(LRCX) Lam Research - Overview
Sector: Technology | Industry: Semiconductor Equipment & Materials | Exchange: NASDAQ (USA) | Market Cap: 377.973m USD | Total Return: 266.4% in 12m
Avg Turnover: 2.60B
EPS Trend: 86.6%
Qual. Beats: 9
Rev. Trend: 78.3%
Qual. Beats: 7
Warnings
No concerns identified
Tailwinds
Rs(ibd) Leader, Tailwind, Confidence
Lam Research Corporation (LRCX) is a global supplier of wafer fabrication equipment and services for the semiconductor industry. The company specializes in thin film deposition, plasma etch, and wafer cleaning technologies, which are critical steps in the production of advanced integrated circuits. Its product portfolio, including the ALTUS, SABRE, and Flex systems, supports the manufacturing of high-density memory and logic devices across major markets in Asia, North America, and Europe.
The semiconductor equipment sector is characterized by high barriers to entry due to intense R&D requirements and complex intellectual property portfolios. As a member of the industry’s Big Five equipment manufacturers, Lam Research operates on a cyclical business model heavily influenced by capital expenditure trends among global chip foundries. For deeper insights into these industry cycles, ValueRay provides comprehensive fundamental data. The company also generates recurring revenue through its Customer Support Business Group, which provides spare parts, equipment upgrades, and refurbishment services for its large installed base of machines.
- NAND flash memory demand recovery drives increased investment in 3D architectures
- Expansion of advanced packaging technologies fuels demand for deposition and etch tools
- Export restrictions on high-end semiconductor equipment to China impact revenue growth
- Strategic shift toward AI-optimized chip production increases capital expenditure from foundries
- High customer concentration in Asia-Pacific markets creates exposure to regional geopolitical tension
| Net Income: 6.71b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.31 > 0.02 and ΔFCF/TA 10.53 > 1.0 |
| NWC/Revenue: 37.15% < 20% (prev 46.51%; Δ -9.37% < -1%) |
| CFO/TA 0.33 > 3% & CFO 6.95b > Net Income 6.71b |
| Net Debt (-1.00b) to EBITDA (7.99b): -0.13 < 3 |
| Current Ratio: 2.54 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.26b) vs 12m ago -2.39% < -2% |
| Gross Margin: 49.98% > 18% (prev 0.48%; Δ 4.95k% > 0.5%) |
| Asset Turnover: 106.4% > 50% (prev 85.81%; Δ 20.57% > 0%) |
| Interest Coverage Ratio: 45.31 > 6 (EBITDA TTM 7.99b / Interest Expense TTM 167.1m) |
| A: 0.39 (Total Current Assets 13.3b - Total Current Liabilities 5.24b) / Total Assets 20.8b |
| B: 1.59 (Retained Earnings 33.0b / Total Assets 20.8b) |
| C: 0.37 (EBIT TTM 7.57b / Avg Total Assets 20.4b) |
| D: 3.22 (Book Value of Equity 32.9b / Total Liabilities 10.2b) |
| Altman-Z'' = 13.59 = AAA |
| DSRI: 1.01 (Receivables 4.13b/3.23b, Revenue 21.7b/17.1b) |
| GMI: 0.96 (GM 49.98% / 48.03%) |
| AQI: 1.08 (AQ_t 0.22 / AQ_t-1 0.21) |
| SGI: 1.27 (Revenue 21.7b / 17.1b) |
| TATA: -0.01 (NI 6.71b - CFO 6.95b) / TA 20.8b) |
| Beneish M = -2.83 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 305.35 with a total of 7,840,843 shares traded.
Over the past week, the price has changed by +7.25%,
over one month by +14.03%,
over three months by +25.17% and
over the past year by +266.44%.
Lam Research has received a consensus analysts rating of 4.33. Therefore, it is recommended to buy LRCX.
