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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