LITE:NSD-Lumentum Holdings Inc (USD)

COMMON STOCK | Communication Equipment | NSD

Last Closing Price

USD 90.00

Change

0.00 (0.00)%

Market Cap

USD 6.81B

Volume

0.65M

Average Target Price

USD 108.61 (+20.68%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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 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, and remote sensing, as well as in precision machining, such as drilling in printed circuit boards, wafer singulation, glass cutting, and solar cell scribing. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in San Jose, California.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-02-28 )

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EQAL Invesco Russell 1000 Equa.. 0.00 % 0.20 %

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RWM ProShares Short Russell20.. 0.00 % 0.95 %

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SRTY ProShares UltraPro Short .. 0.00 % 0.95 %

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TWM ProShares UltraShort Russ.. 0.00 % 0.95 %

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TZA Direxion Daily Small Cap .. 0.00 % 1.07 %

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Market Performance

  Market Performance vs.
Industry/Classification (Communication Equipment)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -5.06% 8% F 15% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -5.06% 8% F 15% F
Trailing 12 Months  
Capital Gain 15.65% 25% F 43% F
Dividend Return N/A N/A N/A N/A N/A
Total Return 15.65% 24% F 41% F
Trailing 5 Years  
Capital Gain 269.16% 83% B 84% B
Dividend Return N/A N/A N/A N/A N/A
Total Return 269.16% 83% B 84% B
Average Annual (5 Year Horizon)  
Capital Gain 32.65% 84% B 83% B
Dividend Return N/A N/A N/A N/A N/A
Total Return 32.65% 84% B 82% B-
Risk Return Profile  
Volatility (Standard Deviation) 42.36% 45% F 34% F
Risk Adjusted Return 77.08% 94% A 86% B
Market Capitalization 6.81B 94% A 88% B+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Communication Equipment)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 36.95 55% F 30% F
Price/Book Ratio 3.54 48% F 47% F
Price / Cash Flow Ratio 12.99 35% F 31% F
EV/EBITDA 12.86 78% C+ 63% D
Management Effectiveness  
Return on Equity 10.49% 80% B- 78% C+
Return on Invested Capital 6.82% 80% B- 75% C
Return on Assets 5.93% 84% B 87% B+
Debt to Equity Ratio 64.05% 29% F 36% F
Technical Ratios  
Short Ratio 3.22 28% F 37% F
Short Percent 15.96% 12% F 11% F
Beta 1.04 63% D 57% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.