LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
BIT:1LRCX - Borsa Italiana Milan - US5128073062 - Common Stock - Currency: EUR
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. While 1LRCX has a great profitability rating, 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.
1LRCX had a positive operating cash flow in the past year.
In the past 5 years 1LRCX has always been profitable.
1LRCX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1LRCX has a Return On Assets of 21.64%. This is amongst the best in the industry. 1LRCX outperforms 94.64% of its industry peers.
1LRCX has a Return On Equity of 48.75%. This is amongst the best in the industry. 1LRCX outperforms 94.64% of its industry peers.
With an excellent Return On Invested Capital value of 29.27%, 1LRCX belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
1LRCX had an Average Return On Invested Capital over the past 3 years of 31.96%. This is significantly above the industry average of 16.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.64% | ||
| ROE | 48.75% | ||
| ROIC | 29.27% |
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
With an excellent Profit Margin value of 26.49%, 1LRCX belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
1LRCX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.72%, 1LRCX belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
1LRCX's Operating Margin has improved in the last couple of years.
1LRCX has a Gross Margin (47.73%) which is in line with its industry peers.
1LRCX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.72% | ||
| PM (TTM) | 26.49% | ||
| GM | 47.73% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1LRCX is creating value.
The number of shares outstanding for 1LRCX has been increased compared to 1 year ago.
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
1LRCX has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
1LRCX has a better Debt to FCF ratio (1.23) than 80.36% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that 1LRCX is somewhat dependend on debt financing.
1LRCX has a worse Debt to Equity ratio (0.51) than 76.79% 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 | 0.51 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | N/A |
ROIC/WACC2.11
WACC13.88%
2.3 Liquidity
A Current Ratio of 2.54 indicates that 1LRCX has no problem at all paying its short term obligations.
1LRCX has a better Current ratio (2.54) than 69.64% of its industry peers.
A Quick Ratio of 1.73 indicates that 1LRCX should not have too much problems paying its short term obligations.
1LRCX has a Quick ratio (1.73) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The earnings per share for 1LRCX have decreased strongly by -11.14% in the last 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 quite strong growth in Revenue. The Revenue has grown by 13.21% in the last year.
1LRCX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.08% yearly.
EPS 1Y (TTM)-11.14%
EPS 3Y3.56%
EPS 5Y15.8%
EPS Q2Q%28.09%
Revenue 1Y (TTM)13.21%
Revenue growth 3Y0.63%
Revenue growth 5Y9.08%
Sales Q2Q%16.44%
3.2 Future
Based on estimates for the next years, 1LRCX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.52% on average per year.
1LRCX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.47% yearly.
EPS Next Y19.23%
EPS Next 2Y17.24%
EPS Next 3Y16.88%
EPS Next 5Y13.52%
Revenue Next Year16.29%
Revenue Next 2Y13.87%
Revenue Next 3Y12.71%
Revenue Next 5Y10.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
1LRCX is valuated quite expensively with a Price/Earnings ratio of 26.59.
The rest of the industry has a similar Price/Earnings ratio as 1LRCX.
Compared to an average S&P500 Price/Earnings ratio of 28.58, 1LRCX is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.33, the valuation of 1LRCX can be described as rather expensive.
1LRCX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 95.03, 1LRCX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.59 | ||
| Fwd PE | 19.33 |
4.2 Price Multiples
1LRCX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1LRCX is valued cheaper than 80.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.55 | ||
| EV/EBITDA | 19.85 |
4.3 Compensation for Growth
1LRCX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1LRCX has an outstanding profitability rating, which may justify a higher PE ratio.
1LRCX's earnings are expected to grow with 16.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)1.68
EPS Next 2Y17.24%
EPS Next 3Y16.88%
5. Dividend
5.1 Amount
1LRCX has a Yearly Dividend Yield of 1.14%.
1LRCX's Dividend Yield is a higher than the industry average which is at 1.49.
Compared to an average S&P500 Dividend Yield of 2.28, 1LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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
25.22% of the earnings are spent on dividend by 1LRCX. This is a low number and sustainable payout ratio.
DP25.22%
EPS Next 2Y17.24%
EPS Next 3Y16.88%
LAM RESEARCH CORP
BIT:1LRCX (1/30/2025, 7:00:00 PM)
77.91
+0.51 (+0.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners8.9%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap100.25B
Analysts78.38
Price Target88.12 (13.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend1.42
Dividend Growth(5Y)-20.64%
DP25.22%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)0.87%
Revenue beat(4)1
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)0.87%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)8
Avg Revenue beat(16)-0.11%
PT rev (1m)-2.12%
PT rev (3m)-90.44%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-90.58%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-90.14%
Revenue NQ rev (1m)-0.85%
Revenue NQ rev (3m)-3.24%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.59 | ||
| Fwd PE | 19.33 | ||
| P/S | 6.39 | ||
| P/FCF | 25.55 | ||
| P/OCF | 22.73 | ||
| P/B | 11.76 | ||
| P/tB | 14.7 | ||
| EV/EBITDA | 19.85 |
EPS(TTM)2.93
EY3.76%
EPS(NY)4.03
Fwd EY5.17%
FCF(TTM)3.05
FCFY3.91%
OCF(TTM)3.43
OCFY4.4%
SpS12.19
BVpS6.62
TBVpS5.3
PEG (NY)1.38
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.64% | ||
| ROE | 48.75% | ||
| ROCE | 33.24% | ||
| ROIC | 29.27% | ||
| ROICexc | 48.06% | ||
| ROICexgc | 60.04% | ||
| OM | 29.72% | ||
| PM (TTM) | 26.49% | ||
| GM | 47.73% | ||
| FCFM | 25.01% |
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-Score8
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.23 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 136.49% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.89% | ||
| Profit Quality | 94.43% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | N/A |
F-Score8
WACC13.88%
ROIC/WACC2.11
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)-11.14%
EPS 3Y3.56%
EPS 5Y15.8%
EPS Q2Q%28.09%
EPS Next Y19.23%
EPS Next 2Y17.24%
EPS Next 3Y16.88%
EPS Next 5Y13.52%
Revenue 1Y (TTM)13.21%
Revenue growth 3Y0.63%
Revenue growth 5Y9.08%
Sales Q2Q%16.44%
Revenue Next Year16.29%
Revenue Next 2Y13.87%
Revenue Next 3Y12.71%
Revenue Next 5Y10.47%
EBIT growth 1Y19.7%
EBIT growth 3Y-1.18%
EBIT growth 5Y11.88%
EBIT Next Year26.58%
EBIT Next 3Y17.39%
EBIT Next 5Y12.86%
FCF growth 1Y37.12%
FCF growth 3Y9.52%
FCF growth 5Y8.18%
OCF growth 1Y29.06%
OCF growth 3Y9.04%
OCF growth 5Y7.93%