LRCX Stock Overview
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits.
Lam Research Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$679.85|
|52 Week High||US$693.00|
|52 Week Low||US$457.59|
|1 Month Change||20.63%|
|3 Month Change||13.35%|
|1 Year Change||45.38%|
|3 Year Change||354.17%|
|5 Year Change||559.73%|
|Change since IPO||54,288.00%|
Recent News & Updates
Here's Why I Think Lam Research (NASDAQ:LRCX) Is An Interesting Stock
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
Lam Research (NASDAQ:LRCX) Is Increasing Its Dividend To US$1.50
Lam Research Corporation ( NASDAQ:LRCX ) will increase its dividend on the 5th of January to US$1.50. The announced...
Lam Research: It's Time To Take Profits
We wrote a bullish article on Lam Research almost 3 years ago, and since then, it has significantly outperformed both the S&P 500 and our own expectations. Lam Research is firing on all cylinders, but the valuation has become extremely stretched, and we believe it is time to take profits or at least reduce the position. We are positive on the company's fundamentals and still believe it is one of the best companies in the semiconductor industry.
|LRCX||US Semiconductor||US Market|
Return vs Industry: LRCX underperformed the US Semiconductor industry which returned 53.3% over the past year.
Return vs Market: LRCX exceeded the US Market which returned 20% over the past year.
|LRCX Average Weekly Movement||4.2%|
|Semiconductor Industry Average Movement||6.3%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.0%|
|10% least volatile stocks in US Market||2.3%|
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.
About the Company
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 deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products. It also provides SPEED gapfill high-density plasma chemical vapor deposition products; and Striker single-wafer atomic layer deposition products for dielectric film solutions.
Lam Research Fundamentals Summary
|LRCX fundamental statistics|
Is LRCX overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LRCX income statement (TTM)|
|Cost of Revenue||US$8.48b|
Last Reported Earnings
Sep 26, 2021
Next Earnings Date
|Earnings per share (EPS)||30.29|
|Net Profit Margin||27.07%|
How did LRCX perform over the long term?See historical performance and comparison
0.9%Current Dividend Yield
Does LRCX pay a reliable dividends?See LRCX dividend history and benchmarks
|Lam Research dividend dates|
|Ex Dividend Date||Dec 14 2021|
|Dividend Pay Date||Jan 05 2022|
|Days until Ex dividend||12 days|
|Days until Dividend pay date||34 days|
Does LRCX pay a reliable dividends?See LRCX dividend history and benchmarks
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 ($679.85) is trading below our estimate of fair value ($908.53)
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 (22.4x) compared to the US Semiconductor industry average (29.5x).
PE vs Market: LRCX is poor value based on its PE Ratio (22.4x) compared to the US market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: LRCX is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: LRCX is overvalued based on its PB Ratio (16.4x) compared to the US Semiconductor industry average (4.5x).
How is Lam Research forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LRCX's forecast earnings growth (7.1% per year) is above the savings rate (2%).
Earnings vs Market: LRCX's earnings (7.1% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: LRCX's earnings are forecast to grow, but not significantly.
Revenue vs Market: LRCX's revenue (5.7% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: LRCX's revenue (5.7% 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 (50.7%).
How has Lam Research performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LRCX has a high level of non-cash earnings.
Growing Profit Margin: LRCX's current net profit margins (27.1%) are higher than last year (23.6%).
Past Earnings Growth Analysis
Earnings Trend: LRCX's earnings have grown significantly by 20.1% per year over the past 5 years.
Accelerating Growth: LRCX's earnings growth over the past year (63.7%) exceeds its 5-year average (20.1% per year).
Earnings vs Industry: LRCX earnings growth over the past year (63.7%) underperformed the Semiconductor industry 80.5%.
Return on Equity
High ROE: LRCX's Return on Equity (73.3%) is considered outstanding.
How is Lam Research's financial position?
Financial Position Analysis
Short Term Liabilities: LRCX's short term assets ($11.1B) exceed its short term liabilities ($3.4B).
Long Term Liabilities: LRCX's short term assets ($11.1B) exceed its long term liabilities ($6.3B).
Debt to Equity History and Analysis
Debt Level: LRCX's net debt to equity ratio (6%) is considered satisfactory.
Reducing Debt: LRCX's debt to equity ratio has increased from 69.3% to 85.2% over the past 5 years.
Debt Coverage: LRCX's debt is well covered by operating cash flow (68.6%).
Interest Coverage: LRCX's interest payments on its debt are well covered by EBIT (26.6x coverage).
What is Lam Research current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LRCX's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: LRCX's dividend (0.88%) is low compared to the top 25% of dividend payers in the US market (3.63%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, LRCX has been paying a dividend for less than 10 years.
Growing Dividend: LRCX's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (18.1%), LRCX's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LRCX's dividends in 3 years are forecast to be well covered by earnings (15.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tim Archer (54 yo)
Mr. Timothy M. Archer, also known as Tim, has been President and Chief Executive Officer of Lam Research Corporation since January 24, 2018 and December 5, 2018 respectively. Mr. Archer has been Director o...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD15.50M) is above average for companies of similar size in the US market ($USD11.14M).
Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.
Experienced Management: LRCX's management team is considered experienced (3.4 years average tenure).
Experienced Board: LRCX's board of directors are not considered experienced ( 2.9 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: LRCX insiders have only sold shares 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 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$95.722b
- Shares outstanding: 140.80m
- Website: https://www.lamresearch.com
Number of Employees
- Lam Research Corporation
- 4650 Cushing Parkway
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/30 23:53|
|End of Day Share Price||2021/11/30 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.