Lumentum Holdings Inc. Fundamental Analysis (XETRA: LU2.DE)
Lumentum Holdings Inc. Fundamental Analysis (XETRA: LU2.DE)
Lumentum Holdings Inc. (XETRA: LU2.DE) shows moderate financial fundamentals with a PE ratio of -10.68, profit margin of -2.30%, and ROE of -3.01%. The company generates $2.8B 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 -423.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
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
ExcellentLU2.DE trades at attractive valuation levels.
Growth Score
ModerateLU2.DE shows steady but slowing expansion.
Financial Health Score
ExcellentLU2.DE maintains a strong and stable balance sheet.
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 -10.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LU2.DE's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Lumentum Holdings Inc. at 15.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 81.82 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 $-2.30 as profit after all expenses.
Operating Margin
Core operations generate 18.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.01 in profit for every $100 of shareholder equity.
ROA
Lumentum Holdings Inc. generates $-94.91 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 $690.60M, showing steady but balanced cash generation.
Free Cash Flow
Lumentum Holdings Inc. produces free cash flow of $275.87M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.55 in free cash annually.
FCF Yield
LU2.DE converts 0.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-10.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
22.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-3.01
vs 25 benchmark
ROA
Return on assets percentage
-0.95
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How LU2.DE Stacks Against Its Sector Peers
| Metric | LU2.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -10.68 | 34.40 | Better (Cheaper) |
| ROE | -300.60% | 730.00% | Weak |
| Net Margin | -230.49% | -3110.00% (disorted) | Weak |
| Debt/Equity | 0.36 | 0.22 | Weak (High Leverage) |
| Current Ratio | 1.68 | 6.05 | Neutral |
| ROA | -94.91% | 254.00% | Weak |
LU2.DE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
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: Growth, Innovation, High Beta
GrowingEPS CAGR
-78.97%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-73.50%
Industry Style: Growth, Innovation, High Beta
Declining