158.7 USD
+1.61 (+1.02%)
158.9 USD
+0.2 (+0.13%)
We assign a fundamental rating of 7 out of 10 to LRCX. LRCX was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. LRCX scores excellent on profitability, but there are some minor concerns on its financial health. LRCX is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make LRCX suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year LRCX was profitable.
LRCX had a positive operating cash flow in the past year.
Each year in the past 5 years LRCX has been profitable.
Each year in the past 5 years LRCX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LRCX (26.53%) is better than 98.21% of its industry peers.
LRCX's Return On Equity of 57.01% is amongst the best of the industry. LRCX outperforms 97.32% of its industry peers.
LRCX has a better Return On Invested Capital (37.82%) than 98.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LRCX is significantly above the industry average of 10.79%.
The last Return On Invested Capital (37.82%) for LRCX 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
With an excellent Profit Margin value of 29.66%, LRCX belongs to the best of the industry, outperforming 91.96% of the companies in the same industry.
In the last couple of years the Profit Margin of LRCX has grown nicely.
Looking at the Operating Margin, with a value of 33.00%, LRCX belongs to the top of the industry, outperforming 91.96% of the companies in the same industry.
In the last couple of years the Operating Margin of LRCX has grown nicely.
LRCX has a Gross Margin of 49.31%. This is in the better half of the industry: LRCX outperforms 61.61% of its industry peers.
LRCX'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
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.
The number of shares outstanding for LRCX has been reduced compared to 5 years ago.
Compared to 1 year ago, LRCX has an improved debt to assets ratio.
2.2 Solvency
LRCX has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
The Debt to FCF ratio of LRCX (0.81) is better than 78.57% of its industry peers.
LRCX 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, LRCX is doing worse than 63.39% of the companies in the same industry.
Although LRCX 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/WACC3.64
WACC10.39%
2.3 Liquidity
LRCX has a Current Ratio of 2.21. This indicates that LRCX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.21, LRCX is doing worse than 70.54% of the companies in the same industry.
LRCX has a Quick Ratio of 1.60. 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 1.60. This is in the lower half of the industry: LRCX underperforms 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.65% over the past year.
LRCX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.02% yearly.
Looking at the last year, LRCX shows a very strong growth in Revenue. The Revenue has grown by 25.66%.
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)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
Based on estimates for the next years, LRCX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.46% on average per year.
The Revenue is expected to grow by 10.31% on average over the next years. This is quite good.
EPS Next Y19.45%
EPS Next 2Y18.08%
EPS Next 3Y15.31%
EPS Next 5Y13.46%
Revenue Next Year16.75%
Revenue Next 2Y14.46%
Revenue Next 3Y11.81%
Revenue Next 5Y10.31%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.96 indicates a quite expensive valuation of LRCX.
Based on the Price/Earnings ratio, LRCX is valued a bit cheaper than 72.32% of the companies in the same industry.
LRCX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.46.
LRCX is valuated quite expensively with a Price/Forward Earnings ratio of 27.49.
LRCX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LRCX is cheaper than 69.64% of the companies in the same industry.
LRCX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 27.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LRCX is valued a bit cheaper than the industry average as 65.18% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than the industry average as 77.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.92 | ||
| EV/EBITDA | 28.44 |
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 15.31% in the coming years.
PEG (NY)1.8
PEG (5Y)1.66
EPS Next 2Y18.08%
EPS Next 3Y15.31%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, LRCX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.21, LRCX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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 Years10
Div Non Decr Years10
5.3 Sustainability
20.32% of the earnings are spent on dividend by LRCX. This is a low number and sustainable payout ratio.
LRCX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.32%
EPS Next 2Y18.08%
EPS Next 3Y15.31%
158.7
+1.61 (+1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner Change-0.94%
Ins Owners0.26%
Ins Owner Change-2.39%
Market Cap199.33B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target164.95 (3.94%)
Short Float %2.65%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP20.32%
Div Incr Years10
Div Non Decr Years10
Ex-Date
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)2.64%
PT rev (3m)47.65%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)13.19%
EPS NY rev (1m)6.83%
EPS NY rev (3m)8.52%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)5.77%
Revenue NY rev (3m)7.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 27.49 | ||
| P/S | 10.17 | ||
| P/FCF | 35.92 | ||
| P/OCF | 31.22 | ||
| P/B | 19.56 | ||
| P/tB | 23.83 | ||
| EV/EBITDA | 28.44 |
EPS(TTM)4.54
EY2.86%
EPS(NY)5.77
Fwd EY3.64%
FCF(TTM)4.42
FCFY2.78%
OCF(TTM)5.08
OCFY3.2%
SpS15.6
BVpS8.12
TBVpS6.66
PEG (NY)1.8
PEG (5Y)1.66
Graham Number28.79
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
WACC10.39%
ROIC/WACC3.64
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 Y19.45%
EPS Next 2Y18.08%
EPS Next 3Y15.31%
EPS Next 5Y13.46%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
Revenue Next Year16.75%
Revenue Next 2Y14.46%
Revenue Next 3Y11.81%
Revenue Next 5Y10.31%
EBIT growth 1Y41.9%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year16.89%
EBIT Next 3Y17.47%
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 / LRCX FAQ
What is the fundamental rating for LRCX stock?
ChartMill assigns a fundamental rating of 7 / 10 to LRCX.
Can you provide the valuation status for LAM RESEARCH CORP?
ChartMill assigns a valuation rating of 5 / 10 to LAM RESEARCH CORP (LRCX). This can be considered as Fairly Valued.
Can you provide the profitability details for LAM RESEARCH CORP?
LAM RESEARCH CORP (LRCX) has a profitability rating of 9 / 10.
What is the valuation of LAM RESEARCH CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LAM RESEARCH CORP (LRCX) is 34.96 and the Price/Book (PB) ratio is 19.56.
Can you provide the financial health for LRCX stock?
The financial health rating of LAM RESEARCH CORP (LRCX) is 6 / 10.