LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
BIT:1LRCX - Euronext Milan - US5128073062 - Common Stock - Currency: EUR
Overall 1LRCX gets a fundamental rating of 7 out of 10. We evaluated 1LRCX against 51 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making 1LRCX a very profitable company, without any liquidiy or solvency issues. 1LRCX is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, 1LRCX could be worth investigating further for growth and quality 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.
In the past 5 years 1LRCX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1LRCX (23.33%) is better than 94.64% of its industry peers.
Looking at the Return On Equity, with a value of 48.98%, 1LRCX belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
With an excellent Return On Invested Capital value of 32.17%, 1LRCX belongs to the best of the industry, outperforming 94.64% 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 15.12%.
The 3 year average ROIC (31.96%) for 1LRCX is below the current ROIC(32.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.33% | ||
| ROE | 48.98% | ||
| ROIC | 32.17% |
ROA(3y)23.74%
ROA(5y)22.26%
ROE(3y)57.71%
ROE(5y)56.3%
ROIC(3y)31.96%
ROIC(5y)29.69%
1.3 Margins
1LRCX's Profit Margin of 27.19% is amongst the best of the industry. 1LRCX outperforms 85.71% of its industry peers.
1LRCX's Profit Margin has improved in the last couple of years.
1LRCX has a better Operating Margin (30.88%) than 76.79% of its industry peers.
1LRCX's Operating Margin has improved in the last couple of years.
1LRCX's Gross Margin of 48.06% is in line compared to the rest of the industry. 1LRCX outperforms 53.57% of its industry peers.
1LRCX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.88% | ||
| PM (TTM) | 27.19% | ||
| GM | 48.06% |
OM growth 3Y-1.8%
OM growth 5Y2.57%
PM growth 3Y-1.32%
PM growth 5Y2.5%
GM growth 3Y0.77%
GM growth 5Y1.07%
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 more shares outstanding
The number of shares outstanding for 1LRCX has been increased compared to 5 years ago.
The debt/assets ratio for 1LRCX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.82 indicates that 1LRCX is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1LRCX (10.82) is better than 87.50% of its industry peers.
The Debt to FCF ratio of 1LRCX is 1.18, which is an excellent value as it means it would take 1LRCX, only 1.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.18, 1LRCX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
1LRCX has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
1LRCX has a worse Debt to Equity ratio (0.39) than 71.43% 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 | 0.39 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 10.82 |
ROIC/WACC3.22
WACC9.99%
2.3 Liquidity
A Current Ratio of 2.45 indicates that 1LRCX has no problem at all paying its short term obligations.
The Current ratio of 1LRCX (2.45) is comparable to the rest of the industry.
1LRCX has a Quick Ratio of 1.64. 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 (1.64) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.78% over the past year.
Measured over the past years, 1LRCX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.80% on average per year.
Looking at the last year, 1LRCX shows a very strong growth in Revenue. The Revenue has grown by 20.33%.
The Revenue has been growing by 9.08% on average over the past years. This is quite good.
EPS 1Y (TTM)28.78%
EPS 3Y3.56%
EPS 5Y15.8%
EPS Q2Q%33.5%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y0.63%
Revenue growth 5Y9.08%
Sales Q2Q%24.43%
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 14.96% yearly.
The Revenue is expected to grow by 10.27% on average over the next years. This is quite good.
EPS Next Y35.03%
EPS Next 2Y16.29%
EPS Next 3Y16.49%
EPS Next 5Y14.96%
Revenue Next Year22.76%
Revenue Next 2Y12.13%
Revenue Next 3Y11.84%
Revenue Next 5Y10.27%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.59, the valuation of 1LRCX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as 1LRCX.
1LRCX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.54, which indicates a rather expensive current valuation of 1LRCX.
The rest of the industry has a similar Price/Forward Earnings ratio as 1LRCX.
When comparing the Price/Forward Earnings ratio of 1LRCX to the average of the S&P500 Index (21.76), we can say 1LRCX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.59 | ||
| Fwd PE | 23.54 |
4.2 Price Multiples
1LRCX's Enterprise Value to EBITDA is on the same level as the industry average.
1LRCX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1LRCX is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.52 | ||
| EV/EBITDA | 20.36 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of 1LRCX may justify a higher PE ratio.
1LRCX's earnings are expected to grow with 16.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)1.68
EPS Next 2Y16.29%
EPS Next 3Y16.49%
5. Dividend
5.1 Amount
1LRCX has a yearly dividend return of 1.00%, which is pretty low.
Compared to an average industry Dividend Yield of 1.12, 1LRCX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.00, 1LRCX pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of 1LRCX decreases each year by -20.64%.
