222.96 USD
+5.49 (+2.52%)
223.2 USD
+0.24 (+0.11%)
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 would make LRCX suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year LRCX was profitable.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 26.53%, LRCX belongs to the top of the industry, outperforming 98.23% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 57.01%, LRCX belongs to the top of the industry, outperforming 96.46% of the companies in the same industry.
- LRCX's Return On Invested Capital of 37.82% is amongst the best of the industry. LRCX outperforms 98.23% 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 10.75%.
- 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 89.38% of the companies in the same industry.
- LRCX's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 33.00%, LRCX belongs to the top of the industry, outperforming 92.04% of the companies in the same industry.
- In the last couple of years the Operating Margin of LRCX has grown nicely.
- The Gross Margin of LRCX (49.31%) is better than 61.06% 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
- 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 78.76% of its industry peers.
- A Debt/Equity ratio of 0.37 indicates that LRCX is not too dependend on debt financing.
- The Debt to Equity ratio of LRCX (0.37) is worse than 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | N/A |
ROIC/WACC3.51
WACC10.78%
2.3 Liquidity
- A Current Ratio of 2.21 indicates that LRCX has no problem at all paying its short term obligations.
- LRCX has a Current ratio of 2.21. This is in the lower half of the industry: LRCX underperforms 71.68% 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.
- The Quick ratio of LRCX (1.60) is worse than 70.80% 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
- 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 9.82% yearly.
EPS Next Y19.4%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
EPS Next 5Y13.46%
Revenue Next Year16.29%
Revenue Next 2Y15.36%
Revenue Next 3Y12.73%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 49.11 indicates a quite expensive valuation of LRCX.
- Based on the Price/Earnings ratio, LRCX is valued a bit cheaper than 64.60% 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 27.38.
- A Price/Forward Earnings ratio of 38.50 indicates a quite expensive valuation of LRCX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LRCX is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, LRCX is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.11 | ||
| Fwd PE | 38.5 |
4.2 Price Multiples
- 61.95% of the companies in the same industry are more expensive than LRCX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than the industry average as 71.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.46 | ||
| EV/EBITDA | 40.5 |
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 15.91% in the coming years.
PEG (NY)2.53
PEG (5Y)2.34
EPS Next 2Y18.27%
EPS Next 3Y15.91%
5. Dividend
5.1 Amount
- LRCX has a yearly dividend return of 0.48%, which is pretty low.
- LRCX's Dividend Yield is a higher than the industry average which is at 0.51.
- With a Dividend Yield of 0.48, LRCX pays less dividend than the S&P500 average, which is at 1.84.
| Industry Rank | Sector 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 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.
- The dividend of LRCX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.32%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
222.96
+5.49 (+2.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners88.63%
Inst Owner Change-0.23%
Ins Owners0.24%
Ins Owner Change-3.75%
Market Cap280.04B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target186.07 (-16.55%)
Short Float %2.62%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP20.32%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
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)11.49%
PT rev (3m)56.82%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)12.31%
EPS NY rev (1m)0.02%
EPS NY rev (3m)7.96%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)8.58%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)5.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.11 | ||
| Fwd PE | 38.5 | ||
| P/S | 14.29 | ||
| P/FCF | 50.46 | ||
| P/OCF | 43.87 | ||
| P/B | 27.47 | ||
| P/tB | 33.47 | ||
| EV/EBITDA | 40.5 |
EPS(TTM)4.54
EY2.04%
EPS(NY)5.79
Fwd EY2.6%
FCF(TTM)4.42
FCFY1.98%
OCF(TTM)5.08
OCFY2.28%
SpS15.6
BVpS8.12
TBVpS6.66
PEG (NY)2.53
PEG (5Y)2.34
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
WACC10.78%
ROIC/WACC3.51
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 Y19.4%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
EPS Next 5Y13.46%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
Revenue Next Year16.29%
Revenue Next 2Y15.36%
Revenue Next 3Y12.73%
Revenue Next 5Y9.82%
EBIT growth 1Y41.9%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year27.78%
EBIT Next 3Y17.33%
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.
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 49.11 and the Price/Book (PB) ratio is 27.47.
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 19.4% in the next year.