173.035 USD
-0.75 (-0.43%)
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. LRCX scores excellent on profitability, but there are some minor concerns on its financial health. LRCX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, LRCX could be worth investigating further 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.
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
LRCX has a better Return On Assets (26.53%) than 98.23% of its industry peers.
The Return On Equity of LRCX (57.01%) is better than 96.46% of its industry peers.
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.
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 89.38% of its industry peers.
LRCX's Profit Margin has improved in the last couple of years.
LRCX has a Operating Margin of 33.00%. This is amongst the best in the industry. LRCX outperforms 92.04% of its industry peers.
In the last couple of years the Operating Margin of LRCX has grown nicely.
LRCX has a Gross Margin of 49.31%. This is in the better half 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.
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.
The debt/assets ratio for LRCX has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of LRCX is 0.81, which is an excellent value as it means it would take LRCX, only 0.81 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.81, LRCX is in the better half of the industry, outperforming 78.76% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that LRCX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.37, LRCX is not doing good in the industry: 66.37% of the companies in the same industry are doing better.
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/WACC3.55
WACC10.66%
2.3 Liquidity
A Current Ratio of 2.21 indicates that LRCX has no problem at all paying 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.
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.
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
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.
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%.
The Revenue has been growing by 12.91% on average over the past years. This is quite good.
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 Y19.4%
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
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
Based on the Price/Earnings ratio of 38.11, the valuation of LRCX can be described as expensive.
Based on the Price/Earnings ratio, LRCX is valued a bit cheaper than the industry average as 67.26% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LRCX to the average of the S&P500 Index (26.77), we can say LRCX is valued slightly more expensively.
A Price/Forward Earnings ratio of 29.88 indicates a quite expensive valuation of LRCX.
LRCX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LRCX is cheaper than 61.06% of the companies in the same industry.
LRCX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.11 | ||
| Fwd PE | 29.88 |
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 75.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.16 | ||
| EV/EBITDA | 31.5 |
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)1.96
PEG (5Y)1.81
EPS Next 2Y18.27%
EPS Next 3Y15.91%
5. Dividend
5.1 Amount
LRCX has a yearly dividend return of 0.59%, which is pretty low.
LRCX's Dividend Yield is a higher than the industry average which is at 0.56.
With a Dividend Yield of 0.59, LRCX pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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 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 2Y18.27%
EPS Next 3Y15.91%
NASDAQ:LRCX (12/31/2025, 11:20:58 AM)
173.035
-0.75 (-0.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.65%
Inst Owner Change-0.89%
Ins Owners0.25%
Ins Owner Change-3.75%
Market Cap217.34B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target173.27 (0.14%)
Short Float %2.62%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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)5.04%
PT rev (3m)54.05%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)12.87%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)7.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)6.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.11 | ||
| Fwd PE | 29.88 | ||
| P/S | 11.09 | ||
| P/FCF | 39.16 | ||
| P/OCF | 34.05 | ||
| P/B | 21.32 | ||
| P/tB | 25.98 | ||
| EV/EBITDA | 31.5 |
EPS(TTM)4.54
EY2.62%
EPS(NY)5.79
Fwd EY3.35%
FCF(TTM)4.42
FCFY2.55%
OCF(TTM)5.08
OCFY2.94%
SpS15.6
BVpS8.12
TBVpS6.66
PEG (NY)1.96
PEG (5Y)1.81
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
WACC10.66%
ROIC/WACC3.55
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.
Can you provide the valuation status for LAM RESEARCH CORP?
ChartMill assigns a valuation rating of 4 / 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 38.11 and the Price/Book (PB) ratio is 21.32.
Can you provide the financial health for LRCX stock?
The financial health rating of LAM RESEARCH CORP (LRCX) is 6 / 10.