158.7 USD
+1.61 (+1.02%)
158.9 USD
+0.2 (+0.13%)
Overall LRCX gets a fundamental rating of 7 out of 10. We evaluated LRCX against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While LRCX belongs to the best of the industry regarding profitability, 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! This makes LRCX very considerable for growth investing!
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.
In the past 5 years LRCX has always been profitable.
In the past 5 years LRCX always reported a positive cash flow from operatings.
1.2 Ratios
LRCX has a better Return On Assets (26.53%) than 98.21% of its industry peers.
With an excellent Return On Equity value of 57.01%, LRCX belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
LRCX has a Return On Invested Capital of 37.82%. This is amongst the best in 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 10.82%.
The 3 year average ROIC (31.47%) for LRCX is below the current ROIC(37.82%), indicating increased profibility in the last year.
| 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
LRCX has a better Profit Margin (29.66%) than 89.29% of its industry peers.
In the last couple of years the Profit Margin of LRCX has grown nicely.
LRCX's Operating Margin of 33.00% is amongst the best of the industry. LRCX outperforms 91.96% of its industry peers.
In the last couple of years the Operating Margin of LRCX has grown nicely.
The Gross Margin of LRCX (49.31%) is better than 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LRCX is creating value.
Compared to 1 year ago, LRCX has less shares outstanding
The number of shares outstanding for LRCX has been reduced compared to 5 years ago.
The debt/assets ratio for LRCX has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of LRCX is 0.81, which is an excellent value as it means it would take LRCX, only 0.81 years of fcf income to pay off all of its debts.
LRCX has a Debt to FCF ratio of 0.81. This is in the better half of the industry: LRCX outperforms 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.
LRCX has a Debt to Equity ratio of 0.37. This is in the lower half of the industry: LRCX underperforms 66.07% 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/WACC3.63
WACC10.43%
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.
With a Current ratio value of 2.21, LRCX is not doing good in the industry: 72.32% of the companies in the same industry are doing better.
A Quick Ratio of 1.60 indicates that LRCX should not have too much problems paying its short term obligations.
LRCX's Quick ratio of 1.60 is on the low side compared to the rest of the industry. LRCX is outperformed by 71.43% 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.
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 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.
The Revenue is expected to grow by 10.31% on average over the next years. This is quite good.
EPS Next Y19.38%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
EPS Next 5Y13.46%
Revenue Next Year16.4%
Revenue Next 2Y14.56%
Revenue Next 3Y11.64%
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
Based on the Price/Earnings ratio of 34.96, the valuation of LRCX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, LRCX is valued a bit more expensive.
LRCX is valuated quite expensively with a Price/Forward Earnings ratio of 27.48.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 66.96% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. LRCX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 27.48 |
4.2 Price Multiples
65.18% of the companies in the same industry are more expensive than LRCX, based on the Enterprise Value to EBITDA ratio.
77.68% of the companies in the same industry are more expensive than LRCX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.92 | ||
| EV/EBITDA | 28.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LRCX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LRCX's earnings are expected to grow with 15.56% in the coming years.
PEG (NY)1.8
PEG (5Y)1.66
EPS Next 2Y18.11%
EPS Next 3Y15.56%
5. Dividend
5.1 Amount
LRCX has a yearly dividend return of 0.66%, which is pretty low.
LRCX's Dividend Yield is a higher than the industry average which is at 2.09.
Compared to an average S&P500 Dividend Yield of 2.31, LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of LRCX is nicely growing with an annual growth rate of 14.54%!
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
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 2Y18.11%
EPS Next 3Y15.56%
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 Owners88.65%
Inst Owner Change-0.89%
Ins Owners0.25%
Ins Owner Change-2.39%
Market Cap199.33B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target166.89 (5.16%)
Short Float %2.65%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)3.85%
PT rev (3m)49.24%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)13.07%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)8.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)6.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 27.48 | ||
| P/S | 10.17 | ||
| P/FCF | 35.92 | ||
| P/OCF | 31.22 | ||
| P/B | 19.56 | ||
| P/tB | 23.83 | ||
| EV/EBITDA | 28.74 |
EPS(TTM)4.54
EY2.86%
EPS(NY)5.78
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
WACC10.43%
ROIC/WACC3.63
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 Y19.38%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
EPS Next 5Y13.46%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
Revenue Next Year16.4%
Revenue Next 2Y14.56%
Revenue Next 3Y11.64%
Revenue Next 5Y10.31%
EBIT growth 1Y41.9%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year27.76%
EBIT Next 3Y16.88%
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 4 / 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.