Is Lumentum Holdings Inc. (LITE) Halal?
Shariah Screening — 5 Standards
Based on financial data from June 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 6.5% / 30% | 2.2% / 30% | 0.6% / 30% | 2.09% / 5% | ✓ HALAL |
| DJIM | 6.5% / 33% | 2.2% / 33% | 0.6% / 33% | 2.09% / 5% | ✓ HALAL |
| MSCI | 61.8% / 33% | 20.8% / 33% | 5.9% / 33% | 2.09% / 5% | ✗ NOT HALAL |
| S&P | 6.5% / 33% | 2.2% / 33% | 0.6% / 33% | 2.09% / 5% | ✓ HALAL |
| FTSE | 61.8% / 33% | 20.8% / 33% | 5.9% / 50% | 2.09% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 37.1% | |
| Operating Margin | 10.7% | |
| Net Margin | 12.0% | |
| Return on Equity (ROE) | 29.3% | |
| Return on Assets (ROA) | 0.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $126M |
| Free Cash Flow | -$105M |
| Total Debt | $2.6B |
| Debt-to-Equity | 392.5 |
| Current Ratio | 0.6 |
| Total Assets | $4.2B |
Price & Trading
| Last Close | $688.80 |
| 50-Day MA | $577.75 |
| 200-Day MA | $288.64 |
| Avg Volume | 5.6M |
| Beta | 1.4 |
|
52-Week Range
$45.65
| |
About Lumentum Holdings Inc. (LITE)
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 that are building cloud data centers and network infrastructures. Its Industrial Tech segment provides short-pulse solid-state lasers, kilowatt-class fiber lasers, diode lasers, and gas lasers that serves the semiconductor device, solar cell, display, and electric vehicle and battery manufacturing markets. The company was incorporated in 2015 and is headquartered in San Jose, California.
Purification Calculator
As a halal stock with 2.09% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Lumentum Holdings Inc. (LITE) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Lumentum Holdings Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Lumentum Holdings Inc.'s debt ratio?
Lumentum Holdings Inc.'s debt ratio is 6.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 61.8%.
Does Lumentum Holdings Inc. require dividend purification?
Yes, Lumentum Holdings Inc. has an impermissible income ratio of 2.09%, which means 2.09% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Lumentum Holdings Inc.'s key financial metrics?
Lumentum Holdings Inc. has a market capitalization of $50.2B, trailing P/E ratio of 204.3, and revenue of $1.6B. The company maintains a gross margin of 37.1% and a net margin of 12.0%. Return on equity stands at 29.3%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.