LAM RESEARCH CORP (LRCX) Fundamental Analysis & Valuation

NASDAQ:LRCX • US5128073062

Current stock price

265.55 USD
+7.18 (+2.78%)
At close:
271.76 USD
+6.21 (+2.34%)
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.
  • In the past year LRCX had a positive cash flow from operations.
  • LRCX had positive earnings in each of the past 5 years.
  • Each year in the past 5 years LRCX had a positive operating cash flow.
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 has a Return On Assets of 29.05%. This is amongst the best in the industry. LRCX outperforms 99.13% of its industry peers.
  • With an excellent Return On Equity value of 61.24%, LRCX belongs to the best of the industry, outperforming 96.52% of the companies in the same industry.
  • The Return On Invested Capital of LRCX (40.64%) is better than 98.26% 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 10.89%.
  • The last Return On Invested Capital (40.64%) for LRCX is above the 3 year average (31.47%), which is a sign of increasing profitability.
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

  • Looking at the Profit Margin, with a value of 30.22%, LRCX belongs to the top of the industry, outperforming 89.57% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LRCX has grown nicely.
  • LRCX has a Operating Margin of 33.76%. This is amongst the best in the industry. LRCX outperforms 91.30% of its industry peers.
  • LRCX's Operating Margin has improved in the last couple of years.
  • The Gross Margin of LRCX (49.80%) is better than 61.74% of its industry peers.
  • LRCX's Gross Margin has been stable in the last couple of years.
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

  • LRCX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • The number of shares outstanding for LRCX has been reduced compared to 1 year ago.
  • Compared to 5 years ago, LRCX has less shares outstanding
  • Compared to 1 year ago, LRCX has an improved debt to assets ratio.
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.
  • Looking at the Debt to FCF ratio, with a value of 0.72, LRCX is in the better half of the industry, outperforming 77.39% of the companies in the same industry.
  • LRCX has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
  • LRCX has a Debt to Equity ratio of 0.37. This is in the lower half of the industry: LRCX underperforms 64.35% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for LRCX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 0.72
Altman-Z N/A
ROIC/WACC3.38
WACC12.02%
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

  • A Current Ratio of 2.26 indicates that LRCX has no problem at all paying its short term obligations.
  • LRCX's Current ratio of 2.26 is on the low side compared to the rest of the industry. LRCX is outperformed by 69.57% of its industry peers.
  • A Quick Ratio of 1.61 indicates that LRCX should not have too much problems paying its short term obligations.
  • The Quick ratio of LRCX (1.61) is worse than 73.91% 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
  • The Revenue has grown by 26.85% in the past year. This is a very strong growth!
  • LRCX 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

  • LRCX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.46% yearly.
  • 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • 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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5

4. LRCX Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 54.19 indicates a quite expensive valuation of LRCX.
  • Based on the Price/Earnings ratio, LRCX is valued a bit cheaper than 72.17% of the companies in the same industry.
  • LRCX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.79.
  • The Price/Forward Earnings ratio is 37.48, which means the current valuation is very expensive for LRCX.
  • Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than 70.43% of the companies in the same industry.
  • LRCX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 38.88.
Industry RankSector Rank
PE 54.19
Fwd PE 37.48
LRCX Price Earnings VS Forward Price EarningsLRCX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • LRCX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LRCX is cheaper than 67.83% of the companies in the same industry.
  • LRCX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LRCX is cheaper than 72.17% of the companies in the same industry.
Industry RankSector Rank
P/FCF 53.35
EV/EBITDA 43.7
LRCX Per share dataLRCX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • LRCX's 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.
  • LRCX's earnings are expected to grow with 25.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.75
PEG (5Y)2.58
EPS Next 2Y30.83%
EPS Next 3Y25.29%

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6

5. LRCX Dividend Analysis

5.1 Amount

  • LRCX has a yearly dividend return of 0.40%, which is pretty low.
  • LRCX's Dividend Yield is a higher than the industry average which is at 0.45.
  • Compared to an average S&P500 Dividend Yield of 1.81, LRCX's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.4%

5.2 History

  • The dividend of LRCX is nicely growing with an annual growth rate of 14.54%!
  • LRCX has paid a dividend for at least 10 years, which is a reliable track record.
  • LRCX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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

  • LRCX pays out 19.48% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of LRCX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.48%
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 (4/22/2026, 8:00:01 PM)

After market: 271.76 +6.21 (+2.34%)

265.55

+7.18 (+2.78%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)04-22
Earnings (Next)N/A
Inst Owners89.05%
Inst Owner Change0.03%
Ins Owners0.26%
Ins Owner Change4.89%
Market Cap331.61B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts80
Price Target279.53 (5.26%)
Short Float %2.25%
Short Ratio2.62
Dividend
Industry RankSector Rank
Dividend Yield 0.4%
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP19.48%
Div Incr Years11
Div Non Decr Years11
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)1.55%
PT rev (3m)50.22%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)14.18%
EPS NY rev (1m)0.03%
EPS NY rev (3m)9.64%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)9.09%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)6.11%
Valuation
Industry RankSector Rank
PE 54.19
Fwd PE 37.48
P/S 16.13
P/FCF 53.35
P/OCF 46.56
P/B 32.69
P/tB 40.04
EV/EBITDA 43.7
EPS(TTM)4.9
EY1.85%
EPS(NY)7.09
Fwd EY2.67%
FCF(TTM)4.98
FCFY1.87%
OCF(TTM)5.7
OCFY2.15%
SpS16.46
BVpS8.12
TBVpS6.63
PEG (NY)1.75
PEG (5Y)2.58
Graham Number29.9284 (-88.73%)
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
WACC12.02%
ROIC/WACC3.38
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 Y30.91%
EPS Next 2Y30.83%
EPS Next 3Y25.29%
EPS Next 5Y21.46%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
Revenue Next Year23.39%
Revenue Next 2Y24.38%
Revenue Next 3Y20.65%
Revenue Next 5Y16.48%
EBIT growth 1Y44.13%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year38.31%
EBIT Next 3Y27.92%
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 5 / 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 54.19 and the Price/Book (PB) ratio is 32.69.


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

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