Lumentum Holdings, Inc.
Find Ratings Reports
0.45 |
0.49%
LUMENTUM HOLDINGS INC's gross profit margin for the second quarter of its fiscal year 2021 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. LUMENTUM HOLDINGS INC is extremely liquid. Currently, the Quick Ratio is 3.06 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 14.28% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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| Income Statement | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Net Sales ($mil) | 478.8 | 457.8 |
| EBITDA ($mil) | 165.1 | 128.5 |
| EBIT ($mil) | 120.4 | 81.2 |
| Net Income ($mil) | 83.2 | 49.1 |
| Balance Sheet | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Cash & Equiv. ($mil) | 1700.3 | 1315.6 |
| Total Assets ($mil) | 3468.2 | 3221.2 |
| Total Debt ($mil) | 1215.6 | 1173.5 |
| Equity ($mil) | 1921.9 | 1681.6 |
| Profitability | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Gross Profit Margin | 57.04 | 50.85 |
| EBITDA Margin | 34.48 | 28.06 |
| Operating Margin | 25.15 | 17.74 |
| Sales Turnover | 0.49 | 0.54 |
| Return on Assets | 5.45 | -0.1 |
| Return on Equity | 9.84 | -0.2 |
| Debt | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Current Ratio | 3.5 | 6.19 |
| Debt/Capital | 0.39 | 0.41 |
| Interest Expense | 16.3 | 10.3 |
| Interest Coverage | 7.39 | 7.88 |
| Share Data | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Shares outstanding (mil) | 75.7 | 74.72 |
| Div / share | 0.0 | 0.0 |
| EPS | 1.06 | 0.63 |
| Book value / share | 25.39 | 22.51 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1939384.0 | 1026613.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 67.67 for the Computer and Electronic Product Manufacturing subsector and a discount compared to the S&P 500 average of 43.53. To use another comparison, its price-to-book ratio of 3.59 indicates a discount versus the S&P 500 average of 4.31 and a significant discount versus the subsector average of 5.23. The current price-to-sales ratio is well above the S&P 500 average, but below the subsector average. Upon assessment of these and other key valuation criteria, LUMENTUM HOLDINGS INC proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LITE 37.71 | Peers 29.61 | LITE 13.58 | Peers 17.01 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. LITE is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. LITE is trading at a discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| LITE 13.06 | Peers 20.71 | LITE 0.14 | Peers 0.96 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. LITE is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. LITE trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| LITE 3.59 | Peers 5.23 | LITE 3125.00 | Peers 136.15 | |||||||||||||||||||||
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Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. LITE is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. LITE is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| LITE 4.06 | Peers 4.43 | LITE -2.47 | Peers -0.45 | |||||||||||||||||||||
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Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. LITE is trading at a valuation on par with its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. LITE significantly trails its peers on the basis of sales growth. |
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