- StrongBuy: 20
- Buy: 4
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 312.1 | 2.2% |
P/E Trailing = 57.1342
P/E Forward = 38.4615
P/S = 17.4327
P/B = 35.7091
P/EG = 1.7599
Revenue TTM = 21.7b USD
EBIT TTM = 7.57b USD
EBITDA TTM = 7.99b USD
Long Term Debt = 3.73b USD (from longTermDebt, last quarter)
Short Term Debt = 4.09m USD (from shortTermDebt, last quarter)
Debt = 3.75b USD (from shortLongTermDebtTotal, last quarter) + Leases 15.1m
Net Debt = -1.00b USD (calculated: Debt 3.75b - CCE 4.75b)
Enterprise Value = 377b USD (378b + Debt 3.75b - CCE 4.75b)
Interest Coverage Ratio = 45.31 (Ebit TTM 7.57b / Interest Expense TTM 167.1m)
EV/FCF = 58.44x (Enterprise Value 377b / FCF TTM 6.45b)
FCF Yield = 1.71% (FCF TTM 6.45b / Enterprise Value 377b)
FCF Margin = 29.75% (FCF TTM 6.45b / Revenue TTM 21.7b)
Net Margin = 30.94% (Net Income TTM 6.71b / Revenue TTM 21.7b)
Gross Margin = 49.98% ((Revenue TTM 21.7b - Cost of Revenue TTM 10.8b) / Revenue TTM)
Gross Margin QoQ = 49.83% (prev 49.60%)
Tobins Q-Ratio = 18.13 (Enterprise Value 377b / Total Assets 20.8b)
Interest Expense / Debt = 4.46% (Interest Expense 167.1m / Debt 3.75b)
Taxrate = 9.25% (186.1m / 2.01b)
NOPAT = 6.87b (EBIT 7.57b * (1 - 9.25%))
Current Ratio = 2.54 (Total Current Assets 13.3b / Total Current Liabilities 5.24b)
Debt / Equity = 0.35 (Debt 3.75b / totalStockholderEquity, last quarter 10.6b)
Debt / EBITDA = -0.13 (Net Debt -1.00b / EBITDA 7.99b)
Debt / FCF = -0.16 (Net Debt -1.00b / FCF TTM 6.45b)
Total Stockholder Equity = 10.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 32.92% (Net Income 6.71b / Total Assets 20.8b)
RoE = 65.79% (Net Income TTM 6.71b / Total Stockholder Equity 10.2b)
RoCE = 54.35% (EBIT 7.57b / Capital Employed (Equity 10.2b + L.T.Debt 3.73b))
RoIC = 44.16% (NOPAT 6.87b / Invested Capital 15.6b)
WACC = 14.70% (E(378b)/V(382b) * Re(14.81%) + D(3.75b)/V(382b) * Rd(4.46%) * (1-Tc(0.09)))
Discount Rate = 14.81% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -100.00 | Cagr: -2.21%
[DCF] Terminal Value 60.19% ; FCFF base≈5.51b ; Y1≈6.31b ; Y5≈9.29b
[DCF] Fair Price = 53.01 (EV 65.3b - Net Debt -1.00b = Equity 66.3b / Shares 1.25b; r=14.70% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 86.64 | EPS CAGR: 23.56% | SUE: 3.74 | # QB: 9
Revenue Correlation: 78.29 | Revenue CAGR: 12.93% | SUE: 2.29 | # QB: 7
EPS next Quarter (2026-09-30): EPS=1.80 | Chg30d=+10.92% | Revisions=+77% | Analysts=27
EPS current Year (2026-06-30): EPS=5.67 | Chg30d=+6.27% | Revisions=+89% | GrowthEPS=+37.1% | GrowthRev=+25.7%
EPS next Year (2027-06-30): EPS=7.93 | Chg30d=+10.40% | Revisions=+83% | GrowthEPS=+39.8% | GrowthRev=+31.5%
[Analyst] Revisions Ratio: +89%