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Market Cap

US$86.4b

Last Updated

2021/09/18 22:02 UTC

Data Sources

Company Financials +

Executive Summary

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. More Details


Snowflake Analysis

Outstanding track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Lam Research's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LRCX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LRCX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

LRCX

-0.04%

US Semiconductor

-0.6%

US Market


1 Year Return

98.2%

LRCX

55.0%

US Semiconductor

33.8%

US Market

Return vs Industry: LRCX exceeded the US Semiconductor industry which returned 55% over the past year.

Return vs Market: LRCX exceeded the US Market which returned 33.8% over the past year.


Shareholder returns

LRCXIndustryMarket
7 Day1.8%-0.04%-0.6%
30 Day5.5%7.6%1.6%
90 Day-0.6%9.1%4.6%
1 Year100.4%98.2%57.0%55.0%35.8%33.8%
3 Year310.8%291.2%137.1%125.5%60.0%50.1%
5 Year618.8%563.5%295.5%259.4%123.0%98.7%

Long-Term Price Volatility Vs. Market

How volatile is Lam Research's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lam Research undervalued compared to its fair value and its price relative to the market?

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LRCX ($608.98) is trading below our estimate of fair value ($770.93)

Significantly Below Fair Value: LRCX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LRCX is good value based on its PE Ratio (22.1x) compared to the US Semiconductor industry average (29.6x).

PE vs Market: LRCX is poor value based on its PE Ratio (22.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: LRCX is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: LRCX is overvalued based on its PB Ratio (14.3x) compared to the US Semiconductor industry average (4.4x).


Future Growth

How is Lam Research forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LRCX's forecast earnings growth (9.7% per year) is above the savings rate (2%).

Earnings vs Market: LRCX's earnings (9.7% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: LRCX's earnings are forecast to grow, but not significantly.

Revenue vs Market: LRCX's revenue (8.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: LRCX's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LRCX's Return on Equity is forecast to be very high in 3 years time (54.9%).


Past Performance

How has Lam Research performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LRCX has high quality earnings.

Growing Profit Margin: LRCX's current net profit margins (26.7%) are higher than last year (22.4%).


Past Earnings Growth Analysis

Earnings Trend: LRCX's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: LRCX's earnings growth over the past year (73.7%) exceeds its 5-year average (19.8% per year).

Earnings vs Industry: LRCX earnings growth over the past year (73.7%) exceeded the Semiconductor industry 70.6%.


Return on Equity

High ROE: LRCX's Return on Equity (64.8%) is considered outstanding.


Financial Health

How is Lam Research's financial position?


Financial Position Analysis

Short Term Liabilities: LRCX's short term assets ($11.7B) exceed its short term liabilities ($3.5B).

Long Term Liabilities: LRCX's short term assets ($11.7B) exceed its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: LRCX's debt to equity ratio (82.3%) is considered high.

Reducing Debt: LRCX's debt to equity ratio has increased from 73.2% to 82.3% over the past 5 years.

Debt Coverage: LRCX's debt is well covered by operating cash flow (72.3%).

Interest Coverage: LRCX's interest payments on its debt are well covered by EBIT (23.7x coverage).


Balance Sheet


Dividend

What is Lam Research current dividend yield, its reliability and sustainability?

0.98%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 19 2021Ex Dividend DateSep 27 2021Dividend Pay DateOct 13 202116 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: LRCX's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: LRCX's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LRCX has been paying a dividend for less than 10 years.

Growing Dividend: LRCX's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.1%), LRCX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LRCX's dividends in 3 years are forecast to be thoroughly covered by earnings (14.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Tim Archer (54 yo)

2.75yrs

Tenure

US$11,753,004

Compensation

Mr. Timothy M. Archer, also known as Tim, has been President and Chief Executive Officer of Lam Research Corporation since January 24, 2018 and December 5, 2018 respectively. Mr. Archer has been Director o...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD11.75M) is about average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LRCX's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: LRCX's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lam Research Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lam Research Corporation
  • Ticker: LRCX
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$86.447b
  • Shares outstanding: 141.95m
  • Website: https://www.lamresearch.com

Number of Employees


Location

  • Lam Research Corporation
  • 4650 Cushing Parkway
  • Fremont
  • California
  • 94538
  • United States

Listings


Biography

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to dep...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.