LAM RESEARCH CORP (LRCX) Fundamental Analysis & Valuation

NASDAQ:LRCX • US5128073062

Current stock price

212.2 USD
+2.71 (+1.29%)
At close:
212.02 USD
-0.18 (-0.08%)
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

  • Looking at the Return On Assets, with a value of 29.05%, LRCX belongs to the top of the industry, outperforming 98.26% of the companies in the same industry.
  • 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.
  • With an excellent Return On Invested Capital value of 40.64%, LRCX belongs to the best of the industry, outperforming 99.13% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for LRCX 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

  • With an excellent Profit Margin value of 30.22%, LRCX belongs to the best 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.
  • Looking at the Operating Margin, with a value of 33.76%, LRCX belongs to the top of the industry, outperforming 92.17% of the companies in the same industry.
  • LRCX's Operating Margin has improved in the last couple of years.
  • LRCX has a better Gross Margin (49.80%) 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.
  • 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.
  • The Debt to FCF ratio of LRCX (0.72) is better than 76.52% 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's Debt to Equity ratio of 0.37 is on the low side compared to the rest of the industry. LRCX is outperformed by 65.22% 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/WACC3.56
WACC11.43%
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 68.70% 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.
  • LRCX has a worse Quick ratio (1.61) than 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

  • 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
  • Looking at the last year, LRCX shows a very strong growth in Revenue. The Revenue has grown by 26.85%.
  • Measured over the past years, LRCX shows a quite strong growth in Revenue. The Revenue has been growing by 12.91% on average per year.
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.
  • 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 Y30.88%
EPS Next 2Y30.78%
EPS Next 3Y25.22%
EPS Next 5Y21.46%
Revenue Next Year22.59%
Revenue Next 2Y23.48%
Revenue Next 3Y18.86%
Revenue Next 5Y16.48%

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 accelerating: in the next years the growth will be better 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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4

4. LRCX Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 43.31, LRCX can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, LRCX is valued a bit cheaper than 67.83% 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 25.70.
  • Based on the Price/Forward Earnings ratio of 29.97, the valuation of LRCX can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LRCX is on the same level as its industry peers.
  • LRCX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 43.31
Fwd PE 29.97
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 the industry average as 64.35% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than the industry average as 74.78% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 42.63
EV/EBITDA 35.39
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.
  • A more expensive valuation may be justified as LRCX's earnings are expected to grow with 25.22% in the coming years.
PEG (NY)1.4
PEG (5Y)2.06
EPS Next 2Y30.78%
EPS Next 3Y25.22%

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6

5. LRCX Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.48%, LRCX is not a good candidate for dividend investing.
  • LRCX's Dividend Yield is a higher than the industry average which is at 0.49.
  • With a Dividend Yield of 0.48, LRCX pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.48%

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
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

  • 19.48% of the earnings are spent on dividend by LRCX. This is a low number and sustainable payout ratio.
  • LRCX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.48%
EPS Next 2Y30.78%
EPS Next 3Y25.22%
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 (3/13/2026, 8:00:00 PM)

After market: 212.02 -0.18 (-0.08%)

212.2

+2.71 (+1.29%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners89.03%
Inst Owner Change0.47%
Ins Owners0.28%
Ins Owner Change3.77%
Market Cap264.99B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts80
Price Target275.27 (29.72%)
Short Float %2.65%
Short Ratio2.72
Dividend
Industry RankSector Rank
Dividend Yield 0.48%
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)1.58%
PT rev (3m)64.94%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)14.64%
EPS NY rev (1m)1.28%
EPS NY rev (3m)9.63%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)8.33%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)5.32%
Valuation
Industry RankSector Rank
PE 43.31
Fwd PE 29.97
P/S 12.89
P/FCF 42.63
P/OCF 37.21
P/B 26.12
P/tB 32
EV/EBITDA 35.39
EPS(TTM)4.9
EY2.31%
EPS(NY)7.08
Fwd EY3.34%
FCF(TTM)4.98
FCFY2.35%
OCF(TTM)5.7
OCFY2.69%
SpS16.46
BVpS8.12
TBVpS6.63
PEG (NY)1.4
PEG (5Y)2.06
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
WACC11.43%
ROIC/WACC3.56
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 Y30.88%
EPS Next 2Y30.78%
EPS Next 3Y25.22%
EPS Next 5Y21.46%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
Revenue Next Year22.59%
Revenue Next 2Y23.48%
Revenue Next 3Y18.86%
Revenue Next 5Y16.48%
EBIT growth 1Y44.13%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year38.29%
EBIT Next 3Y27.83%
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 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 43.31 and the Price/Book (PB) ratio is 26.12.


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 30.88% in the next year.