Lumentum Holdings (MIL:1LITE) Moat Score: 5/10 (As of Jun. 28, 2026)


MIL:1LITE Lumentum Holdings Inc MIL:1LITE
43 GF Score
Price €691.20
GF Value €80.08
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Lumentum Holdings Moat Score?

Lumentum Holdings MIL:1LITE -6.71% 43 Moat Score is 5 as of Jun. 28, 2026. GuruFocus rates MIL:1LITE with a GF Score™ of 43/100 and a GF Value™ of €80.08 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,473 Hardware companies, Lumentum Holdings ranks better than 97.21% on this metric.

Lumentum Holdings has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Lumentum Holdings has Narrow Moat: Lumentum Holdings has a solid position in the optical and photonic products market, supported by valuable patents and consistent R&D. However, while it benefits from economies of scale and some pricing power, the competitive landscape limits its ability to establish a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Lumentum Holdings might have Narrow Moat - Solid narrow moat.

Lumentum Holdings  (MIL:1LITE) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Lumentum Holdings Moat Score Related Terms

MIL:1LITE vs MSI, CIEN, HPE: Moat Score Comparison

For the Communication Equipment subindustry, Lumentum Holdings's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Hardware Industry

For the Hardware industry and Technology sector, Lumentum Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where Lumentum Holdings's Moat Score falls into.


MIL:1LITE
43GF Score
Lumentum Holdings Inc MIL:1LITE
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Lumentum Holdings (MIL:1LITE) has a Moat Score of 5 as of Jun. 28, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Lumentum Holdings ranks #69 out of 2473 companies in the Hardware industry, placing it in the top 2.8%.
Is Lumentum Holdings' Moat Score too high?
Lumentum Holdings' current Moat Score is 5. Based on the distribution chart, Lumentum Holdings ranks #69 out of 2473 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Lumentum Holdings has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Moat Score compare to MSI and CIEN?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #69 out of 2473 companies for Moat Score. This places Lumentum Holdings in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Hardware company?
A good Moat Score depends on the Hardware industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Lumentum Holdings's current Moat Score is 5. 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 (MIL:1LITE) is currently considered Significantly Overvalued. The stock's GF Value™ is €80.08, compared to a current price of €691.20 — trading 763.1% above its estimated fair value. The current Moat Score is 5. Lumentum Holdings' overall GF Score™ is 43/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Lumentum Holdings (MIL:1LITE), the current Moat Score is 5 as of Jun. 28, 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 (MIL:1LITE) Overvalued in 2026?

Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued. The current stock price of €691.20 is trading 763.1% above its estimated GF Value™ of €80.08. GuruFocus considers Lumentum Holdings to be Significantly Overvalued.

Key valuation signals for MIL:1LITE:

  • Moat Score: 5
  • GF Value™: €80.08 vs. price of €691.20 (763.1% above fair value)
  • GF Score™: 43/100 with 4 warning signs

No single metric tells the full story. See the MIL:1LITE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Lumentum Holdings Business Description

Address 1001 Ridder Park Drive, San Jose, CA, USA, 95131
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.
43GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€691.20
Price
€80.08
GF Value