Lam Research Stock Analysis, Valuation (NASDAQ:LRCX)

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$189.23 $4.21 (2.18%) LRCX stock closing price Feb 21, 2018 (Closing)
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Lam Research
Updated on : Feb 21, 2018
previous close
LRCX 189.2 (0%)
NASDAQ 7218.2 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductor-Equipment Wafer
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
24.7%
Operating Profit
Operating Margin:
27%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.19B
Debt/Equity Ratio:
 0.52
Compared to the industry
Cash Flow
Operating cash flow:
$28.7M
Net Income:
-$10M
Dividend Yield
LRCX dividend yield:
0.98%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
High Debt Burden
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
LRCX PS :
3.2
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
44.2%
Return on Equity:
24.7%
Free Cash Flow Margin:
-2.2%
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Lam Research Stock Analysis

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Watch the robo advisor video of Lam Research stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for LRCX stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Lam Research Corporation Stock Rating 4.3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for LRCX stock analysis. Lam Research valuation forms a crucial part of our stock analysis. Lam Research stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy LRCX stock?

  • Lam Research's revenue growth came in at 37.1% in 2018 Q2.
  • The company saw a significant growth in revenue with a 5 year CAGR of 24.7%.
  • The TTM operating margin was good at 27% for Lam Research.
  • Net margins stood at a healthy 17.6% (average) for Lam Research in the Trailing Twelve Months.
  • The price to earnings multiple of 13.8 is attractive when compared with the industry average PE ratio of 25.3.
  • Lam Research generates a high return on invested capital of 44.2%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Lam Research at 24.7%.

Should you sell LRCX stock?

  • With a debt/equity ratio of  0.52, Lam Research is highly leveraged in comparison to Computer and Technology peers.
  • Lam Research has a negative FCF (Free Cash Flow) margin of -2.2%.

Comments on this video and Lam Research stock

Amigobulls Lam Research stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of LRCX stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Lam Research revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of LRCX technical analysis to check whether the fundamental story is reflected in the market sentiment.