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Why the quality investor may take a look at LAM RESEARCH CORP (NASDAQ:LRCX).

By Mill Chart

Last update: Sep 11, 2023

In this article we will dive into LAM RESEARCH CORP (NASDAQ:LRCX) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LAM RESEARCH CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

  • LAM RESEARCH CORP has shown strong performance in revenue growth over the past 5 years, with a 9.49% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • The ROIC excluding cash and goodwill of LAM RESEARCH CORP stands at 63.05%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a Debt/Free Cash Flow Ratio of 1.07, LAM RESEARCH CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a favorable Profit Quality (5-year) ratio of 91.7%, LAM RESEARCH CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • The 5-year EBIT growth of LAM RESEARCH CORP has been remarkable, with 10.53% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • LAM RESEARCH CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to LRCX. LRCX was compared to 105 industry peers in the Semiconductors & Semiconductor Equipment industry. LRCX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LRCX is not valued too expensively and it also shows a decent growth rate. This makes LRCX very considerable for quality investing!

Our latest full fundamental report of LRCX contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NASDAQ:LRCX (12/8/2023, 1:23:04 PM)


-1.9 (-0.27%)


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