LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - BIT:1LRCX - US5128073062 - Common Stock
85 EUR
+1.15 (+1.37%)
Taking everything into account, 1LRCX scores 6 out of 10 in our fundamental rating. 1LRCX was compared to 56 industry peers in the Semiconductors & Semiconductor Equipment industry. 1LRCX scores excellent on profitability, but there are some minor concerns on its financial health. 1LRCX has a correct valuation and a medium growth rate.
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.
1LRCX had positive earnings in each of the past 5 years.
In the past 5 years 1LRCX always reported a positive cash flow from operatings.
1.2 Ratios
1LRCX has a better Return On Assets (25.10%) than 94.44% of its industry peers.
1LRCX has a Return On Equity of 54.33%. This is amongst the best in the industry. 1LRCX outperforms 94.44% of its industry peers.
1LRCX's Return On Invested Capital of 35.49% is amongst the best of the industry. 1LRCX outperforms 94.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1LRCX is significantly above the industry average of 14.85%.
The last Return On Invested Capital (35.49%) for 1LRCX is above the 3 year average (31.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.1% | ||
| ROE | 54.33% | ||
| ROIC | 35.49% |
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 better Profit Margin (29.06%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of 1LRCX has grown nicely.
1LRCX's Operating Margin of 32.01% is amongst the best of the industry. 1LRCX outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of 1LRCX has grown nicely.
1LRCX has a Gross Margin of 48.70%. This is comparable to the rest of the industry: 1LRCX outperforms 59.26% of its industry peers.
1LRCX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.01% | ||
| PM (TTM) | 29.06% | ||
| GM | 48.71% |
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.
1LRCX has less shares outstanding than it did 1 year ago.
1LRCX has less shares outstanding than it did 5 years ago.
1LRCX has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 1LRCX is 0.83, which is an excellent value as it means it would take 1LRCX, only 0.83 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.83, 1LRCX is in the better half of the industry, outperforming 75.93% of the companies in the same industry.
1LRCX has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
1LRCX has a Debt to Equity ratio of 0.38. This is in the lower half of the industry: 1LRCX underperforms 66.67% 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 | 0.38 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | N/A |
ROIC/WACC3.13
WACC11.32%
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.
1LRCX has a Current ratio (2.21) which is comparable to the rest of the industry.
1LRCX has a Quick Ratio of 1.55. 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 (1.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.63% over the past year.
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.
Looking at the last year, 1LRCX shows a very strong growth in Revenue. The Revenue has grown by 23.68%.
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)36.63%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%63.39%
Revenue 1Y (TTM)23.68%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%33.58%
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.
1LRCX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.88% yearly.
EPS Next Y10.07%
EPS Next 2Y12.01%
EPS Next 3Y12.4%
EPS Next 5Y16.67%
Revenue Next Year9.5%
Revenue Next 2Y9.47%
Revenue Next 3Y9%
Revenue Next 5Y7.88%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.08 indicates a rather expensive valuation of 1LRCX.
1LRCX's Price/Earnings ratio is a bit cheaper when compared to the industry. 1LRCX is cheaper than 70.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1LRCX to the average of the S&P500 Index (27.20), we can say 1LRCX is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.86, the valuation of 1LRCX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1LRCX.
1LRCX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 21.86 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1LRCX.
79.63% 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 | 23.34 | ||
| EV/EBITDA | 19.75 |
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.
A more expensive valuation may be justified as 1LRCX's earnings are expected to grow with 12.40% in the coming years.
PEG (NY)2.39
PEG (5Y)1.15
EPS Next 2Y12.01%
EPS Next 3Y12.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, 1LRCX is not a good candidate for dividend investing.
1LRCX's Dividend Yield is a higher than the industry average which is at 1.29.
With a Dividend Yield of 0.90, 1LRCX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
21.45% 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.
DP21.45%
EPS Next 2Y12.01%
EPS Next 3Y12.4%
BIT:1LRCX (9/1/2025, 7:00:00 PM)
85
+1.15 (+1.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.42%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap107.58B
Analysts80
Price Target97.03 (14.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.76
Dividend Growth(5Y)14.54%
DP21.45%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.6%
Min EPS beat(2)1.42%
Max EPS beat(2)7.79%
EPS beat(4)4
Avg EPS beat(4)3.92%
Min EPS beat(4)1.42%
Max EPS beat(4)7.79%
EPS beat(8)8
Avg EPS beat(8)4.87%
EPS beat(12)12
Avg EPS beat(12)5.99%
EPS beat(16)13
Avg EPS beat(16)5.29%
Revenue beat(2)1
Avg Revenue beat(2)0.41%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)1.22%
Revenue beat(4)2
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)1.22%
Revenue beat(8)3
Avg Revenue beat(8)-0.04%
Revenue beat(12)6
Avg Revenue beat(12)0.21%
Revenue beat(16)7
Avg Revenue beat(16)-0.27%
PT rev (1m)15.68%
PT rev (3m)10.25%
EPS NQ rev (1m)21.78%
EPS NQ rev (3m)30.39%
EPS NY rev (1m)10.19%
EPS NY rev (3m)14.78%
Revenue NQ rev (1m)12.6%
Revenue NQ rev (3m)16.29%
Revenue NY rev (1m)6.5%
Revenue NY rev (3m)9.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 21.86 | ||
| P/S | 6.84 | ||
| P/FCF | 23.34 | ||
| P/OCF | 20.47 | ||
| P/B | 12.78 | ||
| P/tB | 15.65 | ||
| EV/EBITDA | 19.75 |
EPS(TTM)3.53
EY4.15%
EPS(NY)3.89
Fwd EY4.58%
FCF(TTM)3.64
FCFY4.28%
OCF(TTM)4.15
OCFY4.89%
SpS12.43
BVpS6.65
TBVpS5.43
PEG (NY)2.39
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.1% | ||
| ROE | 54.33% | ||
| ROCE | 39.93% | ||
| ROIC | 35.49% | ||
| ROICexc | 62.53% | ||
| ROICexgc | 79.72% | ||
| OM | 32.01% | ||
| PM (TTM) | 29.06% | ||
| GM | 48.71% | ||
| FCFM | 29.29% |
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%
ROICexcg growth 3Y7.04%
ROICexcg 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 Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 196.54% | ||
| Cap/Sales | 4.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.97% | ||
| Profit Quality | 100.79% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | N/A |
F-Score8
WACC11.32%
ROIC/WACC3.13
Cap/Depr(3y)151.1%
Cap/Depr(5y)146.11%
Cap/Sales(3y)3.22%
Cap/Sales(5y)3.04%
Profit Quality(3y)105.22%
Profit Quality(5y)90.8%
High Growth Momentum
Growth
EPS 1Y (TTM)36.63%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%63.39%
EPS Next Y10.07%
EPS Next 2Y12.01%
EPS Next 3Y12.4%
EPS Next 5Y16.67%
Revenue 1Y (TTM)23.68%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%33.58%
Revenue Next Year9.5%
Revenue Next 2Y9.47%
Revenue Next 3Y9%
Revenue Next 5Y7.88%
EBIT growth 1Y36.42%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year13.81%
EBIT Next 3Y12.52%
EBIT Next 5Y9.68%
FCF growth 1Y26.9%
FCF growth 3Y28.36%
FCF growth 5Y22.94%
OCF growth 1Y32.4%
OCF growth 3Y25.72%
OCF growth 5Y23.7%