Lumentum Holdings Inc. [NASDAQ:LITE]: Analyst Rating and Earnings

Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to Lumentum Holdings Inc. [LITE], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of June. On average, stock market experts give LITE an Outperform rating. Its stock price has been found in the range of 37.00 to 69.95. This is compared to its latest closing price of $50.20.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Lumentum Holdings Inc. [LITE] is sitting at 1.56. This is compared to 1 month ago, when its average rating was 1.56.

For the quarter ending in Mar-19 Lumentum Holdings Inc. [LITE] generated $0.43 billion in sales. That’s 1.00% higher than the average estimate of $0.43 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.

Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on Wed 14 Aug (In 89 Days).

Fundamental Analysis of Lumentum Holdings Inc. [LITE]

Now let’s turn to look at profitability: with a current Operating Margin for Lumentum Holdings Inc. [LITE] sitting at +11.79 and its Gross Margin at +35.03, this company’s Net Margin is now 1.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 12.93, and its Return on Invested Capital has reached 26.70%. Its Return on Equity is 32.12, and its Return on Assets is 17.63. These metrics suggest that this Lumentum Holdings Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Lumentum Holdings Inc. [LITE] has generated a Total Debt to Total Equity ratio of 36.92. Similarly, its Total Debt to Total Capital is 26.96, while its Total Debt to Total Assets stands at 21.62. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 36.13, and its Long-Term Debt to Total Capital is 26.39. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.

What about valuation? This company’s Enterprise Value to EBITDA is 18.49 and its Total Debt to EBITDA Value is 1.52. The Enterprise Value to Sales for this firm is now 2.84, and its Total Debt to Enterprise Value stands at 0.10. Lumentum Holdings Inc. [LITE] has a Price to Book Ratio of 3.93, a Price to Cash Flow Ratio of 14.81 and P/E Ratio of 215.58. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.

Shifting the focus to workforce efficiency, Lumentum Holdings Inc. [LITE] earns $425,836 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.86 and its Total Asset Turnover is 0.89. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 4.48 and its Current Ratio is 5.27. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Lumentum Holdings Inc. [LITE] has 76.75M shares outstanding, amounting to a total market cap of $3.85B. Its stock price has been found in the range of 37.00 to 69.95. At its current price, it has moved by -30.40% from its 52-week high, and it has moved 31.58% from its 52-week low.

This stock’s Beta value is currently 0.67, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 27.52. This stock, according to these metrics, is currently Oversold.

Conclusion: Is Lumentum Holdings Inc. [LITE] a Reliable Buy?

Lumentum Holdings Inc. [LITE] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.