Lumentum Holdings Inc.
Lumentum Holdings Inc. Fundamental Analysis
Lumentum Holdings Inc. (LU2.DE) shows moderate financial fundamentals with a PE ratio of 184.46, profit margin of 11.44%, and ROE of 27.18%. The company generates $2.0B in annual revenue with strong year-over-year growth of 21.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LU2.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakLU2.DE struggles to generate sufficient returns from assets.
Valuation Score
WeakLU2.DE trades at a premium to fair value.
Growth Score
ModerateLU2.DE shows steady but slowing expansion.
Financial Health Score
WeakLU2.DE carries high financial risk with limited liquidity.
Profitability Score
WeakLU2.DE struggles to sustain strong margins.
Key Financial Metrics
Is LU2.DE Expensive or Cheap?
P/E Ratio
LU2.DE trades at 184.46 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LU2.DE's PEG of 3.99 indicates potential overvaluation.
Price to Book
The market values Lumentum Holdings Inc. at 56.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 132.93 times EBITDA. This signals the market has high growth expectations.
How Well Does LU2.DE Make Money?
Net Profit Margin
For every $100 in sales, Lumentum Holdings Inc. keeps $11.44 as profit after all expenses.
Operating Margin
Core operations generate 1.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.18 in profit for every $100 of shareholder equity.
ROA
Lumentum Holdings Inc. generates $5.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lumentum Holdings Inc. produces operating cash flow of $219.55M, showing steady but balanced cash generation.
Free Cash Flow
Lumentum Holdings Inc. generates weak or negative free cash flow of $-32.69M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.46 in free cash annually.
FCF Yield
LU2.DE converts -0.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
184.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
56.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
21.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How LU2.DE Stacks Against Its Sector Peers
| Metric | LU2.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 184.46 | 25.55 | Worse (Expensive) |
| ROE | 27.18% | 1262.00% | Weak |
| Net Margin | 11.44% | -42065.00% (disorted) | Strong |
| Debt/Equity | 3.95 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.61 | 10.09 | Weak Liquidity |
| ROA | 5.44% | -1502268.00% (disorted) | Weak |
LU2.DE outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lumentum Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.80%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
-78.97%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-73.50%
Industry Style: Cyclical, Value, Infrastructure
Declining