200.96 USD
-2.12 (-1.04%)
201.3 USD
+0.34 (+0.17%)
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. LRCX scores excellent on profitability, 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! This makes LRCX very considerable for growth investing!
1. Profitability
1.1 Basic Checks
LRCX had positive earnings in the past year.
LRCX had a positive operating cash flow in the past year.
In the past 5 years LRCX has always been profitable.
In the past 5 years LRCX always reported a positive cash flow from operatings.
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.
LRCX has a better Return On Equity (57.01%) than 96.46% of its industry peers.
LRCX has a Return On Invested Capital of 37.82%. This is amongst the best in the industry. LRCX outperforms 98.23% 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 10.75%.
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 Profit Margin of 29.66%. This is amongst the best in the industry. LRCX outperforms 89.38% of its industry peers.
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.
LRCX has a better Gross Margin (49.31%) 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LRCX is creating value.
The number of shares outstanding for LRCX has been reduced compared to 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 78.76% of the companies in the same industry.
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.
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 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.
LRCX's Current ratio of 2.21 is on the low side compared to the rest of the industry. LRCX is outperformed by 71.68% of its industry peers.
A Quick Ratio of 1.60 indicates that LRCX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.60, LRCX is doing worse than 70.80% of the companies in the same industry.
| 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.
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.
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.
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 Y19.4%
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
The Price/Earnings ratio is 44.26, which means the current valuation is very expensive for LRCX.
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's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.00.
Based on the Price/Forward Earnings ratio of 34.70, the valuation of LRCX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as LRCX.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, LRCX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.26 | ||
| Fwd PE | 34.7 |
4.2 Price Multiples
LRCX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LRCX is cheaper than 62.83% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than the industry average as 72.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.48 | ||
| EV/EBITDA | 36.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LRCX does not grow enough to justify the current Price/Earnings ratio.
LRCX has an outstanding profitability rating, which 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)2.28
PEG (5Y)2.11
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.
With a Dividend Yield of 0.61, LRCX pays less dividend than the S&P500 average, which is at 1.94.
| 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 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.
LRCX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.32%
EPS Next 2Y18.27%
EPS Next 3Y15.91%
200.96
-2.12 (-1.04%)
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 Cap252.41B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target173.27 (-13.78%)
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 | 44.26 | ||
| Fwd PE | 34.7 | ||
| P/S | 12.88 | ||
| P/FCF | 45.48 | ||
| P/OCF | 39.54 | ||
| P/B | 24.76 | ||
| P/tB | 30.17 | ||
| EV/EBITDA | 36.86 |
EPS(TTM)4.54
EY2.26%
EPS(NY)5.79
Fwd EY2.88%
FCF(TTM)4.42
FCFY2.2%
OCF(TTM)5.08
OCFY2.53%
SpS15.6
BVpS8.12
TBVpS6.66
PEG (NY)2.28
PEG (5Y)2.11
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 44.26 and the Price/Book (PB) ratio is 24.76.
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.