LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LRCX - US5128073062 - Common Stock
140.24 EUR
+2.46 (+1.79%)
Overall 1LRCX gets a fundamental rating of 7 out of 10. We evaluated 1LRCX against 65 industry peers in the Semiconductors & Semiconductor Equipment industry. 1LRCX has an excellent profitability rating, but there are some minor concerns on its financial health. 1LRCX is valued quite expensive, but it does show an excellent growth. These ratings would make 1LRCX suitable for growth investing!
1. Profitability
1.1 Basic Checks
1LRCX had positive earnings in the past year.
1LRCX had a positive operating cash flow in the past year.
Each year in the past 5 years 1LRCX has been profitable.
In the past 5 years 1LRCX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 26.53%, 1LRCX belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
1LRCX's Return On Equity of 57.01% is amongst the best of the industry. 1LRCX outperforms 93.85% of its industry peers.
With an excellent Return On Invested Capital value of 37.82%, 1LRCX belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1LRCX is significantly above the industry average of 14.14%.
The last Return On Invested Capital (37.82%) for 1LRCX is above the 3 year average (31.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.53% | ||
| ROE | 57.01% | ||
| ROIC | 37.82% |
ROA(3y)23.18%
ROA(5y)24.18%
ROE(3y)51.37%
ROE(5y)58.46%
ROIC(3y)31.47%
ROIC(5y)32.89%
1.3 Margins
1LRCX has a better Profit Margin (29.66%) than 83.08% of its industry peers.
In the last couple of years the Profit Margin of 1LRCX has grown nicely.
With an excellent Operating Margin value of 33.00%, 1LRCX belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
In the last couple of years the Operating Margin of 1LRCX has grown nicely.
Looking at the Gross Margin, with a value of 49.31%, 1LRCX is in line with its industry, outperforming 55.38% of the companies in the same industry.
1LRCX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33% | ||
| PM (TTM) | 29.66% | ||
| GM | 49.31% |
OM growth 3Y0.81%
OM growth 5Y3.76%
PM growth 3Y2.83%
PM growth 5Y5.33%
GM growth 3Y2.15%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
1LRCX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1LRCX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1LRCX has less shares outstanding
Compared to 1 year ago, 1LRCX has an improved debt to assets ratio.
2.2 Solvency
1LRCX has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.81, 1LRCX is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that 1LRCX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.37, 1LRCX is doing worse than 61.54% of the companies in the same industry.
Although 1LRCX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | N/A |
ROIC/WACC3.64
WACC10.39%
2.3 Liquidity
A Current Ratio of 2.21 indicates that 1LRCX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.21, 1LRCX is in line with its industry, outperforming 46.15% of the companies in the same industry.
A Quick Ratio of 1.60 indicates that 1LRCX should not have too much problems paying its short term obligations.
1LRCX has a worse Quick ratio (1.60) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
1LRCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.65%, which is quite impressive.
1LRCX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.02% yearly.
The Revenue has grown by 25.66% in the past year. This is a very strong growth!
Measured over the past years, 1LRCX shows a quite strong growth in Revenue. The Revenue has been growing by 12.91% on average per year.
EPS 1Y (TTM)41.65%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%46.51%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
3.2 Future
The Earnings Per Share is expected to grow by 13.46% on average over the next years. This is quite good.
1LRCX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.31% yearly.
EPS Next Y19.38%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
EPS Next 5Y13.46%
Revenue Next Year16.4%
Revenue Next 2Y14.56%
Revenue Next 3Y11.64%
Revenue Next 5Y10.31%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
1LRCX is valuated quite expensively with a Price/Earnings ratio of 36.24.
1LRCX's Price/Earnings is on the same level as the industry average.
1LRCX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.26.
Based on the Price/Forward Earnings ratio of 28.47, the valuation of 1LRCX can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1LRCX is on the same level as its industry peers.
1LRCX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.24 | ||
| Fwd PE | 28.47 |
4.2 Price Multiples
64.62% of the companies in the same industry are cheaper than 1LRCX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1LRCX indicates a somewhat cheap valuation: 1LRCX is cheaper than 67.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.2 | ||
| EV/EBITDA | 29.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1LRCX has an outstanding profitability rating, which may justify a higher PE ratio.
1LRCX's earnings are expected to grow with 15.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.87
PEG (5Y)1.72
EPS Next 2Y18.11%
EPS Next 3Y15.56%
5. Dividend
5.1 Amount
1LRCX has a yearly dividend return of 0.62%, which is pretty low.
Compared to an average industry Dividend Yield of 0.75, 1LRCX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, 1LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of 1LRCX is nicely growing with an annual growth rate of 14.54%!
Dividend Growth(5Y)14.54%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1LRCX pays out 20.32% of its income as dividend. This is a sustainable payout ratio.
