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Reasonable Growth, Debt Levels, and a High ROIC Make LAM RESEARCH CORP (NASDAQ:LRCX) Appealing to Quality Investors.

By Mill Chart

Last update: Jan 24, 2024

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.
  • LAM RESEARCH CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 55.74% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • 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.
  • With a robust Profit Quality (5-year) ratio of 91.71%, LAM RESEARCH CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • LAM RESEARCH CORP has experienced impressive EBIT growth over the past 5 years, with 10.53% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, LAM RESEARCH CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What is the full fundamental picture of NASDAQ:LRCX telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, LRCX scores 6 out of 10 in our fundamental rating. LRCX was compared to 106 industry peers in the Semiconductors & Semiconductor Equipment industry. LRCX gets an excellent profitability rating and is at the same time showing great financial health properties. LRCX has a decent growth rate and is not valued too expensively.

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

More quality stocks can be found in our Caviar Cruise screen.


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 (4/24/2024, 7:14:41 PM)

After market: 864 -20.89 (-2.36%)


-2.53 (-0.29%)


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