Lumentum HoldingsXTER:LU2 -6.66%61 FCF Margin % is 9.78% as of Mar. 2026, which is 46% above its 10-year median of 6.69. GuruFocus rates XTER:LU2 with a GF Score™ of 61/100 and a GF Value™ of €80.10 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,471 Hardware companies, Lumentum Holdings ranks better than 66.73% on this metric.
The historical rank and industry rank for Lumentum Holdings's FCF Margin % or its related term are showing as below:
XTER:LU2'
s FCF Margin % Range Over the Past 10 Years
Min: -8.26 Med: 6.69 Max: 37.52
Current: 4.6
During the past 13 years, the highest FCF Margin % of Lumentum Holdings was 37.52%. The lowest was -8.26%. And the median was 6.69%.
XTER:LU2's FCF Margin % is ranked better than 66.73% of 2471
companies
in the Hardware industry
Industry Median: 0.63
vs XTER:LU2: 4.60
Lumentum Holdings FCF Margin % Related Terms
Lumentum Holdings FCF Margin % Historical Data
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The historical data trend for Lumentum Holdings's FCF Margin % 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.
XTER:LU2 vs MSI, HPE, CIEN: FCF Margin % Comparison
For the Communication Equipment subindustry, Lumentum Holdings's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's FCF Margin % 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 (XTER:LU2) has a FCF Margin % of 9.78% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Lumentum Holdings and its competitors. This is 46% above median its historical median of 6.69. According to the industry distribution chart, Lumentum Holdings ranks #822 out of 2471 companies in the Hardware industry, placing it in the top 33.3%.
Is Lumentum Holdings' FCF Margin % too high?
Lumentum Holdings' current FCF Margin % of 9.78% is 46% above median its 10-year median of 6.69. The Hardware industry median FCF Margin % is 0.63. Lumentum Holdings' value of 9.78% is 1452.4% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #822 out of 2471 companies in the Hardware industry, which is above 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' FCF Margin % compare to MSI and HPE?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #822 out of 2471 companies for FCF Margin %. This puts Lumentum Holdings in the upper half of its industry. The industry median FCF Margin % is 0.63. Lumentum Holdings' value of 9.78% is 1452.4% above this benchmark. While the company's 10-year median is 6.69 vs. the industry median of 0.63, 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 FCF Margin % for a Hardware company?
The median FCF Margin % among Hardware companies is 0.63, based on 2,471 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current FCF Margin % of 9.78% is 1452.4% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Lumentum Holdings and its competitors. For the Hardware industry, the median FCF Margin % is 0.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current FCF Margin % is 9.78%, which is 46% above median its own 10-year median of 6.69. 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 (XTER:LU2) is currently considered Significantly Overvalued. The stock's GF Value™ is €80.10, compared to a current price of €691.40 — trading 763.2% above its estimated fair value. The current FCF Margin % is 9.78%, which is 46% above median its 10-year median of 6.69 and 1452.4% above the Hardware industry median of 0.63. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Lumentum Holdings (XTER:LU2), the current FCF Margin % is 9.78% 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 (XTER:LU2) Overvalued in 2026?
Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued.
The current stock price of €691.40 is trading 763.2% above its estimated GF Value™ of €80.10.
GuruFocus considers Lumentum Holdings to be Significantly Overvalued.
Key valuation signals for XTER:LU2:
FCF Margin %: 9.78% (46% above median its 10-year median of 6.69)
GF Value™: €80.10 vs. price of €691.40 (763.2% above fair value)
Industry Position: 1452.4% above the Hardware median (#822 of 2471)
No single metric tells the full story. See the XTER:LU2 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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