LAM RESEARCH CORP (1LRCX.MI) Stock Fundamental Analysis
BIT:1LRCX - US5128073062 - Common Stock
85 EUR
+1.15 (+1.37%)
Overall 1LRCX gets a fundamental rating of 7 out of 10. We evaluated 1LRCX against 53 industry peers in the Semiconductors & Semiconductor Equipment industry. 1LRCX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1LRCX is growing strongly while it is still valued neutral. This is a good combination! These ratings would make 1LRCX suitable 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.
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 23.33%, 1LRCX belongs to the top of the industry, outperforming 94.34% of the companies in the same industry.
With an excellent Return On Equity value of 48.98%, 1LRCX belongs to the best of the industry, outperforming 94.34% of the companies in the same industry.
1LRCX has a Return On Invested Capital of 32.17%. This is amongst the best in the industry. 1LRCX outperforms 94.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1LRCX is significantly above the industry average of 15.12%.
The last Return On Invested Capital (32.17%) for 1LRCX is above the 3 year average (31.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.33% | ||
| ROE | 48.98% | ||
| ROIC | 32.17% |
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
Looking at the Profit Margin, with a value of 27.19%, 1LRCX is in the better half of the industry, outperforming 77.36% of the companies in the same industry.
In the last couple of years the Profit Margin of 1LRCX has grown nicely.
The Operating Margin of 1LRCX (30.88%) is better than 77.36% of its industry peers.
In the last couple of years the Operating Margin of 1LRCX has grown nicely.
1LRCX has a Gross Margin of 48.06%. This is comparable to the rest of the industry: 1LRCX outperforms 54.72% of its industry peers.
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 | 30.88% | ||
| PM (TTM) | 27.19% | ||
| GM | 48.06% |
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.
1LRCX has more shares outstanding than it did 5 years ago.
1LRCX has a better debt/assets ratio than last year.
2.2 Solvency
1LRCX has an Altman-Z score of 11.45. 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 11.45, 1LRCX belongs to the top of the industry, outperforming 88.68% of the companies in the same industry.
The Debt to FCF ratio of 1LRCX is 1.18, which is an excellent value as it means it would take 1LRCX, only 1.18 years of fcf income to pay off all of its debts.
1LRCX's Debt to FCF ratio of 1.18 is fine compared to the rest of the industry. 1LRCX outperforms 73.58% of its industry peers.
1LRCX has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
1LRCX has a Debt to Equity ratio of 0.39. This is in the lower half of the industry: 1LRCX underperforms 66.04% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1LRCX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 11.45 |
ROIC/WACC2.84
WACC11.32%
2.3 Liquidity
A Current Ratio of 2.45 indicates that 1LRCX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.45, 1LRCX is in line with its industry, outperforming 56.60% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that 1LRCX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.64, 1LRCX perfoms like the industry average, outperforming 45.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
1LRCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.78%, which is quite impressive.
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.
Looking at the last year, 1LRCX shows a very strong growth in Revenue. The Revenue has grown by 20.33%.
Measured over the past years, 1LRCX shows a quite strong growth in Revenue. The Revenue has been growing by 9.08% on average per year.
EPS 1Y (TTM)28.78%
EPS 3Y3.56%
EPS 5Y15.8%
EPS Q2Q%33.5%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y0.63%
Revenue growth 5Y9.08%
Sales Q2Q%24.43%
3.2 Future
Based on estimates for the next years, 1LRCX will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.06% on average per year.
1LRCX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.38% yearly.
EPS Next Y35.19%
EPS Next 2Y16.83%
EPS Next 3Y17.33%
EPS Next 5Y15.06%
Revenue Next Year22.86%
Revenue Next 2Y12.39%
Revenue Next 3Y12.29%
Revenue Next 5Y10.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 27.42, 1LRCX can be considered very expensive at the moment.
1LRCX's Price/Earnings ratio is a bit cheaper when compared to the industry. 1LRCX is cheaper than 66.04% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1LRCX to the average of the S&P500 Index (27.03), we can say 1LRCX is valued inline with the index average.
