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Lam Research

Nasdaq:LRCX
Snowflake Description

Solid track record and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LRCX
Nasdaq
$28B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide. The last earnings update was 114 days ago. More info.


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LRCX Share Price and Events
Price Volatility
LRCX
Industry
5yr Volatility vs Market

LRCX Value

 Is Lam Research undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lam Research to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lam Research.

NasdaqGS:LRCX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:LRCX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.013 (1 + (1- 21%) (11.47%))
1.105
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.105 * 7.05%)
10.74%

Discounted Cash Flow Calculation for NasdaqGS:LRCX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lam Research is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:LRCX DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 2,559.70 2,902.80 3,297.20 3,980.50 4,319.00
Source Analyst x6 Analyst x8 Analyst x5 Analyst x2 Analyst x1
Present Value
Discounted (@ 10.74%)
2,311.50 2,367.16 2,428.06 2,647.02 2,593.63
Present value of next 5 years cash flows $12,347
NasdaqGS:LRCX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $4,319 × (1 + 2.95%) ÷ (10.74% – 2.95%)
$57,096
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $57,096 ÷ (1 + 10.74%)5
$34,287
NasdaqGS:LRCX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $12,347 + $34,287
$46,635
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $46,635 / 164
$284.28
NasdaqGS:LRCX Discount to Share Price
Calculation Result
Value per share (USD) From above. $284.28
Current discount Discount to share price of $177.24
= -1 x ($177.24 - $284.28) / $284.28
37.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lam Research is available for.
Intrinsic value
38%
Share price is $177.24 vs Future cash flow value of $284.28
Current Discount Checks
For Lam Research to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lam Research's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Lam Research's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lam Research's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lam Research's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:LRCX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $11.64
NasdaqGS:LRCX Share Price ** NasdaqGS (2018-07-17) in USD $177.24
United States of America Semiconductor Industry PE Ratio Median Figure of 120 Publicly-Listed Semiconductor Companies 22.64x
United States of America Market PE Ratio Median Figure of 7,808 Publicly-Listed Companies 18.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lam Research.

NasdaqGS:LRCX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LRCX Share Price ÷ EPS (both in USD)

= 177.24 ÷ 11.64

15.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lam Research is good value based on earnings compared to the US Semiconductor industry average.
  • Lam Research is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Lam Research's expected growth come at a high price?
Raw Data
NasdaqGS:LRCX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.22x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
16%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 111 Publicly-Listed Semiconductor Companies 1.43x
United States of America Market PEG Ratio Median Figure of 5,905 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

NasdaqGS:LRCX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.22x ÷ 16%

0.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lam Research is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Lam Research's assets?
Raw Data
NasdaqGS:LRCX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $41.46
NasdaqGS:LRCX Share Price * NasdaqGS (2018-07-17) in USD $177.24
United States of America Semiconductor Industry PB Ratio Median Figure of 195 Publicly-Listed Semiconductor Companies 2.68x
United States of America Market PB Ratio Median Figure of 13,225 Publicly-Listed Companies 1.73x
NasdaqGS:LRCX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LRCX Share Price ÷ Book Value per Share (both in USD)

= 177.24 ÷ 41.46

4.28x

* Primary Listing of Lam Research.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lam Research is overvalued based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess Lam Research's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Lam Research has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LRCX Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lam Research expected to grow at an attractive rate?
  • Lam Research's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Lam Research's earnings growth is expected to exceed the United States of America market average.
  • Lam Research's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:LRCX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:LRCX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 16%
NasdaqGS:LRCX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 7.4%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 16.2%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:LRCX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:LRCX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 15,543 4,661 4,253 1
2021-06-30 14,350 4,251 3,833 3
2020-06-30 12,257 3,644 3,070 9
2019-06-30 11,620 3,359 2,798 21
2018-06-30 11,011 2,899 2,279 21
NasdaqGS:LRCX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-25 10,296 2,667 1,886
2017-12-24 9,558 2,039 1,682
2017-09-24 8,859 2,414 2,025
2017-06-25 8,014 2,029 1,698
2017-03-26 7,215 1,724 1,430
2016-12-25 6,375 1,484 999
2016-09-25 5,918 1,375 889
2016-06-26 5,886 1,350 914
2016-03-27 5,821 1,219 786
2015-12-27 5,900 1,227 849
2015-09-27 5,707 1,093 803
2015-06-28 5,259 786 656
2015-03-29 5,027 739 758

