LAM RESEARCH CORP (LRCX) Stock Fundamental Analysis

NASDAQ:LRCX • US5128073062

244.5 USD
+8.92 (+3.79%)
Last: Feb 18, 2026, 11:58 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

LRCX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 113 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 growing strongly while it is still valued neutral. This is a good combination! This makes LRCX very considerable for growth investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year LRCX was profitable.
  • LRCX had a positive operating cash flow in the past year.
  • 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

  • LRCX has a better Return On Assets (29.05%) than 98.23% of its industry peers.
  • Looking at the Return On Equity, with a value of 61.24%, LRCX belongs to the top of the industry, outperforming 96.46% of the companies in the same industry.
  • LRCX has a Return On Invested Capital of 40.64%. This is amongst the best in the industry. LRCX outperforms 99.11% 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 10.70%.
  • 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

  • LRCX has a Profit Margin of 30.22%. This is amongst the best in the industry. LRCX outperforms 90.27% of its industry peers.
  • In the last couple of years the Profit Margin of LRCX has grown nicely.
  • LRCX's Operating Margin of 33.76% is amongst the best of the industry. LRCX outperforms 92.04% of its industry peers.
  • In the last couple of years the Operating Margin of LRCX has grown nicely.
  • With a decent Gross Margin value of 49.80%, LRCX is doing good in the industry, outperforming 61.95% of the companies in the same industry.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • 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
  • 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

  • The Debt to FCF ratio of LRCX is 0.72, which is an excellent value as it means it would take LRCX, only 0.72 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of LRCX (0.72) is better than 76.11% of its industry peers.
  • A Debt/Equity ratio of 0.37 indicates that LRCX is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.37, LRCX is doing worse than 65.49% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0.37
Debt/FCF 0.72
Altman-Z N/A
ROIC/WACC3.78
WACC10.74%
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.
  • With a Current ratio value of 2.26, LRCX is not doing good in the industry: 68.14% of the companies in the same industry are doing better.
  • LRCX has a Quick Ratio of 1.61. 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 1.61, LRCX is not doing good in the industry: 70.80% of the companies in the same industry are doing better.
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. Growth

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.
  • 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 26.85%.
  • The Revenue has been growing by 12.91% on average over the past years. This is quite good.
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

  • LRCX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.46% yearly.
  • Based on estimates for the next years, LRCX will show a quite strong growth in Revenue. The Revenue will grow by 12.77% on average per year.
EPS Next Y29.23%
EPS Next 2Y28.88%
EPS Next 3Y24.32%
EPS Next 5Y21.46%
Revenue Next Year21.32%
Revenue Next 2Y21.72%
Revenue Next 3Y17.75%
Revenue Next 5Y12.77%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • The Revenue growth rate is stable: in the next years the growth will be about the same 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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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 49.90 indicates a quite expensive valuation of LRCX.
  • 67.26% of the companies in the same industry are more expensive than LRCX, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.16, LRCX is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 35.55, the valuation of LRCX can be described as expensive.
  • Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than 61.06% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.10, LRCX is valued a bit more expensive.
Industry RankSector Rank
PE 49.9
Fwd PE 35.55
LRCX Price Earnings VS Forward Price EarningsLRCX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 61.95% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than 72.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF 49.12
EV/EBITDA 39.83
LRCX Per share dataLRCX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The 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 24.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.71
PEG (5Y)2.37
EPS Next 2Y28.88%
EPS Next 3Y24.32%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.45%, LRCX is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.50, LRCX pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.45, LRCX pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.45%

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 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 2Y28.88%
EPS Next 3Y24.32%
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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LAM RESEARCH CORP

NASDAQ:LRCX (2/18/2026, 11:58:07 AM)

244.5

+8.92 (+3.79%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners88.63%
Inst Owner Change-0.8%
Ins Owners0.24%
Ins Owner Change8.83%
Market Cap305.32B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts79.51
Price Target270.98 (10.83%)
Short Float %2.46%
Short Ratio2.53
Dividend
Industry RankSector Rank
Dividend Yield 0.45%
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP19.48%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
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)56.4%
PT rev (3m)68.63%
EPS NQ rev (1m)13.58%
EPS NQ rev (3m)14.63%
EPS NY rev (1m)8.23%
EPS NY rev (3m)8.18%
Revenue NQ rev (1m)7.74%
Revenue NQ rev (3m)7.98%
Revenue NY rev (1m)4.32%
Revenue NY rev (3m)3.91%
Valuation
Industry RankSector Rank
PE 49.9
Fwd PE 35.55
P/S 14.85
P/FCF 49.12
P/OCF 42.87
P/B 30.09
P/tB 36.87
EV/EBITDA 39.83
EPS(TTM)4.9
EY2%
EPS(NY)6.88
Fwd EY2.81%
FCF(TTM)4.98
FCFY2.04%
OCF(TTM)5.7
OCFY2.33%
SpS16.46
BVpS8.12
TBVpS6.63
PEG (NY)1.71
PEG (5Y)2.37
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
WACC10.74%
ROIC/WACC3.78
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 Y29.23%
EPS Next 2Y28.88%
EPS Next 3Y24.32%
EPS Next 5Y21.46%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
Revenue Next Year21.32%
Revenue Next 2Y21.72%
Revenue Next 3Y17.75%
Revenue Next 5Y12.77%
EBIT growth 1Y44.13%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year29.47%
EBIT Next 3Y20.78%
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 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 49.9 and the Price/Book (PB) ratio is 30.09.


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 29.23% in the next year.