Lumentum HoldingsXSWX:LITE1 61 Debt-to-Equity is 1.11 as of Mar. 2026, which is 63% above its 10-year median of 0.68. GuruFocus rates XSWX:LITE1 with a GF Score™ of 61/100 and a GF Value™ of CHF79.46. The stock has 4 warning signs investors should review. Among 2,212 Hardware companies, Lumentum Holdings ranks worse than 87.07% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Lumentum Holdings's Debt-to-Equity or its related term are showing as below:
XSWX:LITE1'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.34 Med: 0.68 Max: 4.2
Current: 1.11
During the past 13 years, the highest Debt-to-Equity Ratio of Lumentum Holdings was 4.20. The lowest was 0.34. And the median was 0.68.
XSWX:LITE1's Debt-to-Equity is ranked worse than 87.07% of 2212
companies
in the Hardware industry
Industry Median: 0.27
vs XSWX:LITE1: 1.11
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Lumentum Holdings Debt-to-Equity Related Terms
Lumentum Holdings Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings's Debt-to-Equity 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.
For the Communication Equipment subindustry, Lumentum Holdings's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's Debt-to-Equity 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 (XSWX:LITE1) has a Debt-to-Equity of 1.11 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Lumentum Holdings and its competitors. This is 63% above median its historical median of 0.68. Over the past decade, Lumentum Holdings' Debt-to-Equity has ranged from 0.34 to 4.20. According to the industry distribution chart, Lumentum Holdings ranks #1926 out of 2212 companies in the Hardware industry, placing it in the top 87.1%.
Is Lumentum Holdings' Debt-to-Equity too high?
Lumentum Holdings' current Debt-to-Equity of 1.11 is 63% above median its 10-year median of 0.68. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 4.20. The Hardware industry median Debt-to-Equity is 0.27. Lumentum Holdings' value of 1.11 is 311.1% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #1926 out of 2212 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Lumentum Holdings has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Debt-to-Equity compare to ?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #1926 out of 2212 companies for Debt-to-Equity. This places Lumentum Holdings in the lower half of its industry. The industry median Debt-to-Equity is 0.27. Lumentum Holdings' value of 1.11 is 311.1% above this benchmark. Historically, Lumentum Holdings' own Debt-to-Equity has ranged from 0.34 to 4.20 over the past decade. While the company's 10-year median is 0.68 vs. the industry median of 0.27, 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 Debt-to-Equity for a Hardware company?
The median Debt-to-Equity among Hardware companies is 0.27, based on 2,212 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current Debt-to-Equity of 1.11 is 311.1% 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Lumentum Holdings and its competitors. For the Hardware industry, the median Debt-to-Equity is 0.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Debt-to-Equity is 1.11, which is 63% above median its own 10-year median of 0.68. 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?
Lumentum Holdings (XSWX:LITE1) has a current Debt-to-Equity of 1.11. The stock's GF Value™ is CHF79.46, compared to a current price of CHF604.50 — trading 660.8% above its estimated fair value. The current Debt-to-Equity is 1.11, which is 63% above median its 10-year median of 0.68 and 311.1% above the Hardware industry median of 0.27. 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 Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Lumentum Holdings (XSWX:LITE1), the current Debt-to-Equity is 1.11 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 (XSWX:LITE1) Overvalued in 2026?
Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued.
The current stock price of CHF604.50 is trading 660.8% above its estimated GF Value™ of CHF79.46.
Key valuation signals for XSWX:LITE1:
Debt-to-Equity: 1.11 (63% above median its 10-year median of 0.68)
GF Value™: CHF79.46 vs. price of CHF604.50 (660.8% above fair value)
Industry Position: 311.1% above the Hardware median (#1926 of 2212)
No single metric tells the full story. See the XSWX:LITE1 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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