Lumentum Holdings Inc. cash flow to debt ratio of 4.84% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Lumentum Holdings Inc.'s free cash flow has increased -5.93% from $-111.30M last year to $-104.70M, signaling increasing performance

Lumentum Holdings Inc.'s debt to equity ratio is 1.11, which means that the company's assets are unhealthy financed, signaling financial risk.

Lumentum Holdings Inc.'s debt has decreased relative to shareholder equity from 2.67 last year to 1.11 today, signaling strengthened financials

Lumentum Holdings Inc. has a net debt to EBITDA ratio of 19.55x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Lumentum Holdings Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Lumentum Holdings Inc.'s profit margin has increased (-143.97%) in the last year from -40.21% to 17.68%, signaling increasing performance

Lumentum Holdings Inc.'s short-term assets of $1.72B exceed its short-term liabilities of $392.80M

Lumentum Holdings Inc.'s return on assets of 6.26% is higher than the 5.00% threshold, indicating efficient asset utilization

Lumentum Holdings Inc.'s return on equity of 30.68%, is higher than 15.00%, indicating good performance

Lumentum Holdings Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Lumentum Holdings Inc. had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Lumentum Holdings Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

Lumentum Holdings Inc. has negative free cash flow, indicating cash burn

Lumentum Holdings Inc.'s yearly earnings has increased -104.74% since last year from $-546.50M to $25.90M, signaling increasing performance

Lumentum Holdings Inc.'s yearly revenue has increased 21.03% since last year from $1.36B to $1.65B, signaling increasing performance

ROIC 3.92% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Lumentum Holdings Inc.'s 3-year revenue CAGR of -1.33% is negative, indicating declining revenue over the past 3 years

Lumentum Holdings Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Lumentum Holdings Inc. had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Lumentum Holdings Inc. has insufficient data to evaluate this check.

Lumentum Holdings Inc. has an earnings yield of 0.76%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Lumentum Holdings Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Lumentum Holdings Inc. has an EV/EBITDA ratio of 612.16x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Lumentum Holdings Inc. is overvalued relative to its fair value price of -7.87 based on Earnings Fair Value model

Lumentum Holdings Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Lumentum Holdings Inc. has a price-to-book ratio of 19.56x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Lumentum Holdings Inc. has a price-to-sales ratio of 23.37x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue