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.
Coherent is among a limited number of firms that can meet exploding demand tied to AI infrastructure investment, which should produce meaningful excess profits.
Artificial intelligence remains the key driver of returns for Coherent, and any meaningful disruption in infrastructure investment could crush demand.
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Metric
|
COHR
|
NOK
|
LITE
|
|---|---|---|---|
Price/Earnings (Normalized) | 42.10 | 15.57 | 103.49 |
Price/Book Value | 4.23 | 2.07 | 16.53 |
Price/Sales | 6.47 | 2.12 | 21.44 |
Price/Cash Flow | 38.99 | 16.54 | 61.93 |
|
Metric
|
COHR
|
NOK
|
LITE
|
|---|---|---|---|
Quick Ratio | 1.19 | 1.18 | 1.31 |
Current Ratio | 2.43 | 1.46 | 1.68 |
Interest Coverage | 5.46 | — | −330.79 |
|
Metric
|
COHR
|
NOK
|
LITE
|
|---|---|---|---|
Return on Assets (Normalized) | 5.45% | 5.66% | 13.98% |
Return on Equity (Normalized) | 10.52% | 10.10% | 37.69% |
Return on Invested Capital (Normalized) | 7.94% | 7.13% | 15.16% |
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1-Day Chart
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Morningstar Rating for Stocks
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United States