LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
Europe - BIT:1LRCX - US5128073062 - Common Stock
119.12 EUR
-10.48 (-8.09%)
1LRCX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 59 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1LRCX has a great profitability rating, there are some minor concerns on its financial health. 1LRCX is valued quite expensive, but it does show an excellent growth. This makes 1LRCX very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year 1LRCX was profitable.
1LRCX had a positive operating cash flow in the past year.
In the past 5 years 1LRCX has always been profitable.
In the past 5 years 1LRCX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 25.10%, 1LRCX belongs to the top of the industry, outperforming 94.92% of the companies in the same industry.
1LRCX has a better Return On Equity (54.33%) than 94.92% of its industry peers.
1LRCX has a Return On Invested Capital of 35.49%. This is amongst the best in the industry. 1LRCX outperforms 94.92% of its industry peers.
1LRCX had an Average Return On Invested Capital over the past 3 years of 31.47%. This is significantly above the industry average of 15.39%.
The last Return On Invested Capital (35.49%) for 1LRCX is above the 3 year average (31.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.1% | ||
| ROE | 54.33% | ||
| ROIC | 35.49% |
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 Profit Margin of 29.06%. This is amongst the best in the industry. 1LRCX outperforms 84.75% of its industry peers.
1LRCX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 32.01%, 1LRCX belongs to the best of the industry, outperforming 83.05% of the companies in the same industry.
In the last couple of years the Operating Margin of 1LRCX has grown nicely.
With a decent Gross Margin value of 48.70%, 1LRCX is doing good in the industry, outperforming 61.02% 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 | 32.01% | ||
| PM (TTM) | 29.06% | ||
| GM | 48.71% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1LRCX is creating value.
Compared to 1 year ago, 1LRCX has less shares outstanding
Compared to 5 years ago, 1LRCX has less shares outstanding
The debt/assets ratio for 1LRCX has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of 1LRCX is 0.83, which is an excellent value as it means it would take 1LRCX, only 0.83 years of fcf income to pay off all of its debts.
1LRCX has a better Debt to FCF ratio (0.83) than 77.97% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that 1LRCX is not too dependend on debt financing.
1LRCX has a worse Debt to Equity ratio (0.38) than 66.10% 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 | 0.38 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | N/A |
ROIC/WACC3.07
WACC11.57%
2.3 Liquidity
A Current Ratio of 2.21 indicates that 1LRCX has no problem at all paying its short term obligations.
1LRCX has a Current ratio (2.21) which is comparable to the rest of the industry.
A Quick Ratio of 1.55 indicates that 1LRCX should not have too much problems paying its short term obligations.
1LRCX has a Quick ratio of 1.55. This is comparable to the rest of the industry: 1LRCX outperforms 40.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
1LRCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.63%, which is quite impressive.
The Earnings Per Share has been growing by 21.02% on average over the past years. This is a very strong growth
The Revenue has grown by 23.68% 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)36.63%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%63.39%
Revenue 1Y (TTM)23.68%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%33.58%
3.2 Future
The Earnings Per Share is expected to grow by 16.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.28% on average over the next years. This is quite good.
EPS Next Y10.59%
EPS Next 2Y12.33%
EPS Next 3Y13.55%
EPS Next 5Y16.67%
Revenue Next Year10.04%
Revenue Next 2Y10%
Revenue Next 3Y9.65%
Revenue Next 5Y8.28%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1LRCX is valuated quite expensively with a Price/Earnings ratio of 33.65.
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 (27.42), we can say 1LRCX is valued slightly more expensively.
With a Price/Forward Earnings ratio of 30.39, 1LRCX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as 1LRCX.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, 1LRCX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.65 | ||
| Fwd PE | 30.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1LRCX indicates a slightly more expensive valuation: 1LRCX is more expensive than 69.49% of the companies listed in the same industry.
72.88% 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 | 32.49 | ||
| EV/EBITDA | 27.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1LRCX does not grow enough to justify the current Price/Earnings ratio.
1LRCX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1LRCX's earnings are expected to grow with 13.55% in the coming years.
