LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - BIT:1LRCX - US5128073062 - Common Stock
119.12 EUR
-10.48 (-8.09%)
We assign a fundamental rating of 7 out of 10 to 1LRCX. 1LRCX was compared to 58 industry peers in the Semiconductors & Semiconductor Equipment industry. 1LRCX has an excellent profitability rating, but there are some minor concerns on its financial health. 1LRCX is not overvalued while it is showing excellent growth. This is an interesting 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.
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's Return On Assets of 26.53% is amongst the best of the industry. 1LRCX outperforms 96.61% of its industry peers.
1LRCX has a Return On Equity of 57.01%. This is amongst the best in the industry. 1LRCX outperforms 94.92% of its industry peers.
1LRCX has a better Return On Invested Capital (37.82%) than 96.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1LRCX is significantly above the industry average of 14.08%.
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
Looking at the Profit Margin, with a value of 29.66%, 1LRCX belongs to the top of the industry, outperforming 86.44% of the companies in the same industry.
In the last couple of years the Profit Margin of 1LRCX has grown nicely.
1LRCX's Operating Margin of 33.00% is amongst the best of the industry. 1LRCX outperforms 83.05% of its industry peers.
In the last couple of years the Operating Margin of 1LRCX has grown nicely.
1LRCX has a better Gross Margin (49.31%) than 61.02% of its industry peers.
1LRCX's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, 1LRCX has less shares outstanding
The number of shares outstanding for 1LRCX has been reduced compared to 5 years ago.
1LRCX has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 1LRCX is 0.81, 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 has a Debt to FCF ratio of 0.81. This is in the better half of the industry: 1LRCX outperforms 77.97% 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 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 of 2.21. This is comparable to the rest of the industry: 1LRCX outperforms 47.46% of 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 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.
The Earnings Per Share has been growing by 21.02% on average over the past years. This is a very strong growth
The Revenue has grown by 25.66% in the past year. This is a very strong growth!
The Revenue has been growing by 12.91% on average over the past years. This is quite good.
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 16.67% on average over the next years. This is quite good.
1LRCX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.28% yearly.
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.
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
1LRCX is valuated quite expensively with a Price/Earnings ratio of 30.47.
Compared to the rest of the industry, the Price/Earnings ratio of 1LRCX indicates a somewhat cheap valuation: 1LRCX is cheaper than 62.71% of the companies listed in the same industry.
1LRCX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
With a Price/Forward Earnings ratio of 25.42, 1LRCX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1LRCX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, 1LRCX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.47 | ||
| Fwd PE | 25.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1LRCX is on the same level as its industry peers.
74.58% 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 | 31.43 | ||
| EV/EBITDA | 25.11 |
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 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
With a yearly dividend of 0.70%, 1LRCX is not a good candidate for dividend investing.
1LRCX's Dividend Yield is a higher than the industry average which is at 1.10.
Compared to an average S&P500 Dividend Yield of 2.38, 1LRCX's dividend is way lower than the S&P500 average.
| 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
1LRCX pays out 20.32% of its income as dividend. This is a sustainable payout ratio.
1LRCX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept 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.