LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LRCX - US5128073062 - Common Stock
119.12 EUR
-10.48 (-8.09%)
1LRCX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 60 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1LRCX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1LRCX is growing strongly while it is still valued neutral. This is a good combination! These ratings would make 1LRCX suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year 1LRCX was profitable.
1LRCX had a positive operating cash flow in the past year.
1LRCX had positive earnings in each of the past 5 years.
Each year in the past 5 years 1LRCX had a positive operating cash flow.
1.2 Ratios
1LRCX's Return On Assets of 26.53% is amongst the best of the industry. 1LRCX outperforms 96.61% of its industry peers.
The Return On Equity of 1LRCX (57.01%) is better than 94.92% of its industry peers.
1LRCX has a better Return On Invested Capital (37.82%) than 96.61% of its industry peers.
1LRCX had an Average Return On Invested Capital over the past 3 years of 31.47%. This is significantly above the industry average of 15.39%.
The 3 year average ROIC (31.47%) for 1LRCX is below the current ROIC(37.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.53% | ||
| ROE | 57.01% | ||
| ROIC | 37.82% |
ROA(3y)23.18%
ROA(5y)24.18%
ROE(3y)51.37%
ROE(5y)58.46%
ROIC(3y)31.47%
ROIC(5y)32.89%
1.3 Margins
The Profit Margin of 1LRCX (29.66%) is better than 86.44% of its industry peers.
1LRCX's Profit Margin has improved in the last couple of years.
1LRCX has a Operating Margin of 33.00%. This is amongst the best in the industry. 1LRCX outperforms 83.05% of its industry peers.
In the last couple of years the Operating Margin of 1LRCX has grown nicely.
Looking at the Gross Margin, with a value of 49.31%, 1LRCX is in the better half of the industry, outperforming 61.02% of the companies in the same industry.
In the last couple of years the Gross Margin of 1LRCX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33% | ||
| PM (TTM) | 29.66% | ||
| GM | 49.31% |
OM growth 3Y0.81%
OM growth 5Y3.76%
PM growth 3Y2.83%
PM growth 5Y5.33%
GM growth 3Y2.15%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
1LRCX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1LRCX has been reduced compared to 1 year ago.
Compared to 5 years ago, 1LRCX has less shares outstanding
Compared to 1 year ago, 1LRCX has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of 1LRCX is 0.81, which is an excellent value as it means it would take 1LRCX, only 0.81 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.81, 1LRCX is doing good in the industry, outperforming 77.97% of the companies in the same industry.
1LRCX has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
1LRCX has a worse Debt to Equity ratio (0.37) than 66.10% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1LRCX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | N/A |
ROIC/WACC3.27
WACC11.58%
2.3 Liquidity
A Current Ratio of 2.21 indicates that 1LRCX has no problem at all paying its short term obligations.
1LRCX has a Current ratio (2.21) which is in line with its industry peers.
1LRCX has a Quick Ratio of 1.60. This is a normal value and indicates that 1LRCX is financially healthy and should not expect problems in meeting its short term obligations.
1LRCX has a Quick ratio (1.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
1LRCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.65%, which is quite impressive.
Measured over the past years, 1LRCX shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.02% on average per year.
1LRCX shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.66%.
1LRCX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.91% yearly.
EPS 1Y (TTM)41.65%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%46.51%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
3.2 Future
1LRCX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.67% yearly.
The Revenue is expected to grow by 8.28% on average over the next years. This is quite good.
EPS Next Y11.82%
EPS Next 2Y14.65%
EPS Next 3Y14.42%
EPS Next 5Y16.67%
Revenue Next Year10.38%
Revenue Next 2Y10.67%
Revenue Next 3Y9.97%
Revenue Next 5Y8.28%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.47 indicates a quite expensive valuation of 1LRCX.
62.71% of the companies in the same industry are more expensive than 1LRCX, based on the Price/Earnings ratio.
1LRCX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.65.
The Price/Forward Earnings ratio is 25.42, which means the current valuation is very expensive for 1LRCX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1LRCX is on the same level as its industry peers.
1LRCX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.47 | ||
| Fwd PE | 25.42 |
4.2 Price Multiples
1LRCX's Enterprise Value to EBITDA is on the same level as the industry average.
1LRCX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1LRCX is cheaper than 74.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.43 | ||
| EV/EBITDA | 25.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1LRCX may justify a higher PE ratio.
1LRCX's earnings are expected to grow with 14.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.58
PEG (5Y)1.45
EPS Next 2Y14.65%
EPS Next 3Y14.42%
5. Dividend
5.1 Amount
1LRCX has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 1.14, 1LRCX pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.70, 1LRCX pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of 1LRCX is nicely growing with an annual growth rate of 14.54%!
Dividend Growth(5Y)14.54%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
20.32% of the earnings are spent on dividend by 1LRCX. This is a low number and sustainable payout ratio.
