203.06 USD
-0.02 (-0.01%)
We assign a fundamental rating of 7 out of 10 to LRCX. LRCX was compared to 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes LRCX very considerable 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.
In the past 5 years LRCX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LRCX (26.53%) is better than 98.23% 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 96.46% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 37.82%, LRCX belongs to the top of the industry, outperforming 98.23% of the companies in the same industry.
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 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
With an excellent Profit Margin value of 29.66%, LRCX belongs to the best of the industry, outperforming 89.38% of the companies in the same industry.
In the last couple of years the Profit Margin of LRCX has grown nicely.
LRCX's Operating Margin of 33.00% is amongst the best of the industry. LRCX outperforms 92.04% of its industry peers.
LRCX's Operating Margin has improved in the last couple of years.
LRCX's Gross Margin of 49.31% is fine compared to the rest of the industry. LRCX outperforms 61.06% of its industry peers.
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.
Compared to 1 year ago, LRCX has less shares outstanding
LRCX has less shares outstanding than it did 5 years ago.
LRCX has a better debt/assets ratio than last year.
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 has a better Debt to FCF ratio (0.81) than 78.76% 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 65.49% 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/WACC3.48
WACC10.86%
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.
Looking at the Current ratio, with a value of 2.21, LRCX is doing worse than 71.68% of the companies in the same industry.
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 70.80% 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.
LRCX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.02% yearly.
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
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.
The Revenue is expected to grow by 10.31% on average over the next years. This is quite good.
EPS Next Y19.4%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
EPS Next 5Y13.46%
Revenue Next Year16.39%
Revenue Next 2Y14.56%
Revenue Next 3Y11.87%
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.
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
With a Price/Earnings ratio of 44.73, LRCX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 65.49% of the companies listed in the same industry.
LRCX is valuated expensively when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 35.07, which means the current valuation is very expensive for 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 23.57, LRCX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.73 | ||
| Fwd PE | 35.07 |
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 62.83% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 72.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.95 | ||
| EV/EBITDA | 36.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LRCX may justify a higher PE ratio.
LRCX's earnings are expected to grow with 15.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.31
PEG (5Y)2.13
EPS Next 2Y18.27%
EPS Next 3Y15.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, LRCX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.57, LRCX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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
20.32% of the earnings are spent on dividend by LRCX. This is a low number and 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%
NASDAQ:LRCX (1/8/2026, 3:40:08 PM)
203.06
-0.02 (-0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.63%
Inst Owner Change0%
Ins Owners0.24%
Ins Owner Change-3.75%
Market Cap255.05B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target173.27 (-14.67%)
Short Float %2.62%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)5.04%
PT rev (3m)46.02%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)12.77%
EPS NY rev (1m)0.02%
EPS NY rev (3m)7.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.73 | ||
| Fwd PE | 35.07 | ||
| P/S | 13.02 | ||
| P/FCF | 45.95 | ||
| P/OCF | 39.95 | ||
| P/B | 25.02 | ||
| P/tB | 30.49 | ||
| EV/EBITDA | 36.86 |
EPS(TTM)4.54
EY2.24%
EPS(NY)5.79
Fwd EY2.85%
FCF(TTM)4.42
FCFY2.18%
OCF(TTM)5.08
OCFY2.5%
SpS15.6
BVpS8.12
TBVpS6.66
PEG (NY)2.31
PEG (5Y)2.13
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
WACC10.86%
ROIC/WACC3.48
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 Year16.39%
Revenue Next 2Y14.56%
Revenue Next 3Y11.87%
Revenue Next 5Y10.31%
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 44.73 and the Price/Book (PB) ratio is 25.02.
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.