1LRCX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.32%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
BIT:1LRCX (12/18/2025, 7:00:00 PM)
140.24
+2.46 (+1.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.65%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap176.15B
Revenue(TTM)19.59B
Net Income(TTM)5.81B
Analysts80
Price Target142.32 (1.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend0.76
Dividend Growth(5Y)14.54%
DP20.32%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.44%
Min EPS beat(2)1.09%
Max EPS beat(2)7.79%
EPS beat(4)4
Avg EPS beat(4)3%
Min EPS beat(4)1.09%
Max EPS beat(4)7.79%
EPS beat(8)8
Avg EPS beat(8)3.8%
EPS beat(12)12
Avg EPS beat(12)5.49%
EPS beat(16)14
Avg EPS beat(16)5.37%
Revenue beat(2)1
Avg Revenue beat(2)0.49%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)1.22%
Revenue beat(4)1
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)1.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.07%
Revenue beat(12)5
Avg Revenue beat(12)0.08%
Revenue beat(16)7
Avg Revenue beat(16)-0.14%
PT rev (1m)41.71%
PT rev (3m)46.68%
EPS NQ rev (1m)12.54%
EPS NQ rev (3m)12.83%
EPS NY rev (1m)6.76%
EPS NY rev (3m)8.46%
Revenue NQ rev (1m)8.82%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)5.46%
Revenue NY rev (3m)6.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.24 | ||
| Fwd PE | 28.47 | ||
| P/S | 10.54 | ||
| P/FCF | 37.2 | ||
| P/OCF | 32.34 | ||
| P/B | 20.26 | ||
| P/tB | 24.68 | ||
| EV/EBITDA | 29.25 |
EPS(TTM)3.87
EY2.76%
EPS(NY)4.93
Fwd EY3.51%
FCF(TTM)3.77
FCFY2.69%
OCF(TTM)4.34
OCFY3.09%
SpS13.31
BVpS6.92
TBVpS5.68
PEG (NY)1.87
PEG (5Y)1.72
Graham Number24.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.53% | ||
| ROE | 57.01% | ||
| ROCE | 42.56% | ||
| ROIC | 37.82% | ||
| ROICexc | 67.6% | ||
| ROICexgc | 86.11% | ||
| OM | 33% | ||
| PM (TTM) | 29.66% | ||
| GM | 49.31% | ||
| FCFM | 28.33% |
ROA(3y)23.18%
ROA(5y)24.18%
ROE(3y)51.37%
ROE(5y)58.46%
ROIC(3y)31.47%
ROIC(5y)32.89%
ROICexc(3y)52.82%
ROICexc(5y)54.36%
ROICexgc(3y)66.54%
ROICexgc(5y)68.82%
ROCE(3y)35.41%
ROCE(5y)37.02%
ROICexgc growth 3Y7.04%
ROICexgc growth 5Y0.35%
ROICexc growth 3Y5.47%
ROICexc growth 5Y4.28%
OM growth 3Y0.81%
OM growth 5Y3.76%
PM growth 3Y2.83%
PM growth 5Y5.33%
GM growth 3Y2.15%
GM growth 5Y1.2%
F-Score8
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 211.81% | ||
| Cap/Sales | 4.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.06% | ||
| Profit Quality | 95.52% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | N/A |
F-Score8
WACC10.39%
ROIC/WACC3.64
Cap/Depr(3y)151.1%
Cap/Depr(5y)146.11%
Cap/Sales(3y)3.22%
Cap/Sales(5y)3.04%
Profit Quality(3y)105.3%
Profit Quality(5y)90.85%
High Growth Momentum
Growth
EPS 1Y (TTM)41.65%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%46.51%
EPS Next Y19.38%
EPS Next 2Y18.11%
EPS Next 3Y15.56%
EPS Next 5Y13.46%
Revenue 1Y (TTM)25.66%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%27.74%
Revenue Next Year16.4%
Revenue Next 2Y14.56%
Revenue Next 3Y11.64%
Revenue Next 5Y10.31%
EBIT growth 1Y41.9%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year27.76%
EBIT Next 3Y16.88%
EBIT Next 5Y10.27%
FCF growth 1Y23.28%
FCF growth 3Y28.47%
FCF growth 5Y23%
OCF growth 1Y29.21%
OCF growth 3Y25.82%
OCF growth 5Y23.76%
LAM RESEARCH CORP / 1LRCX.MI FAQ
Can you provide the ChartMill fundamental rating for LAM RESEARCH CORP?
ChartMill assigns a fundamental rating of 7 / 10 to 1LRCX.MI.
Can you provide the valuation status for LAM RESEARCH CORP?
ChartMill assigns a valuation rating of 3 / 10 to LAM RESEARCH CORP (1LRCX.MI). This can be considered as Overvalued.
What is the profitability of 1LRCX stock?
LAM RESEARCH CORP (1LRCX.MI) has a profitability rating of 9 / 10.
What are the PE and PB ratios of LAM RESEARCH CORP (1LRCX.MI) stock?
The Price/Earnings (PE) ratio for LAM RESEARCH CORP (1LRCX.MI) is 36.24 and the Price/Book (PB) ratio is 20.26.
How financially healthy is LAM RESEARCH CORP?
The financial health rating of LAM RESEARCH CORP (1LRCX.MI) is 6 / 10.