LAM RESEARCH CORP (LRCX) Fundamental Analysis & Valuation

NASDAQ:LRCX • US5128073062

Current stock price

218.44 USD
-3.57 (-1.61%)
At close:
217.44 USD
-1 (-0.46%)
After Hours:

This LRCX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. LRCX Profitability Analysis

1.1 Basic Checks

  • LRCX had positive earnings in the past year.
  • LRCX had a positive operating cash flow in the past year.
  • LRCX had positive earnings in each of the past 5 years.
  • In the past 5 years LRCX always reported a positive cash flow from operatings.
LRCX Yearly Net Income VS EBIT VS OCF VS FCFLRCX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • LRCX's Return On Assets of 29.05% is amongst the best of the industry. LRCX outperforms 99.13% of its industry peers.
  • Looking at the Return On Equity, with a value of 61.24%, LRCX belongs to the top of the industry, outperforming 96.52% of the companies in the same industry.
  • LRCX has a better Return On Invested Capital (40.64%) than 99.13% of its industry peers.
  • LRCX had an Average Return On Invested Capital over the past 3 years of 31.47%. This is significantly above the industry average of 10.70%.
  • The 3 year average ROIC (31.47%) for LRCX is below the current ROIC(40.64%), indicating increased profibility in the last year.
Industry RankSector 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%
LRCX Yearly ROA, ROE, ROICLRCX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • LRCX has a Profit Margin of 30.22%. This is amongst the best in the industry. LRCX outperforms 90.43% of its industry peers.
  • LRCX's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 33.76%, LRCX belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
  • In the last couple of years the Operating Margin of LRCX has grown nicely.
  • LRCX's Gross Margin of 49.80% is fine compared to the rest of the industry. LRCX outperforms 61.74% of its industry peers.
  • In the last couple of years the Gross Margin of LRCX has remained more or less at the same level.
Industry RankSector 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%
LRCX Yearly Profit, Operating, Gross MarginsLRCX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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6

2. LRCX Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LRCX is creating value.
  • Compared to 1 year ago, LRCX has less shares outstanding
  • Compared to 5 years ago, LRCX has less shares outstanding
  • The debt/assets ratio for LRCX has been reduced compared to a year ago.
LRCX Yearly Shares OutstandingLRCX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
LRCX Yearly Total Debt VS Total AssetsLRCX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • The Debt to FCF ratio of LRCX is 0.72, which is an excellent value as it means it would take LRCX, only 0.72 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of LRCX (0.72) is better than 77.39% of its industry peers.
  • A Debt/Equity ratio of 0.37 indicates that LRCX is not too dependend on debt financing.
  • LRCX has a worse Debt to Equity ratio (0.37) than 63.48% of its industry peers.
  • Although LRCX's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.37
Debt/FCF 0.72
Altman-Z N/A
ROIC/WACC3.56
WACC11.42%
LRCX Yearly LT Debt VS Equity VS FCFLRCX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • LRCX has a Current Ratio of 2.26. This indicates that LRCX is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of LRCX (2.26) is worse than 68.70% of its industry peers.
  • LRCX has a Quick Ratio of 1.61. This is a normal value and indicates that LRCX is financially healthy and should not expect problems in meeting its short term obligations.
  • LRCX has a Quick ratio of 1.61. This is in the lower half of the industry: LRCX underperforms 71.30% of its industry peers.
Industry RankSector Rank
Current Ratio 2.26
Quick Ratio 1.61
LRCX Yearly Current Assets VS Current LiabilitesLRCX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. LRCX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 45.70% over the past year.
  • 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, LRCX shows a very strong growth in Revenue. The Revenue has grown by 26.85%.
  • Measured over the past years, LRCX shows a quite strong growth in Revenue. The Revenue has been growing by 12.91% on average per year.
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

  • Based on estimates for the next years, LRCX will show a very strong growth in Earnings Per Share. The EPS will grow by 21.46% on average per year.
  • Based on estimates for the next years, LRCX will show a quite strong growth in Revenue. The Revenue will grow by 16.48% on average per year.
EPS Next Y30.88%
EPS Next 2Y30.78%
EPS Next 3Y25.22%
EPS Next 5Y21.46%
Revenue Next Year23.15%
Revenue Next 2Y23.48%
Revenue Next 3Y18.86%
Revenue Next 5Y16.48%

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 accelerating.
LRCX Yearly Revenue VS EstimatesLRCX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
LRCX Yearly EPS VS EstimatesLRCX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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4

4. LRCX Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 44.58 indicates a quite expensive valuation of LRCX.
  • 66.96% of the companies in the same industry are more expensive than LRCX, based on the Price/Earnings ratio.
  • LRCX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.60.
  • LRCX is valuated quite expensively with a Price/Forward Earnings ratio of 30.85.
  • 64.35% of the companies in the same industry are more expensive than LRCX, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.84, LRCX is valued a bit more expensive.
Industry RankSector Rank
PE 44.58
Fwd PE 30.85
LRCX Price Earnings VS Forward Price EarningsLRCX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 66.09% of the companies in the same industry are more expensive than LRCX, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 43.89
EV/EBITDA 36.91
LRCX Per share dataLRCX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • LRCX has an outstanding profitability rating, which may justify a higher PE ratio.
  • LRCX's earnings are expected to grow with 25.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)2.12
EPS Next 2Y30.78%
EPS Next 3Y25.22%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. LRCX Dividend Analysis

