Lumentum Holdings Inc. LITE

Competitive advantage analysis · technology

Corporate Default
Overall moat score
54/100
Moderate

Ranked against 58 peers in Communication Equipment

About Lumentum Holdings Inc.

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. It operates through two segments, Cloud & Networking and Industrial Tech. The Cloud & Networking segment offers optical and photonic chips, components, modules, and subsystems supplied to cloud data center operators, AI/ML infrastructure providers, and network equipment manufacturer customers … Full LITE analysis →

Key strengths

  • Cost Leadership Position Operating margin at 92.5th percentile with strong OpEx control demonstrates cost leadership.
  • Scale Supporting Profitability Profitability at scale is strong (score 0.78), demonstrating competitive advantages.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.10), raising refinancing risk.
  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.25), suggesting weak customer stickiness.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
58
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where LITE ranks in Communication Equipment

Lumentum Holdings Inc. ranks #21 of 59 scored companies in Communication Equipment by moat score — the top 36%. The widest moat in the group is Ubiquiti Inc. (UI) at 82/100.

# Company Moat score Rating
17 CommScope Holding Company, Inc. COMM 60/100 Moderate
18 Aviat Networks, Inc. AVNW 58/100 Moderate
19 Inseego Corp. INSG 57/100 Moderate
20 Ceragon Networks Ltd. CRNT 54/100 Moderate
21 Lumentum Holdings Inc. LITE 54/100 Moderate
22 Lantronix, Inc. LTRX 54/100 Moderate
23 ViaSat, Inc. VSAT 53/100 Moderate
24 Hewlett Packard Enterprise Comp HPE 51/100 Moderate
25 KVH Industries, Inc. KVHI 50/100 Moderate

See every General Corporate company ranked by moat score →

How LITE scores on the Corporate Default defenses

Pricing Power

Score 58 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 95 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 60 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 21 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 32 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 67 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding LITE's moat

What is Lumentum Holdings Inc.'s moat score?

Lumentum Holdings Inc. (LITE) scores 54 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #21 of 59 scored companies in Communication Equipment, the top 36%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 58 companies in Communication Equipment. Its strongest defense is Cost Advantage (95/100) and its weakest is Capital Efficiency (21/100).

How does Lumentum Holdings Inc. compare with other Communication Equipment companies?

Lumentum Holdings Inc. ranks #21 of 59 scored companies in Communication Equipment by moat score. The widest moat in Communication Equipment is Ubiquiti Inc. (UI) at 82/100. The companies ranked closest are Ceragon Networks Ltd. (CRNT) at 54 just above it and Lantronix, Inc. (LTRX) at 54 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 58 companies in Communication Equipment. The defenses are then weighted to produce the overall score out of 100.

Why is Lumentum Holdings Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Lumentum Holdings Inc.?

The Corporate Default template measures 6 defenses, and LITE scores: Pricing Power (58), Cost Advantage (95), Customer Stickiness (60), Capital Efficiency (21), Resilience (32), Scale & Market Position (67). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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