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lam Research's earnings are expected to grow by 16% yearly, however this is not considered high growth (20% yearly).
  • Lam Research's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:LRCX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Lam Research Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LRCX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 22.37 22.93 21.80 2.00
2020-06-30 17.88 19.69 15.19 4.00
2019-06-30 15.82 19.00 13.13 12.00
2018-06-30 12.35 12.92 11.94 12.00
NasdaqGS:LRCX Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-25 11.64
2017-12-24 10.37
2017-09-24 12.45
2017-06-25 10.47
2017-03-26 8.85
2016-12-25 6.22
2016-09-25 5.58
2016-06-26 5.75
2016-03-27 4.96
2015-12-27 5.35
2015-09-27 5.06
2015-06-28 4.11
2015-03-29 4.64

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lam Research is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Lam Research's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lam Research has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LRCX Past Performance

  How has Lam Research performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lam Research's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lam Research has delivered over 20% year on year earnings growth in the past 5 years.
  • Lam Research's 1-year earnings growth is less than its 5-year average (32.3% vs 33.4%)
  • Lam Research's earnings growth has exceeded the US Semiconductor industry average in the past year (32.3% vs 28.2%).
Earnings and Revenue History
Lam Research's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lam Research Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LRCX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-25 10,295.98 1,885.96 731.23 1,147.51
2017-12-24 9,557.86 1,681.87 700.44 1,108.09
2017-09-24 8,859.34 2,024.62 673.72 1,073.58
2017-06-25 8,013.62 1,697.76 657.69 1,033.74
2017-03-26 7,214.97 1,430.28 593.46 985.29
2016-12-25 6,375.03 999.02 585.48 940.79
2016-09-25 5,918.27 889.21 592.24 914.74
2016-06-26 5,885.89 914.05 579.95 913.71
2016-03-27 5,821.00 786.38 628.05 898.13
2015-12-27 5,900.28 849.22 611.80 894.50
2015-09-27 5,706.99 803.18 596.03 870.52
2015-06-28 5,259.31 655.58 591.61 825.24
2015-03-29 5,026.74 757.70 614.96 789.02
2014-12-28 4,860.80 715.81 593.08 757.13
2014-09-28 4,744.62 687.86 597.77 734.84
2014-06-29 4,607.31 632.29 605.34 716.47
2014-03-30 4,344.73 484.60 572.81 711.24
2013-12-29 3,962.26 339.20 606.74 699.47
2013-09-29 3,707.09 196.62 596.32 690.94
2013-06-30 3,598.92 113.88 601.30 683.69
2013-03-31 3,354.52 46.24 532.11 628.00
2012-12-23 3,168.55 72.85 472.88 567.24
2012-09-23 2,891.64 99.65 410.72 505.31
2012-06-24 2,665.19 168.72 401.78 444.56
2012-03-25 2,675.40 276.58 338.98 419.61
2011-12-25 2,825.52 413.22 323.54 403.05
2011-09-25 3,112.26 601.86 316.13 389.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lam Research has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Lam Research used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • Lam Research has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lam Research's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lam Research has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LRCX Health

 How is Lam Research's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lam Research's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lam Research is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lam Research's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lam Research's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lam Research Company Filings, last reported 3 months ago.

