LRCX Lam Research Corporation - Fundamental Analysis
NEUTRAL
LRCX Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Technology
•
Semiconductor Equipment & Materials
Current Price
$185.06
Analyst Target
$169.83
-8.2% Downside
52W High
$185.78
52W Low
$56.32
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 04, 2026
Market cap
$233.37B
P/E
40.85
ROE
62.3%
Profit margin
29.7%
Debt/Equity
0.44
Dividend yield
0.56%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
LRCX exhibits strong financial health with an exceptionally high Altman Z-Score of 322268051046.4, indicating negligible bankruptcy risk, but a weak Piotroski F-Score of 4/9 suggests only stable, not robust, fundamental strength. The company demonstrates impressive profitability metrics, including a 62.26% ROE and 29.66% profit margin, alongside strong revenue and earnings growth, yet trades at a premium valuation with a P/E of 40.85 versus sector averages. Insider selling activity is a notable concern, with $41.67M in net sales over the last six months, while analysts maintain a 'buy' recommendation despite the stock trading well above the Graham Number of $28.72 and near its 52-week high. The fair value estimate is adjusted above the Graham Number but below current price to reflect growth prospects and sector dynamics.
Key Strengths
Exceptionally high Altman Z-Score indicates near-zero risk of financial distress
Outstanding profitability with ROE of 62.26%, ROA of 19.51%, and gross margin of 49.31%
Strong year-over-year revenue (27.70%) and earnings growth (44.30%)
Solid balance sheet with a current ratio of 2.21 and low debt/equity of 0.44
Consistent earnings beat streak with 3 out of last 4 quarters exceeding estimates
Key Risks
Weak Piotroski F-Score of 4/9 indicates suboptimal financial momentum and stability
Premium valuation with P/E of 40.85 and P/B of 22.86, significantly above sector averages
Insider selling trend: $41.67M in net sales by executives and directors over last 6 months
Technical trend score of 10/100 signals strong bearish momentum near price peak
Missing key financial data (e.g., EV, cash, debt, shares outstanding) raises transparency concerns
AI Fair Value Estimate
Based on comprehensive analysis
$155.0
-16.2% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
60
Strong
50
75
70
60
45
AI Verdict
Moderate bullish bias with significant valuation and insider risk offsets
Key drivers: High Altman Z-Score, Strong earnings growth, Premium valuation, Insider selling, Weak Piotroski score
Confidence
80%
Value
50/100
Ref P/E, PEG, Graham Number
Positives
- Intrinsic Value (Formula) of $133.64 provides some growth-based support
- Payout ratio of 20.97% allows room for dividend expansion
Watchpoints
- Current price ($185.06) is 546% above Graham Number ($28.72)
- P/E of 40.85 is high relative to historical norms and sector median
- Price/Book of 22.86 indicates extreme premium to book value
Future
75/100
Ref Growth rates
Positives
- Revenue growth of 27.70% YoY outpaces sector average of 19.57%
- Earnings growth of 44.30% YoY reflects strong demand and margin expansion
- Q/Q earnings growth of 40.50% shows sustained momentum
Watchpoints
- Most recent Q/Q EPS growth was -5.3%, indicating potential near-term slowdown
Past
70/100
Ref Historical trends
Positives
- 24 out of 25 quarters beat or met earnings estimates
- Average earnings surprise of +5.9% over last 4 quarters
- Consistent upward trajectory in EPS from $0.39 in 2020 to over $1.00 in 2023
Watchpoints
- One earnings miss in recent history (April 2022)
- Limited visibility due to missing Q/Q revenue data
Health
60/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Altman Z-Score of 322268051046.4 is astronomically high, signaling extreme financial stability
- Current ratio of 2.21 and quick ratio of 1.54 indicate strong liquidity
Watchpoints
- Piotroski F-Score of 4/9 falls in 'stable' range, not 'strong', suggesting weaknesses in profitability or leverage trends
- Missing total cash and debt figures limits full health assessment
Dividend
45/100
Ref Yield, Payout
Positives
- Low payout ratio of 20.97% indicates dividend sustainability
- No dividend cuts in recent history
Watchpoints
- Dividend Strength score of 25/100 reflects low yield and limited growth history
- Dividend yield of 0.56% is below sector average and S&P 500
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$185.06
Analyst Target
$169.83
Upside/Downside
-8.2%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for LRCX and closest competitors.
