LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LRCX - US5128073062 - Common Stock
140.24 EUR
+2.46 (+1.79%)
Overall 1LRCX gets a fundamental rating of 7 out of 10. We evaluated 1LRCX against 65 industry peers in the Semiconductors & Semiconductor Equipment industry. 1LRCX scores excellent on profitability, but there are some minor concerns on its financial health. 1LRCX shows excellent growth, but is valued quite expensive already. 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.
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 96.92% of its industry peers.
1LRCX has a Return On Equity of 57.01%. This is amongst the best in the industry. 1LRCX outperforms 95.38% of its industry peers.
1LRCX's Return On Invested Capital of 37.82% is amongst the best of the industry. 1LRCX outperforms 95.38% 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 14.14%.
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 has a Profit Margin of 29.66%. This is amongst the best in the industry. 1LRCX outperforms 84.62% of its industry peers.
In the last couple of years the Profit Margin of 1LRCX has grown nicely.
With an excellent Operating Margin value of 33.00%, 1LRCX belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
1LRCX's Operating Margin has improved in the last couple of years.
The Gross Margin of 1LRCX (49.31%) 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.
Compared to 5 years ago, 1LRCX has less shares outstanding
1LRCX has a better debt/assets ratio than last year.
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 has a Debt to FCF ratio of 0.81. This is in the better half of the industry: 1LRCX outperforms 80.00% of its industry peers.
1LRCX has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
1LRCX's Debt to Equity ratio of 0.37 is on the low side compared to the rest of the industry. 1LRCX is outperformed by 61.54% 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/WACC3.65
WACC10.36%
2.3 Liquidity
A Current Ratio of 2.21 indicates that 1LRCX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.21, 1LRCX is in line with its industry, outperforming 46.15% 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 in the lower half of the industry: 1LRCX underperforms 60.00% 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.
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%.
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
The Earnings Per Share is expected to grow by 13.46% on average over the next years. This is quite good.
Based on estimates for the next years, 1LRCX will show a quite strong growth in Revenue. The Revenue will grow by 10.31% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 36.24 indicates a quite expensive valuation of 1LRCX.
1LRCX's Price/Earnings is on the same level as the industry average.
1LRCX is valuated rather expensively when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.46 indicates a quite expensive valuation of 1LRCX.
1LRCX's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, 1LRCX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.24 | ||
| Fwd PE | 28.46 |
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 63.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1LRCX is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.19 | ||
| EV/EBITDA | 29.77 |
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.
1LRCX has an outstanding profitability rating, which 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)1.87
PEG (5Y)1.72
EPS Next 2Y18.11%
EPS Next 3Y15.56%
5. Dividend
5.1 Amount
1LRCX has a yearly dividend return of 0.62%, which is pretty low.
Compared to an average industry Dividend Yield of 0.75, 1LRCX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, 1LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 2Y18.11%
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 Target142.32 (1.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 | 36.24 | ||
| Fwd PE | 28.46 | ||
| P/S | 10.54 | ||
| P/FCF | 37.19 | ||
| P/OCF | 32.34 | ||
| P/B | 20.25 | ||
| P/tB | 24.67 | ||
| EV/EBITDA | 29.77 |
EPS(TTM)3.87
EY2.76%
EPS(NY)4.93
Fwd EY3.51%
FCF(TTM)3.77
FCFY2.69%
OCF(TTM)4.34
OCFY3.09%
SpS13.31
BVpS6.92
TBVpS5.68
PEG (NY)1.87
PEG (5Y)1.72
Graham Number24.56
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
WACC10.36%
ROIC/WACC3.65
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 36.24 and the Price/Book (PB) ratio is 20.25.
How financially healthy is LAM RESEARCH CORP?
The financial health rating of LAM RESEARCH CORP (1LRCX.MI) is 6 / 10.