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Lumentum Holdings

Nasdaq:LITE
Snowflake Description

High growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LITE
Nasdaq
$5B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The last earnings update was 11 days ago. More info.


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  • Lumentum Holdings has significant price volatility in the past 3 months.
LITE Share Price and Events
7 Day Returns
2.9%
NasdaqGS:LITE
4.7%
US Communications
0.9%
US Market
1 Year Returns
77.4%
NasdaqGS:LITE
1.1%
US Communications
10.5%
US Market
LITE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lumentum Holdings (LITE) 2.9% 23.6% 11.9% 77.4% 77.7% -
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • LITE outperformed the Communications industry which returned 1.1% over the past year.
  • LITE outperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
LITE
Industry
5yr Volatility vs Market

LITE Value

 Is Lumentum Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lumentum Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lumentum Holdings.

NasdaqGS:LITE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:LITE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 21%) (18.16%))
1.197
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.197 * 5.96%)
9.86%

Discounted Cash Flow Calculation for NasdaqGS:LITE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lumentum Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:LITE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.86%)
2020 362.15 Analyst x2 329.64
2021 433.15 Analyst x2 358.88
2022 445.00 Analyst x1 335.60
2023 456.38 Est @ 2.56% 313.29
2024 468.29 Est @ 2.61% 292.60
2025 480.68 Est @ 2.65% 273.39
2026 493.52 Est @ 2.67% 255.49
2027 506.79 Est @ 2.69% 238.81
2028 520.48 Est @ 2.7% 223.24
2029 534.59 Est @ 2.71% 208.71
Present value of next 10 years cash flows $2,829.00
NasdaqGS:LITE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $534.59 × (1 + 2.73%) ÷ (9.86% – 2.73%)
$7,700.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,700.26 ÷ (1 + 9.86%)10
$3,006.30
NasdaqGS:LITE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,829.00 + $3,006.30
$5,835.30
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,835.30 / 77.20
$75.59
NasdaqGS:LITE Discount to Share Price
Calculation Result
Value per share (USD) From above. $75.59
Current discount Discount to share price of $66.53
= -1 x ($66.53 - $75.59) / $75.59
12%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lumentum Holdings is available for.
Intrinsic value
12%
Share price is $66.53 vs Future cash flow value of $75.59
Current Discount Checks
For Lumentum Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lumentum Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Lumentum Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lumentum Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lumentum Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:LITE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-28) in USD $-0.49
NasdaqGS:LITE Share Price ** NasdaqGS (2019-11-08) in USD $66.53
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lumentum Holdings.

NasdaqGS:LITE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LITE Share Price ÷ EPS (both in USD)

= 66.53 ÷ -0.49

-135.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lumentum Holdings is loss making, we can't compare its value to the US Communications industry average.
  • Lumentum Holdings is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Lumentum Holdings's expected growth come at a high price?
Raw Data
NasdaqGS:LITE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -135.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
44.7%per year
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Lumentum Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Lumentum Holdings's assets?
Raw Data
NasdaqGS:LITE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-28) in USD $20.23
NasdaqGS:LITE Share Price * NasdaqGS (2019-11-08) in USD $66.53
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:LITE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LITE Share Price ÷ Book Value per Share (both in USD)

= 66.53 ÷ 20.23

3.29x

* Primary Listing of Lumentum Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lumentum Holdings is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess Lumentum Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Lumentum Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LITE Future Performance

 How is Lumentum Holdings expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
44.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lumentum Holdings expected to grow at an attractive rate?
  • Lumentum Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Lumentum Holdings's earnings growth is expected to exceed the United States of America market average.
  • Lumentum Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:LITE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:LITE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 44.7%
NasdaqGS:LITE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 10.7%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:LITE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:LITE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 3,042 1
2023-06-30 2,645 1
2022-06-30 2,015 534 292 6
2021-06-30 1,918 506 264 14
2020-06-30 1,741 443 190 15
2019-11-11
NasdaqGS:LITE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-28 1,661 360 -36
2019-06-29 1,565 330 -38
2019-03-30 1,462 240 20
2018-12-29 1,328 292 97
2018-09-29 1,359 295 281
2018-06-30 1,248 248 242
2018-03-31 1,169 223 154
2017-12-30 1,126 144 95
2017-09-30 987 58 -93
2017-07-01 1,002 85 -103
2017-04-01 1,021 85 -34
2016-12-31 995 89 14
2016-10-01 949 112 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lumentum Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Lumentum Holdings's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:LITE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Lumentum Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LITE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30
2023-06-30
2022-06-30 4.01 4.01 4.01 1.00
2021-06-30 3.42 3.98 2.44 4.00
2020-06-30 2.45 2.82 1.70 4.00
2019-11-11
NasdaqGS:LITE Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-28 -0.49
2019-06-29 -0.54
2019-03-30 0.30
2018-12-29 1.52
2018-09-29 4.48
2018-06-30 3.88
2018-03-31 2.49
2017-12-30 1.55
2017-09-30 -1.52
2017-07-01 -1.71
2017-04-01 -0.57
2016-12-31 0.24
2016-10-01 0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lumentum Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Lumentum Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lumentum Holdings has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LITE Past Performance

