Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Lumentum Holdings's 10-Year RORE % for the quarter that ended in Mar. 2026 was 146.24%.
The industry rank for Lumentum Holdings's 10-Year RORE % or its related term are showing as below:
XSWX:LITE1's 10-Year RORE % is ranked better than 96.72% of 1738
companies
in the Hardware industry
Industry Median: 6.925
vs XSWX:LITE1: 146.24
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Lumentum Holdings 10-Year RORE % Related Terms
Lumentum Holdings 10-Year RORE % Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings's 10-Year RORE % 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 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's 10-Year RORE % 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 10-year before.
Lumentum Holdings (XSWX:LITE1) has a 10-Year RORE % of 146.24 as of Mar. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Lumentum Holdings and its competitors. According to the industry distribution chart, Lumentum Holdings ranks #57 out of 1738 companies in the Hardware industry, placing it in the top 3.3%.
Is Lumentum Holdings' 10-Year RORE % too high?
Lumentum Holdings' current 10-Year RORE % is 146.24. The Hardware industry median 10-Year RORE % is 6.93. Lumentum Holdings' value of 146.24 is 2011.8% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #57 out of 1738 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' 10-Year RORE % compare to ?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #57 out of 1738 companies for 10-Year RORE %. This places Lumentum Holdings in the top 3% of its industry — outperforming the majority of peers. The industry median 10-Year RORE % is 6.93. Lumentum Holdings' value of 146.24 is 2011.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year RORE % for a Hardware company?
The median 10-Year RORE % among Hardware companies is 6.93, based on 1,738 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current 10-Year RORE % of 146.24 is 2011.8% 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Lumentum Holdings and its competitors. For the Hardware industry, the median 10-Year RORE % is 6.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current 10-Year RORE % is 146.24. 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 10-Year RORE % of 146.24. 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 10-Year RORE % is 146.24 and 2011.8% above the Hardware industry median of 6.93. 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 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Lumentum Holdings (XSWX:LITE1), the current 10-Year RORE % is 146.24 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:
10-Year RORE %: 146.24
GF Value™: CHF79.46 vs. price of CHF604.50 (660.8% above fair value)
Industry Position: 2011.8% above the Hardware median (#57 of 1738)
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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