We initiate coverage on Coherent and Lumentum, two major suppliers of photonics components. Both firms specialize in indium phosphide lasers and transmission modules that power fiber networks and will compete in near- and co-packed optics, the next generation of artificial intelligence connectivity.
Lumentum is among a limited number of firms that can meet exploding demand tied to AI infrastructure investment, which should produce meaningful excess
AI remains the key driver of returns for Lumentum, and any meaningful disruption in related infrastructure buildouts could result in far weaker demand than expected.
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Metric
|
LITE
|
COHR
|
AVGO
|
|---|---|---|---|
Price/Earnings (Normalized) | 101.64 | 42.41 | 34.61 |
Price/Book Value | 16.23 | 4.26 | 16.12 |
Price/Sales | 21.06 | 6.52 | 18.52 |
Price/Cash Flow | 60.82 | 39.27 | 31.76 |
|
Metric
|
LITE
|
COHR
|
AVGO
|
|---|---|---|---|
Quick Ratio | 1.31 | 1.19 | 2.15 |
Current Ratio | 1.68 | 2.43 | 2.50 |
Interest Coverage | −330.79 | 5.46 | 13.88 |
|
Metric
|
LITE
|
COHR
|
AVGO
|
|---|---|---|---|
Return on Assets (Normalized) | 13.98% | 5.45% | 27.66% |
Return on Equity (Normalized) | 37.69% | 10.52% | 57.31% |
Return on Invested Capital (Normalized) | 15.16% | 7.94% | 34.36% |
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1-Day Chart
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United States