NasdaqGS:LRCX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-25 6,803.06 3,230.92 6,484.97
2017-12-24 6,143.13 3,206.14 5,699.70
2017-09-24 7,271.18 2,446.46 6,182.70
2017-06-25 6,817.45 2,700.68 6,041.16
2017-03-26 6,746.25 2,700.70 5,884.58
2016-12-25 6,395.70 2,743.76 5,833.39
2016-09-25 6,184.88 4,331.18 7,214.48
2016-06-26 5,894.52 4,325.86 6,827.98
2016-03-27 5,692.34 2,390.47 4,549.63
2015-12-27 5,552.29 2,378.38 4,475.48
2015-09-27 5,358.16 2,370.01 4,331.80
2015-06-28 5,103.14 2,361.03 4,076.49
2015-03-29 5,097.06 2,532.35 3,949.13
2014-12-28 5,000.44 1,532.35 2,883.68
2014-09-28 4,890.67 1,525.80 2,887.35
2014-06-29 5,029.74 1,335.47 3,065.64
2014-03-30 4,807.29 1,512.35 2,754.47
2013-12-29 4,666.09 1,504.91 2,522.29
2013-09-29 4,527.27 1,497.95 2,456.22
2013-06-30 4,488.87 1,490.83 2,497.22
2013-03-31 4,542.20 1,296.15 2,356.93
2012-12-23 4,696.59 1,288.19 2,520.69
2012-09-23 5,011.65 1,280.31 2,724.23
2012-06-24 5,131.78 1,463.27 2,862.68
2012-03-25 2,609.14 757.93 2,403.96
2011-12-25 2,462.74 751.90 2,219.78
2011-09-25 2,389.88 747.70 2,076.52
  • Lam Research's level of debt (47.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (28.5% vs 47.5% today).
  • Debt is well covered by operating cash flow (82.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 164.2x coverage).
X
Financial health checks
We assess Lam Research's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lam Research has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LRCX Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.48%
Current annual income from Lam Research dividends. Estimated to be 2.23% next year.
If you bought $2,000 of Lam Research shares you are expected to receive $50 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lam Research's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Lam Research's dividend is below the markets top 25% of dividend payers in United States of America (3.98%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:LRCX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 67 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5856 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:LRCX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30 4.40 1.00
2020-06-30 3.88 7.00
2019-06-30 3.95 11.00
2018-06-30 2.39 11.00
NasdaqGS:LRCX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-05-17 4.400 2.396
2018-02-08 2.000 1.011
2017-11-14 2.000 1.037
2017-08-07 1.800 1.005
2017-05-12 1.800 1.170
2017-02-09 1.800 1.403
2016-11-18 1.800 1.654
2016-09-01 1.200 1.248
2016-05-13 1.200 1.398
2016-02-19 1.200 1.547
2015-11-06 1.200 1.622
2015-08-27 1.200 1.716
2015-05-18 1.200 1.536
2015-02-11 0.720 0.934
2014-11-10 0.720 0.905
2014-08-29 0.720 0.977
2014-04-29 0.720 1.097

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Lam Research has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Lam Research only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Lam Research's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by net profit (6.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by net profit (5.1x coverage).
X
Income/ dividend checks
We assess Lam Research's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lam Research afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lam Research has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LRCX Management

 What is the CEO of Lam Research's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Martin Anstice, image provided by Google.
Martin Anstice
COMPENSATION $11,158,881
AGE 51
TENURE AS CEO 6.5 years
CEO Bio

Mr. Martin B. Anstice has been the Chief Executive Officer of Lam Research Corporation (“Lam”) since January 1, 2012 and December 7, 2010 respectively. Mr. Anstice served as the Chief Operating Officer of Lam from September 2008 to December 2011. He served as Executive Vice President at Lam from September 2008 to December 7, 2010 and its Chief Financial Officer and Chief Accounting Officer from June 2004 to June 2008. He served as Senior Vice President at Lam from March 2007 to September 2008 and its Group Vice President from June 2004 to March 2007. He joined Lam in April 2001 and served as its Senior Director of Operations Controller since April 2001, Managing Director and Corporate Controller since May 2002 and as Vice President of Finance since June 2004. He started his career at Raychem Corporation where for 13 years he held numerous finance roles of increasing responsibility in Europe and North America. In 1999, he assumed responsibilities supporting mergers and acquisition activities of Tyco Electronics until 2001. He serves as Vice Chairman of SEZ Holding AG and has been its Director since March 2008. He serves as a Director at Lam. He is an Associate Member of the Chartered Institute of Management Accountants in the United Kingdom.

CEO Compensation
  • Martin's compensation has been consistent with company performance over the past year.
  • Martin's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Lam Research management team in years:

5.3
Average Tenure
53
Average Age
  • The average tenure for the Lam Research management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Martin Anstice

