LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LRCX - US5128073062 - Common Stock
140.24 EUR
+2.46 (+1.79%)
Taking everything into account, 1LRCX scores 7 out of 10 in our fundamental rating. 1LRCX was compared to 61 industry peers in the Semiconductors & Semiconductor Equipment industry. 1LRCX scores excellent on profitability, but there are some minor concerns on its financial health. 1LRCX is valued quite expensively, but it does show have an excellent growth rating. This makes 1LRCX very considerable 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.
In the past 5 years 1LRCX has always been profitable.
1LRCX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1LRCX's Return On Assets of 26.53% is amongst the best of the industry. 1LRCX outperforms 96.72% of its industry peers.
The Return On Equity of 1LRCX (57.01%) is better than 95.08% 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 95.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1LRCX is significantly above the industry average of 14.58%.
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
1LRCX's Profit Margin of 29.66% is amongst the best of the industry. 1LRCX outperforms 85.25% of its industry peers.
In the last couple of years the Profit Margin of 1LRCX has grown nicely.
1LRCX has a Operating Margin of 33.00%. This is amongst the best in the industry. 1LRCX outperforms 83.61% of its industry peers.
In the last couple of years the Operating Margin of 1LRCX has grown nicely.
1LRCX has a Gross Margin (49.31%) which is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1LRCX is creating value.
The number of shares outstanding for 1LRCX has been reduced compared to 1 year ago.
1LRCX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1LRCX has an improved debt to assets ratio.
2.2 Solvency
1LRCX has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
1LRCX's Debt to FCF ratio of 0.81 is fine compared to the rest of the industry. 1LRCX outperforms 77.05% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that 1LRCX is not too dependend on debt financing.
The Debt to Equity ratio of 1LRCX (0.37) is worse than 65.57% 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/WACC3.55
WACC10.65%
2.3 Liquidity
1LRCX has a Current Ratio of 2.21. This indicates that 1LRCX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.21, 1LRCX is in line with its industry, outperforming 49.18% of the companies in the same 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 of 1.60. This is comparable to the rest of the industry: 1LRCX outperforms 45.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.65% over the past year.
The Earnings Per Share has been growing by 21.02% on average over the past years. This is a very strong growth
Looking at the last year, 1LRCX shows a very strong growth in Revenue. 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
The Earnings Per Share is expected to grow by 13.46% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.31% on average over the next years. This is quite good.
EPS Next Y19.38%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
EPS Next 5Y13.46%
Revenue Next Year16.4%
Revenue Next 2Y14.56%
Revenue Next 3Y11.64%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 36.43, the valuation of 1LRCX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as 1LRCX.
When comparing the Price/Earnings ratio of 1LRCX to the average of the S&P500 Index (26.57), we can say 1LRCX is valued slightly more expensively.
The Price/Forward Earnings ratio is 28.62, which means the current valuation is very expensive for 1LRCX.
1LRCX's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of 1LRCX to the average of the S&P500 Index (24.04), we can say 1LRCX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.43 | ||
| Fwd PE | 28.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1LRCX is valued a bit more expensive than the industry average as 65.57% of the companies are valued more cheaply.
75.41% of the companies in the same industry are more expensive than 1LRCX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.41 | ||
| EV/EBITDA | 29.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1LRCX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 1LRCX may justify a higher PE ratio.
1LRCX's earnings are expected to grow with 15.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)1.73
EPS Next 2Y18.11%
EPS Next 3Y15.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, 1LRCX is not a good candidate for dividend investing.
1LRCX's Dividend Yield is comparable with the industry average which is at 0.79.
Compared to an average S&P500 Dividend Yield of 1.88, 1LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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.
1LRCX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.32%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
BIT:1LRCX (12/18/2025, 7:00:00 PM)
140.24
+2.46 (+1.79%)
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 Cap176.15B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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)41.71%
PT rev (3m)46.68%
EPS NQ rev (1m)12.54%
EPS NQ rev (3m)12.83%
EPS NY rev (1m)6.76%
EPS NY rev (3m)8.46%
Revenue NQ rev (1m)8.82%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)5.46%
Revenue NY rev (3m)6.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.43 | ||
| Fwd PE | 28.62 | ||
| P/S | 10.6 | ||
| P/FCF | 37.41 | ||
| P/OCF | 32.52 | ||
| P/B | 20.37 | ||
| P/tB | 24.82 | ||
| EV/EBITDA | 29.95 |
EPS(TTM)3.85
EY2.75%
EPS(NY)4.9
Fwd EY3.49%
FCF(TTM)3.75
FCFY2.67%
OCF(TTM)4.31
OCFY3.07%
SpS13.23
BVpS6.88
TBVpS5.65
PEG (NY)1.88
PEG (5Y)1.73
Graham Number24.42
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
WACC10.65%
ROIC/WACC3.55
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 Y19.38%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
EPS Next 5Y13.46%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
Revenue Next Year16.4%
Revenue Next 2Y14.56%
Revenue Next 3Y11.64%
Revenue Next 5Y10.31%
EBIT growth 1Y41.9%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year27.76%
EBIT Next 3Y16.88%
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 36.43 and the Price/Book (PB) ratio is 20.37.
How financially healthy is LAM RESEARCH CORP?
The financial health rating of LAM RESEARCH CORP (1LRCX.MI) is 6 / 10.