.

Revenue vs Market: LITE's revenue (9.4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: LITE's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LITE's Return on Equity is forecast to be low in 3 years time (19.3%).


Past Performance

How has Lumentum Holdings performed over the past 5 years?

47.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LITE has a large one-off gain of $203.8M impacting its October 2 2021 financial results.

Growing Profit Margin: LITE's current net profit margins (23.7%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: LITE's earnings have grown significantly by 47.1% per year over the past 5 years.

Accelerating Growth: LITE's earnings growth over the past year (161.8%) exceeds its 5-year average (47.1% per year).

Earnings vs Industry: LITE earnings growth over the past year (161.8%) exceeded the Communications industry 22.8%.


Return on Equity

High ROE: LITE's Return on Equity (20.9%) is considered high.


Financial Health

How is Lumentum Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LITE's short term assets ($2.4B) exceed its short term liabilities ($611.7M).

Long Term Liabilities: LITE's short term assets ($2.4B) exceed its long term liabilities ($935.9M).


Debt to Equity History and Analysis

Debt Level: LITE has more cash than its total debt.

Reducing Debt: Insufficient data to determine if LITE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LITE's debt is well covered by operating cash flow (58.2%).

Interest Coverage: LITE's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LITE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LITE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LITE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LITE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LITE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Alan Lowe (59 yo)

6.42yrs

Tenure

US$10,299,689

Compensation

Mr. Alan S. Lowe has been the Chief Executive Officer and President of Lumentum Holdings Inc. since July 2015. Mr. Lowe is experienced in general management, operations, sales and business development. He...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD10.30M) is above average for companies of similar size in the US market ($USD6.35M).

Compensation vs Earnings: Alan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LITE's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: LITE's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lumentum Holdings Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Lumentum Holdings Inc.
  • Ticker: LITE
  • Exchange: NasdaqGS
  • Founded: 2015
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$6.211b
  • Shares outstanding: 72.30m
  • Website: https://www.lumentum.com

Number of Employees


Location

  • Lumentum Holdings Inc.
  • 1001 Ridder Park Drive
  • San Jose
  • California
  • 95131
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/04 00:15
End of Day Share Price2021/12/03 00:00
Earnings2021/10/02
Annual Earnings2021/07/03


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.