LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LRCX - US5128073062 - Common Stock
135.3 EUR
+5.7 (+4.4%)
We assign a fundamental rating of 7 out of 10 to 1LRCX. 1LRCX was compared to 62 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make 1LRCX a good candidate for growth investing.
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.
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 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 3 year average ROIC (31.47%) for 1LRCX is below the current ROIC(37.82%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 29.66%. This is amongst the best in 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 Operating Margin of 33.00%. This is amongst the best in 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's Gross Margin of 49.31% is fine compared to the rest of the industry. 1LRCX outperforms 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
Compared to 5 years ago, 1LRCX has less shares outstanding
The debt/assets ratio for 1LRCX has been reduced compared to a year ago.
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 better Debt to FCF ratio (0.81) than 77.97% of its industry peers.
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
A Current Ratio of 2.21 indicates that 1LRCX has no problem at all paying its short term obligations.
The Current ratio of 1LRCX (2.21) is comparable to the rest of the 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.
1LRCX shows a strong growth in Revenue. In the last year, 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.
Based on estimates for the next years, 1LRCX will show a quite strong growth in Revenue. The Revenue will grow by 8.28% on average per year.
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.
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
With a Price/Earnings ratio of 34.60, 1LRCX can be considered very expensive at the moment.
62.71% of the companies in the same industry are more expensive than 1LRCX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.41. 1LRCX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 28.87 indicates a quite expensive valuation of 1LRCX.
1LRCX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.40. 1LRCX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.6 | ||
| Fwd PE | 28.87 |
4.2 Price Multiples
1LRCX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1LRCX indicates a somewhat cheap valuation: 1LRCX is cheaper than 74.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.7 | ||
| 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)2.93
PEG (5Y)1.65
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 1.14.
With a Dividend Yield of 0.70, 1LRCX pays less dividend than the S&P500 average, which is at 2.32.
| 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 (12/3/2025, 7:00:00 PM)
135.3
+5.7 (+4.4%)
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 Cap170.62B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target100.43 (-25.77%)
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 | 34.6 | ||
| Fwd PE | 28.87 | ||
| P/S | 10.11 | ||
| P/FCF | 35.7 | ||
| P/OCF | 31.04 | ||
| P/B | 19.44 | ||
| P/tB | 23.68 | ||
| EV/EBITDA | 25.11 |
EPS(TTM)3.91
EY2.89%
EPS(NY)4.69
Fwd EY3.46%
FCF(TTM)3.79
FCFY2.8%
OCF(TTM)4.36
OCFY3.22%
SpS13.38
BVpS6.96
TBVpS5.71
PEG (NY)2.93
PEG (5Y)1.65
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 34.6 and the Price/Book (PB) ratio is 19.44.
How financially healthy is LAM RESEARCH CORP?
The financial health rating of LAM RESEARCH CORP (1LRCX.MI) is 6 / 10.