LUMENTUM HOLDINGS INC Rated 65% By Shareholder Yield Model

LUMENTUM HOLDINGS INC (LITE) receives a 65% rating based on the Shareholder Yield Investor strategy. However, the company has failed key tests relating to net payout yield, valuation, and shareholder yield, which could negatively influence stock prices.

Date: 20-01-2025

AI Rating: 5

Rating Overview
LUMENTUM HOLDINGS INC (LITE) has been evaluated using the Shareholder Yield Investor model, which focuses on cash returns to shareholders. The stock's rating of 65% indicates a mixed performance based on underlying fundamentals and valuation.

Key Financial Metrics
The analysis highlights that LITE fails to meet crucial criteria for net payout yield, valuation, and shareholder yield, which may create negative sentiment among investors.

The stock passes the universe, quality and debt, and relative strength tests, which are considered positive indicators. However, the failings in net payout yield, valuation, and shareholder yield suggest that investors might have concerns about the company’s ability to effectively return value to shareholders.

Investors typically look for companies that not only perform well in terms of quality but also maintain attractive valuation metrics and strong payout yields. The failure in three of these critical areas could affect investor confidence and, consequently, stock prices negatively. The score of 65% indicates that while there are some positive signals, the significant weaknesses could overshadow them in market assessments.

Conclusion

Stocks: LITE