LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
BIT:1LRCX - Euronext Milan - US5128073062 - Common Stock - Currency: EUR
1LRCX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 55 industry peers in the Semiconductors & Semiconductor Equipment industry. 1LRCX gets an excellent profitability rating and is at the same time showing great financial health properties. 1LRCX is growing strongly while it is still valued neutral. This is a good combination! With these ratings, 1LRCX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1LRCX was profitable.
In the past year 1LRCX had a positive cash flow from operations.
1LRCX had positive earnings in each of the past 5 years.
Each year in the past 5 years 1LRCX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 21.64%, 1LRCX belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 48.75%, 1LRCX belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
The Return On Invested Capital of 1LRCX (29.27%) is better than 94.55% of its industry peers.
1LRCX had an Average Return On Invested Capital over the past 3 years of 31.96%. This is significantly above the industry average of 15.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.64% | ||
| ROE | 48.75% | ||
| ROIC | 29.27% |
ROA(3y)23.74%
ROA(5y)22.26%
ROE(3y)57.71%
ROE(5y)56.3%
ROIC(3y)31.96%
ROIC(5y)29.69%
1.3 Margins
The Profit Margin of 1LRCX (26.49%) is better than 80.00% of its industry peers.
1LRCX's Profit Margin has improved in the last couple of years.
1LRCX's Operating Margin of 29.72% is fine compared to the rest of the industry. 1LRCX outperforms 76.36% of its industry peers.
1LRCX's Operating Margin has improved in the last couple of years.
The Gross Margin of 1LRCX (47.73%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1LRCX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.72% | ||
| PM (TTM) | 26.49% | ||
| GM | 47.73% |
OM growth 3Y-1.8%
OM growth 5Y2.57%
PM growth 3Y-1.32%
PM growth 5Y2.5%
GM growth 3Y0.77%
GM growth 5Y1.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1LRCX is creating value.
1LRCX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1LRCX has more shares outstanding
1LRCX has a better debt/assets ratio than last year.
2.2 Solvency
1LRCX has an Altman-Z score of 10.34. This indicates that 1LRCX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.34, 1LRCX belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
1LRCX has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
1LRCX has a better Debt to FCF ratio (1.23) than 76.36% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that 1LRCX is somewhat dependend on debt financing.
1LRCX's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. 1LRCX is outperformed by 78.18% of its industry peers.
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 | 0.51 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 10.34 |
ROIC/WACC2.93
WACC9.99%
2.3 Liquidity
A Current Ratio of 2.54 indicates that 1LRCX has no problem at all paying its short term obligations.
1LRCX has a Current ratio of 2.54. This is comparable to the rest of the industry: 1LRCX outperforms 54.55% of its industry peers.
1LRCX has a Quick Ratio of 1.73. This is a normal value and indicates that 1LRCX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1LRCX (1.73) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.01% over the past year.
Measured over the past years, 1LRCX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.80% on average per year.
The Revenue has grown by 13.21% in the past year. This is quite good.
1LRCX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.08% yearly.
EPS 1Y (TTM)23.01%
EPS 3Y3.56%
EPS 5Y15.8%
EPS Q2Q%21.01%
Revenue 1Y (TTM)13.21%
Revenue growth 3Y0.63%
Revenue growth 5Y9.08%
Sales Q2Q%16.44%
3.2 Future
The Earnings Per Share is expected to grow by 15.50% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.63% on average over the next years. This is quite good.
EPS Next Y26.73%
EPS Next 2Y14.47%
EPS Next 3Y16.61%
EPS Next 5Y15.5%
Revenue Next Year19.52%
Revenue Next 2Y10.82%
Revenue Next 3Y11.32%
Revenue Next 5Y10.63%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.05, the valuation of 1LRCX can be described as expensive.
1LRCX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of 1LRCX to the average of the S&P500 Index (26.34), we can say 1LRCX is valued inline with the index average.
A Price/Forward Earnings ratio of 22.90 indicates a rather expensive valuation of 1LRCX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1LRCX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1LRCX to the average of the S&P500 Index (22.19), we can say 1LRCX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.05 | ||
| Fwd PE | 22.9 |
4.2 Price Multiples
1LRCX's Enterprise Value to EBITDA ratio is in line with the industry average.
72.73% of the companies in the same industry are more expensive than 1LRCX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.78 | ||
| EV/EBITDA | 22.37 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)1.71
EPS Next 2Y14.47%
EPS Next 3Y16.61%
5. Dividend
5.1 Amount
1LRCX has a Yearly Dividend Yield of 1.38%.
