LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LRCX - US5128073062 - Common Stock
172.3 EUR
-6.5 (-3.64%)
1LRCX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 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 valued quite expensively, but it does show have an excellent growth rating. These ratings would make 1LRCX suitable for growth 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.
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 97.18% of its industry peers.
With an excellent Return On Equity value of 57.01%, 1LRCX belongs to the best of the industry, outperforming 95.77% 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 94.37% of the companies in the same industry.
1LRCX had an Average Return On Invested Capital over the past 3 years of 31.47%. This is significantly above the industry average of 13.85%.
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
Looking at the Profit Margin, with a value of 29.66%, 1LRCX belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
In the last couple of years the Profit Margin of 1LRCX has grown nicely.
Looking at the Operating Margin, with a value of 33.00%, 1LRCX belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
1LRCX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.31%, 1LRCX is in line with its industry, outperforming 54.93% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1LRCX is creating value.
The number of shares outstanding for 1LRCX has been reduced compared to 1 year ago.
Compared to 5 years ago, 1LRCX has less shares outstanding
Compared to 1 year ago, 1LRCX has an improved debt to assets ratio.
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 Debt to FCF ratio of 0.81. This is in the better half of the industry: 1LRCX outperforms 77.46% 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.
Looking at the Debt to Equity ratio, with a value of 0.37, 1LRCX is doing worse than 66.20% of the companies in the same industry.
Although 1LRCX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | N/A |
ROIC/WACC3.52
WACC10.73%
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.
1LRCX has a Current ratio of 2.21. This is comparable to the rest of the industry: 1LRCX outperforms 40.85% of its industry peers.
A Quick Ratio of 1.60 indicates that 1LRCX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.60, 1LRCX is doing worse than 60.56% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 21.02% on average over the past years. This is a very strong growth
Looking at the last year, 1LRCX shows a very strong growth in Revenue. The Revenue has grown by 25.66%.
Measured over the past years, 1LRCX shows a quite strong growth in Revenue. The Revenue has been growing by 12.91% on average per year.
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 13.46% yearly.
Based on estimates for the next years, 1LRCX will show a quite strong growth in Revenue. The Revenue will grow by 9.82% on average per year.
EPS Next Y19.4%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
EPS Next 5Y13.46%
Revenue Next Year16.39%
Revenue Next 2Y14.56%
Revenue Next 3Y11.87%
Revenue Next 5Y9.82%
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
1LRCX is valuated quite expensively with a Price/Earnings ratio of 44.18.
Compared to the rest of the industry, the Price/Earnings ratio of 1LRCX is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.19. 1LRCX is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 34.64 indicates a quite expensive valuation of 1LRCX.
Based on the Price/Forward Earnings ratio, 1LRCX is valued a bit more expensive than 67.61% of the companies in the same industry.
1LRCX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.18 | ||
| Fwd PE | 34.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1LRCX is valued a bit more expensive than 69.01% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1LRCX is valued a bit cheaper than 61.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.4 | ||
| EV/EBITDA | 36.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 15.91% in the coming years.
PEG (NY)2.28
PEG (5Y)2.1
EPS Next 2Y18.27%
EPS Next 3Y15.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, 1LRCX is not a good candidate for dividend investing.
The stock price of 1LRCX dropped by -81.02% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 0.79, 1LRCX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, 1LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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 slower than its dividend. This means the dividend growth is not sustainable.
DP20.32%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
BIT:1LRCX (1/7/2026, 7:00:00 PM)
172.3
-6.5 (-3.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.63%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap216.41B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target134.45 (-21.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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)33.88%
PT rev (3m)33.88%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)12.77%
EPS NY rev (1m)0.02%
EPS NY rev (3m)7.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.18 | ||
| Fwd PE | 34.64 | ||
| P/S | 12.86 | ||
| P/FCF | 45.4 | ||
| P/OCF | 39.47 | ||
| P/B | 24.72 | ||
| P/tB | 30.12 | ||
| EV/EBITDA | 36.41 |
EPS(TTM)3.9
EY2.26%
EPS(NY)4.97
Fwd EY2.89%
FCF(TTM)3.8
FCFY2.2%
OCF(TTM)4.37
OCFY2.53%
SpS13.4
BVpS6.97
TBVpS5.72
PEG (NY)2.28
PEG (5Y)2.1
Graham Number24.73
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
WACC10.73%
ROIC/WACC3.52
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 Y19.4%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
EPS Next 5Y13.46%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
Revenue Next Year16.39%
Revenue Next 2Y14.56%
Revenue Next 3Y11.87%
Revenue Next 5Y9.82%
EBIT growth 1Y41.9%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year27.78%
EBIT Next 3Y17.33%
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 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 20.32%.