Lam Research Corp
Exchange: NASDAQSector: TechnologyIndustry: Semiconductor Equipment & Materials
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research is a FORTUNE 500 ® company headquartered in Fremont, Calif., with operations around the globe.
Did you know?
A mega-cap stock valued at $325B.
Current Price
$258.56
-2.63%GoodMoat Value
$214.44
17.1% overvaluedProfile
Valuation (TTM)
Market Cap$324.76B
P/E52.27
EV$291.35B
P/B32.93
Shares Out1.26B
P/Sales15.80
Revenue$20.56B
EV/EBITDA43.58
Lam Research Corp (LRCX) Stock Analysis
GoodMoat Analysis
Lam Research is a high-quality semiconductor equipment leader with a strong competitive moat, evidenced by its dominant scale and technology leadership. However, its current valuation appears elevated, trading at a premium to the GoodMoat target and with a high P/E multiple, suggesting a marginal margin of safety.
Read full analysis
Lam Research Corp (LRCX) is a critical player in the semiconductor industry, manufacturing the equipment needed to produce advanced memory and logic chips. Its business strength is clear, with a high Moat Score anchored in scale privilege and technology leadership as a dominant provider of etching and deposition tools. The company also exhibits strong Quality Indicators, including a robust ROE of 63.0%, a high operating margin of 32.0%, and healthy revenue growth of 22.1% YoY. According to the GoodMoat Decision Framework, this profile likely passes the initial Moat & Quality Gate for further analysis. The primary question is valuation. The stock trades at $233.45, above the GoodMoat target of $214.44, indicating a marginal or negative margin of safety. The P/E of 47.2 is high in absolute terms, though it may be partially justified by the strong growth and quality. The FCF yield of 1.8% is relatively low. For a value investor, Lam Research represents a high-quality business but at a price that requires perfect execution. It is worth investigating further to understand if future growth can justify the premium, but the current valuation does not present a clear margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$324.76B
Current Price$258.56
P/E Ratio52.27
Forward P/E—
PEG Ratio1.43
EPS$4.15
Book Value$7.85
P/B Ratio32.93
LRCX Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 11.1% FCF growth (CAGR)
Cash vs Debt
Net Cash: 1.9B
Revenue
9.7B
FY19
10.0B
FY20
14.6B
FY21
17.2B
FY22
17.4B
FY23
14.9B
FY24
18.4B
FY25
Net Income
2.2B
FY19
2.3B
FY20
3.9B
FY21
4.6B
FY22
4.5B
FY23
3.8B
FY24
5.4B
FY25
LRCX 52-Week Range
$70.38
$272.41
50-Day MA: $234.52200-Day MA: $169.24
Did you know?
Pays a 0.35% dividend yield.
Lam Research Corp (LRCX) Financial Summary
Lam Research Corp (LRCX) is a Technology company in the Semiconductor Equipment & Materials industry, listed on NASDAQ. The stock currently trades at $258.56 with a market capitalization of $324.76B.
Key valuation metrics include a P/E ratio of 52.27, price-to-book ratio of 32.93, and EPS of $4.15. The company reports a profit margin of 30.2% and return on equity of 63.0%.
LRCX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $324.76B |
| P/E Ratio | 52.27 |
| EPS | $4.15 |
| P/B Ratio | 32.93 |
| P/S Ratio | 15.80 |
| EV/EBITDA | 43.58 |
| Dividend Yield | 0.35% |
| Profit Margin | 30.2% |
| Return on Equity | 63.0% |
| Debt/Equity | 0.45 |
LRCX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $9.65B | $2.19B |
| FY20 | $10.04B | $2.25B |
| FY21 | $14.63B | $3.91B |
| FY22 | $17.23B | $4.61B |
| FY23 | $17.43B | $4.51B |
| FY24 | $14.91B | $3.83B |
| FY25 | $18.44B | $5.36B |
Lam Research Corp (LRCX) Valuation
Based on GoodMoat's DCF model, Lam Research Corp has a fair value estimate of $214.44. At the current price of $258.56, the stock appears 20.6% overvalued relative to our intrinsic value estimate.
LRCX Quality Indicators
Lam Research Corp maintains a profit margin of 30.2% and an operating margin of 32.0%. Return on equity stands at 63.0%. The current ratio is 2.21. Debt-to-equity ratio is 0.45.
About Lam Research Corp
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research is a FORTUNE 500 ® company headquartered in Fremont, Calif., with operations around the globe.
LRCX Free Cash Flow
Lam Research Corp generated $5.41B in trailing twelve-month free cash flow, representing an FCF yield of 1.67%. This low FCF yield may reflect heavy reinvestment or growth spending.
LRCX Shares Outstanding
Lam Research Corp has 1.26 billion shares outstanding at a share price of $258.56, giving it a market capitalization of $324.76B.
LRCX Recent Insider Trades
Recent insider transactions at Lam Research Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Bettinger Douglas R (Chief Financial Officer & EVP) | SELL | 50,057 | $11.21M |
| Harter Ava (Chief Legal Officer) | SELL | 1,500 | $333990.00 |
| Bettinger Douglas R (Chief Financial Officer & EVP) | SELL | 40,329 | $9.28M |