LAM RESEARCH CORP (LRCX) Stock Fundamental Analysis

NASDAQ:LRCX • US5128073062

244.92 USD
+7.53 (+3.17%)
At close: Feb 20, 2026
244.7 USD
-0.22 (-0.09%)
After Hours: 2/20/2026, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall LRCX gets a fundamental rating of 7 out of 10. We evaluated LRCX against 113 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! With these ratings, LRCX could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

9

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.
  • In the past 5 years LRCX has always been profitable.
  • LRCX had a positive operating cash flow in each of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 29.05%, 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 (61.24%) than 96.46% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 40.64%, LRCX belongs to the top of the industry, outperforming 99.11% 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 10.65%.
  • The last Return On Invested Capital (40.64%) for LRCX is above the 3 year average (31.47%), which is a sign of increasing profitability.
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

  • With an excellent Profit Margin value of 30.22%, LRCX belongs to the best of the industry, outperforming 90.27% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LRCX has grown nicely.
  • With an excellent Operating Margin value of 33.76%, LRCX belongs to the best of the industry, outperforming 92.04% of the companies in the same industry.
  • LRCX's Operating Margin has improved in the last couple of years.
  • 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.
  • In the last couple of years the Gross Margin of LRCX has remained more or less at the same level.
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.
  • Compared to 1 year ago, LRCX has less shares outstanding
  • LRCX has less shares outstanding than it did 5 years ago.
  • 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

  • LRCX has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 0.72, LRCX is doing good in the industry, outperforming 76.11% 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.
  • The Debt to Equity ratio of LRCX (0.37) is worse than 64.60% 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 RankSector Rank
Debt/Equity 0.37
Debt/FCF 0.72
Altman-Z N/A
ROIC/WACC3.77
WACC10.78%
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

  • LRCX has a Current Ratio of 2.26. This indicates that LRCX is financially healthy and has no problem in meeting its short term obligations.
  • LRCX has a worse Current ratio (2.26) than 68.14% of its industry peers.
  • A Quick Ratio of 1.61 indicates that LRCX should not have too much problems paying 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

  • The Earnings Per Share has grown by an impressive 45.70% 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 26.85%.
  • 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)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

  • Based on estimates for the next years, LRCX will show a very strong growth in Earnings Per Share. The EPS will grow by 21.46% 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 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

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

  • With a Price/Earnings ratio of 49.98, 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 64.60% of the companies listed in the same industry.
  • LRCX is valuated expensively when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 35.62, which means the current valuation is very expensive for 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.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. LRCX is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 49.98
Fwd PE 35.62
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.
  • 72.57% of the companies in the same industry are more expensive than LRCX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 49.21
EV/EBITDA 40.14
LRCX Per share dataLRCX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
  • 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)2.38
EPS Next 2Y28.88%
EPS Next 3Y24.32%

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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 1.85.
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 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
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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Find the best dividend stocksShow peers with best dividend

LAM RESEARCH CORP

NASDAQ:LRCX (2/20/2026, 8:00:01 PM)

After market: 244.7 -0.22 (-0.09%)

244.92

+7.53 (+3.17%)

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 Cap305.85B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts79.51
Price Target270.98 (10.64%)
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 49.98
Fwd PE 35.62
P/S 14.88
P/FCF 49.21
P/OCF 42.95
P/B 30.15
P/tB 36.93
EV/EBITDA 40.14
EPS(TTM)4.9
EY2%
EPS(NY)6.88
Fwd EY2.81%
FCF(TTM)4.98
FCFY2.03%
OCF(TTM)5.7
OCFY2.33%
SpS16.46
BVpS8.12
TBVpS6.63
PEG (NY)1.71
PEG (5Y)2.38
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
WACC10.78%
ROIC/WACC3.77
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 49.98 and the Price/Book (PB) ratio is 30.15.


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.