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Lam Research

Nasdaq:LRCX
Snowflake Description

Undervalued with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LRCX
Nasdaq
$22B
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 52 days ago. More info.


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LRCX Share Price and Events
7 Day Returns
-1.9%
NasdaqGS:LRCX
-0.8%
US Semiconductor
-1.6%
US Market
1 Year Returns
-27.3%
NasdaqGS:LRCX
-7%
US Semiconductor
-1.5%
US Market
LRCX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lam Research (LRCX) -1.9% -5.2% -11.8% -27.3% 75.7% 151.2%
US Semiconductor -0.8% -1.6% -12.7% -7% 64.7% 123%
US Market -1.6% -2.8% -10.2% -1.5% 28.3% 38.9%
1 Year Return vs Industry and Market
  • LRCX underperformed the Semiconductor industry which returned -7% over the past year.
  • LRCX underperformed the Market in United States of America which returned -1.5% over the past year.
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 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.9%
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 1.17
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.17 (1 + (1- 21%) (11.07%))
1.272
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.272 * 7.05%)
11.92%

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
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 2,620.75 2,514.50 3,344.00 3,899.00 4,522.84
Source Analyst x8 Analyst x7 Analyst x2 Analyst x1 Est @ 16%, capped from 21.52%
Present Value
Discounted (@ 11.92%)
2,341.68 2,007.49 2,385.45 2,485.18 2,575.83
Present value of next 5 years cash flows $11,795.62
NasdaqGS:LRCX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $4,522.84 × (1 + 2.95%) ÷ (11.92% – 2.95%)
$51,922.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $51,922.42 ÷ (1 + 11.92%)5
$29,570.62
NasdaqGS:LRCX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $11,795.62 + $29,570.62
$41,366.24
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $41,366.24 / 155.18
$266.56
NasdaqGS:LRCX Discount to Share Price
Calculation Result
Value per share (USD) From above. $266.56
Current discount Discount to share price of $135.37
= -1 x ($135.37 - $266.56) / $266.56
49.2%

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
49%
Share price is $135.37 vs Future cash flow value of $266.56
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, and 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 (2018-09-23) in USD $14.52
NasdaqGS:LRCX Share Price ** NasdaqGS (2018-12-14) in USD $135.37
United States of America Semiconductor Industry PE Ratio Median Figure of 65 Publicly-Listed Semiconductor Companies 17.45x
United States of America Market PE Ratio Median Figure of 3,017 Publicly-Listed Companies 17.04x

* 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)

= 135.37 ÷ 14.52

9.32x

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 9.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
11%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 60 Publicly-Listed Semiconductor Companies 1.08x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.17x

*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

= 9.32x ÷ 11%

0.85x

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 (2018-09-23) in USD $34.70
NasdaqGS:LRCX Share Price * NasdaqGS (2018-12-14) in USD $135.37
United States of America Semiconductor Industry PB Ratio Median Figure of 104 Publicly-Listed Semiconductor Companies 2.3x
United States of America Market PB Ratio Median Figure of 5,074 Publicly-Listed Companies 1.72x
NasdaqGS:LRCX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 135.37 ÷ 34.70

3.9x

* 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 5/6, 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 19 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
11%
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 positive but not above 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 19 Analysts 11%
NasdaqGS:LRCX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 8.5%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 5.3%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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 (2 months ago) See Below
Future Estimates Average of up to 19 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 13,695 4,242 1
2021-06-30 12,116 3,598 2,851 8
2020-06-30 10,973 3,081 2,656 17
2019-06-30 10,031 2,864 2,286 19
NasdaqGS:LRCX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-23 10,930 2,518 2,323
2018-06-24 11,077 2,656 2,381
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lam Research's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).
  • Lam Research's revenue is expected to grow by 8.5% 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 (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Lam Research Company Filings, last reported 2 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 19.17 19.92 18.42 2.00
2020-06-30 16.28 18.39 13.22 8.00
2019-06-30 13.64 14.31 12.35 9.00
NasdaqGS:LRCX Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-23 14.52
2018-06-24 14.73
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

*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 3/6, 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 (15% vs 35.5%)
  • Lam Research's earnings growth has exceeded the US Semiconductor industry average in the past year (15% vs 7.1%).
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 2 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
2018-09-23 10,929.55 2,323.35 753.05 1,206.11
2018-06-24 11,077.00 2,380.68 759.32 1,189.51
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 5,885.89 914.05 630.95 913.71
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

*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 made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • 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.
  • High level of physical assets or inventory.
  • 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 2 months ago.

