LRCX Lam Research Corporation - Fundamental Analysis
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LRCX Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Semiconductor Equipment & Materials
Current Price
Live
$222.96
Analyst Target
$199.35
-10.6%
Downside
52W High
$229.57
52W Low
$56.32
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
AI-powered fundamental assessment
Confidence
75%
LRCX exhibits mixed signals with a weak Piotroski F-Score of 4/9 indicating moderate financial health, and no available Altman Z-Score to assess distress risk. Despite strong profitability metrics including 62.26% ROE and 29.66% profit margin, the stock trades at a steep valuation (P/E 49.33, Price/Book 27.54) well above the Graham Number of $28.69 and even the growth-based intrinsic value of $133.34. Robust revenue and earnings growth (27.70% and 44.30% YoY, respectively) support the premium, but bearish insider activity and weak technical trend (10/100) raise caution. Analysts recommend 'buy' with a $199.35 target, below current price, suggesting limited near-term upside.
Key Strengths
Exceptional profitability with ROE of 62.26% and operating margin of 34.35%, significantly above sector averages
Strong and consistent earnings growth: 44.30% YoY and 40.50% Q/Q, with 24 out of 25 quarters beating estimates
Solid balance sheet: Current ratio of 2.21 and quick ratio of 1.54 indicate strong short-term liquidity
Low debt burden with Debt/Equity of 0.44, below sector average of 0.80, enhancing financial flexibility
Dominant position in semiconductor equipment sector with superior growth and margins compared to peers like AMAT and CSCO
Key Risks
Low Piotroski F-Score of 4/9 suggests suboptimal financial health, potentially due to declining accruals or inconsistent earnings quality
Extremely high valuation: P/E of 49.33 and Price/Book of 27.54 are stretched relative to intrinsic value ($133.34) and Graham Number ($28.69)
Bearish insider sentiment: 6 sell transactions totaling $41.67M in last 6 months with no buys, indicating lack of confidence from executives
Weak technical trend score of 10/100 signals strong near-term bearish momentum despite strong long-term price performance
Analyst target price of $199.35 is below current price of $222.96, implying expected downside of ~10%
AI Fair Value Estimate
Based on comprehensive analysis
$133.34
-40.2% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare LRCX against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations
Past News Coverage
Recent headlines mentioning LRCX from our newsroom.
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