LAM RESEARCH CORP (LRCX) Fundamental Analysis & Valuation

NASDAQ:LRCX • US5128073062

Current stock price

259.47 USD
-8.31 (-3.1%)
At close:
259.35 USD
-0.12 (-0.05%)
After Hours:

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

9

1. LRCX Profitability Analysis

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

  • LRCX has a Return On Assets of 32.26%. This is amongst the best in the industry. LRCX outperforms 99.13% of its industry peers.
  • LRCX has a better Return On Equity (63.38%) than 97.39% of its industry peers.
  • The Return On Invested Capital of LRCX (42.45%) is better than 98.26% of its industry peers.
  • LRCX had an Average Return On Invested Capital over the past 3 years of 31.47%. This is significantly above the industry average of 10.89%.
  • The 3 year average ROIC (31.47%) for LRCX is below the current ROIC(42.45%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 32.26%
ROE 63.38%
ROIC 42.45%
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 30.94%, LRCX belongs to the best of the industry, outperforming 90.43% 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 34.26%, LRCX belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
  • In the last couple of years the Operating Margin of LRCX has grown nicely.
  • Looking at the Gross Margin, with a value of 49.98%, LRCX is in the better half of 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 34.26%
PM (TTM) 30.94%
GM 49.98%
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

  • 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
  • Compared to 5 years ago, LRCX has less shares outstanding
  • 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 0.62. This is a very positive value and a sign of high solvency as it would only need 0.62 years to pay back of all of its debts.
  • The Debt to FCF ratio of LRCX (0.62) is better than 77.39% of its industry peers.
  • A Debt/Equity ratio of 0.35 indicates that LRCX is not too dependend on debt financing.
  • The Debt to Equity ratio of LRCX (0.35) is worse than 64.35% of its industry peers.
  • 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 0.35
Debt/FCF 0.62
Altman-Z N/A
ROIC/WACC3.32
WACC12.79%
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 2.54 indicates that LRCX has no problem at all paying its short term obligations.
  • With a Current ratio value of 2.54, LRCX is not doing good in the industry: 61.74% of the companies in the same industry are doing better.
  • LRCX has a Quick Ratio of 1.77. 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 Quick ratio of 1.77. This is in the lower half of the industry: LRCX underperforms 70.43% of its industry peers.
Industry RankSector Rank
Current Ratio 2.54
Quick Ratio 1.77
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 47.08% 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 26.53% in the past year. This is a very strong growth!
  • The Revenue has been growing by 12.91% on average over the past years. This is quite good.
EPS 1Y (TTM)47.08%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%41.35%
Revenue 1Y (TTM)26.53%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%23.76%

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.
  • LRCX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.48% yearly.
EPS Next Y30.91%
EPS Next 2Y30.83%
EPS Next 3Y25.29%
EPS Next 5Y21.46%
Revenue Next Year23.39%
Revenue Next 2Y24.38%
Revenue Next 3Y20.65%
Revenue Next 5Y16.48%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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4

4. LRCX Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 48.68, the valuation of LRCX can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 73.91% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.35, LRCX is valued quite expensively.
  • LRCX is valuated quite expensively with a Price/Forward Earnings ratio of 36.62.
  • Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than 71.30% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.23. LRCX is valued rather expensively when compared to this.
Industry RankSector Rank
PE 48.68
Fwd PE 36.62
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

  • 69.57% 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 72.17% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 53.96
EV/EBITDA 42.48
LRCX Per share dataLRCX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The 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 25.29% in the coming years.
PEG (NY)1.57
PEG (5Y)2.32
EPS Next 2Y30.83%
EPS Next 3Y25.29%

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

6

5. LRCX Dividend Analysis

5.1 Amount

  • LRCX has a yearly dividend return of 0.39%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.42, LRCX pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, LRCX's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.39%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.54%
Div Incr Years11
Div Non Decr Years11
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

  • 18.49% of the earnings are spent on dividend by LRCX. This is a low number and sustainable payout ratio.
  • The dividend of LRCX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.49%
EPS Next 2Y30.83%
EPS Next 3Y25.29%
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 (4/27/2026, 8:00:04 PM)

After market: 259.35 -0.12 (-0.05%)

