Lam Research Corp

Technology
Industrial Machinery/Components
www.lamresearch.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $989.51B
PE 244
Debt $4.98B
Cash $6.07B
EV $988.42B
FCF $4.84B

Earnings

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Sales & Net Margins

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Earnings	$4.06B
EBIT	$4.63B
ROE	48%
ROA	24%
FCF	$4.84B
Equity	$8.47B
Growth Stability	88%
PE	243.91
PEG	18.08
PB	116.8
P/FCF	204.47
P/S	63.47
Price/Cash	0.01
Debt/Equity	0.59
Debt/FCF	1.03
Net Margins	27%
Gross Margins	47%
Op. Margins	30%
Earnings CAGR	21%
Sales Growth YoY	20%
Sales Growth QoQ	8%
Sales CAGR	13%
FCF CAGR	16%
Equity CAGR	4%
Earnings Stability	0.81
Earnings Growth YoY	26%
Earnings Growth QoQ	9%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	11%
FCF CAGR 5Y	21%
Equity CAGR 5Y	15%
Earnings CAGR 3Y	-6%
Sales CAGR 3Y	-6%
FCF CAGR 3Y	17%
Equity CAGR 3Y	12%
Market Cap	$989.51B
Revenue	$15.59B
Dividend Yield	0%
Payout Ratio	27%
Assets	$19.53B
Total Debt	$4.98B
Cash	$6.07B
Shares Outstanding	12.92B
EV	988.42B
Earnings Score	93%
Moat Score	97%
Safety Score	94%
Final Score	95%
Working Capital	8.15B
Current Ratio	2.53
Gross Profit	$7.40B
Shares Growth 3y	-3%
Equity Growth QoQ	-1%
Equity Growth YoY	5%

Assets & ROA

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Stockholders Equity & ROE

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Lam Research manufactures equipment used to fabricate semiconductors. The firm is focused on the etch, deposition, and clean markets, which are key steps in the semiconductor manufacturing process, especially for 3D NAND flash storage, advanced DRAM, and leading-edge logic/foundry chipmakers. Lam's flagship Kiyo, Vector, and Sabre products are sold in all major geographies to key customers such as Samsung Electronics, Micron, Intel, and Taiwan Semiconductor Manufacturing.

SEC Filings

Direct access to Lam Research Corp (LRCX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 29
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 24
- 10-Q Sep 24
- 10-K Jun 25
- 10-Q Mar 26
2022
- 10-Q Dec 25
- 10-Q Sep 25
- 10-K Jun 26
- 10-Q Mar 27

Sector Comparison

How does Lam Research Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Lam Research Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 21%

Stability 81%

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Lam Research Corp Discounted Cash Flow

Fully customizable DCF calculator online for Lam Research Corp.

Years

Calculation mode

= $150B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$4.8B	$5.6B	$6.5B	$7.6B	$8.8B	$10B	$12B	$14B	$16B	$19B	$22B	$217B
DCF		$5.1B	$5.4B	$5.7B	$6B	$6.4B	$6.7B	$7.1B	$7.5B	$7.9B	$8.4B	$84B
Value	$150B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	12%	16%	21%	21%	23%	22%	27%	27%	26%	26%	27%
ROA	-	9%	16%	26%	21%	19%	29%	31%	28%	23%	24%
ROE	-	16%	25%	37%	47%	44%	65%	73%	55%	45%	48%

Good Net Margins (26.79%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	4.68	2.02	1.3	1.8	3.48	1.55	1.96	1.07	1.29	1.03
Debt over Equity	0.78	0.93	0.56	0.48	1.11	1.29	0.83	0.8	0.61	0.64	0.59
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	88%	88%

Good Debt/FCF ratio (1.03)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.59)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (88%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	12%	36%	38%	-13%	4%	46%	18%	1%	-14%	11%
Earnings YoY growth	-	39%	86%	40%	-8%	3%	74%	18%	-2%	-15%	13%
Equity YoY growth	-	16%	16%	-5%	-28%	11%	17%	4%	31%	4%	15%
FCF YoY growth	-	100%	59%	27%	21%	-33%	68%	-21%	83%	-9%	21%