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
Price History & Performance
|Historical stock prices|
|Current Share Price||US$85.90|
|52 Week High||US$112.08|
|52 Week Low||US$65.67|
|1 Month Change||-1.05%|
|3 Month Change||-3.52%|
|1 Year Change||-3.82%|
|3 Year Change||104.96%|
|5 Year Change||102.59%|
|Change since IPO||405.29%|
Recent News & Updates
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.
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...
|LITE||US Communications||US Market|
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.
|LITE Average Weekly Movement||3.7%|
|Communications Industry Average Movement||6.4%|
|Market Average Movement||6.1%|
|10% most volatile stocks in US Market||14.8%|
|10% least volatile stocks in US Market||2.4%|
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
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
|LITE fundamental statistics|
Is LITE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LITE income statement (TTM)|
|Cost of Revenue||US$869.60m|
Last Reported Earnings
Oct 02, 2021
Next Earnings Date
|Earnings per share (EPS)||5.69|
|Net Profit Margin||23.68%|
How did LITE perform over the long term?See historical performance and comparison
Is Lumentum Holdings undervalued compared to its fair value and its price relative to the market?
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).
How is Lumentum Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
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%).
How has Lumentum Holdings performed over the past 5 years?
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.
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 ($935.9M).
Debt to Equity History and Analysis
Debt Level: LITE has more cash than its total debt.
Reducing Debt: Insufficient data to determine if LITE's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: LITE's debt is well covered by operating cash flow (58.2%).
Interest Coverage: LITE's interest payments on its debt are well covered by EBIT (5.3x coverage).
What is Lumentum Holdings's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LITE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LITE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LITE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LITE's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LITE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Alan Lowe (59 yo)
Mr. Alan S. Lowe has been the Chief Executive Officer and President of Lumentum Holdings Inc. since July 2015. Mr. Lowe is experienced in general management, operations, sales and business development. He...
CEO Compensation Analysis
Compensation vs Market: Alan's total compensation ($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.
Experienced Management: LITE's management team is considered experienced (3.9 years average tenure).
Experienced Board: LITE's board of directors are considered experienced (3.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Lumentum Holdings Inc.'s employee growth, exchange listings and data sources
- 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
- Lumentum Holdings Inc.
- 1001 Ridder Park Drive
- San Jose
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/04 00:15|
|End of Day Share Price||2021/12/03 00:00|
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.