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Lumentum HoldingsLITE +2.99%61 Cash-to-Debt is 0.96 as of Mar. 2026, which is 19% below its 10-year median of 1.18. GuruFocus rates LITE with a GF Score™ of 61/100 and a GF Value™ of $102.53 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,488 Hardware companies, Lumentum Holdings ranks worse than 57.88% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Lumentum Holdings's cash to debt ratio for the quarter that ended in Mar. 2026 was 0.96.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Lumentum Holdingscouldn't pay off its debt using the cash in hand for the quarter that ended in Mar. 2026.
The historical rank and industry rank for Lumentum Holdings's Cash-to-Debt or its related term are showing as below:
LITE'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.33 Med: 1.18 Max: No Debt
Current: 0.96
During the past 13 years, Lumentum Holdings's highest Cash to Debt Ratio was No Debt. The lowest was 0.33. And the median was 1.18.
LITE's Cash-to-Debt is ranked worse than 57.88% of 2488
companies
in the Hardware industry
Industry Median: 1.38
vs LITE: 0.96
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Lumentum Holdings Cash-to-Debt Related Terms
Lumentum Holdings Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings's Cash-to-Debt 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.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Communication Equipment subindustry, Lumentum Holdings's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt 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 Cash-to-Debt vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's Cash-to-Debt 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.
Lumentum Holdings (LITE) has a Cash-to-Debt of 0.96 as of Mar. 2026. This is 19% below median its historical median of 1.18. Over the past decade, Lumentum Holdings' Cash-to-Debt has ranged from 0.33 to 10,000.00. According to the industry distribution chart, Lumentum Holdings ranks #1440 out of 2488 companies in the Hardware industry, placing it in the top 57.9%.
Is Lumentum Holdings' Cash-to-Debt too high?
Lumentum Holdings' current Cash-to-Debt of 0.96 is 19% below median its 10-year median of 1.18. Over the past 10 years, this metric has ranged from a low of 0.33 to a high of 10,000.00. The Hardware industry median Cash-to-Debt is 1.38. Lumentum Holdings' value of 0.96 is 30.4% below this industry median. Based on the distribution chart, Lumentum Holdings ranks #1440 out of 2488 companies in the Hardware industry, which is below the industry midpoint. Overall, Lumentum Holdings has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Cash-to-Debt compare to HPE and CIEN?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #1440 out of 2488 companies for Cash-to-Debt. This places Lumentum Holdings in the lower half of its industry. The industry median Cash-to-Debt is 1.38. Lumentum Holdings' value of 0.96 is 30.4% below this benchmark. Historically, Lumentum Holdings' own Cash-to-Debt has ranged from 0.33 to 10,000.00 over the past decade. While the company's 10-year median is 1.18 vs. the industry median of 1.38, Lumentum Holdings has consistently been below 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 Cash-to-Debt for a Hardware company?
The median Cash-to-Debt among Hardware companies is 1.38, based on 2,488 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current Cash-to-Debt of 0.96 is 30.4% below 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 Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median Cash-to-Debt is 1.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Cash-to-Debt is 0.96, which is 19% below median its own 10-year median of 1.18. 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 $102.53, compared to a current price of $713.94 — trading 596.3% above its estimated fair value. The current Cash-to-Debt is 0.96, which is 19% below median its 10-year median of 1.18 and 30.4% below the Hardware industry median of 1.38. Lumentum Holdings' overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Lumentum Holdings (LITE), the current Cash-to-Debt is 0.96 as of Mar. 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 $713.94 is trading 596.3% above its estimated GF Value™ of $102.53.
GuruFocus considers Lumentum Holdings to be Significantly Overvalued.
Key valuation signals for LITE:
Cash-to-Debt: 0.96 (19% below median its 10-year median of 1.18)
GF Value™: $102.53 vs. price of $713.94 (596.3% above fair value)
Industry Position: 30.4% below the Hardware median (#1440 of 2488)
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.
61GF Score
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