LAM RESEARCH CORP (LRCX) Stock Analysis

Analysis from 10-Q filed 2025-10-24. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 47.6%. FCF margin 27.7%. D/E 0.4x. Source: 10-Q filed 2025-10-24.

Metric	Value	Context
ROIC	47.6%	Above industry average
FCF Margin	27.7%	Strong cash generation
Debt/Equity	0.4x	Conservative leverage

ROIC 47.6% — Top 5% of sector peers. FCF margin 27.7% — Top 5%.

Explore LAM RESEARCH CORP: Earnings History | Filings | ROIC Analysis

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 47.6% ROIC, Top 5% in Industrials

ROIC TTM 47.6%, sector median 7.3%, Top 5%. DuPont: NOPAT margin 30.7% × asset turnover 1.0x. Gross margin 50.0%. Operating margin 34.3%. Source: 10-Q filed 2025-10-24.

Metric	LRCX	Rating	Context
Return on Invested Capital (ROIC)	47.6%	Excellent	Above sector median of 7.3%
Return on Equity (ROE)	66.7%	Excellent	Efficient use of shareholder equity
Gross Margin	50.0%	Good	Strong pricing power
Operating Margin	34.3%	Excellent	Efficient operations

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Cash Flow: LAM RESEARCH CORP generates $6.0B FCF at 27.7% margin, positive NaN/8 quarters

FCF TTM $6.0B. FCF margin 27.7%, Top 5%. OCF/Net income 1.0x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-24.

Metric	LRCX	Rating	Context
Free Cash Flow Margin	27.7%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$6.0B	Good	Positive cash generation
OCF/Net Income	1.0x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: LAM RESEARCH CORP at 0.4x leverage

Debt/Equity 0.4x. Net cash $1.0B. Source: 10-Q filed 2025-10-24.

Metric	LRCX	Rating	Context
Debt to Equity	0.4x	Good	Conservative capital structure
Net Cash Position	$1.0B	Excellent	Net cash positive

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Valuation: LAM RESEARCH CORP trades at 39.7x earnings

P/E 39.7x. EV/Sales 12.2x. FCF yield 2.3%. Dividend yield 0.5%. Source: 10-Q filed 2025-10-24.

Metric	LRCX	Rating	Context
P/E Ratio	39.7x	Adequate	Premium valuation
EV/Sales	12.2x	Warning	Growth premium priced in
FCF Yield	2.3%	Adequate	Lower cash yield
Dividend Yield	0.5%	Adequate	Growth focus over income

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Capital Allocation: LAM RESEARCH CORP returns 2.3% shareholder yield

Total shareholder yield 2.3% (div 0.5% + buyback 1.8%). Capital returned $6.1B TTM. Source: 10-Q filed 2025-10-24.

Metric	LRCX	Rating	Context
Total Shareholder Yield	2.3%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.8%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$6.1B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	47.6%	Top 5%	6.5x above
Free Cash Flow Margin	27.7%	Top 5%	5.9x above
Gross Margin	50.0%	Top 25%	1.5x above
Operating Margin	34.3%	Top 5%	4.7x above
Return on Equity (ROE)	66.7%	Top 5%	7.6x above
P/E Ratio	39.7x	N/A	-

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Financial Scorecard

Metric	LRCX	Rating	Sector Context
Return on Invested Capital (ROIC)	47.6%	Excellent	Top 5% of sector (median: 7.3%)
Free Cash Flow Margin	27.7%	Excellent	Top 5% of sector (median: 4.7%)
Gross Margin	50.0%	Good	Top 25% of sector (median: 33.1%)
Debt to Equity Ratio	35.2%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	39.7x	Adequate	High expectations priced in
Free Cash Flow Yield	2.3%	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 47.6%. Sector median 7.3%. 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 27.7%, generating $6.0 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 39.7x, which is above the sector median of N/A. EV/Sales 12.2x. FCF yield 2.3%. 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 0.5%. Total shareholder yield (dividend + buybacks) 2.3%. 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 26.5% year-over-year. EPS +47.4% YoY. Source: 10-Q filed 2025-10-24.

Q: Is LAM RESEARCH CORP buying back stock?

LAM RESEARCH CORP (LRCX) repurchased $4.9 billion of stock over the trailing twelve months. This represents a buyback yield of 1.8%. 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 47.6%, sector median 7.3% (Top 5%). FCF margin 27.7%, sector median 4.7% (Top 5%). Gross margin 50.0%, 16.9pp 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 Q1 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.