Lam Research (NasdaqGS:LRCX) - Share price, News & Analysis

LRCX fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	5/6
Financial Health	5/6
Dividends	2/6

LRCX Stock Overview

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits.

Rewards

Trading at 40.4% below our estimate of its fair value

Earnings are forecast to grow 6.79% per year

Earnings have grown 19.6% per year over the past 5 years

Risk Analysis

LRCX passed our risk checks.

Lam Research Competitors

Applied Materials

NasdaqGS:AMAT

US$94.0b

Entegris

NasdaqGS:ENTG

US$14.4b

MKS Instruments

NasdaqGS:MKSI

US$6.5b

FormFactor

NasdaqGS:FORM

US$3.1b

Price History & Performance

Summary of all time highs, changes and price drops for Lam Research
Historical stock prices
Current Share Price	US$474.12
52 Week High	US$731.85
52 Week Low	US$442.53
Beta	1.28
1 Month Change	2.37%
3 Month Change	-16.82%
1 Year Change	-22.79%
3 Year Change	160.65%
5 Year Change	205.65%
Change since IPO	37,829.60%

Recent News & Updates

May 17

At US$482, Is Lam Research Corporation (NASDAQ:LRCX) Worth Looking At Closely?

Let's talk about the popular Lam Research Corporation ( NASDAQ:LRCX ). The company's shares saw significant share price...

Apr 25

Stable Earnings Amid Uncertainty - Here is Why Investors are Reconsidering the Lam Research Corporation (NASDAQ:LRCX)

Lam Research Corporation (NASDAQ:LRCX) released earnings recently, and analysts have adjusted their expectations. In this article, we will re-cap the financial performance and compare Lam Research to competitors in the semiconductor industry on a relative basis.

Shareholder Returns

	LRCX	US Semiconductor	US Market
7D	-3.6%	-3.2%	-2.7%
1Y	-22.8%	-1.9%	-12.9%

Return vs Industry: LRCX underperformed the US Semiconductor industry which returned -1.9% over the past year.

Return vs Market: LRCX underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is LRCX's price volatile compared to industry and market?
LRCX volatility
LRCX Average Weekly Movement	7.7%
Semiconductor Industry Average Movement	8.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: LRCX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LRCX's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	16,900	Tim Archer	https://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 Cap	US$65.77b
Earnings (TTM)	US$4.54b
Revenue (TTM)	US$16.74b

14.5x

P/E Ratio

3.9x

P/S Ratio

Is LRCX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LRCX income statement (TTM)
Revenue	US$16.74b
Cost of Revenue	US$9.05b
Gross Profit	US$7.69b
Other Expenses	US$3.15b
Earnings	US$4.54b

Last Reported Earnings

Mar 27, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	32.74
Gross Margin	45.93%
Net Profit Margin	27.13%
Debt/Equity Ratio	82.3%

How did LRCX perform over the long term?

See historical performance and comparison

Dividends

1.3%

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 Date	Jun 14 2022
Dividend Pay Date	Jul 06 2022
Days until Ex dividend	22 days
Days until Dividend pay date	44 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?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

40.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: LRCX ($474.12) is trading below our estimate of fair value ($795.71)

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 (14.5x) compared to the US Semiconductor industry average (19.8x).

PE vs Market: LRCX is good value based on its PE Ratio (14.5x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: LRCX is poor value based on its PEG Ratio (2.1x)

Price to Book Ratio

PB vs Industry: LRCX is overvalued based on its PB Ratio (10.9x) compared to the US Semiconductor industry average (3.5x).

Future Growth

How is Lam Research forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LRCX's forecast earnings growth (6.8% per year) is above the savings rate (1.9%).

Earnings vs Market: LRCX's earnings (6.8% per year) are forecast to grow slower than the US market (12.5% per year).

High Growth Earnings: LRCX's earnings are forecast to grow, but not significantly.

Revenue vs Market: LRCX's revenue (6.5% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: LRCX's revenue (6.5% 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 (48.5%).

Past Performance

How has Lam Research performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LRCX has high quality earnings.

Growing Profit Margin: LRCX's current net profit margins (27.1%) are higher than last year (26.1%).

Past Earnings Growth Analysis

Earnings Trend: LRCX's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: LRCX's earnings growth over the past year (31.4%) exceeds its 5-year average (19.6% per year).

Earnings vs Industry: LRCX earnings growth over the past year (31.4%) underperformed the Semiconductor industry 70.4%.

Return on Equity

High ROE: LRCX's Return on Equity (75.4%) is considered outstanding.

Financial Health

How is Lam Research's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LRCX's short term assets ($11.9B) exceed its short term liabilities ($4.2B).

Long Term Liabilities: LRCX's short term assets ($11.9B) exceed its long term liabilities ($6.4B).

Debt to Equity History and Analysis

Debt Level: LRCX's net debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: LRCX's debt to equity ratio has increased from 39.9% to 82.3% over the past 5 years.

Debt Coverage: LRCX's debt is well covered by operating cash flow (82.5%).

Interest Coverage: LRCX's interest payments on its debt are well covered by EBIT (29.4x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.27%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: LRCX's dividend (1.27%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: LRCX's dividend (1.27%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18%), LRCX's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23.3%), LRCX's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure

CEO

Tim Archer (54 yo)

4.33yrs

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 ($USD15.50M) is about average for companies of similar size in the US market ($USD13.34M).

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 (4.3 years average tenure).

Board Members

Experienced Board: LRCX's board of directors are considered experienced (4.5 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: LRCX insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/27
Annual Earnings	2021/06/27