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Lumentum Holdings Inc.
LITE
Communications Equipment, NEC
Mkt Cap
$3.012BPE
-8.51Debt
$2.502BCash
$425MEV
$5.09BFCF
$70.6MP/E Ratio
-8.51Debt
$2.502BCash
$425MEV
$5.09BFCF
$70.6MCharts data: {"Earnings":[{"time":"2014-06-27","value":10700000},{"time":"2015-06-26","value":-3400000},{"time":"2016-07-01","value":-3200000},{"time":"2017-06-30","value":-103400000},{"time":"2018-06-29","value":241500000},{"time":"2019-06-28","value":-37900000},{"time":"2020-06-26","value":135500000},{"time":"2021-07-02","value":397300000},{"time":"2022-07-01","value":198900000},{"time":"2023-06-30","value":-131600000}],"Sales":[{"time":"2014-06-27","value":817900000},{"time":"2015-06-26","value":837100000},{"time":"2016-07-01","value":903000000},{"time":"2017-06-30","value":1001600000},{"time":"2018-06-29","value":1247700000},{"time":"2019-06-28","value":1565300000},{"time":"2020-06-26","value":1678600000},{"time":"2021-07-02","value":1742800000},{"time":"2022-07-01","value":1712600000},{"time":"2023-06-30","value":1767000000}],"Net Margins":[{"time":"2014-06-27","value":0.013082283897787015},{"time":"2015-06-26","value":-0.004061641380958069},{"time":"2016-07-01","value":-0.0035437430786267998},{"time":"2017-06-30","value":-0.10323482428115016},{"time":"2018-06-29","value":0.19355614330367876},{"time":"2019-06-28","value":-0.024212611001086053},{"time":"2020-06-26","value":0.08072203026331466},{"time":"2021-07-02","value":0.22796649070461328},{"time":"2022-07-01","value":0.11613920355015765},{"time":"2023-06-30","value":-0.07447651386530843}],"Assets":[{"time":"2014-06-27","value":492100000},{"time":"2015-06-26","value":512600000},{"time":"2016-07-01","value":726300000},{"time":"2017-06-30","value":1232900000},{"time":"2018-06-29","value":1581500000},{"time":"2019-06-28","value":2716600000},{"time":"2020-06-26","value":3292600000},{"time":"2021-07-02","value":3551600000},{"time":"2022-07-01","value":4162200000},{"time":"2023-06-30","value":4632100000}],"Stockholders Equity":[{"time":"2014-06-27","value":335600000},{"time":"2015-06-26","value":380700000},{"time":"2016-07-01","value":497400000},{"time":"2017-06-30","value":618800000},{"time":"2018-06-29","value":926100000},{"time":"2019-06-28","value":1497100000},{"time":"2020-06-26","value":1749200000},{"time":"2021-07-02","value":1972800000},{"time":"2022-07-01","value":1875000000},{"time":"2023-06-30","value":1355800000}],"ROE":[{"time":"2014-06-27","value":0.03188319427890346},{"time":"2015-06-26","value":-0.008930916732335172},{"time":"2016-07-01","value":-0.006433453960595094},{"time":"2017-06-30","value":-0.16709760827407885},{"time":"2018-06-29","value":0.26077097505668934},{"time":"2019-06-28","value":-0.025315610179680717},{"time":"2020-06-26","value":0.07746398353533043},{"time":"2021-07-02","value":0.2013888888888889},{"time":"2022-07-01","value":0.10608},{"time":"2023-06-30","value":-0.09706446378521906}],"ROA":[{"time":"2014-06-27","value":0.01991465149359886},{"time":"2015-06-26","value":-0.04564962934061646},{"time":"2016-07-01","value":0.01583367754371472},{"time":"2017-06-30","value":0.03860815962365155},{"time":"2018-06-29","value":0.0933291179260196},{"time":"2019-06-28","value":0.0011043215784436427},{"time":"2020-06-26","value":0.07152402356800097},{"time":"2021-07-02","value":0.1491722040770357},{"time":"2022-07-01","value":0.07575320743837394},{"time":"2023-06-30","value":-0.014442693378813065}]}
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 Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; vertical-cavity surface-emitting lasers; directly modulated and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers, such as argon-ion and helium-neon lasers for use in original equipment manufacturer applications. It serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in San Jose, California.
DCF
Discounted Cash Flow Valuation of Lumentum Holdings Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $70.6M | $91.78M | $116.8M | $145.3M | $176.8M | $210.2M | $244M | $276.6M | $305.8M | $329.6M | $346M | $3.46B |
| DCF | $79.81M | $88.29M | $95.54M | $101.1M | $104.5M | $105.5M | $104M | $99.96M | $93.68M | $85.54M | $855.4M | |
| Value | $1.813B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 40%
Earnings Stability -29%
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -0.41% | -0.35% | -10% | 19% | -2.4% | 8.1% | 23% | 12% | -7.4% | -25% |
| ROA | -4.6% | 1.6% | 3.9% | 9.3% | 0.11% | 7.2% | 15% | 7.6% | -1.4% | -6.8% |
| ROE | -0.89% | -0.64% | -17% | 26% | -2.5% | 7.7% | 20% | 11% | -9.7% | -30% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +8.66%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -2.21%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +6.27%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.68%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +8.72%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -3.63%.
Safety & Stabiliy
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 0.00 | -8.61 | 2.96 | 2.95 | 3.51 | 2.94 | 7.66 | 54.81 | 35.44 |
| Debt Equity | - | 0.00 | 0.74 | 0.49 | 0.32 | 0.88 | 0.97 | 1.50 | 2.07 | 2.13 |
| MIN | ||||||||||
| Graham Stability | - | - | -7.6K% | - | -84% | 100% | 100% | 100% | -54% | -7.6K% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 35.44.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 7.79.
What is the Graham’s Stability?
Graham’s Stability measure stands at -75.66.
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 | 07-2016 | 06-2018 | 06-2020 | 07-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 10% | 7.2% | 1.7% | 3.2% | -0.95% |
| Net Income | - | - | - | - | -240% |
| Stockholders Equity | 15% | 7.9% | -8.1% | -28% | -5.5% |
| FCF | 41% | -20% | -51% | -86% | -40% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +7.21%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.95%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -243.15%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +7.92%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -5.46%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -19.77%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -39.56%.