Lam Research Stock Analysis, Valuation (NASDAQ:LRCX)

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$169.91 $4.38 (2.51%) LRCX stock closing price Aug 17, 2018 (Closing)

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 4.5/5

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 sales grew by 33.3% year on year in 2018-06.
  • Revenue growth has been tremendous with a compounded annual growth of 25.2 over the last 5 years.
  • Lam Research had a healthy average operating margin of 29.01 over the last 4 quarters.
  • Net margins came in at average 21.5% for Lam Research over the last twelve months.
  • LRCX stock is trading at an earnings multiple of 9.7 which is better than the sector average of 25.4.
  • Lam Research has an attractive ROIC (Return on Invested Capital) of 54
  • Lam Research has a good Return On Equity (ROE) of 35.
  • Lam Research has a healthy FCF (Free Cash Flow) margin of 20.4.

Should you sell LRCX stock?

  • Lam Research is debt laden and has a high debt/equity ratio of 0.37.
  • Cash flow from operations is low at 0.7035 times the net income.

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.