Lumentum Holdings Inc. (LITE) Stock Analysis
Last updated Oct 27, 2026
Health Check
Last analyzed Oct 23, 2026
- Financial Health 70
- Profitability 100
- Business Quality 55
- Balance Sheet 55
- Cash Flow 80
Why this rating?
Health 74/100 — High Quality
Entry timing is weak right now. Quality may be fine; the setup is not.
Company overview
Lumentum Holdings Inc. (LITE) is a Communication Equipment company in the Technology sector. Compound Radar rates Lumentum Holdings Inc. 74/100 (High Quality) due to solid business quality, strong revenue growth, and manageable leverage.
Investment profile
- Quality Moderate
- Growth Strong
- Balance Sheet Adequate
- Valuation Fair
Financial highlights
Valuation
- Forward P/E 24.05
- PEG 0.63
- EV/Revenue 23.99
Profitability
- Revenue Growth 109.3%
- Gross Margin 44.2%
- Operating Margin 28.0%
- Net Margin -230.1%
- ROE -240.0%
Financial strength
- Cash $2.74B
- Debt $1.67B
- Net Cash $1.07B
- Free Cash Flow $300.10M
- Current Ratio 1.68
Similar companies
Peers in Communication Equipment, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
Health Entry- Cisco Systems, Inc. Communication Equipment CSCO$111.38 76 Health 76 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Motorola Solutions, Inc. Communication Equipment MSI$483.61 75 Health 75 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Extreme Networks, Inc. Communication Equipment EXTR$23.85 69 Health 69 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Zebra Technologies Corporation Communication Equipment ZBRA$381.67 68 Health 68 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Ciena Corporation Communication Equipment CIEN$351.15 65 Health 65 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Harmonic Inc. Communication Equipment HLIT$10.58 65 Health 65 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Good Entry Good EntryA usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
- Hewlett Packard Enterprise Company Communication Equipment HPE$60.84 57 Health 57 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Viasat, Inc. Communication Equipment VSAT$70.30 45 Health 45 / 100
Weaker fundamentals relative to higher-quality names in the universe.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
FAQ
How Compound Radar scores and tracks Lumentum Holdings Inc. (LITE).