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Lumentum HoldingsLITE +4.17%67 Capex-to-Operating-Cash-Flow is 0.46 as of Jun. 2026, which is 16% below its 10-year median of 0.55. GuruFocus rates LITE with a GF Score™ of 67/100 and a GF Value™ of $174.12 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,398 Hardware companies, Lumentum Holdings ranks worse than 58.51% on this metric.
Capex-to-Operating-Cash-Flow assesses how much of a company’s cash flow from operations is being devoted to capital expenditure. It’s also useful to distinguish whether the company is capital intensive or not.
Capex-to-Operating-Cash-Flow ratio assesses how much of a company’s Cash Flow from Operations is being devoted to Capital Expenditure. It is a good indicator in terms of how much the company is focused on growth. In general, a high Capex-to-Operating-Cash-Flow ratio indicates that the company is investing more in physical assets and is focused on growth and expansion. Conversely, lower ratio could indicate that a company has reached maturity and is no longer pursuing aggressive growth.
Moreover, the ratio is also useful to distinguish whether the company is capital intensive or not. If the ratio is large, then the company tends to be capital intensive. Lower ratio suggests that it’s a capital-light business. The ratio can be combined with ROIC % to identify whether the company is an asset-light business that has a high return on invested capital. This is one question investors commonly ask to see if a company qualifies as a good company.
Lumentum Holdings Capex-to-Operating-Cash-Flow Related Terms
Lumentum Holdings Capex-to-Operating-Cash-Flow Historical Data
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The historical data trend for Lumentum Holdings's Capex-to-Operating-Cash-Flow can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LITE vs MSI, HPE, CIEN: Capex-to-Operating-Cash-Flow Comparison
For the Communication Equipment subindustry, Lumentum Holdings's Capex-to-Operating-Cash-Flow, along with its competitors' market caps and Capex-to-Operating-Cash-Flow data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lumentum Holdings Capex-to-Operating-Cash-Flow vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Capex-to-Operating-Cash-Flow distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's Capex-to-Operating-Cash-Flow falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Capex-to-Operating-Cash-Flow of 0.46 mean?
Lumentum Holdings (LITE) has a Capex-to-Operating-Cash-Flow of 0.46 as of Jun. 2026. Capex to Operating Cash Flow ratio assesses how much of a company’s cash flow from operations is being devoted to capital expenditure. View historical data on Lumentum Holdings and its competitors. This is 16% below median its historical median of 0.55. Over the past decade, Lumentum Holdings' Capex-to-Operating-Cash-Flow has ranged from 0.12 to 5.55. According to the industry distribution chart, Lumentum Holdings ranks #818 out of 1398 companies in the Hardware industry, placing it in the top 58.5%.
Is Lumentum Holdings' Capex-to-Operating-Cash-Flow too high?
Lumentum Holdings' current Capex-to-Operating-Cash-Flow of 0.46 is 16% below median its 10-year median of 0.55. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 5.55. The Hardware industry median Capex-to-Operating-Cash-Flow is 0.45. Lumentum Holdings' value of 0.46 is 2.2% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #818 out of 1398 companies in the Hardware industry, which is below the industry midpoint. Overall, Lumentum Holdings has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Capex-to-Operating-Cash-Flow compare to MSI and HPE?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #818 out of 1398 companies for Capex-to-Operating-Cash-Flow. This places Lumentum Holdings in the lower half of its industry. The industry median Capex-to-Operating-Cash-Flow is 0.45. Lumentum Holdings' value of 0.46 is 2.2% above this benchmark. Historically, Lumentum Holdings' own Capex-to-Operating-Cash-Flow has ranged from 0.12 to 5.55 over the past decade. While the company's 10-year median is 0.55 vs. the industry median of 0.45, Lumentum Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Capex-to-Operating-Cash-Flow for a Hardware company?
The median Capex-to-Operating-Cash-Flow among Hardware companies is 0.45, based on 1,398 companies in the industry. Companies in the top quartile (top 25%) have a Capex-to-Operating-Cash-Flow significantly above this median, while those in the bottom quartile fall well below. However, Capex-to-Operating-Cash-Flow should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current Capex-to-Operating-Cash-Flow of 0.46 is 2.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Capex-to-Operating-Cash-Flow mean?
A high Capex-to-Operating-Cash-Flow can signal that a stock is expensive relative to its fundamentals. Capex to Operating Cash Flow ratio assesses how much of a company’s cash flow from operations is being devoted to capital expenditure. View historical data on Lumentum Holdings and its competitors. For the Hardware industry, the median Capex-to-Operating-Cash-Flow is 0.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Capex-to-Operating-Cash-Flow is 0.46, which is 16% below median its own 10-year median of 0.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lumentum Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lumentum Holdings (LITE) is currently considered Significantly Overvalued. The stock's GF Value™ is $174.12, compared to a current price of $930.91 — trading 434.6% above its estimated fair value. The current Capex-to-Operating-Cash-Flow is 0.46, which is 16% below median its 10-year median of 0.55 and 2.2% above the Hardware industry median of 0.45. Lumentum Holdings' overall GF Score™ is 67/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Capex-to-Operating-Cash-Flow calculated?
Capex-to-Operating-Cash-Flow is calculated from a company's financial statements. For Lumentum Holdings (LITE), the current Capex-to-Operating-Cash-Flow is 0.46 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lumentum Holdings (LITE) Overvalued in 2026?
Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued.
The current stock price of $930.91 is trading 434.6% above its estimated GF Value™ of $174.12.
GuruFocus considers Lumentum Holdings to be Significantly Overvalued.
Key valuation signals for LITE:
Capex-to-Operating-Cash-Flow: 0.46 (16% below median its 10-year median of 0.55)
GF Value™: $174.12 vs. price of $930.91 (434.6% above fair value)
Industry Position: 2.2% above the Hardware median (#818 of 1398)
No single metric tells the full story. See the LITE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are Optical Communications and Commercial Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules, and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul, and submarine (undersea) applications.
67GF Score
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Capex-to-Operating-Cash-Flow is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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