StockData
Lumentum Holdings Inc. logo

Lumentum Holdings Inc. (LITE) stock analysis

LITENasdaqCommunications Equipment, NECFiscal year ends June 27
Financials through Q4 FY2026, quarter ended Jun 27, 2026Last filing: 10-Q on Nov 3, 2026Score 8/30458% above fair value
$648.06+62.49 (+10.67%)

Close on Nov 11, 2026Market cap $58.13BP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth3Performance1Health4Dividend0

Weak8 of 30 checks passed

Lumentum passes 8 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
3/6
Past performance
1/6
Financial health
4/6
Dividend
0/6

What stands out

  • Return on capital over 10%

    Return on invested capital was 10.4%, above the 10% that usually covers the cost of capital.

  • Revenue growing 10%+ a year

    Revenue grew 19.5% a year over the last three fiscal years.

  • Interest well covered

    Operating income covers interest expense 24.1 times.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 23.2% of total debt.

What to watch

  • Margin of safety under 20%

    The price is 458% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $648.06 is above our fair value estimate of $116.11.

  • Return on equity under 15%

    Return on equity was -240% over the last twelve months and averaged -56.5% over five years; we look for 15% on both.

  • High debt

    Debt is 69.6% of shareholders' equity, above the 40% we consider low.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA above its 5-year median

    Lumentum's EV/EBITDA of 111.7 is above its 5-year median of 17.9.

  • P/B above the industry

    Lumentum's price-to-book of 12.52 is above the Communications Equipment median of 2.54.

  • Trading above fair value

    The share price of $648.06 is above our fair value estimate of $116.11.

  • Margin of safety under 20%

    The price is 458% above fair value, so there is no margin of safety.

Growth3/6

  • Revenue growing 10%+ a year

    Revenue grew 19.5% a year over the last three fiscal years.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 83.2% over the last twelve months; the Communications Equipment median is 10.9%.

  • Guidance issued

    The latest outlook (second quarter of fiscal year 2027 Net revenue, Nov 2, 2026) was issued for the first time, so it neither adds nor takes away points.

  • Gross margin improving

    Gross margin was 41.7% over the last twelve months, against 28.0% a year earlier.

Past performance1/6

  • Return on equity under 15%

    Return on equity was -240% over the last twelve months and averaged -56.5% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 10.4%, above the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Lumentum's return on equity of -240% is below the Communications Equipment median of -3.7%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin below its 5-year average

    Net margin was -230% over the last twelve months, against a 5-year average of -52.9%.

  • Net margin below the industry

    Lumentum's net margin of -230% is below the Communications Equipment median of -2.2%.

Financial health4/6

  • High debt

    Debt is 69.6% of shareholders' equity, above the 40% we consider low.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 23.2% of total debt.

  • Interest well covered

    Operating income covers interest expense 24.1 times.

  • Short-term assets cover short-term debts

    Current assets are 1.68 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 12.53; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Lumentum has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$116.11

The share price is 458% above this estimate.

20%+ below
Near fair value
20%+ above
$648.06Price$116.11Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
EV/EBITDA18.9×17.9×20.0×$105.2378%
P/B3.0×3.4×2.5×$154.1822%
Earnings powerleft out, too far from the others13.9% cost of equity––$2.33–
Fair value$116.11100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Communications Equipment median 24.9

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$4.93B
Value traded per 1% price move
$949.88M

Downside

High risk

Typical loss in a bad month
37.1%
Volatility (annualized)
101%
Sharpe ratio, 1 year
1.43
Beta to the S&P 500 (5Y)
1.80

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2012 to 2026

Gross margin

41.7%−3.3 pts over 5 years

Operating margin

17.4%−12.8 pts over 5 years

Net margin

-230.1%−252.9 pts over 5 years

See a number that looks wrong?