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Lumentum Holdings Inc.

Rank #394Hypergrowth

LITE · Nasdaq · Technology

Lumentum Holdings Inc. (LITE) — Rank #394 by gross profitability (GP/assets 0.17) · ROE -149.3% · Piotroski F-Score 4 / 9.

As-of 2026-09-15 · CIK 0001633978 · all metrics point-in-time as of the filing date.

About

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa.

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It offers component products, including semiconductor laser chips, laser sub-assemblies, line subsystems, and wavelength management systems. The company also offers system products, such as optical modules, optical circuit switches, and industrial lasers, including short-pulse solid-state lasers and kilowatt-class fiber lasers. Its products and solutions are used in cloud, artificial intelligence and machine learning (AI/ML), telecommunications, consumer, and industrial end-market applications.

The company was incorporated in 2015 and is headquartered in San Jose, California.

Industry
Communication Equipment
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
June 27

Price History

LITE+941.3% · +59.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$75.39B

P/E (annual)

—

P/S (annual)

25.0

P/B

16.2

P/OCF (annual)

100.3

Shareholder Yield

-23.1%

Employees

13,757

Industry

Communication Equipment

Exchange

Nasdaq

Signal Flags

3 green2 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why
Balance sheet deterioratingNet cash collapsed with receivables or inventory outpacing revenue

Quality Profile

Profitability

1/1 pass
GP / assets
0.17
Return on equity
-149.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.57
Current ratio
1.68×
Net cash
-$495.90M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
5.6%

Growth

1/2 pass
Revenue growth
200.9%
Piotroski F-Score
4 / 9
Share dilution
23.1%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

40.7%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 23.1% — per-share value needs a total required return of 63.8% once share-count change is priced in.

vs. own 6-year median revenue growth: 30.1%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

34.6%

r = 10% (base)

40.7%

r = 12%

46.0%

Net debt / market cap: 0.8%

Base FCF: $300.1M3Y mean FCF: $154.3M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
17.1xmed 19.4x48.0x

P / S

Price / revenue per share

2.2xCheap
2.2xmed 3.7x4.5x

P / B

Price / book value per share

2.8xFair
2.2xmed 3.6x8.1x

P / GP

Price / gross profit per share

6.8xCheap
5.3xmed 9.5x14.5x

P / FCF

Price / free cash flow per share

75.1xExpensive
10.5xmed 23.3x875.6x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.17

Primary signal (Novy-Marx).

5th of 5 SIC 3669 peers

Return on equity

-149.3%

Gross margin

41.7%

4th of 5 SIC 3669 peers

Revenue growth (YoY)

200.9%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2018202120222023
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

19.5%

Revenue CAGR (5Y)

11.6%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.57

Current ratio

1.68×

3rd of 5 SIC 3669 peers

Quick ratio

—

Net cash

-$495.90M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$300.10M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.04

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

5.6%

Stock-based comp intensity.

Piotroski F-Score

F-Score

4 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20162023
Hypergrowth
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