LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - BIT:1LRCX - US5128073062 - Common Stock
119.12 EUR
-10.48 (-8.09%)
1LRCX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 63 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make 1LRCX a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year 1LRCX was profitable.
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 (26.53%) than 96.61% of its industry peers.
With an excellent Return On Equity value of 57.01%, 1LRCX belongs to the best of the industry, outperforming 94.92% of the companies in the same industry.
With an excellent Return On Invested Capital value of 37.82%, 1LRCX belongs to the best of the industry, outperforming 96.61% 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 14.81%.
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 86.44% of its industry peers.
In the last couple of years the Profit Margin of 1LRCX has grown nicely.
1LRCX has a better Operating Margin (33.00%) than 83.05% of its industry peers.
In the last couple of years the Operating Margin of 1LRCX has grown nicely.
The Gross Margin of 1LRCX (49.31%) is better than 61.02% 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
1LRCX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1LRCX has been reduced compared to 1 year ago.
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.
Looking at the Debt to FCF ratio, with a value of 0.81, 1LRCX is in the better half of the industry, outperforming 77.97% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that 1LRCX is not too dependend on debt financing.
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 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
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 47.46% 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's Quick ratio of 1.60 is in line compared to the rest of the industry. 1LRCX outperforms 42.37% of 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.
Looking at the last year, 1LRCX shows a very strong growth in Revenue. The Revenue has grown by 25.66%.
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
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 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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.47, the valuation of 1LRCX can be described as expensive.
62.71% of the companies in the same industry are more expensive than 1LRCX, based on the Price/Earnings ratio.
1LRCX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.42, the valuation of 1LRCX can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1LRCX is on the same level as its industry peers.
1LRCX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.47 | ||
| Fwd PE | 25.42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1LRCX.
Based on the Price/Free Cash Flow ratio, 1LRCX is valued a bit cheaper than 74.58% of the companies in the same industry.
| 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.
A more expensive valuation may be justified as 1LRCX's earnings are expected to grow with 14.42% in the coming years.
PEG (NY)2.58
PEG (5Y)1.45
EPS Next 2Y14.65%
EPS Next 3Y14.42%
5. Dividend
5.1 Amount
1LRCX has a yearly dividend return of 0.70%, which is pretty low.
1LRCX's Dividend Yield is a higher than the industry average which is at 1.18.
With a Dividend Yield of 0.70, 1LRCX pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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
20.32% of the earnings are spent on dividend by 1LRCX. This is a low number and 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.