Lumentum (LITE)
Information Technology · $85.4B market cap · SEC CIK 0001633978
fundamentals score out of 100
Next reports on Nov 2, 2026, after the close, with analysts expecting $4.27 in earnings per share.
The case for LITE
- Holds more cash ($658M) than long-term debt ($47.1M).
- Revenue up 83% on the year. A jump that size is often a deal or an accounting change, so check the filing.
- Has compounded revenue at 11.6% a year over five years.
- Barely leveraged. Debt is 0.35× equity.
- Up 465.7% over the past year.
The case against
- Losing money over the last year: net margin -230.1%, return on equity -300%.
- Priced at 28.3× sales, which leaves no room for a stumble.
- Swings harder than the market (beta 1.62).
- Free cash flow is only 0.4% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 11 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 73 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 7 |
| Momentumhow the price has behaved lately | 84 |
| Stabilityhow violently it moves, what it owes and what it pays you | 39 |
- It is losing money, so it has no P/E; that counts against value rather than being skipped.
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | n/a |
|---|---|
| Price / book | 14.26× |
| Price / sales | 28.3× |
| Revenue growth (YoY) | +83.2% |
| EPS growth (YoY) | — |
| Gross margin | 42% |
| Operating margin | -239% |
| Net margin | -230% |
| Return on equity | -300% |
| Debt / equity | 0.35× |
| Current ratio | 1.68 |
| Dividend yield | none |
| Beta | 1.62 |
| 52-week range | $144.52 – $1,086 |
| Position in that range | 85% of the way up |
| 3-month return | +12.3% |
| 1-year return | +465.7% |
Five years of financials, as filed
Pulled from Lumentum's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $3.0B | $1.6B | $1.8B | $1.7B | $1.7B |
| Gross profit | $1.3B | $460M | $569M | $789M | $783M |
| Operating income | $525M | -$180M | -$116M | $303M | $527M |
| Net income | -$6.9B | $25.9M | -$132M | $199M | $397M |
| Operating cash flow | $751M | $126M | $180M | $459M | $739M |
| Capital expenditure | $451M | $231M | $129M | $91.2M | $84.8M |
| Total assets | $4.8B | $4.0B | $4.7B | $4.4B | $3.6B |
| Total liabilities | $4.0B | $3.1B | $3.4B | $2.9B | $1.6B |
| Shareholder equity | $847M | $872M | $1.3B | $1.5B | $2.0B |
| Cash | $658M | $480M | $469M | $592M | $552M |
| Long-term debt | $47.1M | $2.6B | — | $1.9B | $1.5B |
| Free cash flow | $300M | -$105M | $51.3M | $368M | $654M |
| Gross margin | 41.7% | 28.0% | 32.2% | 46.0% | 44.9% |
| Operating margin | 17.4% | -10.9% | -6.5% | 17.7% | 30.2% |
| Net margin | -230.1% | 1.6% | -7.4% | 11.6% | 22.8% |
| Diluted shares | 74.6M | 69.6M | 68.3M | 74.2M | 78.4M |
Share count is down 4.8% over 4 years. Buybacks have been shrinking the pie.
What Lumentum says it does
Overview Lumentum Holdings Inc. ("we," "us," "our", "Lumentum" or the "Company") is a global leader in optical and photonic technologies and an industry-leading provider of optical and photonic products based on revenue and market share. Our products are essential to a range of cloud, artificial intelligence and machine learning ("AI/ML"), telecommunications, consumer, and industrial end-market applications. We operate in one reportable segment as a single, integrated enterprise. See "Note 17. Operating Segments and Geographic Information" to the consolidated financial statements. We disaggregate revenue by type of product, which are Components and Systems, and by geography. A Components product is defined as one of the individual building blocks that goes into creating a larger solution. It is typically not a complete solution on its own but rather a specialized element that enables system functionality. This includes semiconductor…
Risk factors LITE lists in its 10-K
- Opinion on the Financial Statements
- Internal Control - Integrated Framework (2013)
- Inventories, Valuation of Inventory - Refer to Notes 1 and 7 to the financial statements
- How the Critical Audit Matter Was Addressed in the Audit
- (in millions, except per share data)
- See accompanying Notes to Consolidated Financial Statements
- Net cash provided by operating activities
- Net cash used in investing activities
- Net cash provided by (used in) financing activities
- Increase (decrease) in cash and cash equivalents
- Cash and cash equivalents at beginning of period
- Cash and cash equivalents at end of period
- Series A Convertible Preferred Stock
- Retained Earnings (Accumulated Deficit)