LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LRCX - US5128073062 - Common Stock
172.3 EUR
-6.5 (-3.64%)
Overall 1LRCX gets a fundamental rating of 7 out of 10. We evaluated 1LRCX against 65 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1LRCX has a great profitability rating, there are some minor concerns on its financial health. 1LRCX is valued quite expensively, but it does show have an excellent growth rating. These ratings could make 1LRCX a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
1LRCX had positive earnings in the past year.
In the past year 1LRCX had a positive cash flow from operations.
Each year in the past 5 years 1LRCX has been profitable.
Each year in the past 5 years 1LRCX had a positive operating cash flow.
1.2 Ratios
1LRCX has a better Return On Assets (26.53%) than 95.38% of its industry peers.
1LRCX has a Return On Equity of 57.01%. This is amongst the best in the industry. 1LRCX outperforms 92.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 37.82%, 1LRCX belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1LRCX is significantly above the industry average of 15.03%.
The last Return On Invested Capital (37.82%) for 1LRCX is above the 3 year average (31.47%), which is a sign of increasing profitability.
| 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
1LRCX's Profit Margin of 29.66% is amongst the best of the industry. 1LRCX outperforms 83.08% of its industry peers.
1LRCX's Profit Margin has improved in the last couple of years.
1LRCX's Operating Margin of 33.00% is fine compared to the rest of the industry. 1LRCX outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of 1LRCX has grown nicely.
1LRCX has a Gross Margin of 49.31%. This is comparable to the rest of the industry: 1LRCX outperforms 52.31% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1LRCX is creating value.
1LRCX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1LRCX has less shares outstanding
1LRCX has a better debt/assets ratio than last year.
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.
1LRCX's Debt to FCF ratio of 0.81 is fine compared to the rest of the industry. 1LRCX outperforms 78.46% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that 1LRCX is not too dependend on debt financing.
1LRCX has a worse Debt to Equity ratio (0.37) than 63.08% of its industry peers.
Although 1LRCX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | N/A |
ROIC/WACC3.49
WACC10.85%
2.3 Liquidity
A Current Ratio of 2.21 indicates that 1LRCX has no problem at all paying its short term obligations.
The Current ratio of 1LRCX (2.21) is comparable to the rest of the industry.
A Quick Ratio of 1.60 indicates that 1LRCX should not have too much problems paying its short term obligations.
1LRCX has a Quick ratio (1.60) which is in line with its industry peers.
| 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.
1LRCX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.02% yearly.
1LRCX shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.66%.
Measured over the past years, 1LRCX shows a quite strong growth in Revenue. The Revenue has been growing by 12.91% on average per year.
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
Based on estimates for the next years, 1LRCX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.46% on average per year.
The Revenue is expected to grow by 10.31% on average over the next years. This is quite good.
EPS Next Y19.4%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
EPS Next 5Y13.46%
Revenue Next Year16.39%
Revenue Next 2Y14.56%
Revenue Next 3Y11.87%
Revenue Next 5Y10.31%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 44.29, the valuation of 1LRCX can be described as expensive.
1LRCX's Price/Earnings ratio is a bit more expensive when compared to the industry. 1LRCX is more expensive than 63.08% of the companies in the same industry.
1LRCX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.00.
The Price/Forward Earnings ratio is 34.74, which means the current valuation is very expensive for 1LRCX.
Based on the Price/Forward Earnings ratio, 1LRCX is valued a bit more expensive than 66.15% of the companies in the same industry.
1LRCX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.29 | ||
| Fwd PE | 34.74 |
4.2 Price Multiples
1LRCX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1LRCX is more expensive than 69.23% of the companies in the same industry.
1LRCX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1LRCX is cheaper than 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.52 | ||
| EV/EBITDA | 36.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1LRCX has an outstanding profitability rating, which may justify a higher PE ratio.
1LRCX's earnings are expected to grow with 15.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.28
PEG (5Y)2.11
EPS Next 2Y18.27%
EPS Next 3Y15.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, 1LRCX is not a good candidate for dividend investing.
In the last 3 months the price of 1LRCX has falen by -81.02%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 0.81, 1LRCX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, 1LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
On average, the dividend of 1LRCX grows each year by 14.54%, which is quite nice.
Dividend Growth(5Y)14.54%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1LRCX pays out 20.32% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1LRCX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.32%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
BIT:1LRCX (1/7/2026, 7:00:00 PM)
172.3
-6.5 (-3.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.65%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap216.41B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target134.45 (-21.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.76
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)33.88%
PT rev (3m)38.57%
EPS NQ rev (1m)12.59%
EPS NQ rev (3m)12.87%
EPS NY rev (1m)6.78%
EPS NY rev (3m)7.96%
Revenue NQ rev (1m)8.82%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)5.45%
Revenue NY rev (3m)6.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.29 | ||
| Fwd PE | 34.74 | ||
| P/S | 12.9 | ||
| P/FCF | 45.52 | ||
| P/OCF | 39.58 | ||
| P/B | 24.79 | ||
| P/tB | 30.2 | ||
| EV/EBITDA | 36.51 |
EPS(TTM)3.89
EY2.26%
EPS(NY)4.96
Fwd EY2.88%
FCF(TTM)3.78
FCFY2.2%
OCF(TTM)4.35
OCFY2.53%
SpS13.36
BVpS6.95
TBVpS5.7
PEG (NY)2.28
PEG (5Y)2.11
Graham Number24.67
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
WACC10.85%
ROIC/WACC3.49
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 Y19.4%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
EPS Next 5Y13.46%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
Revenue Next Year16.39%
Revenue Next 2Y14.56%
Revenue Next 3Y11.87%
Revenue Next 5Y10.31%
EBIT growth 1Y41.9%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year27.78%
EBIT Next 3Y17.33%
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.
What is the valuation status of LAM RESEARCH CORP (1LRCX.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to LAM RESEARCH CORP (1LRCX.MI). This can be considered as Overvalued.
Can you provide the profitability details for LAM RESEARCH CORP?
LAM RESEARCH CORP (1LRCX.MI) has a profitability rating of 9 / 10.
What is the financial health of LAM RESEARCH CORP (1LRCX.MI) stock?
The financial health rating of LAM RESEARCH CORP (1LRCX.MI) is 6 / 10.
How sustainable is the dividend of LAM RESEARCH CORP (1LRCX.MI) stock?
The dividend rating of LAM RESEARCH CORP (1LRCX.MI) is 3 / 10 and the dividend payout ratio is 20.32%.