  How has Lumentum Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lumentum Holdings's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lumentum Holdings does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Lumentum Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Lumentum Holdings's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
Lumentum Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lumentum Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LITE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-28 1,661.10 -36.40 202.50 199.90
2019-06-29 1,565.30 -37.90 182.00 184.60
2019-03-30 1,461.80 20.40 156.50 173.60
2018-12-29 1,327.70 97.20 134.50 154.10
2018-09-29 1,358.60 280.90 129.80 155.10
2018-06-30 1,247.70 241.50 123.40 156.80
2018-03-31 1,169.30 153.80 121.50 153.70
2017-12-30 1,126.30 95.10 116.40 152.80
2017-09-30 986.70 -93.10 111.70 147.70
2017-07-01 1,001.60 -103.40 110.20 148.30
2017-04-01 1,020.60 -34.10 113.70 149.30
2016-12-31 995.20 14.20 113.60 147.30
2016-10-01 948.50 3.20 108.40 143.60
2016-07-02 903.00 -3.20 117.30 141.10
2016-04-02 870.20 -33.10 126.10 140.40
2015-12-26 838.50 -13.00 129.90 140.10
2015-09-26 830.70 -17.70 135.30 140.20
2015-06-27 837.10 -3.40 129.60 140.80
2015-03-28 829.20 5.70 121.60 141.70
2014-12-27 844.00 2.20 117.70 142.70
2014-09-27 835.20 10.65 111.50 138.75
2014-06-28 817.90 10.70 108.20 134.90
2013-06-29 769.90 6.50 102.60 113.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Lumentum Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Lumentum Holdings has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Lumentum Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Lumentum Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lumentum Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LITE Health

 How is Lumentum Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lumentum Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lumentum Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lumentum Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lumentum Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lumentum Holdings Company Filings, last reported 1 month ago.

NasdaqGS:LITE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-28 1,561.30 845.80 830.90
2019-06-29 1,497.10 840.90 768.50
2019-03-30 1,503.90 837.30 697.50
2018-12-29 1,559.70 833.70 684.10
2018-09-29 1,073.80 338.50 734.30
2018-06-30 1,014.30 334.20 711.50
2018-03-31 972.60 329.90 692.80
2017-12-30 939.60 325.70 624.50
2017-09-30 724.30 321.60 532.50
2017-07-01 706.20 317.50 555.30
2017-04-01 719.10 313.40 577.90
2016-12-31 580.40 0.00 155.90
2016-10-01 564.50 0.00 166.80
2016-07-02 543.50 0.00 157.10
2016-04-02 512.50 0.00 157.20
2015-12-26 506.70 0.00 161.90
2015-09-26 500.80 0.00 142.10
2015-06-27 380.60 0.00 14.50
2015-03-28 382.90 0.00 10.60
2014-12-27 342.90 0.00 19.50
2014-09-27 335.60 0.00 19.90
2014-06-28 335.60 0.00 19.90
2013-06-29 281.80 0.00 7.80
  • Lumentum Holdings's level of debt (54.2%) compared to net worth is high (greater than 40%).
  • Unable to establish if Lumentum Holdings's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (42.6%, greater than 20% of total debt).
  • Lumentum Holdings is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Lumentum Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lumentum Holdings has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LITE Dividends