The dividend of 1LRCX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP20.32%
EPS Next 2Y14.65%
EPS Next 3Y14.42%
BIT:1LRCX (10/13/2025, 7:00:00 PM)
119.12
-10.48 (-8.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap150.21B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target100.43 (-15.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend0.77
Dividend Growth(5Y)14.54%
DP20.32%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.44%
Min EPS beat(2)1.09%
Max EPS beat(2)7.79%
EPS beat(4)4
Avg EPS beat(4)3%
Min EPS beat(4)1.09%
Max EPS beat(4)7.79%
EPS beat(8)8
Avg EPS beat(8)3.8%
EPS beat(12)12
Avg EPS beat(12)5.49%
EPS beat(16)14
Avg EPS beat(16)5.37%
Revenue beat(2)1
Avg Revenue beat(2)0.49%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)1.22%
Revenue beat(4)1
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)1.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.07%
Revenue beat(12)5
Avg Revenue beat(12)0.08%
Revenue beat(16)7
Avg Revenue beat(16)-0.14%
PT rev (1m)3.51%
PT rev (3m)19.74%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)10.71%
EPS NY rev (1m)1.11%
EPS NY rev (3m)11.94%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)7.68%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)7.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.47 | ||
| Fwd PE | 25.42 | ||
| P/S | 8.9 | ||
| P/FCF | 31.43 | ||
| P/OCF | 27.32 | ||
| P/B | 17.11 | ||
| P/tB | 20.85 | ||
| EV/EBITDA | 25.11 |
EPS(TTM)3.91
EY3.28%
EPS(NY)4.69
Fwd EY3.93%
FCF(TTM)3.79
FCFY3.18%
OCF(TTM)4.36
OCFY3.66%
SpS13.38
BVpS6.96
TBVpS5.71
PEG (NY)2.58
PEG (5Y)1.45
Graham Number24.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.53% | ||
| ROE | 57.01% | ||
| ROCE | 42.56% | ||
| ROIC | 37.82% | ||
| ROICexc | 67.6% | ||
| ROICexgc | 86.11% | ||
| OM | 33% | ||
| PM (TTM) | 29.66% | ||
| GM | 49.31% | ||
| FCFM | 28.33% |
ROA(3y)23.18%
ROA(5y)24.18%
ROE(3y)51.37%
ROE(5y)58.46%
ROIC(3y)31.47%
ROIC(5y)32.89%
ROICexc(3y)52.82%
ROICexc(5y)54.36%
ROICexgc(3y)66.54%
ROICexgc(5y)68.82%
ROCE(3y)35.41%
ROCE(5y)37.02%
ROICexgc growth 3Y7.04%
ROICexgc growth 5Y0.35%
ROICexc growth 3Y5.47%
ROICexc growth 5Y4.28%
OM growth 3Y0.81%
OM growth 5Y3.76%
PM growth 3Y2.83%
PM growth 5Y5.33%
GM growth 3Y2.15%
GM growth 5Y1.2%
F-Score8
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 211.81% | ||
| Cap/Sales | 4.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.06% | ||
| Profit Quality | 95.52% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | N/A |
F-Score8
WACC11.58%
ROIC/WACC3.27
Cap/Depr(3y)151.1%
Cap/Depr(5y)146.11%
Cap/Sales(3y)3.22%
Cap/Sales(5y)3.04%
Profit Quality(3y)105.3%
Profit Quality(5y)90.85%
High Growth Momentum
Growth
EPS 1Y (TTM)41.65%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%46.51%
EPS Next Y11.82%
EPS Next 2Y14.65%
EPS Next 3Y14.42%
EPS Next 5Y16.67%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
Revenue Next Year10.38%
Revenue Next 2Y10.67%
Revenue Next 3Y9.97%
Revenue Next 5Y8.28%
EBIT growth 1Y41.9%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year16.89%
EBIT Next 3Y13.89%
EBIT Next 5Y10.27%
FCF growth 1Y23.28%
FCF growth 3Y28.47%
FCF growth 5Y23%
OCF growth 1Y29.21%
OCF growth 3Y25.82%
OCF growth 5Y23.76%
LAM RESEARCH CORP / 1LRCX.MI FAQ
Can you provide the ChartMill fundamental rating for LAM RESEARCH CORP?
ChartMill assigns a fundamental rating of 7 / 10 to 1LRCX.MI.
Can you provide the valuation status for LAM RESEARCH CORP?
ChartMill assigns a valuation rating of 3 / 10 to LAM RESEARCH CORP (1LRCX.MI). This can be considered as Overvalued.
What is the profitability of 1LRCX stock?
LAM RESEARCH CORP (1LRCX.MI) has a profitability rating of 9 / 10.
What are the PE and PB ratios of LAM RESEARCH CORP (1LRCX.MI) stock?
The Price/Earnings (PE) ratio for LAM RESEARCH CORP (1LRCX.MI) is 30.47 and the Price/Book (PB) ratio is 17.11.
How financially healthy is LAM RESEARCH CORP?
The financial health rating of LAM RESEARCH CORP (1LRCX.MI) is 6 / 10.