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Should Quality Investors Include NASDAQ:LRCX in Their Portfolio?

By Mill Chart

Last update: May 23, 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.


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Highlighting Notable Quality Metrics of NASDAQ:LRCX.

  • 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 exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 56.09% 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 1.1, 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.
  • 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 10.53%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • 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.

A complete fundamental analysis of NASDAQ:LRCX

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

We assign a fundamental rating of 6 out of 10 to LRCX. LRCX was compared to 107 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 quite expensive at the moment. It does show a decent growth rate.

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

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

Disclaimer

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 (6/17/2024, 7:00:00 PM)

After market: 1084.01 +12.31 (+1.15%)

1071.7

+35.72 (+3.45%)

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