163.085 USD
+0.34 (+0.21%)
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 would make LRCX suitable 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.
Each year in the past 5 years LRCX has been profitable.
LRCX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 26.53%, LRCX belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
Looking at the Return On Equity, with a value of 57.01%, LRCX belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for LRCX is significantly above the industry average of 10.82%.
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's Profit Margin of 29.66% is amongst the best of the industry. LRCX outperforms 89.29% of its industry peers.
LRCX's Profit Margin has improved in the last couple of years.
LRCX has a better Operating Margin (33.00%) than 91.96% of its industry peers.
LRCX's Operating Margin has improved in the last couple of years.
The Gross Margin of LRCX (49.31%) is better than 60.71% 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.
Compared to 1 year ago, LRCX has less shares outstanding
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
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 78.57% 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 has a Debt to Equity ratio of 0.37. This is in the lower half of the industry: LRCX underperforms 66.07% 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/WACC3.63
WACC10.43%
2.3 Liquidity
A Current Ratio of 2.21 indicates that LRCX has no problem at all paying its short term obligations.
The Current ratio of LRCX (2.21) is worse than 72.32% 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.
LRCX has a worse Quick ratio (1.60) than 71.43% 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.
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.
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.
The Revenue is expected to grow by 10.31% on average over the next years. This is quite good.
EPS Next Y19.38%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
EPS Next 5Y13.46%
Revenue Next Year16.4%
Revenue Next 2Y14.56%
Revenue Next 3Y11.64%
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
With a Price/Earnings ratio of 35.92, 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 69.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, LRCX is valued a bit more expensive.
A Price/Forward Earnings ratio of 28.24 indicates a quite expensive valuation of LRCX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 66.07% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LRCX to the average of the S&P500 Index (23.56), we can say LRCX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.92 | ||
| Fwd PE | 28.24 |
4.2 Price Multiples
LRCX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LRCX is cheaper than 65.18% of the companies 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 76.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.91 | ||
| EV/EBITDA | 29.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 15.56% in the coming years.
PEG (NY)1.85
PEG (5Y)1.71
EPS Next 2Y18.11%
EPS Next 3Y15.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, LRCX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.09, LRCX pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.66, LRCX pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
20.32% of the earnings are spent on dividend by LRCX. This is a low number and sustainable payout ratio.
LRCX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.32%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
NASDAQ:LRCX (12/9/2025, 10:32:09 AM)
163.085
+0.34 (+0.21%)
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-2.39%
Market Cap204.84B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target166.89 (2.33%)
Short Float %2.65%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)3.85%
PT rev (3m)49.24%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)13.07%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)8.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)6.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.92 | ||
| Fwd PE | 28.24 | ||
| P/S | 10.46 | ||
| P/FCF | 36.91 | ||
| P/OCF | 32.09 | ||
| P/B | 20.1 | ||
| P/tB | 24.49 | ||
| EV/EBITDA | 29.48 |
EPS(TTM)4.54
EY2.78%
EPS(NY)5.78
Fwd EY3.54%
FCF(TTM)4.42
FCFY2.71%
OCF(TTM)5.08
OCFY3.12%
SpS15.6
BVpS8.12
TBVpS6.66
PEG (NY)1.85
PEG (5Y)1.71
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
WACC10.43%
ROIC/WACC3.63
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 Y19.38%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
EPS Next 5Y13.46%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
Revenue Next Year16.4%
Revenue Next 2Y14.56%
Revenue Next 3Y11.64%
Revenue Next 5Y10.31%
EBIT growth 1Y41.9%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year27.76%
EBIT Next 3Y16.88%
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 35.92 and the Price/Book (PB) ratio is 20.1.
Can you provide the financial health for LRCX stock?
The financial health rating of LAM RESEARCH CORP (LRCX) is 6 / 10.