LAM RESEARCH CORP (LRCX) Factsheet

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LAM RESEARCH CORP (LRCX) Stock Analysis

Analysis from 10-Q filed 2026-10-22. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 54.8%. FCF margin 25.0%. D/E 0.3x. Source: 10-Q filed 2026-10-22.

Metric Value Context
ROIC 54.8% Above industry average
FCF Margin 25.0% Strong cash generation
Debt/Equity 0.3x Conservative leverage

ROIC 54.8% — Top 5% of sector peers. FCF margin 25.0% — Top 5%.

Explore LAM RESEARCH CORP: Earnings History | Overview

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for LRCX: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.


Profitability: LAM RESEARCH CORP earns 54.8% ROIC, Top 5% in Industrials

ROIC TTM 54.8%, sector median 7.2%, Top 5%. DuPont: NOPAT margin 32.1% × asset turnover 1.2x. Gross margin 51.1%. Operating margin 37.0%. Source: 10-Q filed 2026-10-22.

Metric LRCX Rating Context
Return on Invested Capital (ROIC) 54.8% Excellent Above sector median of 7.2%
Return on Equity (ROE) 74.7% Excellent Efficient use of shareholder equity
Gross Margin 51.1% Excellent Strong pricing power
Operating Margin 37.0% Excellent Efficient operations

Cash Flow: LAM RESEARCH CORP generates $6.5B FCF at 25.0% margin, positive NaN/8 quarters

FCF TTM $6.5B. FCF margin 25.0%, Top 5%. OCF/Net income 0.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-10-22.

Metric LRCX Rating Context
Free Cash Flow Margin 25.0% Excellent Excellent cash conversion
Free Cash Flow (TTM) $6.5B Good Positive cash generation
OCF/Net Income 0.9x Good Potential accrual concerns
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet: LAM RESEARCH CORP at 0.3x leverage, 63.9x interest coverage

Debt/Equity 0.3x. Net cash $3.7B. Interest coverage 63.9x. Source: 10-Q filed 2026-10-22.

Metric LRCX Rating Context
Debt to Equity 0.3x Excellent Conservative capital structure
Net Cash Position $3.7B Excellent Net cash positive
Interest Coverage 63.9x Excellent Comfortable debt service

Valuation: LAM RESEARCH CORP trades at 34.6x earnings

P/E 34.6x. EV/Sales 11.0x. FCF yield 2.2%. Dividend yield 0.4%. Source: 10-Q filed 2026-10-22.

Metric LRCX Rating Context
P/E Ratio 34.6x Adequate Premium valuation
EV/Sales 11.0x Warning Growth premium priced in
FCF Yield 2.2% Adequate Lower cash yield
Dividend Yield 0.4% Adequate Growth focus over income

Capital Allocation: LAM RESEARCH CORP returns 1.8% shareholder yield, reducing shares 0.8% YoY

Total shareholder yield 1.8% (div 0.4% + buyback 1.3%). Share count -0.8% YoY. Capital returned $5.2B TTM. Source: 10-Q filed 2026-10-22.

Metric LRCX Rating Context
Total Shareholder Yield 1.8% Adequate Dividend + buyback yield combined
Buyback Yield 1.3% Adequate Minimal buyback activity
Share Count Change (YoY) -0.8% Adequate Net share reduction (accretive)
Total Capital Returned (TTM) $5.2B Good Dividends + buybacks returned to shareholders

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) 54.8% Top 5% 7.6x above
Free Cash Flow Margin 25.0% Top 5% 4.0x above
Gross Margin 51.1% Top 25% 1.6x above
Operating Margin 37.0% Top 5% 5.4x above
Return on Equity (ROE) 74.7% Top 5% 7.5x above
P/E Ratio 34.6x N/A -

Financial Scorecard

Metric LRCX Rating Sector Context
Return on Invested Capital (ROIC) 54.8% Excellent Top 5% of sector (median: 7.2%)
Free Cash Flow Margin 25.0% Excellent Top 5% of sector (median: 6.3%)
Gross Margin 51.1% Excellent Top 25% of sector (median: 32.1%)
Debt to Equity Ratio 26.9% Excellent Conservative capital structure
P/E Ratio (Price-to-Earnings) 34.6x Adequate Growth premium
Free Cash Flow Yield 2.2% Warning Growth-focused valuation

Frequently Asked Questions

Q: What is LAM RESEARCH CORP's Return on Invested Capital (ROIC)?

LAM RESEARCH CORP (LRCX) has a trailing twelve-month Return on Invested Capital (ROIC) of 54.8%. The 8-quarter median ROIC is 45.2% with a improving trend. Sector median 7.2%. Source: 10-Q filed 2026-10-22.

Q: What is LAM RESEARCH CORP's Free Cash Flow Margin?

LAM RESEARCH CORP (LRCX) has a free cash flow margin of 25.0%, generating $6.5 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-10-22.

Q: What is LAM RESEARCH CORP's P/E ratio and how does it compare to peers?

LAM RESEARCH CORP (LRCX) trades at a P/E ratio of 34.6x, which is above the sector median of N/A. EV/Sales 11.0x. FCF yield 2.2%. Source: 10-Q filed 2026-10-22.

Q: Does LAM RESEARCH CORP pay a dividend?

LAM RESEARCH CORP (LRCX) currently pays a dividend yield of 0.4%. Total shareholder yield (dividend + buybacks) 1.8%. Source: 10-Q filed 2026-10-22.

Q: What is LAM RESEARCH CORP's revenue and earnings growth?

LAM RESEARCH CORP (LRCX) grew revenue by 33.4% year-over-year. EPS +48.2% YoY. Source: 10-Q filed 2026-10-22.

Q: Is LAM RESEARCH CORP buying back stock?

LAM RESEARCH CORP (LRCX) repurchased $3.9 billion of stock over the trailing twelve months. This represents a buyback yield of 1.3%. Share count -0.8% YoY. Source: 10-Q filed 2026-10-22.

Q: How does LAM RESEARCH CORP compare to competitors in Industrials?

Compared to other companies in Industrials, LAM RESEARCH CORP (LRCX) shows: ROIC 54.8%, sector median 7.2% (Top 5%). FCF margin 25.0%, sector median 6.3% (Top 5%). Gross margin 51.1%, 19.0pp above sector median. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.

Q: What warning signs should I watch for with LAM RESEARCH CORP?

No quantitative warning flags fired for LAM RESEARCH CORP (LRCX) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2026-10-22.


Data Source: Data sourced from 10-Q filed 2026-10-22. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.

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