Should Quality Investors Include LAM RESEARCH CORP (NASDAQ:LRCX) in Their Portfolio?

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, LRCX 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.
• With a robust ROIC excluding cash and goodwill at 60.04%, LRCX 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.
• LRCX demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.23, 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 robust Profit Quality (5-year) ratio of 87.72%, LRCX 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.
• LRCX has experienced impressive EBIT growth over the past 5 years, with 11.88% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• LRCX has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for LRCX?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall LRCX gets a fundamental rating of 7 out of 10. We evaluated LRCX against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. LRCX has an excellent profitability rating, but there are some minor concerns on its financial health. LRCX is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make LRCX suitable for growth investing!

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

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

Keep in mind

This article should in no way be interpreted as advice. 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.