NasdaqGS:LITE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Lumentum Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LITE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.4%

LITE

-0.2%

US Communications

-0.04%

US Market


1 Year Return

55.3%

LITE

-3.7%

US Communications

17.1%

US Market

Return vs Industry: LITE exceeded the US Communications industry which returned -5.8% over the past year.

Return vs Market: LITE exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

LITEIndustryMarket
7 Day-4.4%-0.2%-0.04%
30 Day14.6%4.9%5.1%
90 Day22.9%10.3%19.5%
1 Year55.3%55.3%-1.1%-3.7%19.6%17.1%
3 Year69.7%69.7%41.4%31.7%42.5%33.3%
5 Year320.6%320.6%66.1%47.9%75.1%56.2%

Price Volatility Vs. Market

How volatile is Lumentum Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

16.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LITE ($89.96) is trading below our estimate of fair value ($108.25)

Significantly Below Fair Value: LITE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LITE is poor value based on its PE Ratio (60.1x) compared to the US Communications industry average (41.6x).

PE vs Market: LITE is poor value based on its PE Ratio (60.1x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: LITE is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: LITE is overvalued based on its PB Ratio (3.9x) compared to the US Communications industry average (2x).


Next Steps

Future Growth

How is Lumentum Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

43.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LITE's forecast earnings growth (43.9% per year) is above the savings rate (2.2%).

Earnings vs Market: LITE's earnings (43.9% per year) are forecast to grow faster than the US market (24% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LITE's revenue (8.8% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: LITE's revenue (8.8% 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 (18.7%).


Next Steps

Past Performance

How has Lumentum Holdings performed over the past 5 years?

31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LITE has a large one-off loss of $97.7M impacting its June 27 2020 financial results.

Growing Profit Margin: LITE's current net profit margins (6.7%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: LITE's earnings have grown significantly by 31.7% per year over the past 5 years.

Accelerating Growth: LITE's earnings growth over the past year (438%) exceeds its 5-year average (31.7% per year).

Earnings vs Industry: LITE earnings growth over the past year (438%) exceeded the Communications industry -29.6%.


Return on Equity

High ROE: LITE's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Lumentum Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LITE's short term assets ($2.0B) exceed its short term liabilities ($286.7M).

Long Term Liabilities: LITE's short term assets ($2.0B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: LITE's debt to equity ratio (63.8%) is considered high.

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 (47.9%).

Interest Coverage: LITE's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Next Steps

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?

3.5yrs

Average management tenure


CEO

Alan Lowe (58 yo)

5.08yrs

Tenure

US$9,325,740

Compensation

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 de ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD9.33M) is about average for companies of similar size in the US market ($USD7.31M).

Compensation vs Earnings: Alan's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alan Lowe
President5.08yrsUS$9.33m0.17%
$ 11.8m
Wajid Ali
Executive VP & CFO1.5yrsUS$7.63m0.14%
$ 9.2m
Vincent Retort
Executive VP4.5yrsUS$4.25m0.10%
$ 6.8m
Judy Hamel
Senior VP5.08yrsUS$2.16m0.053%
$ 3.5m
Jason Reinhardt
Executive Vice President of Global Sales4.5yrsUS$2.69m0.083%
$ 5.6m
Christopher Coldren
Senior Vice President of Strategy & Corporate Development1.58yrsUS$1.86m0.013%
$ 883.4k
Matthew Sepe
VP of Finance2.17yrsno data0.028%
$ 1.9m
Shreyas Shah
Chief Information Officer & Senior VP of ITno datano datano data
Sharon Parker
Senior Vice President of Human Resourcesno datano datano data
Doug Alteen
Senior VP & GM of Telecom Transport2.58yrsno datano data
Alex Schoenfelder
Senior VP & GM of Commercial Lasers2.58yrsno datano data
Dallas Meyer
Senior Vice President of Global Operations4.58yrsno datano data

3.5yrs

Average Tenure

54yo

Average Age

Experienced Management: LITE's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan Lowe
President5.08yrsUS$9.33m0.17%
$ 11.8m
Harold Covert
Independent Director5yrsUS$280.05k0.027%
$ 1.8m
Samuel Thomas
Independent Director5yrsUS$253.80k0.040%
$ 2.7m
Ian Small
Independent Director1.67yrsUS$229.28k0.0036%
$ 241.2k
Penelope Herscher
Independent Chair of Board of Directors1yrUS$273.80k0.049%
$ 3.3m
Brian Lillie
Independent Director5yrsUS$253.80k0.012%
$ 808.6k
Julia Johnson
Independent Director2.75yrsUS$238.75k0.0086%
$ 578.8k

5.0yrs

Average Tenure

58yo

Average Age

Experienced Board: LITE's board of directors are considered experienced (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 company bio, 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$6.738b
  • Shares outstanding: 74.90m
  • Website: https://www.lumentum.com

Number of Employees


Location

  • Lumentum Holdings Inc.
  • 400 North McCarthy Boulevard
  • Milpitas
  • California
  • 95035
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LITENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2015
LU2DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2015
LITE-UETLX (Eurotlx)YesCommon StockITEURJul 2015
0JVVLSE (London Stock Exchange)YesCommon StockGBUSDJul 2015
LITE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2015

Biography

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 Communicati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 00:43
End of Day Share Price2020/08/11 00:00
Earnings2020/06/27
Annual Earnings2020/06/27


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.