LAM RESEARCH CORP (LRCX) Fundamental Analysis & Valuation

NASDAQ:LRCX • US5128073062

217.27 USD
-13.73 (-5.94%)
At close: Mar 3, 2026
220 USD
+2.73 (+1.26%)
Pre-Market: 3/4/2026, 5:31:57 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

7

Taking everything into account, LRCX scores 7 out of 10 in our fundamental rating. LRCX was compared to 115 industry peers in the Semiconductors & Semiconductor Equipment industry. LRCX has an excellent profitability rating, but there are some minor concerns on its financial health. LRCX is growing strongly while it is still valued neutral. This is a good combination! These ratings would make LRCX suitable for growth investing!


Dividend Valuation Growth Profitability Health

9

1. LRCX Profitability Analysis

1.1 Basic Checks

  • In the past year LRCX was profitable.
  • LRCX had a positive operating cash flow in the past year.
  • In the past 5 years LRCX has always 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 has a Return On Assets of 29.05%. This is amongst the best in the industry. LRCX outperforms 98.26% 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.
  • LRCX's Return On Invested Capital of 40.64% is amongst the best of the industry. LRCX outperforms 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 10.52%.
  • 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

  • Looking at the Profit Margin, with a value of 30.22%, LRCX belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
  • LRCX's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 33.76%, LRCX belongs to the best of the industry, outperforming 92.17% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 1 year ago, LRCX has less shares outstanding
  • 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

  • LRCX has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
  • LRCX has a better Debt to FCF ratio (0.72) than 75.65% of its industry peers.
  • A Debt/Equity ratio of 0.37 indicates that LRCX is not too dependend on debt financing.
  • LRCX has a Debt to Equity ratio of 0.37. This is in the lower half of the industry: LRCX underperforms 65.22% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.37
Debt/FCF 0.72
Altman-Z N/A
ROIC/WACC3.66
WACC11.09%
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.
  • LRCX has a Current ratio of 2.26. This is in the lower half of the industry: LRCX underperforms 68.70% of its industry peers.
  • A Quick Ratio of 1.61 indicates that LRCX should not have too much problems paying 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
  • LRCX shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.85%.
  • 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

  • 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.
  • The Revenue is expected to grow by 12.77% on average over the next years. This is quite good.
EPS Next Y29.23%
EPS Next 2Y28.88%
EPS Next 3Y24.32%
EPS Next 5Y21.46%
Revenue Next Year22.57%
Revenue Next 2Y23.19%
Revenue Next 3Y18.76%
Revenue Next 5Y12.77%

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 stable: in the next years the growth will be about the same 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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Find the best growth stocksShow best growing peers

4

4. LRCX Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 44.34 indicates a quite expensive valuation of 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.
  • Compared to an average S&P500 Price/Earnings ratio of 26.83, LRCX is valued quite expensively.
  • A Price/Forward Earnings ratio of 31.59 indicates a quite expensive valuation of LRCX.
  • Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than the industry average as 62.61% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of LRCX to the average of the S&P500 Index (24.95), we can say LRCX is valued slightly more expensively.
Industry RankSector Rank
PE 44.34
Fwd PE 31.59
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 63.48% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 73.04% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 43.65
EV/EBITDA 36.72
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.
  • LRCX's earnings are expected to grow with 24.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)2.11
EPS Next 2Y28.88%
EPS Next 3Y24.32%

More info and screens

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

6

5. LRCX Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.44%, LRCX is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.47, LRCX pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.44, LRCX pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.44%

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
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.
  • LRCX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.48%
EPS Next 2Y28.88%
EPS Next 3Y24.32%
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

Find the best dividend stocksShow peers with best dividend

LRCX Fundamentals: All Metrics, Ratios and Statistics

LAM RESEARCH CORP

NASDAQ:LRCX (3/3/2026, 8:24:32 PM)

Premarket: 220 +2.73 (+1.26%)

217.27

-13.73 (-5.94%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners88.63%
Inst Owner Change0.44%
Ins Owners0.24%
Ins Owner Change8.83%
Market Cap271.32B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts79.51
Price Target275.27 (26.69%)
Short Float %2.65%
Short Ratio2.72
Dividend
Industry RankSector Rank
Dividend Yield 0.44%
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)47.94%
PT rev (3m)66.88%
EPS NQ rev (1m)13.19%
EPS NQ rev (3m)14.63%
EPS NY rev (1m)7.14%
EPS NY rev (3m)8.18%
Revenue NQ rev (1m)8.01%
Revenue NQ rev (3m)8.33%
Revenue NY rev (1m)4.96%
Revenue NY rev (3m)4.99%
Valuation
Industry RankSector Rank
PE 44.34
Fwd PE 31.59
P/S 13.2
P/FCF 43.65
P/OCF 38.1
P/B 26.74
P/tB 32.76
EV/EBITDA 36.72
EPS(TTM)4.9
EY2.26%
EPS(NY)6.88
Fwd EY3.17%
FCF(TTM)4.98
FCFY2.29%
OCF(TTM)5.7
OCFY2.62%
SpS16.46
BVpS8.12
TBVpS6.63
PEG (NY)1.52
PEG (5Y)2.11
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
WACC11.09%
ROIC/WACC3.66
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 Y29.23%
EPS Next 2Y28.88%
EPS Next 3Y24.32%
EPS Next 5Y21.46%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
Revenue Next Year22.57%
Revenue Next 2Y23.19%
Revenue Next 3Y18.76%
Revenue Next 5Y12.77%
EBIT growth 1Y44.13%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year38.29%
EBIT Next 3Y27.54%
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 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.


How profitable is LAM RESEARCH CORP (LRCX) stock?

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 44.34 and the Price/Book (PB) ratio is 26.74.


What is the earnings growth outlook for LAM RESEARCH CORP?

The Earnings per Share (EPS) of LAM RESEARCH CORP (LRCX) is expected to grow by 29.23% in the next year.