LAM RESEARCH CORP (LRCX) Fundamental Analysis & Valuation

NASDAQ:LRCX • US5128073062

Current stock price

256.72 USD
-1.14 (-0.44%)
At close:
255.97 USD
-0.75 (-0.29%)
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

  • In the past year LRCX was profitable.
  • In the past year LRCX had a positive cash flow from operations.
  • Each year in the past 5 years LRCX has been profitable.
  • LRCX had a positive operating cash flow in each of the past 5 years.
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 32.26% is amongst the best of the industry. LRCX outperforms 99.13% of its industry peers.
  • The Return On Equity of LRCX (63.38%) is better than 97.39% of its industry peers.
  • LRCX's Return On Invested Capital of 42.45% is amongst the best of the industry. LRCX outperforms 98.26% 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 10.73%.
  • The 3 year average ROIC (31.47%) for LRCX is below the current ROIC(42.45%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 32.26%
ROE 63.38%
ROIC 42.45%
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

  • Looking at the Profit Margin, with a value of 30.94%, LRCX belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LRCX has grown nicely.
  • With an excellent Operating Margin value of 34.26%, LRCX belongs to the best 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.
  • Looking at the Gross Margin, with a value of 49.98%, LRCX is in the better half of the industry, outperforming 61.74% of the companies in the same industry.
  • LRCX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 34.26%
PM (TTM) 30.94%
GM 49.98%
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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LRCX is creating value.
  • The number of shares outstanding for LRCX has been reduced compared to 1 year ago.
  • LRCX has less shares outstanding than it did 5 years ago.
  • LRCX has a better debt/assets ratio than last year.
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 0.62, which is an excellent value as it means it would take LRCX, only 0.62 years of fcf income to pay off all of its debts.
  • LRCX has a Debt to FCF ratio of 0.62. This is in the better half of the industry: LRCX outperforms 77.39% of its industry peers.
  • A Debt/Equity ratio of 0.35 indicates that LRCX is not too dependend on debt financing.
  • The Debt to Equity ratio of LRCX (0.35) is worse than 64.35% 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 0.35
Debt/FCF 0.62
Altman-Z N/A
ROIC/WACC3.29
WACC12.89%
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 2.54. This indicates that LRCX is financially healthy and has no problem in meeting its short term obligations.
  • With a Current ratio value of 2.54, LRCX is not doing good in the industry: 61.74% of the companies in the same industry are doing better.
  • LRCX has a Quick Ratio of 1.77. This is a normal value and indicates that LRCX is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.77, LRCX is doing worse than 71.30% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.54
Quick Ratio 1.77
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

  • LRCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.80%, which is quite impressive.
  • LRCX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.02% yearly.
  • LRCX shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.53%.
  • The Revenue has been growing by 12.91% on average over the past years. This is quite good.
EPS 1Y (TTM)46.8%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%40.38%
Revenue 1Y (TTM)26.53%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%23.76%

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 Y30.91%
EPS Next 2Y30.83%
EPS Next 3Y25.29%
EPS Next 5Y21.46%
Revenue Next Year23.39%
Revenue Next 2Y24.38%
Revenue Next 3Y20.65%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • The Price/Earnings ratio is 48.26, which means the current valuation is very expensive for LRCX.
  • Based on the Price/Earnings ratio, LRCX is valued a bit cheaper than the industry average as 70.43% of the companies are valued more expensively.
  • LRCX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.64.
  • With a Price/Forward Earnings ratio of 36.23, LRCX can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than 65.22% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of LRCX to the average of the S&P500 Index (21.36), we can say LRCX is valued expensively.
Industry RankSector Rank
PE 48.26
Fwd PE 36.23
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

  • Based on the Enterprise Value to EBITDA ratio, LRCX is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 72.17% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 53.39
EV/EBITDA 40.9
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.
  • The excellent profitability rating of LRCX may justify a higher PE ratio.
  • A more expensive valuation may be justified as LRCX's earnings are expected to grow with 25.29% in the coming years.
PEG (NY)1.56
PEG (5Y)2.3
EPS Next 2Y30.83%
EPS Next 3Y25.29%

