LAM RESEARCH CORP (LRCX) Fundamental Analysis & Valuation

NASDAQ:LRCX • US5128073062

Current stock price

263.425 USD
-8.99 (-3.3%)
Last:

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

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.
  • In the past 5 years LRCX always reported a positive cash flow from operatings.
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's Return On Assets of 29.05% is amongst the best of the industry. LRCX outperforms 99.13% of its industry peers.
  • LRCX has a better Return On Equity (61.24%) than 96.52% of its industry peers.
  • With an excellent Return On Invested Capital value of 40.64%, LRCX belongs to the best of the industry, outperforming 99.13% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for LRCX is significantly above the industry average of 10.70%.
  • The 3 year average ROIC (31.47%) for LRCX is below the current ROIC(40.64%), indicating increased profibility in the last year.
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's Profit Margin of 30.22% is amongst the best of the industry. LRCX outperforms 90.43% 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 91.30% of its industry peers.
  • LRCX's Operating Margin has improved in the last couple of years.
  • The Gross Margin of LRCX (49.80%) is better than 61.74% of its industry peers.
  • In the last couple of years the Gross Margin of LRCX has remained more or less at the same level.
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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LRCX is creating value.
  • The number of shares outstanding for LRCX has been reduced compared to 1 year ago.
  • LRCX has less shares outstanding than it did 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

  • 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.
  • LRCX has a better Debt to FCF ratio (0.72) than 77.39% of its industry peers.
  • LRCX has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.37, LRCX is doing worse than 64.35% of the companies in the same industry.
  • Although LRCX's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.37
Debt/FCF 0.72
Altman-Z N/A
ROIC/WACC3.48
WACC11.69%
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

  • 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.
  • With a Current ratio value of 2.26, LRCX is not doing good in the industry: 68.70% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.61 indicates that LRCX should not have too much problems paying its short term obligations.
  • LRCX has a worse Quick ratio (1.61) than 73.04% 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.
  • The Earnings Per Share has been growing by 21.02% on average over the past years. This is a very strong growth
  • Looking at the last year, LRCX shows a very strong growth in Revenue. The Revenue has grown by 26.85%.
  • 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

  • The Earnings Per Share is expected to grow by 21.46% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, LRCX will show a quite strong growth in Revenue. The Revenue will grow by 16.48% on average per year.
EPS Next Y30.91%
EPS Next 2Y30.83%
EPS Next 3Y25.29%
EPS Next 5Y21.46%
Revenue Next Year23.15%
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

  • A Price/Earnings ratio of 53.76 indicates a quite expensive valuation of LRCX.
  • Compared to the rest of the industry, the Price/Earnings ratio of LRCX indicates a somewhat cheap valuation: LRCX is cheaper than 63.48% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of LRCX to the average of the S&P500 Index (27.33), we can say LRCX is valued expensively.
  • The Price/Forward Earnings ratio is 37.18, which means the current valuation is very expensive for LRCX.
  • Based on the Price/Forward Earnings ratio, LRCX is valued a bit cheaper than the industry average as 62.61% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 38.16. LRCX is around the same levels.
Industry RankSector Rank
PE 53.76
Fwd PE 37.18
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

  • Based on the Enterprise Value to EBITDA ratio, LRCX is valued a bit cheaper than 63.48% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, LRCX is valued a bit cheaper than the industry average as 67.83% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 52.92
EV/EBITDA 46.09
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.
  • LRCX's earnings are expected to grow with 25.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)2.56
EPS Next 2Y30.83%
EPS Next 3Y25.29%

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 0.40%, LRCX is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.47, 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 0.4%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.54%
Div Incr Years11
Div Non Decr Years11
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

  • 19.48% of the earnings are spent on dividend by LRCX. This is a low number and sustainable payout ratio.
  • LRCX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.48%
EPS Next 2Y30.83%
EPS Next 3Y25.29%
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 (4/15/2026, 3:52:09 PM)

263.425

-8.99 (-3.3%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-28
Earnings (Next)04-22
Inst Owners89.05%
Inst Owner Change-0.02%
Ins Owners0.26%
Ins Owner Change3.61%
Market Cap328.96B
Revenue(TTM)20.56B
Net Income(TTM)6.21B
Analysts80
Price Target276.01 (4.78%)
Short Float %2.25%
Short Ratio2.62
Dividend
Industry RankSector Rank
Dividend Yield 0.4%
Yearly Dividend0.89
Dividend Growth(5Y)14.54%
DP19.48%
Div Incr Years11
Div Non Decr Years11
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)0.27%
PT rev (3m)59.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.38%
EPS NY rev (1m)0.03%
EPS NY rev (3m)9.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.96%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)5.8%
Valuation
Industry RankSector Rank
PE 53.76
Fwd PE 37.18
P/S 16
P/FCF 52.92
P/OCF 46.19
P/B 32.42
P/tB 39.72
EV/EBITDA 46.09
EPS(TTM)4.9
EY1.86%
EPS(NY)7.09
Fwd EY2.69%
FCF(TTM)4.98
FCFY1.89%
OCF(TTM)5.7
OCFY2.16%
SpS16.46
BVpS8.12
TBVpS6.63
PEG (NY)1.74
PEG (5Y)2.56
Graham Number29.9284 (-88.64%)
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
WACC11.69%
ROIC/WACC3.48
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 Y30.91%
EPS Next 2Y30.83%
EPS Next 3Y25.29%
EPS Next 5Y21.46%
Revenue 1Y (TTM)26.85%
Revenue growth 3Y2.29%
Revenue growth 5Y12.91%
Sales Q2Q%22.14%
Revenue Next Year23.15%
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 Year38.31%
EBIT Next 3Y27.92%
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 Fundamental Analysis 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.


What is the profitability of LRCX stock?

LAM RESEARCH CORP (LRCX) has a profitability rating of 9 / 10.


What are the PE and PB ratios of LAM RESEARCH CORP (LRCX) stock?

The Price/Earnings (PE) ratio for LAM RESEARCH CORP (LRCX) is 53.76 and the Price/Book (PB) ratio is 32.42.


What is the financial health of LAM RESEARCH CORP (LRCX) stock?

The financial health rating of LAM RESEARCH CORP (LRCX) is 6 / 10.