LRCX

Lam Research Corporation

Fundamental data last updated:October 24, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Lam Research Corporation is a prominent supplier of equipment vital for semiconductor processing, encompassing its design, production, sales, repair, and ongoing maintenance. These sophisticated systems are fundamental for the creation of integrated circuits. The company's extensive product catalog features a variety of deposition technologies. For tungsten metallization, they provide ALTUS systems that deposit conformal films. SABRE products excel in electrochemical deposition, crucial for copper interconnect transitions and enabling copper damascene manufacturing. SOLA utilizes ultraviolet thermal processing for film treatments, while VECTOR delivers plasma-enhanced chemical vapor deposition (CVD) and atomic layer deposition (ALD) solutions. Furthermore, SPEED addresses gapfill applications with its high-density plasma CVD products, and Striker is engineered for single-wafer atomic layer deposition of dielectric films. Beyond deposition, Lam Research offers a comprehensive suite of etching tools. Flex is designed for dielectric etch applications, Kiyo handles conductor etch processes, Syndion specializes in through-silicon via etching, and Versys metal products are used for metal etch processes. The company's offerings also extend to specialized solutions like Coronus, which enhances die yield through bevel cleaning. For various wafer cleaning requirements, Lam Research supplies multiple product lines, including Da Vinci, DV-Prime, EOS, and SP series. Additionally, Metryx mass metrology systems provide precise, in-line mass measurement capabilities for semiconductor wafer manufacturing. Lam Research serves the global semiconductor industry, distributing its technologies and services across the United States, China, Europe, Japan, Korea, Southeast Asia, Taiwan, and other international markets. Established in 1980, the company maintains its corporate headquarters in Fremont, California.

 


VALUATION

P/E

65.24

Market Cap ($M USD)

$437.95B

Forward P/E

26.49

PEG

0.18

PRICE TO SALES

20.20

PRICE TO BOOK

41.35

EV / EBITDA

54.69

5-Year Average P/E

Free Cash Flow Yield

1.47%

DCF Value

$48.10

Graham Number

$31.98

Price to FCF

67.89

EV to FCF

67.73

Earnings Yield

1.53%

FCF Yield

1.47%

DIVIDEND

Yield

0.30%

Annual Payout

$1.04

Payout Ratio

18.49%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.37

Next Year EPS Growth Estimate

$13.22

Next Year Revenue Growth Estimate

$44.93B

Return on Equity (ROE)

65.79%

FREE CASH FLOW

Operating Margin

34.26%

Debt-to-Equity

0.48

Piotroski F-Score

8

Altman Z-Score

30.76

Return on Invested Capital (ROIC)

47.77%

Current Ratio

2.54

Quick Ratio

1.77

Net Debt to EBITDA

-0.13

Interest Coverage

44.46

Gross Profit margin

49.98%

FCF PER SHARE

$5.16

REVENUE PER SHARE

$17.35

Gainseekers Quantitative Analysis

Summary

The market seems to be pricing Lam Research Corporation with sky-high expectations, as evidenced by its Price/Earnings ratio of 80.73 and a Price/Book of 51.16. These multiples suggest a premium valuation, yet the DCF Value and Graham Number are significantly lower, indicating potential overvaluation. However, the Forward P/E of 32.78 and a robust Altman Z-score of 35.14 suggest financial stability and growth potential. The Earnings Yield of 1.24% is modest, hinting at a stock priced for perfection rather than value. Overall, while the company exhibits strong financial health, its current valuation may not offer a margin of safety.

AI Exposure / Tech Reliance

In the rapidly evolving semiconductor industry, Lam Research is well-positioned to capitalize on AI and tech advancements. Its focus on cutting-edge semiconductor equipment aligns with the increasing demand for AI-driven technologies. This strategic positioning could drive future growth as industries continue to digitize.

The Bull Case

For a GARP investor, Lam Research presents a compelling case with its impressive ROIC of 47.77% and a Piotroski F-Score of 8, indicating strong operational efficiency and financial health. The company's Operating Margin of 34.26% and a Gross Profit Margin of nearly 50% underscore its pricing power and ability to generate cash. Despite a low FCF Yield of 1.19%, the company's capital efficiency and robust earnings growth potential make it an attractive long-term play.

The Bear Case

Despite its strengths, Lam Research faces significant structural risks. The stock's Price/Sales ratio of 24.99 and EV to EBITDA of 67.70 highlight its stretched valuation. Trading near its 52-week high, it appears technically overextended, which could pose a risk if market sentiment shifts. Additionally, the Price to FCF ratio of 84.01 suggests that the market may be overly optimistic about future cash flows, raising concerns about its ability to deliver on high expectations.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$365.22

Institutional Ownership %

1-Year Beta

1.81

Insider Buying % (6 Mo)

Distance to 52-Week High

25.21%

Distance to 52-Week Low

74.03%

EARNINGS SURPRISE %

8.09%

50-DAY SMA

$322.77

200-DAY SMA

$223.98

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.