228.585 USD
-1.51 (-0.66%)
Last: Feb 4, 2026, 09:35 AM
LRCX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While LRCX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LRCX is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make LRCX suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year LRCX was profitable.
- In the past year LRCX had a positive cash flow from operations.
- Each year in the past 5 years LRCX has been profitable.
- Each year in the past 5 years LRCX had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 29.05%, LRCX belongs to the top of the industry, outperforming 98.23% of the companies in the same industry.
- LRCX's Return On Equity of 61.24% is amongst the best of the industry. LRCX outperforms 96.46% of its industry peers.
- LRCX has a better Return On Invested Capital (40.64%) than 99.11% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LRCX is significantly above the industry average of 10.66%.
- The 3 year average ROIC (31.47%) for LRCX is below the current ROIC(40.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.05% | ||
| ROE | 61.24% | ||
| ROIC | 40.64% |
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
- The Profit Margin of LRCX (30.22%) is better than 90.27% of its industry peers.
- LRCX's Profit Margin has improved in the last couple of years.
- LRCX has a better Operating Margin (33.76%) than 92.04% of its industry peers.
- In the last couple of years the Operating Margin of LRCX has grown nicely.
- Looking at the Gross Margin, with a value of 49.80%, LRCX is in the better half of the industry, outperforming 61.95% of the companies in the same industry.
- In the last couple of years the Gross Margin of LRCX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.76% | ||
| PM (TTM) | 30.22% | ||
| GM | 49.8% |
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
- LRCX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for LRCX has been reduced compared to 1 year ago.
- The number of shares outstanding for LRCX has been reduced compared to 5 years ago.
- LRCX has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of LRCX is 0.72, which is an excellent value as it means it would take LRCX, only 0.72 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 0.72, LRCX is doing good in the industry, outperforming 77.88% of the companies in the same industry.
- A Debt/Equity ratio of 0.37 indicates that LRCX is not too dependend on debt financing.
- LRCX's Debt to Equity ratio of 0.37 is on the low side compared to the rest of the industry. LRCX is outperformed by 65.49% of its industry peers.
- Even though the debt/equity ratio score it not favorable for LRCX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | N/A |
ROIC/WACC3.7
WACC10.97%
2.3 Liquidity
- LRCX has a Current Ratio of 2.26. This indicates that LRCX is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.26, LRCX is doing worse than 68.14% of the companies in the same industry.
- LRCX has a Quick Ratio of 1.61. This is a normal value and indicates that LRCX is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.61, LRCX is not doing good in the industry: 71.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 45.70% over the past year.
- LRCX 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 26.85% in the past year. This is a very strong growth!
- Measured over the past years, LRCX shows a quite strong growth in Revenue. The Revenue has been growing by 12.91% on average per year.
EPS 1Y (TTM)45.7%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%39.56%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
3.2 Future
- LRCX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.46% yearly.
- The Revenue is expected to grow by 9.82% on average over the next years. This is quite good.
EPS Next Y29.23%
EPS Next 2Y28.88%
EPS Next 3Y24.32%
EPS Next 5Y13.46%
Revenue Next Year21.32%
Revenue Next 2Y21.72%
Revenue Next 3Y17.75%
Revenue Next 5Y9.82%
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
- Based on the Price/Earnings ratio of 46.65, the valuation of LRCX can be described as expensive.
- Based on the Price/Earnings ratio, LRCX is valued a bit cheaper than 67.26% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.18, LRCX is valued quite expensively.
- A Price/Forward Earnings ratio of 33.24 indicates a quite expensive valuation of LRCX.
- Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than the industry average as 61.95% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, LRCX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.65 | ||
| Fwd PE | 33.24 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 61.95% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than 72.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.19 | ||
| EV/EBITDA | 39.13 |
4.3 Compensation for Growth
- LRCX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- LRCX has an outstanding profitability rating, which may justify a higher PE ratio.
- LRCX's earnings are expected to grow with 24.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)2.22
EPS Next 2Y28.88%
EPS Next 3Y24.32%
5. Dividend
5.1 Amount
- LRCX has a yearly dividend return of 0.44%, which is pretty low.
- LRCX's Dividend Yield is a higher than the industry average which is at 0.50.
- With a Dividend Yield of 0.44, LRCX pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
- The dividend of LRCX is nicely growing with an annual growth rate of 14.54%!
