LAM RESEARCH CORP (LRCX) Stock Fundamental Analysis
NASDAQ:LRCX - Nasdaq - US5128073062 - Common Stock - Currency: USD
Overall LRCX gets a fundamental rating of 7 out of 10. We evaluated LRCX against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. LRCX scores excellent on profitability, but 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 could make LRCX a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
LRCX had positive earnings in the past year.
LRCX had a positive operating cash flow in the past year.
In the past 5 years LRCX has always been profitable.
In the past 5 years LRCX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.33%, LRCX belongs to the top of the industry, outperforming 96.33% of the companies in the same industry.
LRCX's Return On Equity of 48.98% is amongst the best of the industry. LRCX outperforms 95.41% of its industry peers.
With an excellent Return On Invested Capital value of 32.17%, LRCX belongs to the best of the industry, outperforming 97.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LRCX is significantly above the industry average of 11.32%.
The 3 year average ROIC (31.96%) for LRCX is below the current ROIC(32.17%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 27.19%, LRCX belongs to the best of the industry, outperforming 88.99% of the companies in the same industry.
LRCX's Profit Margin has improved in the last couple of years.
LRCX has a Operating Margin of 30.88%. This is amongst the best in the industry. LRCX outperforms 90.83% of its industry peers.
In the last couple of years the Operating Margin of LRCX has grown nicely.
LRCX has a Gross Margin of 48.06%. This is in the better half of the industry: LRCX outperforms 60.55% of its industry peers.
LRCX's Gross Margin has been stable in the last couple of years.
| 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
LRCX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LRCX has more shares outstanding
LRCX has more shares outstanding than it did 5 years ago.
LRCX has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of LRCX is 1.18, which is an excellent value as it means it would take LRCX, only 1.18 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.18, LRCX is doing good in the industry, outperforming 73.39% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that LRCX is not too dependend on debt financing.
LRCX has a Debt to Equity ratio of 0.39. This is in the lower half of the industry: LRCX underperforms 67.89% 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 | 0.39 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | N/A |
ROIC/WACC3.47
WACC9.27%
2.3 Liquidity
LRCX has a Current Ratio of 2.45. 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 2.45, LRCX is doing worse than 63.30% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that LRCX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.64, LRCX is not doing good in the industry: 66.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
LRCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.78%, which is quite impressive.
LRCX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.80% yearly.
LRCX shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.33%.
LRCX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.08% yearly.
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
LRCX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.50% yearly.
The Revenue is expected to grow by 10.63% on average over the next years. This is quite good.
EPS Next Y26.41%
EPS Next 2Y13.61%
EPS Next 3Y15.45%
EPS Next 5Y15.5%
Revenue Next Year19.47%
Revenue Next 2Y10.52%
Revenue Next 3Y10.84%
Revenue Next 5Y10.63%
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
Based on the Price/Earnings ratio of 20.76, the valuation of LRCX can be described as rather expensive.
LRCX's Price/Earnings ratio is a bit cheaper when compared to the industry. LRCX is cheaper than 73.39% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.75, LRCX is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.22, LRCX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than the industry average as 71.56% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.49. LRCX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 19.22 |
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 69.72% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than 79.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.34 | ||
| EV/EBITDA | 16.02 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of LRCX may justify a higher PE ratio.
A more expensive valuation may be justified as LRCX's earnings are expected to grow with 15.45% in the coming years.
PEG (NY)0.79
PEG (5Y)1.31
EPS Next 2Y13.61%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
LRCX has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
LRCX's Dividend Yield is rather good when compared to the industry average which is at 2.76. LRCX pays more dividend than 82.57% of the companies in the same industry.
With a Dividend Yield of 1.28, LRCX pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of LRCX decreases each year by -20.64%.
LRCX has been paying a dividend for at least 10 years, so it has a reliable track record.
LRCX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-20.64%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
23.95% of the earnings are spent on dividend by LRCX. This is a low number and sustainable payout ratio.
DP23.95%
EPS Next 2Y13.61%
EPS Next 3Y15.45%
NASDAQ:LRCX (5/2/2025, 1:01:02 PM)
75.16
+3.43 (+4.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.78%
Inst Owner Change0.49%
Ins Owners0.25%
Ins Owner Change7.58%
Market Cap96.14B
Analysts81.11
Price Target93.4 (24.27%)
Short Float %1.83%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1.42
Dividend Growth(5Y)-20.64%
DP23.95%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.65%
Min EPS beat(2)1.61%
Max EPS beat(2)1.69%
EPS beat(4)4
Avg EPS beat(4)3.35%
Min EPS beat(4)1.61%
Max EPS beat(4)5.32%
EPS beat(8)8
Avg EPS beat(8)5.88%
EPS beat(12)12
Avg EPS beat(12)6.87%
EPS beat(16)13
Avg EPS beat(16)5.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)-0.36%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
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)-3.62%
PT rev (3m)-2.12%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)6.54%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)4.66%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 19.22 | ||
| P/S | 5.61 | ||
| P/FCF | 25.34 | ||
| P/OCF | 21.45 | ||
| P/B | 10.11 | ||
| P/tB | 12.46 | ||
| EV/EBITDA | 16.02 |
EPS(TTM)3.62
EY4.82%
EPS(NY)3.91
Fwd EY5.2%
FCF(TTM)2.97
FCFY3.95%
OCF(TTM)3.5
OCFY4.66%
SpS13.4
BVpS7.44
TBVpS6.03
PEG (NY)0.79
PEG (5Y)1.31
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 | N/A |
F-Score7
WACC9.27%
ROIC/WACC3.47
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 Y26.41%
EPS Next 2Y13.61%
EPS Next 3Y15.45%
EPS Next 5Y15.5%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y0.63%
Revenue growth 5Y9.08%
Sales Q2Q%24.43%
Revenue Next Year19.47%
Revenue Next 2Y10.52%
Revenue Next 3Y10.84%
Revenue Next 5Y10.63%
EBIT growth 1Y30.25%
EBIT growth 3Y-1.18%
EBIT growth 5Y11.88%
EBIT Next Year32.89%
EBIT Next 3Y17.53%
EBIT Next 5Y14.63%
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%