Should you consider NASDAQ:LRCX for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LAM RESEARCH CORP (NASDAQ:LRCX) is suited for quality investing. Investors should of couse do their own research, but we spotted LAM RESEARCH CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• Over the past 5 years, LAM RESEARCH CORP has experienced impressive revenue growth, with 9.49% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• LAM RESEARCH CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 62.93% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• LAM RESEARCH CORP maintains a healthy Debt/Free Cash Flow Ratio of 1.07, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• LAM RESEARCH CORP exhibits impressive Profit Quality (5-year) with a 91.7% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• LAM RESEARCH CORP has experienced impressive EBIT growth over the past 5 years, with 10.62% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• LAM RESEARCH CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NASDAQ:LRCX?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall LRCX gets a fundamental rating of 6 out of 10. We evaluated LRCX against 105 industry peers in the Semiconductors & Semiconductor Equipment industry. LRCX has an excellent profitability rating, but there are some minor concerns on its financial health. LRCX has a correct valuation and a medium growth rate.

For an up to date full fundamental analysis you can check the fundamental report of LRCX

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.