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

6

5. LRCX Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.40%, LRCX is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.42, LRCX pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.40, LRCX pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.4%

5.2 History

  • On average, the dividend of LRCX grows each year by 14.54%, which is quite nice.
  • LRCX has paid a dividend for at least 10 years, which is 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 Years11
Div Non Decr Years11
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

  • 18.49% 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.
DP18.49%
EPS Next 2Y30.83%
EPS Next 3Y25.29%
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

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LRCX Fundamentals: All Metrics, Ratios and Statistics

LAM RESEARCH CORP

NASDAQ:LRCX (5/1/2026, 8:00:01 PM)

After market: 255.97 -0.75 (-0.29%)

256.72

-1.14 (-0.44%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry Strength100
Industry Growth73.29
Earnings (Last)04-22
Earnings (Next)07-28
Inst Owners89.05%
Inst Owner Change-0.47%
Ins Owners0.26%
Ins Owner Change4.89%
Market Cap320.58B
Revenue(TTM)21.68B
Net Income(TTM)6.71B
Analysts80
Price Target310.72 (21.03%)
Short Float %2.09%
Short Ratio2.61
Dividend
Industry RankSector Rank
Dividend Yield 0.4%
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP18.49%
Div Incr Years11
Div Non Decr Years11
Ex-Date03-04
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.67%
Min EPS beat(2)4.93%
Max EPS beat(2)6.41%
EPS beat(4)4
Avg EPS beat(4)5.06%
Min EPS beat(4)1.09%
Max EPS beat(4)7.79%
EPS beat(8)8
Avg EPS beat(8)4.18%
EPS beat(12)12
Avg EPS beat(12)5.59%
EPS beat(16)16
Avg EPS beat(16)6.41%
Revenue beat(2)0
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-0.91%
Max Revenue beat(4)1.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.11%
Revenue beat(12)4
Avg Revenue beat(12)-0.11%
Revenue beat(16)7
Avg Revenue beat(16)0.56%
PT rev (1m)1.55%
PT rev (3m)50.22%
EPS NQ rev (1m)1.16%
EPS NQ rev (3m)15.58%
EPS NY rev (1m)0.03%
EPS NY rev (3m)8.53%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)11.36%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)5.67%
Valuation
Industry RankSector Rank
PE 48.26
Fwd PE 36.23
P/S 14.79
P/FCF 53.39
P/OCF 46.1
P/B 30.29
P/tB 36.84
EV/EBITDA 40.9
EPS(TTM)5.32
EY2.07%
EPS(NY)7.09
Fwd EY2.76%
FCF(TTM)4.81
FCFY1.87%
OCF(TTM)5.57
OCFY2.17%
SpS17.36
BVpS8.48
TBVpS6.97
PEG (NY)1.56
PEG (5Y)2.3
Graham Number31.8527 (-87.59%)
Profitability
Industry RankSector Rank
ROA 32.26%
ROE 63.38%
ROCE 47.77%
ROIC 42.45%
ROICexc 61.12%
ROICexgc 74.02%
OM 34.26%
PM (TTM) 30.94%
GM 49.98%
FCFM 27.7%
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-Score9
Asset Turnover1.04
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 0.62
Debt/EBITDA 0.48
Cap/Depr 225.96%
Cap/Sales 4.38%
Interest Coverage 250
Cash Conversion 88.62%
Profit Quality 89.51%
Current Ratio 2.54
Quick Ratio 1.77
Altman-Z N/A
F-Score9
WACC12.89%
ROIC/WACC3.29
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)46.8%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%40.38%
EPS Next Y30.91%
EPS Next 2Y30.83%
EPS Next 3Y25.29%
EPS Next 5Y21.46%
Revenue 1Y (TTM)26.53%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%23.76%
Revenue Next Year23.39%
Revenue Next 2Y24.38%
Revenue Next 3Y20.65%
Revenue Next 5Y16.48%
EBIT growth 1Y40.38%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year38.31%
EBIT Next 3Y27.92%
EBIT Next 5Y10.27%
FCF growth 1Y32.32%
FCF growth 3Y28.47%
FCF growth 5Y23%
OCF growth 1Y41.57%
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 48.26 and the Price/Book (PB) ratio is 30.29.


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

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