259.47

-8.31 (-3.1%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)04-22
Earnings (Next)07-28
Inst Owners89.05%
Inst Owner Change-0.47%
Ins Owners0.26%
Ins Owner Change4.89%
Market Cap324.02B
Revenue(TTM)21.68B
Net Income(TTM)6.71B
Analysts80
Price Target279.53 (7.73%)
Short Float %2.25%
Short Ratio2.62
Dividend
Industry RankSector Rank
Dividend Yield 0.39%
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP18.49%
Div Incr Years11
Div Non Decr Years11
Ex-Date03-04
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.3%
Min EPS beat(2)6.18%
Max EPS beat(2)6.41%
EPS beat(4)4
Avg EPS beat(4)5.37%
Min EPS beat(4)1.09%
Max EPS beat(4)7.79%
EPS beat(8)8
Avg EPS beat(8)4.33%
EPS beat(12)12
Avg EPS beat(12)5.69%
EPS beat(16)16
Avg EPS beat(16)6.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.47%
Min Revenue beat(2)-0.65%
Max Revenue beat(2)-0.28%
Revenue beat(4)1
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-0.65%
Max Revenue beat(4)1.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.08%
Revenue beat(12)4
Avg Revenue beat(12)-0.08%
Revenue beat(16)7
Avg Revenue beat(16)0.58%
PT rev (1m)1.55%
PT rev (3m)50.22%
EPS NQ rev (1m)1.16%
EPS NQ rev (3m)15.58%
EPS NY rev (1m)0.03%
EPS NY rev (3m)8.53%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)11.36%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)5.67%
Valuation
Industry RankSector Rank
PE 48.68
Fwd PE 36.62
P/S 14.94
P/FCF 53.96
P/OCF 46.59
P/B 30.61
P/tB 37.23
EV/EBITDA 42.48
EPS(TTM)5.33
EY2.05%
EPS(NY)7.09
Fwd EY2.73%
FCF(TTM)4.81
FCFY1.85%
OCF(TTM)5.57
OCFY2.15%
SpS17.36
BVpS8.48
TBVpS6.97
PEG (NY)1.57
PEG (5Y)2.32
Graham Number31.8827 (-87.71%)
Profitability
Industry RankSector Rank
ROA 32.26%
ROE 63.38%
ROCE 47.77%
ROIC 42.45%
ROICexc 61.12%
ROICexgc 74.02%
OM 34.26%
PM (TTM) 30.94%
GM 49.98%
FCFM 27.7%
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-Score9
Asset Turnover1.04
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 0.62
Debt/EBITDA 0.48
Cap/Depr 225.96%
Cap/Sales 4.38%
Interest Coverage 250
Cash Conversion 88.62%
Profit Quality 89.51%
Current Ratio 2.54
Quick Ratio 1.77
Altman-Z N/A
F-Score9
WACC12.79%
ROIC/WACC3.32
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)47.08%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%41.35%
EPS Next Y30.91%
EPS Next 2Y30.83%
EPS Next 3Y25.29%
EPS Next 5Y21.46%
Revenue 1Y (TTM)26.53%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%23.76%
Revenue Next Year23.39%
Revenue Next 2Y24.38%
Revenue Next 3Y20.65%
Revenue Next 5Y16.48%
EBIT growth 1Y40.38%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year38.31%
EBIT Next 3Y27.92%
EBIT Next 5Y10.27%
FCF growth 1Y32.32%
FCF growth 3Y28.47%
FCF growth 5Y23%
OCF growth 1Y41.57%
OCF growth 3Y25.82%
OCF growth 5Y23.76%

LAM RESEARCH CORP / LRCX Fundamental Analysis 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.


What is the profitability of LRCX stock?

LAM RESEARCH CORP (LRCX) has a profitability rating of 9 / 10.


What are the PE and PB ratios of LAM RESEARCH CORP (LRCX) stock?

The Price/Earnings (PE) ratio for LAM RESEARCH CORP (LRCX) is 48.68 and the Price/Book (PB) ratio is 30.61.


What is the financial health of LAM RESEARCH CORP (LRCX) stock?

The financial health rating of LAM RESEARCH CORP (LRCX) is 6 / 10.