 What is Lumentum Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Lumentum Holdings dividends. Estimated to be 0% next year.
If you bought $2,000 of Lumentum Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Lumentum Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Lumentum Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:LITE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:LITE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-06-30
2023-06-30
2022-06-30 0.00 2.00
2021-06-30 0.00 2.00
2020-06-30 0.00 2.00
2019-11-11

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Lumentum Holdings has not reported any payouts.
  • Unable to verify if Lumentum Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Lumentum Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Lumentum Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Lumentum Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Lumentum Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lumentum Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lumentum Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LITE Management

 What is the CEO of Lumentum Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alan Lowe
COMPENSATION $9,325,740
AGE 57
TENURE AS CEO 4.3 years
CEO Bio

Mr. Alan S. Lowe has been the Chief Executive Officer and President of Lumentum Holdings Inc. since July 2015. Mr. Lowe has over 20 years experience in general management, operations, sales and business development. He served as the President of Commercial Optical Products and President of Communications at JDS Uniphase Corporation (now known as Viavi Solutions Inc.) since October 2008. He has extensive business, management, and leadership skills from his roles at Viavi, Asyst Technologies and Read-Rite and has broad and deep experience with Lumentum and its businesses. Mr. Lowe served as Head of Communications and Commercial Optical Products Business Segment at JDS Uniphase Corp. He served as Head of Commercial Lasers Business of JDS Uniphase Corp., since September 2007 and its Executive Vice President and President of Communications and Commercial Optical Products business since October 2008. He was responsible for JDS Uniphase Corp.'s Commercial Laser Products Group. He focused his efforts on margin expansion initiatives, lean manufacturing initiatives and working with customers as the industry continues its transition from gas to solid-state laser platforms. Before joining JDSU in September 2007, he served as Senior Vice President, Global Business Solutions Group of Asyst Technologies, Inc. from August 29, 2005 to September 14, 2007, Head of Customer Solutions division from February 6, 2007 to September 14, 2007 and also served as its senior vice president, Customer Solutions Group. From 1989 to 2000, Mr. Lowe served in roles of increasing responsibility at Read-Rite, including Chief Operating Officer and Senior Vice President, Customer Business Units. He served as Chief Executive Officer of Read-Rite Corp. since June 2000 until 2003 and served as its President since May 1997 until 2003. He joined Read Rite Corp. in 1989. He served as Vice President for Sales at Read-Rite from November 1991 to August 1994, as Vice President for Customer Programs from August 1994 to November 1995 and as Senior Vice President for Customer Programs from November 1995 to October 1996. He was Senior Vice President for Customer Business Units at Read-Rite from October 1996. Mr. Lowe served as Chief Executive Officer of Scion Photonics from 2000 to 2001, a majority-owned subsidiary of Read-Rite that supplied application-specific photonic components and subsystems to the telecommunications industry. Before joining Read-Rite, he served in various sales positions with Microcom Corporation and IBM Corporation. He has been a Director of Lumentum Holdings Inc. since August 2015. He served as a Director of Scion Photonics, Inc. He served as a Director of Read-Rite Corp. since February 2000. He is a Member of the Advisory Board at ETM Electromatic Incorporated. Mr. Lowe holds a BA Degree in Computer Science and Business Economics from the University of California at Santa Barbara and also completed the Stanford Executive Program in 1994.

CEO Compensation
  • Alan's compensation has increased whilst company is loss making.
  • Alan's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Lumentum Holdings management team in years:

2.8
Average Tenure
50.5
Average Age
  • The tenure for the Lumentum Holdings management team is about average.
Management Team

Alan Lowe

TITLE
President
COMPENSATION
$9M
AGE
57
TENURE
4.3 yrs

Wajid Ali

TITLE
Executive VP & CFO
COMPENSATION
$8M
AGE
46
TENURE
0.8 yrs

Vince Retort

TITLE
Executive VP
COMPENSATION
$4M
AGE
65
TENURE
3.8 yrs

Judy Hamel

TITLE
Senior VP
COMPENSATION
$2M
AGE
53
TENURE
4.3 yrs

Jason Reinhardt

TITLE
Executive Vice President of Global Sales
COMPENSATION
$3M
AGE
45
TENURE
3.8 yrs

Chris Coldren

TITLE
Senior Vice President of Strategy & Corporate Development
COMPENSATION
$2M
AGE
48
TENURE
0.8 yrs