TITLE
CEO & Director
COMPENSATION
$11M
AGE
51
TENURE
6.5 yrs

Tim Archer

TITLE
President & COO
COMPENSATION
$6M
AGE
51
TENURE
0.5 yrs

Doug Bettinger

TITLE
Executive VP
COMPENSATION
$4M
AGE
51
TENURE
5.3 yrs

Rick Gottscho

TITLE
Executive VP & Corporate CTO
COMPENSATION
$5M
AGE
66
TENURE
1.2 yrs

Sarah O’Dowd

TITLE
Senior VP
COMPENSATION
$2M
AGE
68
TENURE
9.8 yrs

Scott Meikle

TITLE
Senior Vice President of Global Customer Operations
AGE
54
TENURE
0.8 yrs

Carol Raeburn

TITLE
VP & Corporate Controller
TENURE
5.3 yrs

George Schisler

TITLE
Vice President of General Legal - Support Groups
TENURE
10.9 yrs

Abdi Hariri

TITLE
Group Vice President of Customer Support Business Group
COMPENSATION
$2M
AGE
56
TENURE
6.1 yrs

Pat Lord

TITLE
Group VP & GM of Customer Support Business Group
AGE
52
TENURE
1.6 yrs
Board of Directors Tenure

Average tenure and age of the Lam Research board of directors in years:

6.4
Average Tenure
62.5
Average Age
  • The tenure for the Lam Research board of directors is about average.
Board of Directors

Steve Newberry

TITLE
Chairman of the Board
COMPENSATION
$449K
AGE
64
TENURE
5.7 yrs

Martin Anstice

TITLE
CEO & Director
COMPENSATION
$11M
AGE
51
TENURE
6.4 yrs

Cathy Lego

TITLE
Independent Director
COMPENSATION
$312K
AGE
61
TENURE
12.5 yrs

Eric Brandt

TITLE
Independent Director
COMPENSATION
$292K
AGE
56
TENURE
7.8 yrs

Abhi Talwalkar

TITLE
Lead Independent Director
COMPENSATION
$310K
AGE
54
TENURE
2.9 yrs

Mike Cannon

TITLE
Independent Director
COMPENSATION
$280K
AGE
65
TENURE
7.4 yrs

Christine Heckart

TITLE
Independent Director
COMPENSATION
$275K
AGE
52
TENURE
7.3 yrs

Youssef El-Mansy

TITLE
Independent Director
COMPENSATION
$299K
AGE
73
TENURE
6.1 yrs

Rick Tsai

TITLE
Independent Director
COMPENSATION
$328K
AGE
67
TENURE
1.8 yrs

John Dickson

TITLE
Additional Director Nominee
AGE
72
Recent Insider Trading
  • Lam Research insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Lam Research's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lam Research has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LRCX News

External News
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Simply Wall St News

Lam Research Corporation (NASDAQ:LRCX): What Can We Expect From Future Profit Margins?

Lam Research Corporation (NASDAQ:LRCX) to … earnings growth of 15.98% annualised … it's necessary to take a moment

Simply Wall St -

Is Lam Research Corporation's (NASDAQ:LRCX) Growth Strong Enough To Justify Its July Share Price?

Lam Research Corporation (NASDAQ:LRCX) is considered a high-growth stock, but its last closing price of $167.25 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Let’s look into this by assessing LRCX's expected growth over the next few years. … Lam Research is poised for significantly high earnings growth in the near future

Simply Wall St -

Is Lam Research Corporation (NASDAQ:LRCX) A Buy At Its Current PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between Lam Research Corporation (NASDAQ:LRCX)’s fundamentals and stock market performance. … While this makes LRCX appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

Why Lam Research Corporation (NASDAQ:LRCX) Is An Attractive Investment

Lam Research Corporation (NASDAQ:LRCX) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of LRCX, it

Simply Wall St -

Should Income Investors Buy Lam Research Corporation (NASDAQ:LRCX) Before Its Ex-Dividend?

See our latest analysis for Lam Research 5 questions I ask before picking a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is it the top 25% annual dividend yield payer? … Relative to peers, Lam Research generates a yield of 2.18%, which is high for Semiconductor stocks but still below the market's top dividend payers. … Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you.

Simply Wall St -

Does Lam Research Corporation's (NASDAQ:LRCX) PE Ratio Signal A Buying Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for LRCX Price per share = $204.03 Earnings per share = $11.644 ∴ Price-Earnings Ratio = $204.03 ÷ $11.644 = 17.5x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared lower risk firms with LRCX, then investors would naturally value LRCX at a lower price since it is a riskier investment. … Similarly, if you accidentally compared higher growth firms with LRCX, investors would also value LRCX at a lower price since it is a lower growth investment.

