Lumentum Holdings Inc. (LITE) Factsheet

Lumentum Holdings Inc. (LITE) Stock Analysis

Analysis from 10-Q filed 2026-11-03. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 15.7%. FCF margin 9.5%. D/E 0.3x. Source: 10-Q filed 2026-11-03.

Metric	Value	Context
ROIC	15.7%	Solid returns
FCF Margin	9.5%	Healthy cash flow
Debt/Equity	0.3x	Conservative leverage

ROIC 15.7% — Top 25% of sector peers. FCF margin 9.5% — Bottom 50%.

Explore Lumentum Holdings Inc.: Earnings History | Overview

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for LITE: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Lumentum Holdings Inc. earns 15.7% ROIC, Top 25% in Technology

ROIC TTM 15.7%, sector median 4.3%, Top 25%. DuPont: NOPAT margin 22.7% × asset turnover 0.6x. Gross margin 45.9%. Operating margin 23.5%. Source: 10-Q filed 2026-11-03.

Metric	LITE	Rating	Context
Return on Invested Capital (ROIC)	15.7%	Good	Above sector median of 4.3%
Return on Equity (ROE)	-236.2%	Red flag	Moderate equity returns
Gross Margin	45.9%	Good	Strong pricing power
Operating Margin	23.5%	Excellent	Efficient operations

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Cash Flow: Lumentum Holdings Inc. generates $356.3M FCF at 9.5% margin, positive NaN/8 quarters

FCF TTM $356.3M. FCF margin 9.5%, Bottom 50%. OCF/Net income -0.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-11-03.

Metric	LITE	Rating	Context
Free Cash Flow Margin	9.5%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$356.3M	Good	Positive cash generation
OCF/Net Income	-0.1x	Warning	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Lumentum Holdings Inc. at 0.3x leverage, 47.5x interest coverage

Debt/Equity 0.3x. Net cash $580.0M. Interest coverage 47.5x. Source: 10-Q filed 2026-11-03.

Metric	LITE	Rating	Context
Debt to Equity	0.3x	Good	Conservative capital structure
Net Cash Position	$580.0M	Excellent	Net cash positive
Interest Coverage	47.5x	Excellent	Comfortable debt service

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Valuation: Lumentum Holdings Inc. trades at -7.4x earnings

P/E -7.4x. EV/Sales 12.9x. FCF yield 0.7%. Source: 10-Q filed 2026-11-03.

Metric	LITE	Rating	Context
P/E Ratio	-7.4x	Red flag	Reasonable valuation
EV/Sales	12.9x	Warning	Growth premium priced in
FCF Yield	0.7%	Warning	Lower cash yield

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Capital Allocation: Lumentum Holdings Inc. returns 0.0% shareholder yield

Total shareholder yield 0.0%. Share count +27.8% YoY. Capital returned $0 TTM. Source: 10-Q filed 2026-11-03.

Metric	LITE	Rating	Context
Total Shareholder Yield	0.0%	Warning	Dividend + buyback yield combined
Share Count Change (YoY)	27.8%	Warning	Net dilution from issuance/SBC
Total Capital Returned (TTM)	$0	Adequate	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	15.7%	Top 25%	3.6x above
Free Cash Flow Margin	9.5%	Bottom 50%	0.9x below
Gross Margin	45.9%	Bottom 50%	0.9x below
Operating Margin	23.5%	Top 25%	4.9x above
Return on Equity (ROE)	-236.2%	Bottom 10%	-39.2x below

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Financial Scorecard

Metric	LITE	Rating	Sector Context
Return on Invested Capital (ROIC)	15.7%	Good	Top 25% of sector (median: 4.3%)
Free Cash Flow Margin	9.5%	Adequate	Bottom 50% of sector (median: 10.3%)
Gross Margin	45.9%	Good	Bottom 50% of sector (median: 50.6%)
Debt to Equity Ratio	30.6%	Good	Moderate leverage
Free Cash Flow Yield	0.7%	Red flag	Growth-focused valuation

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Frequently Asked Questions

Q: What is Lumentum Holdings Inc.'s Return on Invested Capital (ROIC)?

Lumentum Holdings Inc. (LITE) has a trailing twelve-month Return on Invested Capital (ROIC) of 15.7%. The 8-quarter median ROIC is 2.8% with a improving trend. Sector median 4.3%. Source: 10-Q filed 2026-11-03.

Q: What is Lumentum Holdings Inc.'s Free Cash Flow Margin?

Lumentum Holdings Inc. (LITE) has a free cash flow margin of 9.5%, generating $356.3 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-11-03.

Q: What is Lumentum Holdings Inc.'s P/E ratio and how does it compare to peers?

Lumentum Holdings Inc. (LITE) trades at a P/E ratio of -7.4x, which is above the sector median of N/A. EV/Sales 12.9x. FCF yield 0.7%. Source: 10-Q filed 2026-11-03.

Q: What is Lumentum Holdings Inc.'s revenue and earnings growth?

Lumentum Holdings Inc. (LITE) grew revenue by 103.2% year-over-year. Source: 10-Q filed 2026-11-03.

Q: How does Lumentum Holdings Inc. compare to competitors in Technology?

Compared to other companies in Technology, Lumentum Holdings Inc. (LITE) shows: ROIC 15.7%, sector median 4.3% (Top 25%). FCF margin 9.5%, sector median 10.3% (Bottom 50%). Gross margin 45.9%, 4.7pp below sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Lumentum Holdings Inc.?

No quantitative warning flags fired for Lumentum Holdings Inc. (LITE) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2026-11-03.

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Data Source: Data sourced from 10-Q filed 2026-11-03. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.