Matt Sepe

TITLE
VP of Finance
TENURE
1.4 yrs

Shreyas Shah

TITLE
Chief Information Officer & Senior VP of IT

Sharon Parker

TITLE
Senior Vice President of Human Resources

Doug Alteen

TITLE
Senior VP & GM of Telecom Transport
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Lumentum Holdings board of directors in years:

4.3
Average Tenure
57
Average Age
  • The tenure for the Lumentum Holdings board of directors is about average.
Board of Directors

Penny Herscher

TITLE
Chair of Board of Directors
COMPENSATION
$274K
AGE
58
TENURE
0.3 yrs

Alan Lowe

TITLE
President
COMPENSATION
$9M
AGE
57
TENURE
4.3 yrs

Hal Covert

TITLE
Independent Director
COMPENSATION
$280K
AGE
72
TENURE
4.3 yrs

Samuel Thomas

TITLE
Independent Director
COMPENSATION
$254K
AGE
67
TENURE
4.3 yrs

Brian Lillie

TITLE
Independent Director
COMPENSATION
$254K
AGE
55
TENURE
4.3 yrs

Julie Johnson

TITLE
Independent Director
COMPENSATION
$239K
AGE
53
TENURE
2 yrs

Ian Small

TITLE
Independent Director
COMPENSATION
$229K
AGE
54
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • Lumentum Holdings individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Sep 19 Sell Matthew Sepe Individual 16. Sep 19 16. Sep 19 -48 $58.26 $-2,796
30. Aug 19 Sell Vincent Retort Individual 28. Aug 19 28. Aug 19 -8,904 $56.74 $-505,213
30. Aug 19 Sell Jason Reinhardt Individual 28. Aug 19 28. Aug 19 -3,790 $56.74 $-215,045
30. Aug 19 Sell Alan Lowe Individual 28. Aug 19 28. Aug 19 -20,775 $56.74 $-1,178,774
30. Aug 19 Sell Judy Hamel Individual 28. Aug 19 28. Aug 19 -2,672 $56.74 $-151,609
23. Aug 19 Sell Jason Reinhardt Individual 22. Aug 19 22. Aug 19 -25,000 $59.56 $-1,489,000
20. Aug 19 Sell Matthew Sepe Individual 19. Aug 19 19. Aug 19 -228 $60.29 $-13,746
20. Aug 19 Sell Vincent Retort Individual 16. Aug 19 19. Aug 19 -4,908 $60.29 $-293,888
20. Aug 19 Sell Jason Reinhardt Individual 16. Aug 19 19. Aug 19 -1,228 $60.29 $-73,523
20. Aug 19 Sell Alan Lowe Individual 16. Aug 19 19. Aug 19 -10,779 $60.29 $-645,390
20. Aug 19 Sell Judy Hamel Individual 16. Aug 19 19. Aug 19 -637 $60.29 $-38,153
15. Aug 19 Sell Matthew Sepe Individual 13. Aug 19 13. Aug 19 -4,811 $59.88 $-288,083
13. May 19 Sell Judy Hamel Individual 10. May 19 10. May 19 -1,429 $58.64 $-83,797
28. Feb 19 Sell Martin Kaplan Individual 22. Feb 19 22. Feb 19 -3,025 $48.72 $-147,371
22. Feb 19 Sell Jason Reinhardt Individual 22. Feb 19 22. Feb 19 -9,575 $50.38 $-482,389
15. Feb 19 Sell Harold Covert Individual 14. Feb 19 14. Feb 19 -3,017 $46.01 $-138,812
X
Management checks
We assess Lumentum Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lumentum Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LITE News

Simply Wall St News

Trade Alert: The VP of Finance Of Lumentum Holdings Inc. (NASDAQ:LITE), Matthew Sepe, Has Sold Some Shares Recently

View our latest analysis for Lumentum Holdings The Last 12 Months Of Insider Transactions At Lumentum Holdings The Executive Vice President of Global Sales, Jason Reinhardt, made the biggest insider sale in the last 12 months. … In the last year Lumentum Holdings insiders didn't buy any company stock. … An insider hasn't bought Lumentum Holdings stock in the last three months, but there was some selling.

