LITE
Lumentum
$871.07
▲ 3.9%Updated Today 11:30 AM ET
LITE at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 43/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 860.9% over the last 12 months
Market Cap
$56.66B
P/E
150.77x
Forward P/E (est.)
—
ROE
30.7%
Revenue Growth
69.0%
EPS Growth
-48.2%
Profit Margin
17.7%
FCF Yield
0.1%
Debt / Equity
2.27x
ROIC
-3.0%
Interest Coverage
—
Current Ratio
1.14x
Dividend Yield
—
Implied Growth (rev. DCF)
—
Rating Score
43/100
Lumentum (LITE) is a large-cap company in the Communications Equipment industry, part of the Information Technology sector of the S&P 500, with a market value around $56.66B.
In its latest reported year it generated about $1.65B in revenue and $25.90M in net profit.
Our model rates LITE Neutral (43/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (9 years of history).
The numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
26.2% average over the last 3 years
±8.3 pts around 33.6% across 9 years
grew in 6 of the last 8 year-over-year periods
positive in 6 of 9 years
-3.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what LITE's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. LITE trades near $871.07, around its 50-day average ($898.08) and 200-day average ($542.92). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 35 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. LITE's is $74.54 (~8.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month LITE found buyers near $710.01 (support) and sellers near $998.50 (resistance); its 52-week range is $88.37–$1,085.68. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
-1.4%
Revenue moved from $1.00B in 2017 to $1.65B in 2025, a 6.4% compound annual growth rate. The most recent year grew a strong 69.0% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
28.0%
Operating Margin
-10.9%
Net Margin
1.6%
ROE
30.7%
Lumentum keeps about 17.7% of each sales dollar as net profit, with a 28.0% gross margin and -10.9% operating margin. Return on equity is 30.7% and return on invested capital about -3.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$2.40B
Net Debt
-$212.80M
Net cash position
Net Debt / EBITDA
—
Debt / Equity
2.27x
Leverage: debt-to-equity is 2.3x, with a current ratio of 1.1x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $2.40B of total debt against $2.62B of cash.
Operating CF
$126.30M
Free Cash Flow
-$104.70M
FCF Margin
-6.4%
In the latest year Lumentum produced about $126.30M of operating cash flow but negative free cash flow as it invested heavily. That is a free-cash-flow yield of about 0.1% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
150.77x
P/S
41.58x
P/B
5.67x
EV / EBITDA
—
LITE trades at 150.8x trailing earnings, 41.6x sales, and 5.7x book value. That is a rich multiple that prices in a lot of future growth.
Where LITE sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How LITE stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), LITE ranks #78 of 230 by our overall rating. It trades at a premium versus the sector on earnings (150.8x P/E vs. 41x median) with a higher return on equity (30.7% vs. 17.5%) and faster revenue growth (69.0% vs. 17.7%).
P/E vs sector
150.8x
median 41x
ROE vs sector
30.7%
median 17.5%
Growth vs sector
69.0%
median 17.7%
Sector rank
#78
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $871.07 today · expected CAGR -13% – -3%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $2.39B | $3.46B | $5.01B | $7.27B | $10.54B |
| Net income | $71.56M | $103.76M | $150.45M | $218.15M | $316.32M |
| EPS | $1.10 | $1.60 | $2.31 | $3.35 | $4.86 |
| Share price (low) | $100.10 | $145.15 | $210.47 | $305.18 | $442.51 |
| Share price (high) | $166.11 | $240.85 | $349.24 | $506.39 | $734.27 |
| CAGR (low–high) | -89% / -81% | -59% / -47% | -38% / -26% | -23% / -13% | -13% / -3% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for LITE:
- Revenue is growing 69.0% a year, a sign of real demand.
- High net margins (17.7%) point to pricing power or efficiency.
- Strong return on equity (30.7%) shows capital is put to work well.
The case against LITE:
- Elevated leverage (debt/equity 2.3x) adds financial risk.
- A rich 150.8x earnings multiple prices in a lot of growth.
- Limited free cash flow at today's price.
Valuation risk — at 150.8x earnings, disappointing results could compress the multiple.
Balance-sheet risk — debt/equity of 2.3x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Lumentum is a large-cap information technology business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 150.8x earnings, which our model scores Neutral (43/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 33 Wall Street analysts covering LITE recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+5 pts of buy ratings).
Latest SEC Filings
LITE's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
LITE — frequently asked questions
Is LITE a good stock to buy?
We don't give buy or sell advice. Our model rates Lumentum Neutral (43/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is LITE's rating on The Stocks School?
Lumentum currently scores 43/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does LITE's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Lumentum's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for LITE calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this LITE analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell LITE. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.