LRCX
LAM RESEARCH CORP
Industrials • CIK: 0000707549
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Market Cap
$266.55B
P/E (TTM)
39.7x
Rev Growth (TTM)
+26.5%
Net Margin (TTM)
30.9%
FCF Yield (TTM)
2.3%
FCF Margin (TTM)
27.7%
Cash Flow Health
Free Cash Flow8/8 positive
TTM$6.0B
Q3 '26
$810M-34%
Q2 '26
$1.2B-24%
FCF Margin
TTM27.7%
Q3 '2613.9%-39%
Sector: 4.7%Top 10%
OCF Margin32.1%
OCF/NI1.04x
CapEx Coverage7.3x
FCF Yield2.3%
FCF Growth (2Y)+15%
Cash Conversion Cycle
60 days
DSO: 60+DIO: –−DPO: –
Capital Allocation & Returns
Balanced
Total Shareholder YieldTTM
TTM2.3%
Div Yield0.5%
+Buyback (TTM)1.8%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)0.5%
FCF Payout Ratio21.2%
Free Cash Flow (TTM)$6.0B
Stock Repurchases (TTM)$4.9B
Capital Return / FCF102.2%
Est. Dividends Paid (TTM)$1.3B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
47.6%
Moderate
+0.1% YoY+20.6%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
30.7%
8Q: 28.8%
Asset Turnover
1.02x
8Q: 0.97x
Leverage (1+D/E)
1.35x
D/E: 0.35x
DuPont: 42.3% ≈ 47.6% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
8.50x
8Q:8.14x
+125.8%
Invested Cap Turn
1.96x
8Q:1.81x
+90.0%
CapEx Intensity
8.6%
8Q:6.6%
CapEx/Depreciation
2.26x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q3 2026 | Q2 2026 | Q1 2026 | Q4 2026 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $21.7B | $5.8B↑9.3% | $5.3B↑0.4% | $5.3B↑3.0% | $5.2B↑9.6% | $4.7B↑7.9% | $4.4B↑5.0% | $4.2B↑7.7% | $3.9B |
Operating Income | $7.4B | $2.0B↑13.1% | $1.8B↓1.0% | $1.8B↑5.1% | $1.7B↑11.5% | $1.6B↑17.1% | $1.3B↑5.5% | $1.3B↑12.2% | $1.1B |
Net Income | $6.7B | $1.8B↑14.5% | $1.6B↑1.6% | $1.6B↓8.8% | $1.7B↑29.3% | $1.3B↑11.7% | $1.2B↑6.7% | $1.1B↑9.4% | $1.0B |
Operating Cash Flow | $7.0B | $1.1B↓22.9% | $1.5B↓16.8% | $1.8B↓30.4% | $2.6B↑95.2% | $1.3B↑76.4% | $741.9M↓52.7% | $1.6B↑81.9% | $862.4M |
Free Cash Flow | $6.0B | $809.8M↓33.6% | $1.2B↓23.5% | $1.6B↓33.1% | $2.4B↑133.4% | $1.0B↑84.4% | $553.6M↓62.0% | $1.5B↑91.4% | $761.7M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
39.7x
Volatile
8Q: 121.9x-104789%
Valuation Lenses
Earnings
39.7x
vs – sector
Cash Flow
44.0x
EV/FCF vs –
Growth-Adj
0.8xPEG
Undervalued for growth
Quality-Adj
0.8P/E per %ROIC
ROIC: 47.6%
Shareholder Returns
Dividend
0.5%
Buyback
1.8%
Total Yield
2.3%
Market Cap$266.55B
EV$264.36B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
88/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 10%
66.7%
8Q:–
Return on Invested Capital (ROIC)Top 25%
47.6%
8Q:–
+20.6%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 30.7%
Asset Turnover: 1.02x
Earnings Quality
Cash Conversion
1.04x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin50.0%
Capital Efficiency
Invested Capital Turnover1.96x
Working Capital
Cash Conversion Cycle60 days
Growth Quality & Momentum
Quality Growth
Growth Quality Score
77/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
26.5%
OpInc Growth YoY
31.1%
EPS Growth YoY
47.4%
FCF 3Y CAGR
15.0%
Growth Quality Analysis
⚠Working Capital Drag: FCF growth lagging revenue by 11.6%
✓Sustainability Index: 7.5/10 - Highly sustainable growth
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
50.0%
Operating
34.3%
Top 25% in sector
Net
30.9%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-3.2 pts
FCF: 27.7% | Net: 30.9%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $1.04B
Interest Coverage
–
+Net cash position: $1.04B
Leverage Metrics
Debt-to-Equity
0.35x
Balance sheet risk & solvency analysis