Lam Research Corporation (LRCX), Discounted Cash Flow Valuation

Lam Research Corporation (LRCX) Company Profile

US | Technology | Semiconductors | NASDAQ
63.76 -1.38 (-2.12%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
81.85B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
16.21B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
4.29B
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
1.29B
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
3.29
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
36.41
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
0.73%
Exchange Name of stock exchange where the trading item trades.
NASDAQ
Avg Volume The average number of shares traded each day over the past 30 days.
13.82M
Open The opening trade price over the trading day.
65.34
Previous Close The last closing price.
65.14
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
1.53
1 day delta The range between the high and low prices over the past day.
63.48-65.38
52 weeks The range between the high and low prices over the past 52 weeks.
56.32-113

Total Valuation

Lam Research Corporation has a market cap or net worth of 81.85B. The enterprise value is 81.16B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
81.85B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
81.16B

Valuation Ratios

The trailing PE ratio is 19.11. Lam Research Corporation's PEG ratio is 2.82.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
19.11
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
5.05
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
9.32
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
18.8
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
2.82

Enterprise Valuation

The stock's EV/EBITDA ratio is 15.24, with a EV/FCF ratio of 18.64.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
5.01
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
15.24
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
17.81
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
18.64

Financial Efficiency

Return on equity (ROE) is 50.75% and return on invested capital (ROIC) is 28.24%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
50.75%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
21.64%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
28.24%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.8
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
1.94

Margins

Trailing 12 months gross margin is 47.75%, with operating and profit margins of 29.75% and 26.49%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
47.75%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
29.75%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
30.17%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
26.49%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
32.85%

Income Statement

In the last 12 months, Lam Research Corporation had revenue of 16.21B and earned 4.29B in profits. Earnings per share (EPS) was 3.29.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
16.21B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
7.74B
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
4.82B
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
4.89B
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
4.29B
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
5.33B
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
4.96B
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
3.29

Financial Position

The company has a trailing 12 months (ttm) current ratio of 2.54, with a ttm Debt / Equity ratio of 0.57.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
2.54
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
1.73
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.57
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
1.01

Dividends & Yields

This stock pays an annual dividend of 0.89, which amounts to a dividend yield of 1.40%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
0.89
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
1.40%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
5.23%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
5.32%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
15.70%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
25.22%

Balance Sheet

The company has 5.67B in cash and 4.98B in debt, giving a net cash position of 683.1M.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
5.67B
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
4.98B
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
683.1M
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
8.81B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
6.84
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
8.26B

Cash Flow

In the last 12 months, operating cash flow of the company was and capital expenditures , giving a free cash flow of .
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
3.38

Lam Research Corporation News

Apr 18, 2025 - zacks.com
Can Lam Research (LRCX) Keep the Earnings Surprise Streak Alive?
Lam Research (LRCX) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report....[read more]
Apr 17, 2025 - seekingalpha.com
Lam Research: Tides Have Turned, Buy This Semiconductor Refurbisher
Lam Research is a leading player in the wafer fabrication equipment industry, crucial for semiconductor production, and is currently rated a buy. Despite a 40% decline from its peak, LRCX shows strong financial recovery with rising revenue, earnings, and cash flow, presenting a good buying opportunity. The semiconductor industry, worth $681 billion, and expected $200 billion WFE investment, indicates high future demand, benefiting LRCX despite stiff competition....[read more]
Apr 16, 2025 - zacks.com
Lam Research (LRCX) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
Lam Research (LRCX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations....[read more]
Apr 16, 2025 - prnewswire.com
Lam Research Donates Leading-Edge Etch System to Accelerate Nanofabrication R&D at UC Berkeley
FREMONT, Calif. , April 16, 2025 /PRNewswire/ -- Lam Research Corp. (Nasdaq: LRCX) today announced the donation of its innovative multi-chamber semiconductor etching system to the Marvell Nanofabrication Laboratory at the University of California, Berkeley to advance research and development (R&D) for next-generation chip technologies....[read more]
Apr 15, 2025 - nypost.com
US tariffs may cost chip equipment makers more than $1 billion, industry estimates
Each of the three largest U.S. chip equipment makers — Applied Materials, Lam Research and KLA — may suffer a loss of roughly $350 million over a year related to the tariffs, the sources said....[read more]
Apr 15, 2025 - zacks.com
Brokers Suggest Investing in Lam Research (LRCX): Read This Before Placing a Bet
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?...[read more]
Apr 11, 2025 - zacks.com
LRCX vs. ACMR: Which Semiconductor Equipment Stock is the Better Buy?
Both Lam Research and ACM Research are essential players in the semiconductor manufacturing supply chain. Which stock is a better investment option?...[read more]
Apr 11, 2025 - https://thefly.com
Lam Research price target lowered by $7 at Citi, here's why
23 Apr...[read more]
Apr 8, 2025 - zacks.com
Lam Research (LRCX) Surges 5.3%: Is This an Indication of Further Gains?
Lam Research (LRCX) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stock continue moving higher in the near term....[read more]
Apr 7, 2025 - fool.com
Why Lam Research Stock Crushed the Market Today
Chip fabrication equipment maker Lam Research (LRCX 5.04%) experienced a bit of a rally in its stock on Monday. A big researcher flagged the company as a fine bargain in the semiconductor universe, and investors took the recommendation to heart....[read more]

Lam Research Corporation Details

Country US
City Fremont
Address 4650 Cushing Parkway
Ticker Symbol LRCX
Exchange NASDAQ Global Select
IPO Date May 4, 1984
CEO Mr. Timothy M. Archer
Sector Technology
Industry Semiconductors
Employees 18.3K

Lam Research Corporation Company Description

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. In addition, the company offers 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. Further, it provides Coronus bevel clean products to enhance die yield; Da Vinci, DV-Prime, EOS, and SP series products to address various wafer cleaning applications; and Metryx mass metrology systems for high precision in-line mass measurement in semiconductor wafer manufacturing. The company sells its products and services to semiconductors industry in the United States, China, Europe, Japan, Korea, Southeast Asia, Taiwan, and internationally. Lam Research Corporation was incorporated in 1980 and is headquartered in Fremont, California.

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