LAM RESEARCH CORP (LRCX) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:LRCX • US5128073062

231.01 USD
+17.7 (+8.3%)
At close: Feb 6, 2026
230.514 USD
-0.5 (-0.21%)
After Hours: 2/6/2026, 7:15:48 PM
Fundamental Rating

7

Taking everything into account, LRCX scores 7 out of 10 in our fundamental rating. LRCX was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While LRCX has a great profitability rating, there are some minor concerns on its financial health. LRCX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make LRCX a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • LRCX had positive earnings in the past year.
  • In the past year LRCX had a positive cash flow from operations.
  • 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.
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 better Return On Assets (29.05%) than 98.23% of its industry peers.
  • The Return On Equity of LRCX (61.24%) is better than 96.46% of its industry peers.
  • LRCX has a Return On Invested Capital of 40.64%. This is amongst the best in the industry. LRCX outperforms 99.11% 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 10.72%.
  • 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 better Profit Margin (30.22%) than 90.27% of its industry peers.
  • LRCX's Profit Margin has improved in the last couple of years.
  • LRCX has a better Operating Margin (33.76%) than 92.04% of its industry peers.
  • In the last couple of years the Operating Margin of LRCX has grown nicely.
  • Looking at the Gross Margin, with a value of 49.80%, LRCX is in the better half of the industry, outperforming 61.95% of the companies in the same industry.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LRCX is creating value.
  • LRCX has less shares outstanding than it did 1 year ago.
  • 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

  • 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.
  • With a decent Debt to FCF ratio value of 0.72, LRCX is doing good in the industry, outperforming 77.88% 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's Debt to Equity ratio of 0.37 is on the low side compared to the rest of the industry. LRCX is outperformed by 65.49% 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/WACC3.74
WACC10.87%
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.
  • Looking at the Current ratio, with a value of 2.26, LRCX is doing worse than 67.26% of the companies in the same industry.
  • A Quick Ratio of 1.61 indicates that LRCX should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.61, LRCX is doing worse than 70.80% of the companies in the same industry.
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

7

3. Growth

3.1 Past

  • LRCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.70%, which is quite impressive.
  • 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!
  • The Revenue has been growing by 12.91% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 13.46% on average over the next years. This is quite good.
  • Based on estimates for the next years, LRCX will show a quite strong growth in Revenue. The Revenue will grow by 9.82% on average per year.
EPS Next Y29.23%
EPS Next 2Y28.88%
EPS Next 3Y24.32%
EPS Next 5Y13.46%
Revenue Next Year21.32%
Revenue Next 2Y21.72%
Revenue Next 3Y17.75%
Revenue Next 5Y9.82%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less 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

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 47.14, LRCX can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, LRCX is valued a bit cheaper than 67.26% of the companies in the same industry.
  • LRCX is valuated expensively when we compare the Price/Earnings ratio to 27.92, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 33.59, LRCX can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than 63.72% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. LRCX is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 47.14
Fwd PE 33.59
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

  • LRCX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LRCX is cheaper than 62.83% 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 73.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 46.68
EV/EBITDA 36.25
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 24.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.61
PEG (5Y)2.24
EPS Next 2Y28.88%
EPS Next 3Y24.32%

More info and screens

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

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.50%, LRCX is not a good candidate for dividend investing.
  • LRCX's Dividend Yield is a higher than the industry average which is at 0.50.
  • With a Dividend Yield of 0.50, LRCX pays less dividend than the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 0.5%

5.2 History

  • On average, the dividend of LRCX grows each year by 14.54%, which is quite nice.
  • 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 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 the earnings are growing slower. This means the dividend growth is not 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

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Find the best dividend stocksShow peers with best dividend

LAM RESEARCH CORP

NASDAQ:LRCX (2/6/2026, 7:15:48 PM)

After market: 230.514 -0.5 (-0.21%)

231.01

+17.7 (+8.3%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners88.63%
Inst Owner Change-2.94%
Ins Owners0.24%
Ins Owner Change-3.75%
Market Cap290.16B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts80
Price Target270.98 (17.3%)
Short Float %2.49%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 0.5%
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP19.48%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
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)7.39%
PT rev (3m)15.79%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)1.6%
EPS NY rev (1m)1.02%
EPS NY rev (3m)7.87%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)5.8%
Valuation
Industry RankSector Rank
PE 47.14
Fwd PE 33.59
P/S 14.11
P/FCF 46.68
P/OCF 40.74
P/B 28.6
P/tB 35.04
EV/EBITDA 36.25
EPS(TTM)4.9
EY2.12%
EPS(NY)6.88
Fwd EY2.98%
FCF(TTM)4.95
FCFY2.14%
OCF(TTM)5.67
OCFY2.45%
SpS16.37
BVpS8.08
TBVpS6.59
PEG (NY)1.61
PEG (5Y)2.24
Graham Number29.84
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
WACC10.87%
ROIC/WACC3.74
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 5Y13.46%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
Revenue Next Year21.32%
Revenue Next 2Y21.72%
Revenue Next 3Y17.75%
Revenue Next 5Y9.82%
EBIT growth 1Y44.13%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year29.47%
EBIT Next 3Y20.78%
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 47.14 and the Price/Book (PB) ratio is 28.6.


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.