Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide.
Adequate balance sheet and fair value.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: LRCX exceeded the US Semiconductor industry which returned 5.7% over the past year.
Return vs Market: LRCX exceeded the US Market which returned -10.4% over the past year.
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
1 week ago | Simply Wall StLam Research Corporation's (NASDAQ:LRCX) Could Be A Buy For Its Upcoming Dividend
2 weeks ago | Simply Wall StHow Does Lam Research's (NASDAQ:LRCX) P/E Compare To Its Industry, After The Share Price Drop?
3 weeks ago | Simply Wall StAre Lam Research Corporation’s (NASDAQ:LRCX) High Returns Really That Great?
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 ($255.3) is trading below our estimate of fair value ($332.95)
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 (18.1x) compared to the Semiconductor industry average (25.7x).
PE vs Market: LRCX is poor value based on its PE Ratio (18.1x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: LRCX is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: LRCX is overvalued based on its PB Ratio (8.3x) compared to the US Semiconductor industry average (2.3x).
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 (11.7% per year) is above the savings rate (1.7%).
Earnings vs Market: LRCX's earnings (11.7% per year) are forecast to grow slower than the US market (12.2% per year).
High Growth Earnings: LRCX's earnings are forecast to grow, but not significantly.
Revenue vs Market: LRCX's revenue (9% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: LRCX's revenue (9% 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 (63%).
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 (21.7%) are lower than last year (26.6%).
Past Earnings Growth Analysis
Earnings Trend: LRCX's earnings have grown significantly by 27.3% per year over the past 5 years.
Accelerating Growth: LRCX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LRCX had negative earnings growth (-28.3%) over the past year, making it difficult to compare to the Semiconductor industry average (-30.5%).
Return on Equity
High ROE: Whilst LRCX's Return on Equity (47.26%) is outstanding, this metric is skewed due to their high level of debt.
How is Lam Research's financial position?
Financial Position Analysis
Short Term Liabilities: LRCX's short term assets ($8.5B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: LRCX's short term assets ($8.5B) exceed its long term liabilities ($5.0B).
Debt to Equity History and Analysis
Debt Level: LRCX's debt to equity ratio (100.6%) is considered high.
Reducing Debt: LRCX's debt to equity ratio has increased from 30.9% to 100.6% over the past 5 years.
Debt Coverage: LRCX's debt is well covered by operating cash flow (58.7%).
Interest Coverage: LRCX's interest payments on its debt are well covered by EBIT (55.9x coverage).
Inventory Level: LRCX has a high level of physical assets or inventory.
Debt Coverage by Assets: LRCX's debt is covered by short term assets (assets are 1.9x debt).
What is Lam Research's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LRCX's dividend (1.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: LRCX's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (5.4%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, LRCX has been paying a dividend for less than 10 years.
Growing Dividend: LRCX's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32%), LRCX's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LRCX's dividends in 3 years are forecast to be well covered by earnings (24.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tim Archer (52yo)
Mr. Timothy M. Archer, also known as Tim, has been President and Chief Executive Officer of Lam Research Corporation since January 24, 2018 and December 5, 2018 respectively. Mr. Archer has been Director o ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD13.75M) is about average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Tim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Executive VP||7yrs||US$11.76m||0.067% $24.7m|
|Executive VP & CTO||2.83yrs||US$3.54m||0.027% $10.0m|
|Senior VP & GM of Customer Support Business Group||3.25yrs||US$2.78m||0.0092% $3.4m|
|Senior VP & GM of the Etch Business Unit||2yrs||US$2.50m||0.030% $11.3m|
|Senior VP & GM of Deposition Business Unit||2yrs||US$2.49m||0.024% $8.8m|
|Chief Information Officer||1yr||no data||no data|
|Corporate Vice President of Investor Relations & Corporate Communications||1.42yrs||no data||no data|
|Senior VP||0.17yr||no data||no data|
|Senior Vice President of Corporate Development||1.83yrs||no data||no data|
Experienced Management: LRCX's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
|Independent Director||9yrs||US$286.82k||0.011% $4.1m|
|Independent Director||9.42yrs||US$298.82k||0.018% $6.7m|
|Independent Director||3.42yrs||US$268.82k||0.0034% $1.2m|
|Independent Director||14.17yrs||US$323.99k||0.035% $12.9m|
|Independent Director||0.83yr||no data||no data|
|Independent Director||7.67yrs||US$309.85k||0.013% $4.7m|
|Chairman of the Board||0.25yr||US$321.32k||0.0094% $3.5m|
|Independent Director||0.83yr||no data||no data|
|Independent Director||0.67yr||no data||no data|
Experienced Board: LRCX's board of directors are not considered experienced ( 2.3 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 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$37.159b
- Shares outstanding: 145.55m
- Website: https://www.lamresearch.com
Number of Employees
- Lam Research Corporation
- 4650 Cushing Parkway
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LRCX||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||May 1984|
|LAR||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 1984|
|LAR||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||May 1984|
|LRCX||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||May 1984|
|0JT5||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||May 1984|
|LAR||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||May 1984|
|LAR||BRSE (Berne Stock Exchange)||Yes||Common Stock||CH||CHF||May 1984|
|LRCX *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||May 1984|
|L1RC34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REPR 1 SHS UNSPON||BR||BRL||Jan 2020|
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; Da Vinci, DV-Prime, EOS, and SP to address a range of wafer cleaning appplications; and Metryx mass metrology systems for high precision in-line mass measurement in semiconductor wafer manufacturing. The company was founded in 1980 and is headquartered in Fremont, California.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/31 01:57|
|End of Day Share Price||2020/03/30 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.