149.93 USD
+7.28 (+5.1%)
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. 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.
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
The Return On Assets of LRCX (26.53%) is better than 98.21% of its industry peers.
Looking at the Return On Equity, with a value of 57.01%, LRCX belongs to the top of the industry, outperforming 97.32% of the companies in the same industry.
With an excellent Return On Invested Capital value of 37.82%, LRCX belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LRCX is significantly above the industry average of 10.75%.
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 91.96% of its industry peers.
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.
Looking at the Gross Margin, with a value of 49.31%, LRCX is in the better half of the industry, outperforming 61.61% 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 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.
The number of shares outstanding for LRCX has been reduced compared to 1 year ago.
Compared to 5 years ago, LRCX has less shares outstanding
Compared to 1 year ago, LRCX has an improved debt to assets ratio.
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 Debt to Equity ratio of 0.37. This is in the lower half of the industry: LRCX underperforms 63.39% 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/WACC3.56
WACC10.61%
2.3 Liquidity
A Current Ratio of 2.21 indicates that LRCX has no problem at all paying its short term obligations.
With a Current ratio value of 2.21, LRCX is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
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.
LRCX's Quick ratio of 1.60 is on the low side compared to the rest of the industry. LRCX is outperformed by 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
LRCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.65%, 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
LRCX shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.66%.
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)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
Based on estimates for the next years, LRCX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.46% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 33.02, LRCX can be considered very expensive at the moment.
LRCX's Price/Earnings ratio is a bit cheaper when compared to the industry. LRCX is cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of LRCX to the average of the S&P500 Index (25.47), we can say LRCX is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 25.97, the valuation of LRCX can be described as expensive.
65.18% of the companies in the same industry are more expensive than LRCX, based on the Price/Forward Earnings ratio.
LRCX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.02 | ||
| Fwd PE | 25.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LRCX is valued a bit cheaper than 65.18% of the companies in the same industry.
76.79% 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 | 34.07 | ||
| EV/EBITDA | 25.9 |
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.
LRCX's earnings are expected to grow with 15.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)1.57
EPS Next 2Y18.08%
EPS Next 3Y15.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, LRCX is not a good candidate for dividend investing.
LRCX's Dividend Yield is rather good when compared to the industry average which is at 2.35. LRCX pays more dividend than 80.36% of the companies in the same industry.
With a Dividend Yield of 0.75, LRCX pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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.
The dividend of LRCX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.32%
EPS Next 2Y18.08%
EPS Next 3Y15.09%
NASDAQ:LRCX (11/24/2025, 10:54:06 AM)
149.93
+7.28 (+5.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner Change-0.94%
Ins Owners0.26%
Ins Owner Change-2.39%
Market Cap189.07B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target164.95 (10.02%)
Short Float %2.65%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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)39.01%
PT rev (3m)47.65%
EPS NQ rev (1m)12.46%
EPS NQ rev (3m)13.19%
EPS NY rev (1m)6.83%
EPS NY rev (3m)8.52%
Revenue NQ rev (1m)8.82%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)5.77%
Revenue NY rev (3m)7.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.02 | ||
| Fwd PE | 25.97 | ||
| P/S | 9.65 | ||
| P/FCF | 34.07 | ||
| P/OCF | 29.62 | ||
| P/B | 18.55 | ||
| P/tB | 22.6 | ||
| EV/EBITDA | 25.9 |
EPS(TTM)4.54
EY3.03%
EPS(NY)5.77
Fwd EY3.85%
FCF(TTM)4.4
FCFY2.94%
OCF(TTM)5.06
OCFY3.38%
SpS15.54
BVpS8.08
TBVpS6.63
PEG (NY)1.7
PEG (5Y)1.57
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
WACC10.61%
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)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 33.02 and the Price/Book (PB) ratio is 18.55.
Can you provide the financial health for LRCX stock?
The financial health rating of LAM RESEARCH CORP (LRCX) is 6 / 10.