5.1 Amount

  • LRCX has a yearly dividend return of 0.49%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.50, LRCX pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.88, LRCX's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.49%

5.2 History

  • The dividend of LRCX is nicely growing with an annual growth rate of 14.54%!
  • LRCX has been paying a dividend for at least 10 years, so it has a reliable track record.
  • LRCX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.54%
Div Incr Years10
Div Non Decr Years10
LRCX Yearly Dividends per shareLRCX Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 19.48% of the earnings are spent on dividend by LRCX. This is a low number and sustainable payout ratio.
  • LRCX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.48%
EPS Next 2Y30.78%
EPS Next 3Y25.22%
LRCX Yearly Income VS Free CF VS DividendLRCX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
LRCX Dividend Payout.LRCX Dividend Payout, showing the Payout Ratio.LRCX Dividend Payout.PayoutRetained Earnings

More info and screens

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LRCX Fundamentals: All Metrics, Ratios and Statistics

LAM RESEARCH CORP

NASDAQ:LRCX (4/2/2026, 8:00:01 PM)

After market: 217.44 -1 (-0.46%)

218.44

-3.57 (-1.61%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners89.03%
Inst Owner Change0.47%
Ins Owners0.28%
Ins Owner Change3.61%
Market Cap272.78B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts80
Price Target275.8 (26.26%)
Short Float %2.16%
Short Ratio2.36
Dividend
Industry RankSector Rank
Dividend Yield 0.49%
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP19.48%
Div Incr Years10
Div Non Decr Years10
Ex-Date03-04
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.75%
Min EPS beat(2)1.09%
Max EPS beat(2)6.41%
EPS beat(4)4
Avg EPS beat(4)4.18%
Min EPS beat(4)1.09%
Max EPS beat(4)7.79%
EPS beat(8)8
Avg EPS beat(8)4.13%
EPS beat(12)12
Avg EPS beat(12)5.57%
EPS beat(16)15
Avg EPS beat(16)5.88%
Revenue beat(2)0
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)-0.24%
Revenue beat(4)1
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)1.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.02%
Revenue beat(12)4
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)0.23%
PT rev (1m)0.19%
PT rev (3m)59.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.38%
EPS NY rev (1m)1.28%
EPS NY rev (3m)9.61%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)8.96%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)5.8%
Valuation
Industry RankSector Rank
PE 44.58
Fwd PE 30.85
P/S 13.27
P/FCF 43.89
P/OCF 38.3
P/B 26.89
P/tB 32.94
EV/EBITDA 36.91
EPS(TTM)4.9
EY2.24%
EPS(NY)7.08
Fwd EY3.24%
FCF(TTM)4.98
FCFY2.28%
OCF(TTM)5.7
OCFY2.61%
SpS16.46
BVpS8.12
TBVpS6.63
PEG (NY)1.44
PEG (5Y)2.12
Graham Number29.93
Profitability
Industry RankSector Rank
ROA 29.05%
ROE 61.24%
ROCE 45.74%
ROIC 40.64%
ROICexc 68.56%
ROICexgc 86.48%
OM 33.76%
PM (TTM) 30.22%
GM 49.8%
FCFM 30.23%
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 Turnover0.96
Health
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 0.72
Debt/EBITDA 0.51
Cap/Depr 225.8%
Cap/Sales 4.41%
Interest Coverage 250
Cash Conversion 96.98%
Profit Quality 100.04%
Current Ratio 2.26
Quick Ratio 1.61
Altman-Z N/A
F-Score8
WACC11.42%
ROIC/WACC3.56
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)45.7%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%39.56%
EPS Next Y30.88%
EPS Next 2Y30.78%
EPS Next 3Y25.22%
EPS Next 5Y21.46%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
Revenue Next Year23.15%
Revenue Next 2Y23.48%
Revenue Next 3Y18.86%
Revenue Next 5Y16.48%
EBIT growth 1Y44.13%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year38.29%
EBIT Next 3Y27.83%
EBIT Next 5Y10.27%
FCF growth 1Y27.79%
FCF growth 3Y28.47%
FCF growth 5Y23%
OCF growth 1Y35.55%
OCF growth 3Y25.82%
OCF growth 5Y23.76%

LAM RESEARCH CORP / LRCX Fundamental Analysis FAQ

What is the fundamental rating for LRCX stock?

ChartMill assigns a fundamental rating of 7 / 10 to LRCX.


What is the valuation status of LAM RESEARCH CORP (LRCX) stock?

ChartMill assigns a valuation rating of 4 / 10 to LAM RESEARCH CORP (LRCX). This can be considered as Fairly Valued.


What is the profitability of LRCX stock?

LAM RESEARCH CORP (LRCX) has a profitability rating of 9 / 10.


What are the PE and PB ratios of LAM RESEARCH CORP (LRCX) stock?

The Price/Earnings (PE) ratio for LAM RESEARCH CORP (LRCX) is 44.58 and the Price/Book (PB) ratio is 26.89.


What is the financial health of LAM RESEARCH CORP (LRCX) stock?

The financial health rating of LAM RESEARCH CORP (LRCX) is 6 / 10.