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Lumentum Holdings Inc.

Rank #373HypergrowthWatchlistCompare with other stocks

LITE · Nasdaq · Technology

Lumentum Holdings Inc. (LITE) — Rank #373 by gross profitability (GP/assets 0.17) · ROE -149.3% · Piotroski F-Score 5 / 9.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

13,757

Industry

Communication Equipment

Exchange

Nasdaq

11/12

Flags passed

LITE passes 11/12 quality flags

1 caution to review

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Deferred revenue growing

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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
83.2%
Piotroski F-Score
5 / 9
Share dilution
7.2%

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

Profitability

Does it make money well?

No warning flags · GP/assets 0.17

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)

83.2%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
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)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 104% above net income

Free cash flow

$300.10M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

104.3%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

5.6%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net debt $495.90M, F-Score 5/9

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.

Piotroski F-Score

5 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend
7.2%0/5 Weak
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
16.6%5/5 Strong

Lifecycle Phase History

20212026
Value
Capital Return
Startup
Decline
Hypergrowth

Price History

LITE+963.0% · +60.2% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports