142.65 USD
+3.06 (+2.19%)
143 USD
+0.35 (+0.25%)
We assign a fundamental rating of 7 out of 10 to LRCX. LRCX was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. LRCX has an excellent profitability rating, but 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! These ratings could make LRCX a good candidate 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.
LRCX had positive earnings in each of the past 5 years.
LRCX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LRCX has a better Return On Assets (26.53%) than 98.21% of its industry peers.
LRCX's Return On Equity of 57.01% is amongst the best of the industry. LRCX outperforms 97.32% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for LRCX is significantly above the industry average of 10.84%.
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
Looking at the Profit Margin, with a value of 29.66%, LRCX belongs to the top of the industry, outperforming 91.96% of the companies in the same industry.
In the last couple of years the Profit Margin of LRCX has grown nicely.
LRCX has a Operating Margin of 33.00%. This is amongst the best in the industry. LRCX outperforms 91.96% 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 49.31%, LRCX is doing good in the industry, outperforming 61.61% of the companies in the same industry.
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.
LRCX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LRCX has been reduced compared to 5 years ago.
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.
With a decent Debt to FCF ratio value of 0.81, LRCX is doing good in the industry, outperforming 78.57% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that LRCX is not too dependend on debt financing.
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 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/WACC3.58
WACC10.57%
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.
The Current ratio of LRCX (2.21) is worse than 71.43% of its industry peers.
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 69.64% 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%.
LRCX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.91% yearly.
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.
Based on estimates for the next years, LRCX will show a quite strong growth in Revenue. The Revenue will grow by 10.31% on average per year.
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
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
LRCX is valuated quite expensively with a Price/Earnings ratio of 31.42.
70.54% of the companies in the same industry are more expensive than LRCX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.45. LRCX is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 24.71, the valuation of LRCX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 65.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, LRCX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.42 | ||
| Fwd PE | 24.71 |
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 65.18% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than the industry average as 76.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.41 | ||
| 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.
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 15.09% in the coming years.
PEG (NY)1.62
PEG (5Y)1.49
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 2.30. 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 2.42.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
142.65
+3.06 (+2.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner Change-0.87%
Ins Owners0.26%
Ins Owner Change-1.46%
Market Cap179.89B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target164.95 (15.63%)
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 | 31.42 | ||
| Fwd PE | 24.71 | ||
| P/S | 9.18 | ||
| P/FCF | 32.41 | ||
| P/OCF | 28.18 | ||
| P/B | 17.65 | ||
| P/tB | 21.5 | ||
| EV/EBITDA | 25.9 |
EPS(TTM)4.54
EY3.18%
EPS(NY)5.77
Fwd EY4.05%
FCF(TTM)4.4
FCFY3.09%
OCF(TTM)5.06
OCFY3.55%
SpS15.54
BVpS8.08
TBVpS6.63
PEG (NY)1.62
PEG (5Y)1.49
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
WACC10.57%
ROIC/WACC3.58
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 31.42 and the Price/Book (PB) ratio is 17.65.
Can you provide the financial health for LRCX stock?
The financial health rating of LAM RESEARCH CORP (LRCX) is 6 / 10.