Lumentum Holdings Inc. (LITE): one to watch?

A real AI-optics growth story, but it rocketed 600%+ then crashed on no company-specific bad news — still too expensive and volatile to call a clear bargain.

👀 WATCH Fundamentals70/100

Fell 22% in 6 trading day(s) — now $651.93

Why LITE dropped

Multiple sources confirm no earnings miss, guidance cut, lost customer, or accounting problem — Lumentum actually beat estimates last quarter with 90% revenue growth and record results, yet the stock is unwinding a massive prior run-up (roughly 667% over the past year) as part of a broader "AI/optics" momentum selloff.

Fwd P/E 35.5Op margin 21.8%Rev growth 90.1%Debt/equity 111.4%Analyst upside 69.5%

How this scored 70/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 17.7%

✅ Generates cash Free cash flow $93M

✅ Not drowning in debt Debt/equity 111.4% (limit 200%)

✅ Can pay its bills Current ratio 1.1 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 22/25

Operating margin 21.8% 8/9

Net profit margin 17.7% 7/8

Return on equity 22.8% 7/8

Growth Is it getting bigger, or dying? 19/25

Revenue growth 90.1% 9/9

Earnings growth unknown 2/8

Expected profit change 223.7% 8/8

Value Is it cheap right now? 16/25

Forward P/E 35.5 1/10

PEG ratio 0.6 8/8

Analyst target upside 69.5% 7/7

Balance sheet Will it survive? 13/25

Debt / equity 111.4% 5/10

Current ratio 1.1 1/8

Free cash flow $93M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-29. Research only — not financial advice.