PEG (NY)3.18
PEG (5Y)1.6
EPS Next 2Y12.33%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
1LRCX has a yearly dividend return of 0.73%, which is pretty low.
1LRCX's Dividend Yield is a higher than the industry average which is at 1.10.
With a Dividend Yield of 0.73, 1LRCX pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
On average, the dividend of 1LRCX grows each year by 14.54%, which is quite nice.
Dividend Growth(5Y)14.54%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1LRCX pays out 21.45% of its income as dividend. This is a sustainable payout ratio.
1LRCX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.45%
EPS Next 2Y12.33%
EPS Next 3Y13.55%
BIT:1LRCX (10/13/2025, 7:00:00 PM)
119.12
-10.48 (-8.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap150.21B
Analysts80
Price Target100.43 (-15.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.77
Dividend Growth(5Y)14.54%
DP21.45%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.6%
Min EPS beat(2)1.42%
Max EPS beat(2)7.79%
EPS beat(4)4
Avg EPS beat(4)3.92%
Min EPS beat(4)1.42%
Max EPS beat(4)7.79%
EPS beat(8)8
Avg EPS beat(8)4.87%
EPS beat(12)12
Avg EPS beat(12)5.99%
EPS beat(16)13
Avg EPS beat(16)5.29%
Revenue beat(2)1
Avg Revenue beat(2)0.41%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)1.22%
Revenue beat(4)2
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)1.22%
Revenue beat(8)3
Avg Revenue beat(8)-0.04%
Revenue beat(12)6
Avg Revenue beat(12)0.21%
Revenue beat(16)7
Avg Revenue beat(16)-0.27%
PT rev (1m)3.51%
PT rev (3m)19.74%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)22.4%
EPS NY rev (1m)0.47%
EPS NY rev (3m)10.71%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)12.81%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)7.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.65 | ||
| Fwd PE | 30.39 | ||
| P/S | 9.52 | ||
| P/FCF | 32.49 | ||
| P/OCF | 28.49 | ||
| P/B | 17.79 | ||
| P/tB | 21.79 | ||
| EV/EBITDA | 27.6 |
EPS(TTM)3.54
EY2.97%
EPS(NY)3.92
Fwd EY3.29%
FCF(TTM)3.67
FCFY3.08%
OCF(TTM)4.18
OCFY3.51%
SpS12.52
BVpS6.69
TBVpS5.47
PEG (NY)3.18
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.1% | ||
| ROE | 54.33% | ||
| ROCE | 39.93% | ||
| ROIC | 35.49% | ||
| ROICexc | 62.53% | ||
| ROICexgc | 79.72% | ||
| OM | 32.01% | ||
| PM (TTM) | 29.06% | ||
| GM | 48.71% | ||
| FCFM | 29.29% |
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%
ROICexcg growth 3Y7.04%
ROICexcg 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 Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 196.54% | ||
| Cap/Sales | 4.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.97% | ||
| Profit Quality | 100.79% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | N/A |
F-Score8
WACC11.57%
ROIC/WACC3.07
Cap/Depr(3y)151.1%
Cap/Depr(5y)146.11%
Cap/Sales(3y)3.22%
Cap/Sales(5y)3.04%
Profit Quality(3y)105.22%
Profit Quality(5y)90.8%
High Growth Momentum
Growth
EPS 1Y (TTM)36.63%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%63.39%
EPS Next Y10.59%
EPS Next 2Y12.33%
EPS Next 3Y13.55%
EPS Next 5Y16.67%
Revenue 1Y (TTM)23.68%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%33.58%
Revenue Next Year10.04%
Revenue Next 2Y10%
Revenue Next 3Y9.65%
Revenue Next 5Y8.28%
EBIT growth 1Y36.42%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year16.89%
EBIT Next 3Y13.89%
EBIT Next 5Y10.27%
FCF growth 1Y26.9%
FCF growth 3Y28.36%
FCF growth 5Y22.94%
OCF growth 1Y32.4%
OCF growth 3Y25.72%
OCF growth 5Y23.7%