Simply Wall St -

These Fundamentals Make Lumentum Holdings Inc. (NASDAQ:LITE) Truly Worth Looking At

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … (NASDAQ:LITE), it is a company with impressive financial health as well as a excellent future outlook. … High growth potential with adequate balance sheet Investors in search for stocks with room to flourish should look no further than LITE, with its earnings growth expected to reach triple-digits in the near future, underlying the notable 21% return on equity over the next few years leading up to 2022.

Simply Wall St -

Lumentum Holdings (NASDAQ:LITE) Seems To Use Debt Quite Sensibly

NasdaqGS:LITE Historical Debt, July 28th 2019 A Look At Lumentum Holdings's Liabilities The latest balance sheet data shows that Lumentum Holdings had liabilities of US$358.0m due within a year, and liabilities of US$909.5m falling due after that. … Over the most recent three years, Lumentum Holdings recorded free cash flow worth 63% of its EBIT, which is around normal, given free cash flow excludes interest and tax. … Our View Lumentum Holdings's conversion of EBIT to free cash flow suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper.

Simply Wall St -

Before You Buy Lumentum Holdings Inc. (NASDAQ:LITE), Consider Its Volatility

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … What this means for you: Beta only tells us that the Lumentum Holdings share price is sensitive to broader market movements.

Simply Wall St -

How Should Investors React To Lumentum Holdings Inc.'s (NASDAQ:LITE) CEO Pay?

See our latest analysis for Lumentum Holdings How Does Alan Lowe's Compensation Compare With Similar Sized Companies? … Boasting a total shareholder return of 120% over three years, Lumentum Holdings Inc. … We compared the total CEO remuneration paid by Lumentum Holdings Inc., and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Is Now An Opportune Moment To Examine Lumentum Holdings Inc. (NASDAQ:LITE)?

Great news for investors – Lumentum Holdings is still trading at a fairly cheap price. … However, given that Lumentum Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Lumentum Holdings (NASDAQ:LITE) Shareholders Booked A 69% Gain In The Last Three Years

It might be of some concern to shareholders to see the Lumentum Holdings Inc. … Check out our latest analysis for Lumentum Holdings While Lumentum Holdings made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. … A Different Perspective Over the last year, Lumentum Holdings shareholders took a loss of 28%.

Simply Wall St -

Is There An Opportunity With Lumentum Holdings Inc.'s (NASDAQ:LITE) 45% Undervaluation?

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $280.70 $385.60 $463.90 $527.60 $582.64 $629.95 $670.92 $706.96 $739.33 $769.08 Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Est @ 13.73% Est @ 10.43% Est @ 8.12% Est @ 6.5% Est @ 5.37% Est @ 4.58% Est @ 4.02% Present Value ($, Millions) Discounted @ 9.63% $256.03 $320.81 $352.04 $365.20 $367.86 $362.78 $352.42 $338.72 $323.11 $306.58 Present Value of 10-year Cash Flow (PVCF)= $3.35b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.6%.

Simply Wall St -

Should Lumentum Holdings Inc.’s (NASDAQ:LITE) Weak Investment Returns Worry You?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … How Do You Calculate Return On Capital Employed

Simply Wall St -

Is Lumentum Holdings Inc. (NASDAQ:LITE) A Financially Sound Company?

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Lumentum Holdings Inc. … Let’s take a look at LITE’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Check out our latest analysis for Lumentum Holdings

Simply Wall St -

LITE Company Info

Description

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 text 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; optical transceivers for fiber channel and Ethernet applications; 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 Milpitas, California.

Details
Name: Lumentum Holdings Inc.
LITE
Exchange: NasdaqGS
Founded: 2015
$5,136,116,000
77,200,000
Website: http://www.lumentum.com
Address: Lumentum Holdings Inc.
400 North McCarthy Boulevard,
Milpitas,
California, 95035,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LITE Common Stock Nasdaq Global Select US USD 23. Jul 2015
DB LU2 Common Stock Deutsche Boerse AG DE EUR 23. Jul 2015
LSE 0JVV Common Stock London Stock Exchange GB USD 23. Jul 2015
BMV LITE * Common Stock Bolsa Mexicana de Valores MX MXN 23. Jul 2015
Number of employees
Current staff
Staff numbers
5,161
Lumentum Holdings employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/11 00:30
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/11/01
Last earnings filing: 2019/10/31
Last earnings reported: 2019/09/28
Last annual earnings reported: 2019/06/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.