Lumentum HoldingsXSWX:LITE1 61 Return-on-Tangible-Asset is 12.84% as of Mar. 2026, which is 880% above its 10-year median of 1.31. 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 2,501 Hardware companies, Lumentum Holdings ranks better than 92% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Lumentum Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was CHF454 Mil. Lumentum Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was CHF3,538 Mil. Therefore, Lumentum Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 12.84%.
The historical rank and industry rank for Lumentum Holdings's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:LITE1'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -19.05 Med: 1.31 Max: 17.88
Current: 12.81
During the past 13 years, Lumentum Holdings's highest Return-on-Tangible-Asset was 17.88%. The lowest was -19.05%. And the median was 1.31%.
XSWX:LITE1's Return-on-Tangible-Asset is ranked better than 92% of 2501
companies
in the Hardware industry
Industry Median: 2.4
vs XSWX:LITE1: 12.81
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Lumentum Holdings Return-on-Tangible-Asset Related Terms
Lumentum Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings's Return-on-Tangible-Asset 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.
XSWX:LITE1 vs : Return-on-Tangible-Asset Comparison
For the Communication Equipment subindustry, Lumentum Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 12.84% mean?
Lumentum Holdings (XSWX:LITE1) has a Return-on-Tangible-Asset of 12.84% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lumentum Holdings and its competitors. This is 880% above median its historical median of 1.31. According to the industry distribution chart, Lumentum Holdings ranks #200 out of 2501 companies in the Hardware industry, placing it in the top 8%.
Is Lumentum Holdings' Return-on-Tangible-Asset too high?
Lumentum Holdings' current Return-on-Tangible-Asset of 12.84% is 880% above median its 10-year median of 1.31. The Hardware industry median Return-on-Tangible-Asset is 2.40. Lumentum Holdings' value of 12.84% is 435% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #200 out of 2501 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 61/100, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Return-on-Tangible-Asset compare to ?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #200 out of 2501 companies for Return-on-Tangible-Asset. This places Lumentum Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.40. Lumentum Holdings' value of 12.84% is 435% above this benchmark. While the company's 10-year median is 1.31 vs. the industry median of 2.40, 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 Return-on-Tangible-Asset for a Hardware company?
The median Return-on-Tangible-Asset among Hardware companies is 2.40, based on 2,501 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current Return-on-Tangible-Asset of 12.84% is 435% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lumentum Holdings and its competitors. For the Hardware industry, the median Return-on-Tangible-Asset is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Return-on-Tangible-Asset is 12.84%, which is 880% above median its own 10-year median of 1.31. 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 Return-on-Tangible-Asset of 12.84%. 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 Return-on-Tangible-Asset is 12.84%, which is 880% above median its 10-year median of 1.31 and 435% above the Hardware industry median of 2.40. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Lumentum Holdings (XSWX:LITE1), the current Return-on-Tangible-Asset is 12.84% 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:
Return-on-Tangible-Asset: 12.84% (880% above median its 10-year median of 1.31)
GF Value™: CHF79.46 vs. price of CHF604.50 (660.8% above fair value)
Industry Position: 435% above the Hardware median (#200 of 2501)
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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