LAM RESEARCH CORP (LRCX) Stock Analysis

Analysis from 10-Q filed 2025-10-24. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 49.0%. FCF margin 21.1%. D/E 0.3x. Source: 10-Q filed 2025-10-24.

Metric	Value	Context
ROIC	49.0%	Above industry average
FCF Margin	21.1%	Strong cash generation
Debt/Equity	0.3x	Conservative leverage

ROIC 49.0% — Top 5% of sector peers. FCF margin 21.1% — Top 5%.

Explore LAM RESEARCH CORP: Earnings History | Filings

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_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: LAM RESEARCH CORP earns 49.0% ROIC, Top 5% in Industrials

ROIC TTM 49.0%, sector median 7.2%, Top 5%. DuPont: NOPAT margin 31.0% × asset turnover 1.1x. Gross margin 50.5%. Operating margin 35.3%. Source: 10-Q filed 2025-10-24.

Metric	LRCX	Rating	Context
Return on Invested Capital (ROIC)	49.0%	Excellent	Above sector median of 7.2%
Return on Equity (ROE)	69.0%	Excellent	Efficient use of shareholder equity
Gross Margin	50.5%	Excellent	Strong pricing power
Operating Margin	35.3%	Excellent	Efficient operations

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Cash Flow: LAM RESEARCH CORP generates $4.9B FCF at 21.1% margin, positive NaN/8 quarters

FCF TTM $4.9B. FCF margin 21.1%, Top 5%. OCF/Net income 0.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-24.

Metric	LRCX	Rating	Context
Free Cash Flow Margin	21.1%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$4.9B	Good	Positive cash generation
OCF/Net Income	0.8x	Good	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: LAM RESEARCH CORP at 0.3x leverage

Debt/Equity 0.3x. Net cash $1.9B. Source: 10-Q filed 2025-10-24.

Metric	LRCX	Rating	Context
Debt to Equity	0.3x	Excellent	Conservative capital structure
Net Cash Position	$1.9B	Excellent	Net cash positive

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Valuation: LAM RESEARCH CORP trades at 65.5x earnings

P/E 65.5x. EV/Sales 10.1x. FCF yield 1.0%. Dividend yield 0.3%. Source: 10-Q filed 2025-10-24.

Metric	LRCX	Rating	Context
P/E Ratio	65.5x	Warning	Premium valuation
EV/Sales	10.1x	Warning	Growth premium priced in
FCF Yield	1.0%	Warning	Lower cash yield
Dividend Yield	0.3%	Adequate	Growth focus over income

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Capital Allocation: LAM RESEARCH CORP returns 1.1% shareholder yield

Total shareholder yield 1.1% (div 0.3% + buyback 0.8%). Capital returned $5.1B TTM. Source: 10-Q filed 2025-10-24.

Metric	LRCX	Rating	Context
Total Shareholder Yield	1.1%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.8%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$5.1B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	49.0%	Top 5%	6.8x above
Free Cash Flow Margin	21.1%	Top 5%	4.5x above
Gross Margin	50.5%	Top 25%	1.6x above
Operating Margin	35.3%	Top 5%	4.7x above
Return on Equity (ROE)	69.0%	Top 5%	7.4x above
P/E Ratio	65.5x	N/A	-

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Financial Scorecard

Metric	LRCX	Rating	Sector Context
Return on Invested Capital (ROIC)	49.0%	Excellent	Top 5% of sector (median: 7.2%)
Free Cash Flow Margin	21.1%	Excellent	Top 5% of sector (median: 4.7%)
Gross Margin	50.5%	Excellent	Top 25% of sector (median: 32.0%)
Debt to Equity Ratio	29.8%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	65.5x	Warning	High expectations priced in
Free Cash Flow Yield	1.0%	Warning	Growth-focused valuation

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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 49.0%. Sector median 7.2%. Source: 10-Q filed 2025-10-24.

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

LAM RESEARCH CORP (LRCX) has a free cash flow margin of 21.1%, generating $4.9 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-24.

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 65.5x, which is above the sector median of N/A. EV/Sales 10.1x. FCF yield 1.0%. Source: 10-Q filed 2025-10-24.

Q: Does LAM RESEARCH CORP pay a dividend?

LAM RESEARCH CORP (LRCX) currently pays a dividend yield of 0.3%. Total shareholder yield (dividend + buybacks) 1.1%. Source: 10-Q filed 2025-10-24.

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

LAM RESEARCH CORP (LRCX) grew revenue by 26.0% year-over-year. EPS +38.7% YoY. Source: 10-Q filed 2025-10-24.

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 0.8%. Source: 10-Q filed 2025-10-24.

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

Compared to other companies in Industrials, LAM RESEARCH CORP (LRCX) shows: ROIC 49.0%, sector median 7.2% (Top 5%). FCF margin 21.1%, sector median 4.7% (Top 5%). Gross margin 50.5%, 18.5pp 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 2025-10-24.

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Data Source: Data sourced from 10-Q filed 2025-10-24. TTM metrics as of Q2 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.