LAM RESEARCH CORP (LRCX) Fundamental Analysis & Valuation

NASDAQ:LRCX • US5128073062

199.33 USD
-15.35 (-7.15%)
At close: Mar 6, 2026
199.693 USD
+0.36 (+0.18%)
After Hours: 3/6/2026, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This LRCX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to LRCX. LRCX was compared to 115 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make LRCX a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

9

1. LRCX Profitability Analysis

1.1 Basic Checks

  • In the past year LRCX was profitable.
  • 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.
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 98.26% of the companies in the same industry.
  • LRCX has a Return On Equity of 61.24%. This is amongst the best in the industry. LRCX outperforms 96.52% of its industry peers.
  • LRCX has a Return On Invested Capital of 40.64%. This is amongst the best in the industry. LRCX outperforms 99.13% 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 10.50%.
  • 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

  • LRCX's Profit Margin of 30.22% is amongst the best of the industry. LRCX outperforms 90.43% of its industry peers.
  • LRCX's Profit Margin has improved in the last couple of years.
  • LRCX has a Operating Margin of 33.76%. This is amongst the best in the industry. LRCX outperforms 92.17% of its industry peers.
  • 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 61.74% 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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6

2. LRCX Health Analysis

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.
  • Compared to 5 years ago, LRCX has less shares outstanding
  • Compared to 1 year ago, LRCX has an improved debt to assets ratio.
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 75.65% of the companies in the same industry.
  • A Debt/Equity ratio of 0.37 indicates that LRCX is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.37, LRCX is doing worse than 65.22% of the companies in the same industry.
  • Although LRCX's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.37
Debt/FCF 0.72
Altman-Z N/A
ROIC/WACC3.65
WACC11.13%
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

  • A Current Ratio of 2.26 indicates that LRCX has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.26, LRCX is doing worse than 67.83% of the companies in the same industry.
  • A Quick Ratio of 1.61 indicates that LRCX should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.61, LRCX is doing worse than 71.30% of the companies in the same industry.
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. LRCX Growth Analysis

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
  • The Revenue has grown by 26.85% in the past year. This is a very strong growth!
  • 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)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

  • LRCX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.46% yearly.
  • LRCX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.77% yearly.
EPS Next Y29.23%
EPS Next 2Y28.88%
EPS Next 3Y24.32%
EPS Next 5Y21.46%
Revenue Next Year22.57%
Revenue Next 2Y23.19%
Revenue Next 3Y18.76%
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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5

4. LRCX Valuation Analysis

4.1 Price/Earnings Ratio

  • LRCX is valuated quite expensively with a Price/Earnings ratio of 40.68.
  • Based on the Price/Earnings ratio, LRCX is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
  • LRCX is valuated expensively when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 28.99, LRCX can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than 60.87% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of LRCX to the average of the S&P500 Index (24.57), we can say LRCX is valued inline with the index average.
Industry RankSector Rank
PE 40.68
Fwd PE 28.99
LRCX Price Earnings VS Forward Price EarningsLRCX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 63.48% of the companies in the same industry are more expensive than LRCX, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 40.05
EV/EBITDA 36.28
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.
  • A more expensive valuation may be justified as LRCX's earnings are expected to grow with 24.32% in the coming years.
PEG (NY)1.39
PEG (5Y)1.94
EPS Next 2Y28.88%
EPS Next 3Y24.32%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. LRCX Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.44%, LRCX is not a good candidate for dividend investing.
  • LRCX's Dividend Yield is a higher than the industry average which is at 0.47.
  • With a Dividend Yield of 0.44, LRCX pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.44%

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 2026 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

More info and screens

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LRCX Fundamentals: All Metrics, Ratios and Statistics

LAM RESEARCH CORP

NASDAQ:LRCX (3/6/2026, 8:00:00 PM)

After market: 199.693 +0.36 (+0.18%)

199.33

-15.35 (-7.15%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners88.63%
Inst Owner Change0.44%
Ins Owners0.24%
Ins Owner Change8.83%
Market Cap248.92B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts79.51
Price Target275.27 (38.1%)
Short Float %2.65%
Short Ratio2.72
Dividend
Industry RankSector Rank
Dividend Yield 0.44%
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP19.48%
Div Incr Years10
Div Non Decr Years10
Ex-Date03-04
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)47.94%
PT rev (3m)66.88%
EPS NQ rev (1m)13.19%
EPS NQ rev (3m)14.63%
EPS NY rev (1m)7.14%
EPS NY rev (3m)8.18%
Revenue NQ rev (1m)8.01%
Revenue NQ rev (3m)8.33%
Revenue NY rev (1m)4.96%
Revenue NY rev (3m)4.99%
Valuation
Industry RankSector Rank
PE 40.68
Fwd PE 28.99
P/S 12.11
P/FCF 40.05
P/OCF 34.95
P/B 24.53
P/tB 30.06
EV/EBITDA 36.28
EPS(TTM)4.9
EY2.46%
EPS(NY)6.88
Fwd EY3.45%
FCF(TTM)4.98
FCFY2.5%
OCF(TTM)5.7
OCFY2.86%
SpS16.46
BVpS8.12
TBVpS6.63
PEG (NY)1.39
PEG (5Y)1.94
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
WACC11.13%
ROIC/WACC3.65
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 Year22.57%
Revenue Next 2Y23.19%
Revenue Next 3Y18.76%
Revenue Next 5Y12.77%
EBIT growth 1Y44.13%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year38.29%
EBIT Next 3Y27.54%
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 5 / 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 40.68 and the Price/Book (PB) ratio is 24.53.


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.