Simply Wall St -

Lam Research Corporation (NASDAQ:LRCX): What Can We Expect From Future Profit Margins?

To get a preliminary understanding, I will try to evaluate Lam Research's margin behaviour to help recognise the underlying make-up of revenue and expenses that is responsible for driving future earnings expectations and what it means for LRCX's returns relative to its competitors. … Margin Calculation for LRCX Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 1.89 Billion ÷ 10.30 Billion = 18.32% The past five years have seen Lam Research's margin expand, as a result of a 30.10% average growth in net income exceeding 18.88% in average revenue growth, which means that the previous increase in revenue has coincided with a larger portion falling to the bottom line. … Thus, it is essential to run your own analysis on Lam Research's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.

Simply Wall St -

What You Must Know About Lam Research Corporation's (NASDAQ:LRCX) ROE

View our latest analysis for Lam Research Breaking down ROE — the mother of all ratios Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:LRCX Last Perf Mar 20th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Lam Research And Other High Growth Stocks

LRCX’s projected future profit growth is a robust 22.25%, with an underlying 22.92% growth from its revenues expected over the upcoming years. … AVGO’s projected future profit growth is a robust 41.94%, with an underlying 26.93% growth from its revenues expected over the upcoming years. … NasdaqGS:FIVE Future Profit Mar 14th 18 For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.

Simply Wall St -

What You Must Know About Lam Research Corporation's (NASDAQ:LRCX) Financial Strength

LRCX has shrunken its total debt levels in the last twelve months, from US$4.33B to US$2.70B , which comprises of short- and long-term debt. … Additionally, LRCX has generated cash from operations of US$2.03B in the last twelve months, leading to an operating cash to total debt ratio of 75.14%, signalling that LRCX’s debt is appropriately covered by operating cash. … Next Steps: LRCX’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

LRCX Company Info

Map
Description

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide. The company offers thin film deposition products, including SABRE electrochemical deposition products for copper damascene manufacturing; ALTUS systems to deposit conformal atomic layer films for tungsten metallization applications; VECTOR plasma-enhanced chemical vapor deposition (CVD) and atomic layer deposition systems to deposit oxides, nitrides, and carbides for hardmasks, multiple patterning films, anti-reflective layers, multi-layer stack films, and diffusion barriers; and Striker atomic layer deposition systems that deliver conformal dielectric films for spacer-based patterning and liner applications in various advanced memory and logic structures. Its thin film deposition products also comprise SPEED high-density plasma CVD products for applications in shallow trench isolation, pre-metal dielectrics, inter-layer dielectrics, inter-metal dielectrics, and passivation layers; and SOLA ultraviolet thermal processing products for treatment of back-end-of-line (BEOL) low-k dielectric films and front-end-of-line silicon nitride strained films. In addition, the company offers plasma etch products, such as Kiyo that provide solutions for conductor etch applications; Versys metal products, which offer a platform for BEOL metal etch processes; Flex for dielectric etch applications; and Syndion to address various through-silicon via etch and complementary image sensor etch applications. Further, it provides single-wafer clean products comprising EOS, Da Vinci, DV-Prime, and SP series products for wet etch and clean applications in wafer-level packaging; and Coronus plasma-based bevel clean products to enhance die yield by removing particles, residues, and unwanted films from the wafer’s edge, as well as legacy products. The company was founded in 1980 and is headquartered in Fremont, California.

Details
Name: Lam Research Corporation
LRCX
Exchange: NasdaqGS
Founded: 1980
$28,181,325,766
164,045,205
Website: http://www.lamresearch.com
Address: Lam Research Corporation
4650 Cushing Parkway,
Fremont,
California, 94538,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LRCX Common Stock Nasdaq Global Select US USD 04. May 1984
DB LAR Common Stock Deutsche Boerse AG DE EUR 04. May 1984
LSE 0JT5 Common Stock London Stock Exchange GB USD 04. May 1984
WBAG LRCX Common Stock Wiener Boerse AG AT EUR 04. May 1984
Number of employees
Current staff
Staff numbers
10,600
Lam Research employees.
Industry
Semiconductor Equipment
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/17 21:23
End of day share price update: 2018/07/17 00:00
Last estimates confirmation: 2018/07/14
Last earnings update: 2018/03/25
Last annual earnings update: 2017/06/25


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.