Lumentum Holdings
Market Cap
US$6.5b
Last Updated
2021/03/07 00:49 UTC
Data Sources
Company Financials +
Executive Summary
Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with acceptable track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: LITE's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-4.3%
LITE
1.2%
US Communications
-0.4%
US Market
1 Year Return
4.4%
LITE
22.0%
US Communications
36.2%
US Market
Return vs Industry: LITE underperformed the US Communications industry which returned 22% over the past year.
Return vs Market: LITE underperformed the US Market which returned 36.2% over the past year.
Shareholder returns
| LITE | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.3% | 1.2% | -0.4% |
| 30 Day | -3.8% | -3.6% | -2.3% |
| 90 Day | -3.6% | 6.4% | 5.0% |
| 1 Year | 4.4%4.4% | 25.2%22.0% | 39.1%36.2% |
| 3 Year | 24.8%24.8% | 6.8%-0.1% | 48.4%39.0% |
| 5 Year | 239.4%239.4% | 83.4%62.8% | 116.6%92.4% |
Long-Term 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
2 weeks ago | Simply Wall St
Lumentum Holdings (NASDAQ:LITE) Has A Rock Solid Balance Sheet1 month ago | Simply Wall St
Shareholders Are Raving About How The Lumentum Holdings (NASDAQ:LITE) Share Price Increased 306%1 month ago | Simply Wall St
Is Lumentum Holdings Inc. (NASDAQ:LITE) Trading At A 39% Discount?Valuation
Is Lumentum Holdings undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LITE ($86.11) is trading below our estimate of fair value ($174.15)
Significantly Below Fair Value: LITE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LITE is poor value based on its PE Ratio (34.2x) compared to the US Communications industry average (33.3x).
PE vs Market: LITE is poor value based on its PE Ratio (34.2x) compared to the US market (21.5x).
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 (3.4x) compared to the US Communications industry average (2.7x).
Next Steps
Future Growth
How is Lumentum Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
25.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LITE's forecast earnings growth (25.2% per year) is above the savings rate (2%).
Earnings vs Market: LITE's earnings (25.2% per year) are forecast to grow faster than the US market (19.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LITE's revenue (9.3% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: LITE's revenue (9.3% 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 (19.4%).
Next Steps
Past Performance
How has Lumentum Holdings performed over the past 5 years?
36.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LITE has high quality earnings.
Growing Profit Margin: LITE became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: LITE has become profitable over the past 5 years, growing earnings by 36.6% per year.
Accelerating Growth: LITE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: LITE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (10.8%).
Return on Equity
High ROE: LITE's Return on Equity (9.8%) 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 ($2.3B) exceed its short term liabilities ($647.3M).
Long Term Liabilities: LITE's short term assets ($2.3B) exceed its long term liabilities ($899.0M).
Debt to Equity History and Analysis
Debt Level: LITE's debt to equity ratio (59.8%) 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 (44.2%).
Interest Coverage: LITE's interest payments on its debt are well covered by EBIT (6.2x 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?
3.2yrs
Average management tenure
CEO
Alan Lowe (58 yo)
5.67yrs
Tenure
US$10,339,494
Compensation
Mr. Alan S. Lowe has been the Chief Executive Officer and President of Lumentum Holdings Inc. since July 2015. Mr. Lowe is experienced in general management, operations, sales and business development. He ...
CEO Compensation Analysis
Compensation vs Market: Alan's total compensation ($USD10.34M) 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.67yrs | US$10.34m | 0.17% $ 10.9m | |
| Executive VP & CFO | 2.08yrs | US$4.31m | 0.11% $ 6.9m | |
| Executive VP | 5.08yrs | US$4.88m | 0.11% $ 7.0m | |
| Senior VP | 5.67yrs | US$2.17m | 0.047% $ 3.1m | |
| Executive Vice President of Global Sales | 5.08yrs | US$3.08m | 0.089% $ 5.8m | |
| VP of Finance | 2.75yrs | no data | 0.022% $ 1.4m | |
| Senior VP of IT & Chief Information Officer | 2.42yrs | no data | no data | |
| Senior Vice President of Strategy & Corporate Development | 2.17yrs | US$1.86m | no data | |
| Senior Vice President of Human Resources | no data | no data | no data | |
| Senior VP & GM of Telecom Transport | 3.17yrs | no data | no data | |
| Senior VP & GM of Commercial Lasers | 3.17yrs | no data | no data | |
| Senior Vice President of Global Operations | 5.17yrs | no data | no data |
3.2yrs
Average Tenure
54yo
Average Age
Experienced Management: LITE's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.67yrs | US$10.34m | 0.17% $ 10.9m | |
| Independent Director | 5.58yrs | US$391.31k | 0.013% $ 861.1k | |
| Independent Director | 2.25yrs | US$361.31k | 0.011% $ 706.0k | |
| Independent Chair of Board of Directors | 1.58yrs | US$422.56k | 0.052% $ 3.4m | |
| Independent Director | 5.58yrs | US$361.31k | 0.0073% $ 472.6k | |
| Independent Director | 0.50yr | no data | no data | |
| Independent Director | 3.33yrs | US$361.31k | 0.014% $ 904.1k |
3.3yrs
Average Tenure
58yo
Average Age
Experienced Board: LITE's board of directors are considered experienced (3.3 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$6.519b
- Shares outstanding: 75.70m
- Website: https://www.lumentum.com
Number of Employees
Location
- Lumentum Holdings Inc.
- 1001 Ridder Park Drive
- San Jose
- California
- 95131
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LITE | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jul 2015 |
| LU2 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 2015 |
| LITE-U | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jul 2015 |
| 0JVV | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jul 2015 |
| LITE * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/07 00:49 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/26 |
| Annual Earnings | 2020/06/27 |
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.