Is LAM RESEARCH CORP (NASDAQ:LRCX) suited for quality investing?

In this article we will dive into LAM RESEARCH CORP (NASDAQ:LRCX) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LAM RESEARCH CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NASDAQ:LRCX may be interesting for quality investors.

• LAM RESEARCH CORP has demonstrated significant revenue growth over the past 5 years, with a 9.49% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• The ROIC excluding cash and goodwill of LAM RESEARCH CORP stands at 56.09%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a favorable Debt/Free Cash Flow Ratio of 1.1, LAM RESEARCH CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• LAM RESEARCH CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 91.71%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 10.53%, LAM RESEARCH CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• LAM RESEARCH CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for NASDAQ:LRCX?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, LRCX scores 6 out of 10 in our fundamental rating. LRCX was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. LRCX gets an excellent profitability rating and is at the same time showing great financial health properties. LRCX is valied quite expensively at the moment, while it does show a decent growth rate.

Our latest full fundamental report of LRCX contains the most current fundamental analsysis.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.