📊 AI Stock Rating — Summary

Lumentum Holdings reported quarterly revenue of $533.8 million, with net income of $4.2 million, equating to an EPS of $0.06. The company faced a challenging period, reflected in a net margin of 0.8% and negative free cash flow of $18.3 million. Despite these figures, LITE managed its debt, reducing net debt to $2.51 billion. Over the past year, LITE's stock has shown volatility as evidenced by its fluctuating analyst target prices between $165 and $380 with a consensus of $262.11, reflecting potential optimism among analysts.

AI Score Breakdown

Revenue Growth — Score: 5/10

LITE's revenue of $533.8 million represents stability, but there is little evidence of significant growth. The main drivers for revenue remained consistent with previous periods.

Profitability — Score: 4/10

The company's net margin is low at 0.8%, with an EPS of $0.06, indicating pressures on profitability. Operational efficiencies appear challenged, and net income is limited.

Cash Flow Quality — Score: 3/10

Negative free cash flow of $18.3 million and substantial capital expenditures challenge liquidity. However, debt repayment efforts were notable in this quarter.

Leverage & Balance Sheet — Score: 4/10

Despite the company holding substantial assets of $4.61 billion, high net debt of $2.51 billion raises concerns about financial resilience and leverage.

Shareholder Returns — Score: 5/10

The absence of dividends and share price volatility require investors to focus on long-term appreciation. Without recent price change data, it's hard to gauge current investor sentiment fully.

Analyst Sentiment & Valuation — Score: 7/10

Analyst price targets range from $165 to $380, with a median of $240, suggesting the possibility of significant upside potential. Valuation metrics aren’t provided, but analyst trends appear cautiously optimistic.

⚠ AI-generated — informational only, not financial advice.