Lam Research Stock Analysis, Valuation (NASDAQ:LRCX)

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$199.87 $4.38 (2.24%) LRCX stock closing price May 21, 2018 (Closing)
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Lam Research
Updated on : May 21, 2018
previous close
LRCX 199.9 (0%)
NASDAQ 7394 (0%)
Closing Price On: May 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductor-Equipment Wafer
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
25.1%
Operating Profit
Operating Margin:
27.8%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.21B
Debt/Equity Ratio:
 0.47
Compared to the industry
Cash Flow
Operating cash flow:
$1.05B
Net Income:
$778.8M
Dividend Yield
LRCX dividend yield:
0.95%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
LRCX PS :
3.2
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
48.7%
Return on Equity:
27.4%
Free Cash Flow Margin:
34.6%
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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 4.1/5

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 34.3% in 2018 Q3.
  • The company saw a significant growth in revenue with a 5 year CAGR of 25.1%.
  • Lam Research's average operating margin of 27.8% was exceptional.
  • Net margins came in at average 18.3% for Lam Research over the last twelve months.
  • LRCX stock is trading at an earnings multiple of 12.7 which is better than the industry average of 25.1.
  • Lam Research generates a high return on invested capital of 48.7%.
  • Lam Research has a good Return On Equity (ROE) of 27.4%.
  • The company has a healthy free cash flow margin of 34.6%.

Should you sell LRCX stock?

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.