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LRCX

Lam ResearchNasdaqGS:LRCX Stock Report

Market Cap

US$97.6b

7D

0.1%

1Y

36.7%

Updated

02 Dec, 2021

Data

Company Financials +
LRCX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends2/6

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

Applied Materials

NasdaqGS:AMAT

US$136.9b

Entegris

NasdaqGS:ENTG

US$20.1b

MKS Instruments

NasdaqGS:MKSI

US$8.6b

Onto Innovation

NYSE:ONTO

US$4.6b

Price History & Performance

Summary of all time highs, changes and price drops for Lam Research
Historical stock prices
Current Share PriceUS$661.52
52 Week HighUS$711.83
52 Week LowUS$465.50
Beta1.22
1 Month Change15.20%
3 Month Change8.32%
1 Year Change36.66%
3 Year Change353.94%
5 Year Change517.38%
Change since IPO52,821.60%

Recent News & Updates

Nov 26
Here's Why I Think Lam Research (NASDAQ:LRCX) Is An Interesting Stock

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...

Nov 16
Lam Research (NASDAQ:LRCX) Is Increasing Its Dividend To US$1.50

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...

Nov 06

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.

Shareholder Returns

LRCXUS SemiconductorUS Market
7D0.1%-1.9%-3.5%
1Y36.7%50.7%19.4%

Return vs Industry: LRCX underperformed the US Semiconductor industry which returned 50.5% over the past year.

Return vs Market: LRCX exceeded the US Market which returned 17.8% over the past year.

Price Volatility

Is LRCX's price volatile compared to industry and market?
LRCX volatility
LRCX Average Weekly Movement4.2%
Semiconductor Industry Average Movement6.5%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
198015,400Tim Archerhttps://www.lamresearch.com

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

How do Lam Research's earnings and revenue compare to its market cap?
LRCX fundamental statistics
Market CapUS$97.65b
Earnings (TTM)US$4.26b
Revenue (TTM)US$15.75b

21.8x

P/E Ratio

5.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LRCX income statement (TTM)
RevenueUS$15.75b
Cost of RevenueUS$8.48b
Gross ProfitUS$7.28b
ExpensesUS$3.01b
EarningsUS$4.26b

Last Reported Earnings

Sep 26, 2021

Next Earnings Date

n/a

Earnings per share (EPS)30.29
Gross Margin46.18%
Net Profit Margin27.07%
Debt/Equity Ratio85.2%

How did LRCX perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

18%

Payout Ratio

Does LRCX pay a reliable dividends?

See LRCX dividend history and benchmarks
When do you need to buy LRCX by to receive an upcoming dividend?
Lam Research dividend dates
Ex Dividend DateDec 14 2021
Dividend Pay DateJan 05 2022
Days until Ex dividend10 days
Days until Dividend pay date32 days

Does LRCX pay a reliable dividends?

See LRCX dividend history and benchmarks

Valuation

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

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LRCX ($661.52) is trading below our estimate of fair value ($909.66)

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 (21.8x) compared to the US Semiconductor industry average (30.3x).

PE vs Market: LRCX is poor value based on its PE Ratio (21.8x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: LRCX is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: LRCX is overvalued based on its PB Ratio (16x) compared to the US Semiconductor industry average (4.6x).


Future Growth

How is Lam Research forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

7.1%

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 (14.3% 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%).


Past Performance

How has Lam Research performed over the past 5 years?

20.1%

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 79.6%.


Return on Equity

High ROE: LRCX's Return on Equity (73.3%) is considered outstanding.


Financial Health

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).


Balance Sheet


Dividend

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

0.91%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 03 2021Ex Dividend DateDec 14 2021Dividend Pay DateJan 05 202222 days from Ex DividendBuy in the next 10 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: LRCX's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: LRCX's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Tim Archer (54 yo)

3yrs

Tenure

US$15,495,736

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD15.50M) is above average for companies of similar size in the US market ($USD11.11M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: LRCX's management team is considered experienced (3.5 years average tenure).


Board Members

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


Ownership

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


Insider Trading Volume

Insider Buying: LRCX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Lam Research Corporation
  • Ticker: LRCX
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$97.648b
  • Shares outstanding: 140.80m
  • Website: https://www.lamresearch.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:30
End of Day Share Price2021/12/02 00:00
Earnings2021/09/26
Annual Earnings2021/06/27


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