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Why LAM RESEARCH CORP (NASDAQ:LRCX) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: Dec 7, 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.

  • Over the past 5 years, LAM RESEARCH CORP has experienced impressive revenue growth, with 9.49% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 55.74%, LAM RESEARCH CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • The Debt/Free Cash Flow Ratio of LAM RESEARCH CORP stands at 1.11, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • The Profit Quality (5-year) of LAM RESEARCH CORP stands at 91.71%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • LAM RESEARCH CORP has consistently achieved strong EBIT growth over the past 5 years, with a 10.53% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • 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.

How does the complete fundamental picture look for NASDAQ:LRCX?

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

Taking everything into account, LRCX scores 7 out of 10 in our fundamental rating. LRCX was compared to 104 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.

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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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LAM RESEARCH CORP

NASDAQ:LRCX (2/27/2024, 7:00:01 PM)

Premarket: 924.78 -5.95 (-0.64%)

930.73

-8.03 (-0.86%)

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