NasdaqGS:LRCX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-23 5,322.83 2,384.59 3,618.95
2018-06-24 6,501.85 2,440.31 4,949.60
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
  • Lam Research's level of debt (44.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (33.1% vs 44.8% today).
  • Debt is well covered by operating cash flow (105.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 290.2x 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
3.25%
Current annual income from Lam Research dividends. Estimated to be 3.2% next year.
If you bought $2,000 of Lam Research shares you are expected to receive $65 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 (3.73%).
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 19 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1982 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

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 4.58 7.00
2020-06-30 4.41 11.00
2019-06-30 4.12 12.00
NasdaqGS:LRCX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-11-13 4.400 3.023
2018-08-30 4.400 2.937
2018-05-17 4.400 2.426
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 5 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 earnings (4.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4x 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 0.9%) - 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
Tim Archer
COMPENSATION $7,064,888
AGE 51
TENURE AS CEO 0 years
CEO Bio

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 of Lam Research Corporation since December 5, 2018. He served as the Chief Operating Officer at Lam Research Corporation from June 2012 until December 5, 2018. Mr. Archer served as Executive Vice President of Lam Research Corporation from August 08, 2017 to January 2018. Mr. Archer served as Executive Vice President at Lam Research Corporation since June 2012. He served as an Executive Vice President of Sales, Marketing & Customer Satisfaction at Novellus Systems, Inc. from September 2009 to January 2011 and Chief Operating Officer since January 2011 to June 2012. Mr. Archer served as an Executive Vice President of Electrofill Business Unit and Executive Vice President of PECVD Business Unit at Novellus Systems, Inc. from November 2008 to September 2009. Mr. Archer served as Senior Vice President of PECVD Business Unit at Novellus Systems Inc. from October 2005 to September 2007. He served as General Manager of PECVD Business Unit at Novellus Systems Inc. He served as Senior Vice President of Dielectrics Business Group for Novellus Systems Inc. from February 2006 to September 2007. Since joining Novellus Systems Inc. in 1994, he has held a number of positions, including Senior Vice President Electrofill from October 2005 to February 2006, Vice President and General Manager for the Electrofill Business Unit from April 2002 to October 2005, Senior Director of Technology for the Electrofill Business Unit from April 2001 to April 2002 and Senior Director of Technology for Novellus Systems Japan from July 1999 to April 2001. He started his career in 1989 at Tektronix, where he was responsible for process development for high-speed bipolar ICs. Mr. Archer completed the Program for Management Development at Harvard Business School and holds a Bachelor of Science degree in Applied Physics from the California Institute of Technology.

CEO Compensation
  • Tim's compensation has been consistent with company performance over the past year.
  • Tim's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

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

3.7
Average Tenure
52
Average Age
  • The tenure for the Lam Research management team is about average.
Management Team

Tim Archer

TITLE
President
COMPENSATION
$7M
AGE
51

Doug Bettinger

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

Rick Gottscho

TITLE
Executive VP & Corporate CTO
COMPENSATION
$4M
AGE
66
TENURE
1.6 yrs

Scott Meikle

TITLE
Senior Vice President of Global Customer Operations
COMPENSATION
$5M
AGE
54
TENURE
1.2 yrs

Tina Correia

TITLE
Corporate Vice President of Investor Relations & Communications

Sarah O’Dowd

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

Pat Lord

TITLE
Senior VP & GM of Customer Support Business Group
AGE
52

Vahid Vahedi

TITLE
Senior VP & GM of Etch Business Unit
AGE
52

Sesha Varadarajan

TITLE
Senior VP & GM of Deposition Business Unit
AGE
43

Kevin Jennings

TITLE
Senior Vice President of Global Operations
AGE
53
Board of Directors Tenure

