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Analyzing the Quality Characteristics of LAM RESEARCH CORP (NASDAQ:LRCX).

By Mill Chart

Last update: Apr 1, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LAM RESEARCH CORP (NASDAQ:LRCX) is suited for quality investing. Investors should of course do their own research, but we spotted LAM RESEARCH CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NASDAQ:LRCX Holds Appeal 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.
  • LAM RESEARCH CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 50.18% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • LAM RESEARCH CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.02, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a favorable Profit Quality (5-year) ratio of 91.71%, 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.
  • 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.
  • 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.

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

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall LRCX gets a fundamental rating of 7 out of 10. We evaluated LRCX against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making LRCX a very profitable company, without any liquidiy or solvency issues. LRCX has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of LRCX for a complete fundamental analysis.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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LAM RESEARCH CORP

NASDAQ:LRCX (5/24/2024, 7:00:00 PM)

After market: 971 +0.43 (+0.04%)

970.57

+12.44 (+1.3%)

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