Lumentum Holdings Inc.

Telecommunications
Telecommunications Equipment
www.lumentum.com

Earnings Score
Moat Score
Safety Score

Market Cap $6.32B
PE -11
Debt $2.58B
Cash $489.20M
EV $8.41B
FCF -$82.70M

Earnings

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Sales & Net Margins

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Earnings	-$561.00M
EBIT	-$456.80M
ROE	-63%
ROA	-12%
FCF	-$82.70M
Equity	$895.90M
Growth Stability	-353%
PE	-11.27
PEG	6.17
PB	7.06
P/FCF	-76.45
P/S	4.59
Price/Cash	0.08
Debt/Equity	2.88
Debt/FCF	-31.2
Net Margins	-24%
Gross Margins	18%
Op. Margins	-33%
Earnings CAGR	4%
Sales Growth YoY	6%
Sales Growth QoQ	9%
Sales CAGR	7%
FCF CAGR	12%
Equity CAGR	15%
Earnings Stability	0.03
Earnings Growth YoY	21%
Earnings Growth QoQ	-67%

Earnings CAGR 5Y	-2%
Sales CAGR 5Y	-4%
FCF CAGR 5Y	-11%
Equity CAGR 5Y	-13%
Earnings CAGR 3Y	-9%
Sales CAGR 3Y	-9%
FCF CAGR 3Y	-24%
Equity CAGR 3Y	-24%
Market Cap	$6.32B
Revenue	$1.38B
Assets	$3.97B
Total Debt	$2.58B
Cash	$489.20M
Shares Outstanding	68.1M
EV	8.41B
Earnings Score	6%
Moat Score	3%
Safety Score	30%
Final Score	13%
Working Capital	1.33B
Current Ratio	5.36
Gross Profit	$252.70M
Shares Growth 3y	-2%
Equity Growth QoQ	-6%
Equity Growth YoY	-32%

Assets & ROA

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Stockholders Equity & ROE

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Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are OpComms and Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul (city-to-city and worldwide), and submarine (undersea) applications.

SEC Filings

Direct access to Lumentum Holdings Inc. (LITE) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 28
- 10-K Jun 29
- 10-Q Mar 30
2023
- 10-Q Dec 30
- 10-Q Sep 30
- 10-K Jul 01
- 10-Q Apr 01
2022
- 10-Q Dec 31
- 10-Q Oct 01
- 10-K Jul 02
- 10-Q Apr 02
- 10-Q Jan 01

Sector Comparison

How does Lumentum Holdings Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Lumentum Holdings Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 4%

Stability 3%

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Lumentum Holdings Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Lumentum Holdings Inc..

Years

Calculation mode

= -$1.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$83M	-$93M	-$104M	-$117M	-$131M	-$146M	-$164M	-$184M	-$206M	-$231M	-$259M	-$2.6B
DCF		-$84M	-$86M	-$88M	-$89M	-$91M	-$93M	-$94M	-$96M	-$98M	-$100M	-$1B
Value	-$1.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	07/2016	06/2017	06/2018	06/2019	06/2020	07/2021	07/2022	06/2023	06/2024	TTM
Net Margins	-0%	-0%	-10%	19%	-2%	8%	23%	12%	-7%	-40%	-24%
ROA	-	2%	4%	9%	0%	7%	15%	8%	-1%	-11%	-12%
ROE	-	-1%	-17%	26%	-3%	8%	20%	11%	-10%	-57%	-63%

Bad Net Margins (-24.46%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	07/2016	06/2017	06/2018	06/2019	06/2020	07/2021	07/2022	06/2023	06/2024	TTM
Debt over FCF	-	0	-8.61	2.96	2.95	3.51	2.94	7.66	54.81	-23.11	-31.2
Debt over Equity	-	0	0.74	0.49	0.32	0.88	0.97	1.5	2.07	2.61	2.88
Growth Stability	-	-	-	-	-84%	100%	100%	100%	-54%	-353%	-353%

Good Debt/FCF ratio (-31.2)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Bad Debt/Equity ratio (2.88)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (-353%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	07/2016	06/2017	06/2018	06/2019	06/2020	07/2021	07/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	8%	11%	25%	25%	7%	4%	-2%	3%	-23%	-4%
Earnings YoY growth	-	-6%	3K%	-334%	-116%	-458%	193%	-50%	-166%	315%	-2%
Equity YoY growth	-	31%	24%	50%	62%	17%	13%	-5%	-28%	-29%	-13%
FCF YoY growth	-	-110%	-1K%	-391%	6%	167%	49%	-44%	-86%	-311%	-11%