LAM RESEARCH CORP (LRCX) Fundamental Analysis & Valuation

NASDAQ:LRCX • US5128073062

199.33 USD
-15.35 (-7.15%)
At close: Mar 6, 2026
196.25 USD
-3.08 (-1.55%)
Pre-Market: 3/9/2026, 5:54:28 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This LRCX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

LRCX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 115 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 growing strongly while it is still valued neutral. This is a good combination! These ratings would make LRCX suitable for growth investing!


Dividend Valuation Growth Profitability Health

9

1. LRCX Profitability Analysis

1.1 Basic Checks

  • LRCX had positive earnings in the past year.
  • 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.
LRCX Yearly Net Income VS EBIT VS OCF VS FCFLRCX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • LRCX has a Return On Assets of 29.05%. This is amongst the best in the industry. LRCX outperforms 98.26% of its industry peers.
  • The Return On Equity of LRCX (61.24%) is better than 96.52% of its industry peers.
  • LRCX's Return On Invested Capital of 40.64% is amongst the best of the industry. LRCX outperforms 99.13% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for LRCX is significantly above the industry average of 10.48%.
  • The last Return On Invested Capital (40.64%) for LRCX is above the 3 year average (31.47%), which is a sign of increasing profitability.
Industry RankSector 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%
LRCX Yearly ROA, ROE, ROICLRCX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • LRCX has a Profit Margin of 30.22%. This is amongst the best in the industry. LRCX outperforms 89.57% 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 92.17% of its industry peers.
  • In the last couple of years the Operating Margin of LRCX has grown nicely.
  • LRCX has a Gross Margin of 49.80%. This is in the better half of the industry: LRCX outperforms 61.74% of its industry peers.
  • LRCX's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
LRCX Yearly Profit, Operating, Gross MarginsLRCX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. LRCX Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LRCX is creating value.
  • Compared to 1 year ago, LRCX has less shares outstanding
  • 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.
LRCX Yearly Shares OutstandingLRCX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
LRCX Yearly Total Debt VS Total AssetsLRCX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • LRCX has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 0.72, LRCX is doing good in the industry, outperforming 76.52% of the companies in the same industry.
  • LRCX has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
  • LRCX has a worse Debt to Equity ratio (0.37) than 65.22% 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 RankSector Rank
Debt/Equity 0.37
Debt/FCF 0.72
Altman-Z N/A
ROIC/WACC3.59
WACC11.33%
LRCX Yearly LT Debt VS Equity VS FCFLRCX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 2.26 indicates that LRCX has no problem at all paying its short term obligations.
  • LRCX has a Current ratio of 2.26. This is in the lower half of the industry: LRCX underperforms 68.70% of its industry peers.
  • A Quick Ratio of 1.61 indicates that LRCX should not have too much problems paying its short term obligations.
  • LRCX has a Quick ratio of 1.61. This is in the lower half of the industry: LRCX underperforms 72.17% of its industry peers.
Industry RankSector Rank
Current Ratio 2.26
Quick Ratio 1.61
LRCX Yearly Current Assets VS Current LiabilitesLRCX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. LRCX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 45.70% over the past year.
  • Measured over the past years, LRCX shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.02% on average per year.
  • LRCX shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.85%.
  • The Revenue has been growing by 12.91% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 21.46% on average over the next years. This is a very strong growth
  • LRCX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.48% yearly.
EPS Next Y30.88%
EPS Next 2Y30.78%
EPS Next 3Y25.22%
EPS Next 5Y21.46%
Revenue Next Year22.59%
Revenue Next 2Y23.48%
Revenue Next 3Y18.86%
Revenue Next 5Y16.48%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
LRCX Yearly Revenue VS EstimatesLRCX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
LRCX Yearly EPS VS EstimatesLRCX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

More info and screens

Find the best growth stocksShow best growing peers

5

4. LRCX Valuation Analysis

4.1 Price/Earnings Ratio

  • LRCX is valuated quite expensively with a Price/Earnings ratio of 40.68.
  • 69.57% of the companies in the same industry are more expensive than LRCX, based on the Price/Earnings ratio.
  • LRCX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.29.
  • A Price/Forward Earnings ratio of 28.15 indicates a quite expensive valuation of LRCX.
  • Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than 64.35% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.60, LRCX is valued at the same level.
Industry RankSector Rank
PE 40.68
Fwd PE 28.15
LRCX Price Earnings VS Forward Price EarningsLRCX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 64.35% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 75.65% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 40.05
EV/EBITDA 33.67
LRCX Per share dataLRCX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
  • A more expensive valuation may be justified as LRCX's earnings are expected to grow with 25.22% in the coming years.
PEG (NY)1.32
PEG (5Y)1.94
EPS Next 2Y30.78%
EPS Next 3Y25.22%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. LRCX Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.48%, LRCX is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.49, LRCX pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, LRCX's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.48%

5.2 History

  • On average, the dividend of LRCX grows each year by 14.54%, which is quite nice.
  • LRCX has been paying a dividend for at least 10 years, so it has 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
LRCX Yearly Dividends per shareLRCX Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • LRCX pays out 19.48% of its income as dividend. This is a sustainable payout ratio.
  • LRCX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.48%
EPS Next 2Y30.78%
EPS Next 3Y25.22%
LRCX Yearly Income VS Free CF VS DividendLRCX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
LRCX Dividend Payout.LRCX Dividend Payout, showing the Payout Ratio.LRCX Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

LRCX Fundamentals: All Metrics, Ratios and Statistics

LAM RESEARCH CORP

NASDAQ:LRCX (3/6/2026, 8:00:00 PM)

Premarket: 196.25 -3.08 (-1.55%)

199.33

-15.35 (-7.15%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners89.03%
Inst Owner Change0.47%
Ins Owners0.28%
Ins Owner Change3.78%
Market Cap248.92B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts80
Price Target275.27 (38.1%)
Short Float %2.65%
Short Ratio2.72
Dividend
Industry RankSector Rank
Dividend Yield 0.48%
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP19.48%
Div Incr Years10
Div Non Decr Years10
Ex-Date03-04
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)1.58%
PT rev (3m)64.94%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)14.64%
EPS NY rev (1m)1.28%
EPS NY rev (3m)9.63%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)8.33%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)5.32%
Valuation
Industry RankSector Rank
PE 40.68
Fwd PE 28.15
P/S 12.11
P/FCF 40.05
P/OCF 34.95
P/B 24.53
P/tB 30.06
EV/EBITDA 33.67
EPS(TTM)4.9
EY2.46%
EPS(NY)7.08
Fwd EY3.55%
FCF(TTM)4.98
FCFY2.5%
OCF(TTM)5.7
OCFY2.86%
SpS16.46
BVpS8.12
TBVpS6.63
PEG (NY)1.32
PEG (5Y)1.94
Graham Number29.93
Profitability
Industry RankSector 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 RankSector 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
WACC11.33%
ROIC/WACC3.59
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 Y30.88%
EPS Next 2Y30.78%
EPS Next 3Y25.22%
EPS Next 5Y21.46%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
Revenue Next Year22.59%
Revenue Next 2Y23.48%
Revenue Next 3Y18.86%
Revenue Next 5Y16.48%
EBIT growth 1Y44.13%
EBIT growth 3Y3.12%
EBIT growth 5Y17.15%
EBIT Next Year38.29%
EBIT Next 3Y27.83%
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 5 / 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 40.68 and the Price/Book (PB) ratio is 24.53.


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 30.88% in the next year.