LAM RESEARCH CORP (LRCX) Stock Fundamental Analysis
USA - NASDAQ:LRCX - US5128073062 - Common Stock
148.25 USD
+5.01 (+3.5%)
Taking everything into account, LRCX scores 7 out of 10 in our fundamental rating. 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 overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make LRCX a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
LRCX had positive earnings in the past year.
LRCX had a positive operating cash flow in the past year.
LRCX had positive earnings in each of the past 5 years.
In the past 5 years LRCX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 26.53%, LRCX belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
LRCX has a better Return On Equity (57.01%) than 96.43% of its industry peers.
LRCX's Return On Invested Capital of 37.82% is amongst the best of the industry. LRCX outperforms 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 10.86%.
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
Looking at the Profit Margin, with a value of 29.66%, LRCX belongs to the top of the industry, outperforming 91.07% 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 33.00%, LRCX belongs to the best of the industry, outperforming 91.96% of the companies in the same industry.
LRCX's Operating Margin has improved in the last couple of years.
LRCX has a Gross Margin of 49.31%. This is in the better half of the industry: LRCX outperforms 60.71% 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
LRCX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
LRCX has less shares outstanding than it did 1 year ago.
LRCX has less shares outstanding than it did 5 years ago.
LRCX has a better debt/assets ratio than last year.
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.
LRCX's Debt to FCF ratio of 0.81 is fine compared to the rest of the industry. LRCX outperforms 78.57% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that LRCX is not too dependend on debt financing.
LRCX has a worse Debt to Equity ratio (0.37) than 64.29% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | N/A |
ROIC/WACC3.55
WACC10.64%
2.3 Liquidity
A Current Ratio of 2.21 indicates that LRCX has no problem at all paying its short term obligations.
The Current ratio of LRCX (2.21) is worse than 70.54% of its industry peers.
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.
With a Quick ratio value of 1.60, LRCX is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
| 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.
Measured over the past years, LRCX shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.02% on average per year.
Looking at the last year, LRCX shows a very strong growth in Revenue. The Revenue has grown by 25.66%.
The Revenue has been growing by 12.91% on average over the past years. This is quite good.
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
LRCX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.46% yearly.
LRCX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.31% yearly.
EPS Next Y19.45%
EPS Next 2Y18.08%
EPS Next 3Y15.09%
EPS Next 5Y13.46%
Revenue Next Year16.75%
Revenue Next 2Y14.46%
Revenue Next 3Y11.68%
Revenue Next 5Y10.31%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.65, LRCX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 70.54% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.46. LRCX is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 25.68, LRCX can be considered very expensive at the moment.
64.29% of the companies in the same industry are more expensive than LRCX, based on the Price/Forward Earnings ratio.
LRCX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.65 | ||
| Fwd PE | 25.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 64.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than 75.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.68 | ||
| EV/EBITDA | 26.01 |
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.
A more expensive valuation may be justified as LRCX's earnings are expected to grow with 15.09% in the coming years.
PEG (NY)1.68
PEG (5Y)1.55
EPS Next 2Y18.08%
EPS Next 3Y15.09%
5. Dividend
5.1 Amount
LRCX has a yearly dividend return of 0.68%, which is pretty low.
LRCX's Dividend Yield is a higher than the industry average which is at 2.17.
Compared to an average S&P500 Dividend Yield of 2.44, LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
LRCX pays out 20.32% of its income as dividend. This is a 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 3Y15.09%
NASDAQ:LRCX (11/19/2025, 2:58:31 PM)
148.25
+5.01 (+3.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner Change-0.87%
Ins Owners0.26%
Ins Owner Change-1.46%
Market Cap186.95B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target160.7 (8.4%)
Short Float %2.65%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)35.43%
PT rev (3m)44.87%
EPS NQ rev (1m)11.96%
EPS NQ rev (3m)14.3%
EPS NY rev (1m)8.01%
EPS NY rev (3m)19.59%
Revenue NQ rev (1m)8.54%
Revenue NQ rev (3m)9.74%
Revenue NY rev (1m)6.1%
Revenue NY rev (3m)13.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.65 | ||
| Fwd PE | 25.68 | ||
| P/S | 9.54 | ||
| P/FCF | 33.68 | ||
| P/OCF | 29.28 | ||
| P/B | 18.34 | ||
| P/tB | 22.35 | ||
| EV/EBITDA | 26.01 |
EPS(TTM)4.54
EY3.06%
EPS(NY)5.77
Fwd EY3.89%
FCF(TTM)4.4
FCFY2.97%
OCF(TTM)5.06
OCFY3.41%
SpS15.54
BVpS8.08
TBVpS6.63
PEG (NY)1.68
PEG (5Y)1.55
Graham Number28.73
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
WACC10.64%
ROIC/WACC3.55
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 3Y15.09%
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 3Y11.68%
Revenue Next 5Y10.31%
EBIT growth 1Y41.9%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year16.89%
EBIT Next 3Y17.16%
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 32.65 and the Price/Book (PB) ratio is 18.34.
Can you provide the financial health for LRCX stock?
The financial health rating of LAM RESEARCH CORP (LRCX) is 6 / 10.