The Price/Forward Earnings ratio is 24.06, which indicates a rather expensive current valuation of 1LRCX.
1LRCX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.54. 1LRCX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.42 | ||
| Fwd PE | 24.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1LRCX is valued a bit more expensive than the industry average as 66.04% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, 1LRCX is valued a bit cheaper than 62.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.55 | ||
| EV/EBITDA | 22.29 |
4.3 Compensation for Growth
1LRCX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 17.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)1.74
EPS Next 2Y16.83%
EPS Next 3Y17.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, 1LRCX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.40, 1LRCX pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.94, 1LRCX pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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
1LRCX pays out 23.95% of its income as dividend. This is a sustainable payout ratio.
DP23.95%
EPS Next 2Y16.83%
EPS Next 3Y17.33%
BIT:1LRCX (9/1/2025, 7:00:00 PM)
85
+1.15 (+1.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.26%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap108.73B
Analysts81.08
Price Target83.88 (-1.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend1.21
Dividend Growth(5Y)-20.64%
DP23.95%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.55%
Min EPS beat(2)1.42%
Max EPS beat(2)1.69%
EPS beat(4)4
Avg EPS beat(4)3.3%
Min EPS beat(4)1.42%
Max EPS beat(4)5.32%
EPS beat(8)8
Avg EPS beat(8)5.85%
EPS beat(12)12
Avg EPS beat(12)6.86%
EPS beat(16)13
Avg EPS beat(16)5.12%
Revenue beat(2)0
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)-0.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)0.87%
Revenue beat(8)3
Avg Revenue beat(8)-0.13%
Revenue beat(12)6
Avg Revenue beat(12)0.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.26%
PT rev (1m)0.48%
PT rev (3m)-4.7%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)23.52%
EPS NY rev (1m)0.12%
EPS NY rev (3m)6.67%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)8.84%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.42 | ||
| Fwd PE | 24.06 | ||
| P/S | 7.43 | ||
| P/FCF | 33.55 | ||
| P/OCF | 28.4 | ||
| P/B | 13.38 | ||
| P/tB | 16.5 | ||
| EV/EBITDA | 22.29 |
EPS(TTM)3.1
EY3.65%
EPS(NY)3.53
Fwd EY4.16%
FCF(TTM)2.53
FCFY2.98%
OCF(TTM)2.99
OCFY3.52%
SpS11.44
BVpS6.35
TBVpS5.15
PEG (NY)0.78
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.33% | ||
| ROE | 48.98% | ||
| ROCE | 36.54% | ||
| ROIC | 32.17% | ||
| ROICexc | 51.6% | ||
| ROICexgc | 64.4% | ||
| OM | 30.88% | ||
| PM (TTM) | 27.19% | ||
| GM | 48.06% | ||
| FCFM | 22.14% |
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-Score7
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 182.82% | ||
| Cap/Sales | 4.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.08% | ||
| Profit Quality | 81.44% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 11.45 |
F-Score7
WACC11.32%
ROIC/WACC2.84
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)28.78%
EPS 3Y3.56%
EPS 5Y15.8%
EPS Q2Q%33.5%
EPS Next Y35.19%
EPS Next 2Y16.83%
EPS Next 3Y17.33%
EPS Next 5Y15.06%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y0.63%
Revenue growth 5Y9.08%
Sales Q2Q%24.43%
Revenue Next Year22.86%
Revenue Next 2Y12.39%
Revenue Next 3Y12.29%
Revenue Next 5Y10.38%
EBIT growth 1Y30.25%
EBIT growth 3Y-1.18%
EBIT growth 5Y11.88%
EBIT Next Year39.66%
EBIT Next 3Y16.98%
EBIT Next 5Y14.11%
FCF growth 1Y-3.99%
FCF growth 3Y9.52%
FCF growth 5Y8.18%
OCF growth 1Y-0.41%
OCF growth 3Y9.04%
OCF growth 5Y7.93%