Lam Research Corporation
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. The company offers ALTUS systems to deposit conformal or…
What to know about LRCX
Lam Research Corporation is a Technology company with a mixed financial profile. It scores well on size and health, but risk is worth keeping an eye on.
Should you consider LRCX?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Lam Research Corporation is a Technology company with a mixed overall financial profile — it is in the lower half of its Technology peers (53 of 82).
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The business is both profitable and financially healthy — it keeps a good portion of what it earns and carries its debt comfortably.
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The stock trades at a premium — investors are paying more per dollar of earnings than most S&P 500 companies. That's fine if strong growth justifies it, but leaves little room for disappointment.
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The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
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There is a small dividend (0.00%), but income-focused investors will likely find better yields elsewhere in the market.
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The stock is more volatile than most S&P 500 names — it can swing sharply in both directions. This suits investors comfortable with bigger short-term moves.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Technology sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how LRCX compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 73.68 | Below avg |
| Forward P/E | 48.78 | Below avg |
| PEG Ratio | 2.14 | Average |
| Price to Sales | 22.44 | Below avg |
| Price to Book | 45.96 | Below avg |
| EV/EBITDA | 58.73 | Below avg |
| Earnings Yield | 1.36% | Below avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 49.98% | Above avg |
| Operating Margin | 35.04% | Top 25% |
| Net Profit Margin | 30.94% | Top 25% |
| Return on Equity | 66.76% | Top 25% |
| Return on Invested Capital | 22.78% | Top 25% |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 23.80% | Top 25% |
| Revenue Growth (3Y CAGR) | 2.29% | Average |
| EPS Growth (YoY) | 40.80% | Above avg |
| Free Cash Flow Growth | 27.22% | Above avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 2.54 | Top 25% |
| Debt to Equity | 0.35 | Top 25% |
| Interest Coverage | 34.43 | Top 25% |
| Altman Z-Score | 29.58 | Top 25% |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 0.28% | Below avg |
| Payout Ratio | 19.09% | Above avg |
| Dividend Growth (5Y) | -1.47% | Top 25% |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 1.23% | Below avg |
| OCF to Sales | 32.08% | Top 25% |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 1.87 | Below avg |
| Volatility (30-Day) | 69.71% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 2.87% | Above avg |
| Avg. Analyst Rating | 1.56 | Top 25% |
| Target Upside % | -16.32% | Below avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 486.52B | Top 25% |
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