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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Lumentum Holdings's
Operating Income
for the
three
months ended in Jun. 2026 was CHF225 Mil. Lumentum Holdings's Interest Expense for the
three
months ended in Jun. 2026 was CHF-3 Mil.
Lumentum Holdings's interest coverage for the quarter that ended in Jun. 2026 was 78.26.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Lumentum Holdings's Interest Coverage or its related term are showing as below:
XSWX:LITE1'
s Interest Coverage Range Over the Past 10 Years
Min: 1.13 Med: 4.91 Max: 24.6
Current: 24.6
XSWX:LITE1's Interest Coverage is ranked better than 60.72% of 1670
companies
in the Hardware industry
Industry Median: 14.56
vs XSWX:LITE1: 24.60
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Lumentum Holdings Interest Coverage Related Terms
Lumentum Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings's Interest Coverage 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: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:LITE1 vs HPE, CIEN, MSI: Interest Coverage Comparison
For the Communication Equipment subindustry, Lumentum Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 78.26 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Lumentum Holdings and its competitors. This is 1494% above median its historical median of 4.91. Over the past decade, Lumentum Holdings' Interest Coverage has ranged from 1.13 to 24.60. According to the industry distribution chart, Lumentum Holdings ranks #656 out of 1670 companies in the Hardware industry, placing it in the top 39.3%.
Is Lumentum Holdings' Interest Coverage too high?
Lumentum Holdings' current Interest Coverage of 78.26 is 1494% above median its 10-year median of 4.91. Over the past 10 years, this metric has ranged from a low of 1.13 to a high of 24.60. The Hardware industry median Interest Coverage is 14.56. Lumentum Holdings' value of 78.26 is 437.5% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #656 out of 1670 companies in the Hardware industry, which is above the industry midpoint. Overall, Lumentum Holdings has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Interest Coverage compare to HPE and CIEN?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #656 out of 1670 companies for Interest Coverage. This puts Lumentum Holdings in the upper half of its industry. The industry median Interest Coverage is 14.56. Lumentum Holdings' value of 78.26 is 437.5% above this benchmark. Historically, Lumentum Holdings' own Interest Coverage has ranged from 1.13 to 24.60 over the past decade. While the company's 10-year median is 4.91 vs. the industry median of 14.56, 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 Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 14.56, based on 1,670 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current Interest Coverage of 78.26 is 437.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Lumentum Holdings and its competitors. For the Hardware industry, the median Interest Coverage is 14.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Interest Coverage is 78.26, which is 1494% above median its own 10-year median of 4.91. 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 Interest Coverage of 78.26. The stock's GF Value™ is CHF132.25, compared to a current price of CHF720.20 — trading 444.6% above its estimated fair value. The current Interest Coverage is 78.26, which is 1494% above median its 10-year median of 4.91 and 437.5% above the Hardware industry median of 14.56. Lumentum Holdings' overall GF Score™ is 67/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Lumentum Holdings (XSWX:LITE1), the current Interest Coverage is 78.26 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 (XSWX:LITE1) Overvalued in 2026?
Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued.
The current stock price of CHF720.20 is trading 444.6% above its estimated GF Value™ of CHF132.25.
Key valuation signals for XSWX:LITE1:
Interest Coverage: 78.26 (1494% above median its 10-year median of 4.91)
GF Value™: CHF132.25 vs. price of CHF720.20 (444.6% above fair value)
Industry Position: 437.5% above the Hardware median (#656 of 1670)
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.
67GF Score
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