NasdaqGS:LITE

Stock Analysis Report

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

Fundamentals

Reasonable growth potential with mediocre balance sheet.

Risks

  • Lumentum Holdings has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-1.8%

NasdaqGS:LITE

-8.2%

US Communications

-1.0%

US Market


1 Year Return

-2.2%

NasdaqGS:LITE

-2.2%

US Communications

-0.4%

US Market

LITE matched the Communications industry (-2.2%) over the past year.

LITE underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

LITEIndustryMarket
7 Day-1.8%-8.2%-1.0%
30 Day9.0%-16.2%-3.3%
90 Day31.9%-13.0%0.8%
1 Year-2.2%-2.2%-0.02%-2.2%1.9%-0.4%
3 Year69.4%69.4%51.4%41.8%39.4%30.4%
5 Yearn/a79.3%60.9%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Lumentum Holdings is loss making, we can't compare its value to the US Communications industry average.

Lumentum Holdings is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Lumentum Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Lumentum Holdings is overvalued based on assets compared to the US Communications industry average.


Next Steps

Future Growth

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

58.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Lumentum Holdings's revenue is expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

Lumentum Holdings's earnings are expected to grow significantly at over 20% yearly.

Lumentum Holdings's revenue growth is expected to exceed the United States of America market average.

Lumentum Holdings's earnings growth is expected to exceed the United States of America market average.

Lumentum Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Lumentum Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Lumentum Holdings performed over the past 5 years?

39.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Lumentum Holdings does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Lumentum Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Lumentum Holdings's 1-year growth to the US Communications industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Lumentum Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Lumentum Holdings has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Lumentum Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Lumentum Holdings's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Lumentum Holdings's level of debt (56%) compared to net worth is high (greater than 40%).

Unable to establish if Lumentum Holdings's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (28.6%, greater than 20% of total debt).

Lumentum Holdings is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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 United States of America.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Alan Lowe (57yo)

4.1yrs

Tenure

US$6,768,186

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

Alan's remuneration is higher than average for companies of similar size in United States of America.

Alan's compensation has increased whilst company is loss making.


Management Age and Tenure

1.6yrs

Average Tenure

50yo

Average Age

The average tenure for the Lumentum Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

57yo

Average Age

The tenure for the Lumentum Holdings board of directors is about average.


Insider Trading

Lumentum Holdings individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$288,08315 Aug 19
Matthew Sepe
EntityIndividual
Role
VP of Finance
Shares4,811
Max PriceUS$59.88
SellUS$83,79713 May 19
Judy Hamel
EntityIndividual
Role
Senior VP
Shares1,429
Max PriceUS$58.64
SellUS$147,37128 Feb 19
Martin Kaplan
EntityIndividual
Shares3,025
Max PriceUS$48.72
SellUS$482,38922 Feb 19
Jason Reinhardt
EntityIndividual
Role
Executive Vice President of Global Sales
Shares9,575
Max PriceUS$50.38
SellUS$138,81215 Feb 19
Harold Covert
EntityIndividual
Role
Member of the Board of Directors
Shares3,017
Max PriceUS$46.01
SellUS$219,85428 Aug 18
Christopher Coldren
EntityIndividual
Role
Senior Vice President of Business Development
Shares3,416
Max PriceUS$64.36
SellUS$129,82025 Aug 18
Matthew Sepe
EntityIndividual
Role
VP of Finance
Shares2,000
Max PriceUS$64.91
SellUS$157,70925 Aug 18
Judy Hamel
EntityIndividual
Role
Senior VP
Shares2,495
Max PriceUS$63.21

Ownership Breakdown


Management Team

  • Wajid Ali (46yo)

    Executive VP & CFO

    • Tenure: 0.5yrs
  • Judy Hamel (53yo)

    Senior VP

    • Tenure: 4.1yrs
    • Compensation: $1.38m
  • Chris Coldren (47yo)

    Senior Vice President of Business Development

    • Tenure: 0.5yrs
    • Compensation: $1.50m
  • Vince Retort (65yo)

    Executive VP & GM of 3D Sensing

    • Tenure: 1.6yrs
    • Compensation: $3.22m
  • Sharon Parker

    Senior Vice President of Human Resources

  • Shreyas Shah

    Chief Information Officer & Senior VP of IT

  • Alan Lowe (57yo)

    President

    • Tenure: 4.1yrs
    • Compensation: $6.77m
  • Jason Reinhardt (45yo)

    Executive Vice President of Global Sales

    • Tenure: 3.5yrs
    • Compensation: $2.08m
  • Matt Sepe

    VP of Finance

    • Tenure: 1.2yrs
  • Doug Alteen

    Senior VP & GM of Telecom Transport

    • Tenure: 1.6yrs

Board Members

  • Hal Covert (72yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: $286.08k
  • Alan Lowe (57yo)

    President

    • Tenure: 4.0yrs
    • Compensation: $6.77m
  • Samuel Thomas (67yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: $261.08k
  • Ian Small (54yo)

    Director

    • Tenure: 0.7yrs
  • Penny Herscher (58yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: $281.08k
  • Brian Lillie (55yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: $261.08k
  • Julie Johnson (52yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: $238.75k

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$4.493b
  • Shares outstanding: 76.65m
  • Website: Click here

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
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 through two segments, Optical Commun ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 00:42
End of Day Share Price2019/08/16 00:00
Earnings2019/06/29
Annual Earnings2019/06/29


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.