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 9.08% 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 demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 60.04% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
With a Debt/Free Cash Flow Ratio of 1.23, 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.
LAM RESEARCH CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 87.72%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
With a robust 5-year EBIT growth of 11.88%, LAM RESEARCH CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
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.
Fundamental analysis of NASDAQ:LRCX
ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.
LRCX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. While LRCX has a great profitability rating, there are some minor concerns on its financial health. LRCX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, LRCX could be worth investigating further for growth investing!.
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.