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

7.1
Average Tenure
61
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
$421K
AGE
64
TENURE
6.1 yrs

Tim Archer

TITLE
President
COMPENSATION
$7M
AGE
51

Cathy Lego

TITLE
Independent Director
COMPENSATION
$325K
AGE
61
TENURE
12.9 yrs

Eric Brandt

TITLE
Independent Director
COMPENSATION
$302K
AGE
56
TENURE
8.3 yrs

Abhi Talwalkar

TITLE
Lead Independent Director
COMPENSATION
$325K
AGE
54
TENURE
3.3 yrs

Mike Cannon

TITLE
Independent Director
COMPENSATION
$290K
AGE
65
TENURE
7.8 yrs

Christine Heckart

TITLE
Independent Director
COMPENSATION
$285K
AGE
52
TENURE
7.7 yrs

Youssef El-Mansy

TITLE
Independent Director
COMPENSATION
$311K
AGE
73
TENURE
6.5 yrs

Rick Tsai

TITLE
Independent Director
COMPENSATION
$272K
AGE
67
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
23. Apr 18 Sell Patrick Lord Individual 20. Apr 18 20. Apr 18 -4,655 $193.55 $-900,975
23. Mar 18 Sell Sarah O’Dowd Individual 22. Mar 18 22. Mar 18 -10,000 $224.28 $-2,242,800
09. Mar 18 Sell Sarah O’Dowd Individual 08. Mar 18 08. Mar 18 -1,835 $212.64 $-390,194
09. Mar 18 Sell Patrick Lord Individual 08. Mar 18 08. Mar 18 -4,656 $212.15 $-987,770
X
Management checks
We assess Lam Research's management by checking for:
  1. Is the CEO's compensation unreasonable compared to 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

Why Lam Research Corporation (NASDAQ:LRCX) Looks Like A Quality Company

Our data shows Lam Research has a return on equity of 44% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.44 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does Lam Research Corporation's (NASDAQ:LRCX) CEO Pay Compare Well With Peers?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Martin Anstice's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Lam Research Corporation has a market cap of US$24b, and is paying total annual CEO compensation of US$13m.

Simply Wall St -

Investors Are Undervaluing Lam Research Corporation (NASDAQ:LRCX) By 46.66%

How far off is Lam Research Corporation (NASDAQ:LRCX) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Lam Research Corporation (NASDAQ:LRCX): A Look At Return On Capital

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 return fundamentals and stock market performance. … Thus, to understand how your money can grow by investing in Lam Research, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Should Lam Research Corporation (NASDAQ:LRCX) Be Your Next Stock Pick?

Lam Research Corporation (NASDAQ:LRCX) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of LRCX, it

Simply Wall St -

Lam Research Corporation (NASDAQ:LRCX): How To Win In A Volatile Market

High quality companies, such as Lam Research Corporation, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … Check out our latest analysis for Lam Research. … Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide

Simply Wall St -

Two Ways Of Valuing Lam Research Corporation's (NASDAQ:LRCX) Stock

Knowing which valuation model to use for financial analysis can be incredibly confusing for even the most seasoned of investors. … A prime example of conflicts between valuation models is Lam Research Corporation's (NASDAQ:LRCX). … While my discounted cash flow (DCF) model tells me that it is undervalued by 45.91%, my relative valuation model says it is undervalued by 58.48%.

Simply Wall St -

At US$143, Is It Time To Put Lam Research Corporation (NASDAQ:LRCX) On Your Watch List?

saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $190.64 and falling to the lows of $137.62. … This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Lam Research's current trading price of $142.51 reflective of the actual value of the?

Simply Wall St -

What You Need To Know About Lam Research Corporation’s (NASDAQ:LRCX) Cash Situation

What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … Lam Research’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of Lam Research’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Where Lam Research Corporation (NASDAQ:LRCX) Stands In Terms Of Earnings Growth Against Its Industry

Assessing Lam Research Corporation's (NASDAQ:LRCX) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how Lam Research is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its semiconductor industry peers. … How Did LRCX's Recent Performance Stack Up Against Its Past.

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 ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition product for copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatment; SPEED gapfill high-density plasma chemical vapor deposition (CVD) products; Striker single-wafer atomic layer deposition (ALD) products; and VECTOR plasma-enhanced CVD ALD products. It also provides Flex for dielectric etch applications; Kiyo for conductor etch applications; Syndion for through-silicon via etch applications; and Versys metal products for metal etch processes. In addition, the company offers Coronus bevel clean products to enhance die yield; and Da Vinci, DV-Prime, EOS, SP to address a range of wafer cleaning. Further, it provides Metryx mass metrology systems for high aspect ratio etch, conformal and ALD/sidewall deposition, horizontal processing, film density monitoring, carbon mask open, and wafer cleaning/polymer removal applications; and legacy products. Lam Research Corporation was founded in 1980 and is headquartered in Fremont, California.

Details
Name: Lam Research Corporation
LRCX
Exchange: NasdaqGS
Founded: 1980
$21,533,166,160
155,182,806
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
11,000
Lam Research employees.
Industry
Semiconductor Equipment
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/14 23:43
End of day share price update: 2018/12/14 00:00
Last estimates confirmation: 2018/12/11
Last earnings filing: 2018/10/23
Last earnings reported: 2018/09/23
Last annual earnings reported: 2018/06/24


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.