- LRCX has paid a dividend for at least 10 years, which is a reliable track record.
- LRCX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.54%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- LRCX pays out 19.48% of its income as dividend. This is a sustainable payout ratio.
- LRCX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.48%
EPS Next 2Y28.88%
EPS Next 3Y24.32%
NASDAQ:LRCX (2/4/2026, 9:35:09 AM)
228.585
-1.51 (-0.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-28 2026-01-28/amc
Earnings (Next)04-21 2026-04-21/amc
Inst Owners88.63%
Inst Owner Change-2.94%
Ins Owners0.24%
Ins Owner Change-3.75%
Market Cap287.11B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts80
Price Target270.98 (18.55%)
Short Float %2.49%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP19.48%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.75%
Min EPS beat(2)1.09%
Max EPS beat(2)6.41%
EPS beat(4)4
Avg EPS beat(4)4.18%
Min EPS beat(4)1.09%
Max EPS beat(4)7.79%
EPS beat(8)8
Avg EPS beat(8)4.13%
EPS beat(12)12
Avg EPS beat(12)5.57%
EPS beat(16)15
Avg EPS beat(16)5.88%
Revenue beat(2)0
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)-0.24%
Revenue beat(4)1
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)1.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.02%
Revenue beat(12)4
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)0.23%
PT rev (1m)7.39%
PT rev (3m)15.79%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)1.6%
EPS NY rev (1m)1.02%
EPS NY rev (3m)7.87%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)5.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.65 | ||
| Fwd PE | 33.24 | ||
| P/S | 13.96 | ||
| P/FCF | 46.19 | ||
| P/OCF | 40.31 | ||
| P/B | 28.3 | ||
| P/tB | 34.67 | ||
| EV/EBITDA | 39.13 |
EPS(TTM)4.9
EY2.14%
EPS(NY)6.88
Fwd EY3.01%
FCF(TTM)4.95
FCFY2.16%
OCF(TTM)5.67
OCFY2.48%
SpS16.37
BVpS8.08
TBVpS6.59
PEG (NY)1.6
PEG (5Y)2.22
Graham Number29.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.05% | ||
| ROE | 61.24% | ||
| ROCE | 45.74% | ||
| ROIC | 40.64% | ||
| ROICexc | 68.56% | ||
| ROICexgc | 86.48% | ||
| OM | 33.76% | ||
| PM (TTM) | 30.22% | ||
| GM | 49.8% | ||
| FCFM | 30.23% |
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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.72 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 225.8% | ||
| Cap/Sales | 4.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.98% | ||
| Profit Quality | 100.04% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | N/A |
F-Score8
WACC10.97%
ROIC/WACC3.7
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)45.7%
EPS 3Y7.72%
EPS 5Y21.02%
EPS Q2Q%39.56%
EPS Next Y29.23%
EPS Next 2Y28.88%
EPS Next 3Y24.32%
EPS Next 5Y13.46%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
Revenue Next Year21.32%
Revenue Next 2Y21.72%
Revenue Next 3Y17.75%
Revenue Next 5Y9.82%
EBIT growth 1Y44.13%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year29.47%
EBIT Next 3Y20.78%
EBIT Next 5Y10.27%
FCF growth 1Y27.79%
FCF growth 3Y28.47%
FCF growth 5Y23%
OCF growth 1Y35.55%
OCF growth 3Y25.82%
OCF growth 5Y23.76%
LAM RESEARCH CORP / LRCX FAQ
What is the fundamental rating for LRCX stock?
ChartMill assigns a fundamental rating of 7 / 10 to LRCX.
What is the valuation status of LAM RESEARCH CORP (LRCX) stock?
ChartMill assigns a valuation rating of 4 / 10 to LAM RESEARCH CORP (LRCX). This can be considered as Fairly Valued.
How profitable is LAM RESEARCH CORP (LRCX) stock?
LAM RESEARCH CORP (LRCX) has a profitability rating of 9 / 10.
What is the valuation of LAM RESEARCH CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LAM RESEARCH CORP (LRCX) is 46.65 and the Price/Book (PB) ratio is 28.3.
What is the earnings growth outlook for LAM RESEARCH CORP?
The Earnings per Share (EPS) of LAM RESEARCH CORP (LRCX) is expected to grow by 29.23% in the next year.