Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. More Details
Outstanding track record with adequate balance sheet.
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.
7 Day Return
1 Year Return
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.
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
3 days ago | Simply Wall StLam Research's (NASDAQ:LRCX) Dividend Will Be Increased To US$1.50
1 week ago | Simply Wall StWhy The 36% Return On Capital At Lam Research (NASDAQ:LRCX) Should Have Your Attention
3 weeks ago | Simply Wall StLam Research's (NASDAQ:LRCX) investors will be pleased with their fantastic 556% return over the last five years
Is Lam Research undervalued compared to its fair value and its price relative to the market?
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).
How is Lam Research forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
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%).
How has Lam Research performed over the past 5 years?
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.
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 ($6.3B).
Debt to Equity History and Analysis
Debt Level: LRCX's debt to equity ratio (82.3%) is considered high.
Reducing Debt: LRCX's debt to equity ratio has increased from 73.2% to 82.3% over the past 5 years.
Debt Coverage: LRCX's debt is well covered by operating cash flow (72.3%).
Interest Coverage: LRCX's interest payments on its debt are well covered by EBIT (23.7x coverage).
What is Lam Research current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LRCX's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: LRCX's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, LRCX has been paying a dividend for less than 10 years.
Growing Dividend: LRCX's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (19.1%), LRCX's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LRCX's dividends in 3 years are forecast to be thoroughly covered by earnings (14.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tim Archer (54 yo)
Mr. Timothy M. Archer, also known as Tim, has been President and Chief Executive Officer of Lam Research Corporation since January 24, 2018 and December 5, 2018 respectively. Mr. Archer has been Director o...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($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.
Experienced Management: LRCX's management team is considered experienced (3.3 years average tenure).
Experienced Board: LRCX's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Lam Research Corporation's company bio, employee growth, exchange listings and data sources
- 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
- Lam Research Corporation
- 4650 Cushing Parkway
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:02|
|End of Day Share Price||2021/09/17 00:00|
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.