Is the business good?
How good a business is LITE?
Lumentum earns 8.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.1%
Return on invested capital · cost of capital 9.0% · 0.93 points below what the capital costs: growth destroys value
- Operating margin
- 17%
Operating margin · Communication Equipment median 4.4% · 12 months to Q4 2026
- R&D as % of revenue
- 12%
R&D as % of revenue
- Gross margin
- 42%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 30% |
| FY2022 | 18% |
| FY2023 | −6.6% |
| FY2024 | −32% |
| FY2025 | −11% |
| FY2026 | 17% |
Details›
- Gross margin12 months to Q4 2026
- 42%
- Operating margin12 months to Q4 2026
- 17%
- Net margin12 months to Q4 2026
- −230%
- Free cash flow margin
- 10.0%
- R&D as % of revenue
- 12%
- Revenue, trailing twelve months
- $3.01B
- Free cash flow, trailing twelve months
- $300M
- Net income, trailing twelve months
- −$6.94B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Communication Equipment
Ranks #11 of 21 by Smart Score