LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1LRCX • US5128073062
200.35 EUR
+1.47 (+0.74%)
Last: Jan 28, 2026, 07:00 PM
Taking everything into account, 1LRCX scores 6 out of 10 in our fundamental rating. 1LRCX was compared to 63 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 shows excellent growth, but is valued quite expensive already. This makes 1LRCX very considerable 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.
- 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
- With an excellent Return On Assets value of 29.05%, 1LRCX belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
- With an excellent Return On Equity value of 61.24%, 1LRCX belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 40.64%, 1LRCX belongs to the best of the industry, outperforming 95.24% 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 15.01%.
- The last Return On Invested Capital (40.64%) for 1LRCX is above the 3 year average (31.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.05% | ||
| ROE | 61.24% | ||
| ROIC | 40.64% |
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 better Profit Margin (30.22%) than 84.13% of its industry peers.
- In the last couple of years the Profit Margin of 1LRCX has grown nicely.
- 1LRCX's Operating Margin of 33.76% is amongst the best of the industry. 1LRCX outperforms 84.13% of its industry peers.
- In the last couple of years the Operating Margin of 1LRCX has grown nicely.
- 1LRCX has a Gross Margin (49.80%) which is comparable to the rest of the industry.
- 1LRCX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.76% | ||
| PM (TTM) | 30.22% | ||
| GM | 49.8% |
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
- 1LRCX has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
- The Debt to FCF ratio of 1LRCX (0.72) is better than 79.37% of its industry peers.
- 1LRCX has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of 1LRCX (0.37) is worse than 66.67% 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 | 0.72 | ||
| Altman-Z | N/A |
ROIC/WACC3.72
WACC10.92%
2.3 Liquidity
- 1LRCX has a Current Ratio of 2.26. This indicates that 1LRCX is financially healthy and has no problem in meeting its short term obligations.
- 1LRCX has a Current ratio (2.26) which is comparable to the rest of the industry.
- 1LRCX has a Quick Ratio of 1.61. This is a normal value and indicates that 1LRCX is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of 1LRCX (1.61) is worse than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
- 1LRCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.70%, 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
- 1LRCX shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.85%.
- 1LRCX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.91% yearly.
EPS 1Y (TTM)45.7%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%39.56%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
3.2 Future
- The Earnings Per Share is expected to grow by 13.46% 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 9.82% yearly.
EPS Next Y20.62%
EPS Next 2Y20.38%
EPS Next 3Y17.89%
EPS Next 5Y13.46%
Revenue Next Year16.77%
Revenue Next 2Y16.04%
Revenue Next 3Y13.9%
Revenue Next 5Y9.82%
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
- Based on the Price/Earnings ratio of 48.75, the valuation of 1LRCX can be described as expensive.
- 1LRCX's Price/Earnings is on the same level as the industry average.
- 1LRCX is valuated expensively when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 39.81, which means the current valuation is very expensive for 1LRCX.
- Based on the Price/Forward Earnings ratio, 1LRCX is valued a bit more expensive than the industry average as 63.49% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of 1LRCX to the average of the S&P500 Index (25.57), we can say 1LRCX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.75 | ||
| Fwd PE | 39.81 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1LRCX is valued a bit more expensive than the industry average as 73.02% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, 1LRCX is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.26 | ||
| EV/EBITDA | 40.61 |
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.
- 1LRCX has an outstanding profitability rating, which may justify a higher PE ratio.
- 1LRCX's earnings are expected to grow with 17.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.36
PEG (5Y)2.32
EPS Next 2Y20.38%
EPS Next 3Y17.89%
5. Dividend
5.1 Amount
- 1LRCX has a yearly dividend return of 0.42%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.78, 1LRCX has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, 1LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
- 19.48% of the earnings are spent on dividend by 1LRCX. This is a low number and sustainable payout ratio.
- The dividend of 1LRCX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.48%
EPS Next 2Y20.38%
EPS Next 3Y17.89%
LAM RESEARCH CORP / 1LRCX.MI FAQ
Can you provide the ChartMill fundamental rating for LAM RESEARCH CORP?
ChartMill assigns a fundamental rating of 6 / 10 to 1LRCX.MI.
What is the valuation status of LAM RESEARCH CORP (1LRCX.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to LAM RESEARCH CORP (1LRCX.MI). This can be considered as Overvalued.
Can you provide the profitability details for LAM RESEARCH CORP?
LAM RESEARCH CORP (1LRCX.MI) has a profitability rating of 9 / 10.
What is the financial health of LAM RESEARCH CORP (1LRCX.MI) stock?
The financial health rating of LAM RESEARCH CORP (1LRCX.MI) is 6 / 10.
How sustainable is the dividend of LAM RESEARCH CORP (1LRCX.MI) stock?
The dividend rating of LAM RESEARCH CORP (1LRCX.MI) is 3 / 10 and the dividend payout ratio is 19.48%.