Dividend Growth(5Y)-20.64%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1LRCX pays out 23.95% of its income as dividend. This is a sustainable payout ratio.
DP23.95%
EPS Next 2Y16.29%
EPS Next 3Y16.49%
BIT:1LRCX (7/7/2025, 7:00:00 PM)
83.77
+6.22 (+8.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.26%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap107.15B
Analysts81.08
Price Target83.48 (-0.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend1.23
Dividend Growth(5Y)-20.64%
DP23.95%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.55%
Min EPS beat(2)1.42%
Max EPS beat(2)1.69%
EPS beat(4)4
Avg EPS beat(4)3.3%
Min EPS beat(4)1.42%
Max EPS beat(4)5.32%
EPS beat(8)8
Avg EPS beat(8)5.85%
EPS beat(12)12
Avg EPS beat(12)6.86%
EPS beat(16)13
Avg EPS beat(16)5.12%
Revenue beat(2)0
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)-0.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)0.87%
Revenue beat(8)3
Avg Revenue beat(8)-0.13%
Revenue beat(12)6
Avg Revenue beat(12)0.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.26%
PT rev (1m)-5.15%
PT rev (3m)-9.45%
EPS NQ rev (1m)22.9%
EPS NQ rev (3m)22.9%
EPS NY rev (1m)6.55%
EPS NY rev (3m)6.59%
Revenue NQ rev (1m)8.46%
Revenue NQ rev (3m)8.37%
Revenue NY rev (1m)2.71%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.59 | ||
| Fwd PE | 23.54 | ||
| P/S | 7.2 | ||
| P/FCF | 32.52 | ||
| P/OCF | 27.53 | ||
| P/B | 12.97 | ||
| P/tB | 15.99 | ||
| EV/EBITDA | 20.36 |
EPS(TTM)3.15
EY3.76%
EPS(NY)3.56
Fwd EY4.25%
FCF(TTM)2.58
FCFY3.07%
OCF(TTM)3.04
OCFY3.63%
SpS11.63
BVpS6.46
TBVpS5.24
PEG (NY)0.76
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.33% | ||
| ROE | 48.98% | ||
| ROCE | 36.54% | ||
| ROIC | 32.17% | ||
| ROICexc | 51.6% | ||
| ROICexgc | 64.4% | ||
| OM | 30.88% | ||
| PM (TTM) | 27.19% | ||
| GM | 48.06% | ||
| FCFM | 22.14% |
ROA(3y)23.74%
ROA(5y)22.26%
ROE(3y)57.71%
ROE(5y)56.3%
ROIC(3y)31.96%
ROIC(5y)29.69%
ROICexc(3y)49.28%
ROICexc(5y)51.51%
ROICexgc(3y)61.06%
ROICexgc(5y)67.9%
ROCE(3y)36.3%
ROCE(5y)33.72%
ROICexcg growth 3Y-10.7%
ROICexcg growth 5Y-8.42%
ROICexc growth 3Y-9.22%
ROICexc growth 5Y-2.97%
OM growth 3Y-1.8%
OM growth 5Y2.57%
PM growth 3Y-1.32%
PM growth 5Y2.5%
GM growth 3Y0.77%
GM growth 5Y1.07%
F-Score7
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 182.82% | ||
| Cap/Sales | 4.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.08% | ||
| Profit Quality | 81.44% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 10.82 |
F-Score7
WACC9.99%
ROIC/WACC3.22
Cap/Depr(3y)140.13%
Cap/Depr(5y)121.94%
Cap/Sales(3y)2.9%
Cap/Sales(5y)2.62%
Profit Quality(3y)90.11%
Profit Quality(5y)87.72%
High Growth Momentum
Growth
EPS 1Y (TTM)28.78%
EPS 3Y3.56%
EPS 5Y15.8%
EPS Q2Q%33.5%
EPS Next Y35.03%
EPS Next 2Y16.29%
EPS Next 3Y16.49%
EPS Next 5Y14.96%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y0.63%
Revenue growth 5Y9.08%
Sales Q2Q%24.43%
Revenue Next Year22.76%
Revenue Next 2Y12.13%
Revenue Next 3Y11.84%
Revenue Next 5Y10.27%
EBIT growth 1Y30.25%
EBIT growth 3Y-1.18%
EBIT growth 5Y11.88%
EBIT Next Year39.66%
EBIT Next 3Y16.98%
EBIT Next 5Y14%
FCF growth 1Y-3.99%
FCF growth 3Y9.52%
FCF growth 5Y8.18%
OCF growth 1Y-0.41%
OCF growth 3Y9.04%
OCF growth 5Y7.93%