Compared to an average industry Dividend Yield of 1.28, 1LRCX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 1LRCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of 1LRCX decreases each year by -20.64%.
Dividend Growth(5Y)-20.64%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
25.22% of the earnings are spent on dividend by 1LRCX. This is a low number and sustainable payout ratio.
DP25.22%
EPS Next 2Y14.47%
EPS Next 3Y16.61%
BIT:1LRCX (6/12/2025, 7:00:00 PM)
78.99
+1.44 (+1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.78%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap101.40B
Analysts80
Price Target88.01 (11.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend1.25
Dividend Growth(5Y)-20.64%
DP25.22%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.24%
Min EPS beat(2)1.69%
Max EPS beat(2)4.79%
EPS beat(4)4
Avg EPS beat(4)4.09%
Min EPS beat(4)1.69%
Max EPS beat(4)5.32%
EPS beat(8)8
Avg EPS beat(8)6.27%
EPS beat(12)11
Avg EPS beat(12)6.45%
EPS beat(16)13
Avg EPS beat(16)5.72%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)0.87%
Revenue beat(4)1
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)0.87%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)8
Avg Revenue beat(16)-0.11%
PT rev (1m)-4.53%
PT rev (3m)-2.24%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)12.91%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.68%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)6.12%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.05 | ||
| Fwd PE | 22.9 | ||
| P/S | 7.2 | ||
| P/FCF | 28.78 | ||
| P/OCF | 25.6 | ||
| P/B | 13.25 | ||
| P/tB | 16.56 | ||
| EV/EBITDA | 22.37 |
EPS(TTM)2.92
EY3.7%
EPS(NY)3.45
Fwd EY4.37%
FCF(TTM)2.74
FCFY3.47%
OCF(TTM)3.09
OCFY3.91%
SpS10.97
BVpS5.96
TBVpS4.77
PEG (NY)1.01
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.64% | ||
| ROE | 48.75% | ||
| ROCE | 33.24% | ||
| ROIC | 29.27% | ||
| ROICexc | 48.06% | ||
| ROICexgc | 60.04% | ||
| OM | 29.72% | ||
| PM (TTM) | 26.49% | ||
| GM | 47.73% | ||
| FCFM | 25.01% |
ROA(3y)23.74%
ROA(5y)22.26%
ROE(3y)57.71%
ROE(5y)56.3%
ROIC(3y)31.96%
ROIC(5y)29.69%
ROICexc(3y)49.28%
ROICexc(5y)51.51%
ROICexgc(3y)61.06%
ROICexgc(5y)67.9%
ROCE(3y)36.3%
ROCE(5y)33.72%
ROICexcg growth 3Y-10.7%
ROICexcg growth 5Y-8.42%
ROICexc growth 3Y-9.22%
ROICexc growth 5Y-2.97%
OM growth 3Y-1.8%
OM growth 5Y2.57%
PM growth 3Y-1.32%
PM growth 5Y2.5%
GM growth 3Y0.77%
GM growth 5Y1.07%
F-Score8
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.23 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 136.49% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.89% | ||
| Profit Quality | 94.43% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 10.34 |
F-Score8
WACC9.99%
ROIC/WACC2.93
Cap/Depr(3y)140.13%
Cap/Depr(5y)121.94%
Cap/Sales(3y)2.9%
Cap/Sales(5y)2.62%
Profit Quality(3y)90.11%
Profit Quality(5y)87.72%
High Growth Momentum
Growth
EPS 1Y (TTM)23.01%
EPS 3Y3.56%
EPS 5Y15.8%
EPS Q2Q%21.01%
EPS Next Y26.73%
EPS Next 2Y14.47%
EPS Next 3Y16.61%
EPS Next 5Y15.5%
Revenue 1Y (TTM)13.21%
Revenue growth 3Y0.63%
Revenue growth 5Y9.08%
Sales Q2Q%16.44%
Revenue Next Year19.52%
Revenue Next 2Y10.82%
Revenue Next 3Y11.32%
Revenue Next 5Y10.63%
EBIT growth 1Y19.7%
EBIT growth 3Y-1.18%
EBIT growth 5Y11.88%
EBIT Next Year32.89%
EBIT Next 3Y17.53%
EBIT Next 5Y14.63%
FCF growth 1Y37.12%
FCF growth 3Y9.52%
FCF growth 5Y8.18%
OCF growth 1Y29.06%
OCF growth 3Y9.04%
OCF growth 5Y7.93%