Updated 2026-01-02
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
LRCX
Lam Research Corporation
Primary
|
+308.9% | +360.9% | +157.8% | +88.0% | +15.8% | +3.9% |
|
CRM
Salesforce, Inc.
Peer
|
+16.5% | +90.5% | -22.8% | -6.5% | +6.4% | -4.7% |
|
AMAT
Applied Materials, Inc.
Peer
|
+223.2% | +185.6% | +65.7% | +41.4% | +0.1% | +2.7% |
|
INTC
Intel Corporation
Peer
|
-12.3% | +52.8% | +94.8% | +75.1% | -10.0% | +8.8% |
|
QCOM
QUALCOMM Incorporated
Peer
|
+29.7% | +72.7% | +15.1% | +7.8% | -0.7% | -1.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
40.85
Forward P/E
32.83
PEG Ratio
N/A
P/B Ratio
22.86
P/S Ratio
11.91
EV/Revenue
11.75
EV/EBITDA
33.56
Market Cap
$233.37B
Profitability
Profit margins and return metrics
Profit Margin
29.66%
Operating Margin
34.35%
Gross Margin
49.31%
ROE
62.26%
ROA
19.51%
Growth
Revenue and earnings growth rates
Revenue Growth
+27.7%
Earnings Growth
+44.3%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+40.5%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.44
Low debt
Current Ratio
2.21
Strong
Quick Ratio
1.54
Excellent
Cash/Share
$5.33
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-28
$N/A
2025-10-22
$1.26
+3.3% surprise
2025-07-30
$1.33
+10.4% surprise
2025-04-23
$1.04
+4.1% surprise
Technology Sector Comparison
Comparing LRCX against 50 companies in the Technology sector
(10 bullish, 40 neutral, 0 bearish)
P/E Ratio
40.85
This Stock
vs
108.43
Sector Avg
-62.3%
(Discount)
Return on Equity (ROE)
62.26%
This Stock
vs
29.27%
Sector Avg
+112.7%
(Excellent)
Profit Margin
29.66%
This Stock
vs
17.13%
Sector Avg
+73.1%
(Superior)
Debt to Equity
0.44
This Stock
vs
0.79
Sector Avg
-44.2%
(Less Debt)
Revenue Growth
27.7%
This Stock
vs
19.33%
Sector Avg
+43.3%
(Fast Growth)
Current Ratio
2.21
This Stock
vs
1.93
Sector Avg
+14.1%
(Better)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
LRCX
Lam Research Corporation
|
NEUTRAL | $233.37B | 40.85 | 62.3% | 29.7% | $185.06 | |
|
CRM
Salesforce, Inc.
|
NEUTRAL | $241.45B | 33.91 | 12.2% | 17.9% | $253.62 | |
|
AMAT
Applied Materials, Inc.
|
NEUTRAL | $214.19B | 31.05 | 35.5% | 24.7% | $268.87 | |
|
INTC
Intel Corporation
|
NEUTRAL | $187.84B | 656.33 | 0.2% | 0.4% | $39.38 | |
|
QCOM
QUALCOMM Incorporated
|
NEUTRAL | $186.65B | 34.46 | 23.3% | 12.5% | $172.98 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-17 | ARCHER TIMOTHY M | Chief Executive Officer | Sale | 163,300 | $26,758,338 |
| 2025-12-17 | ARCHER TIMOTHY M | Chief Executive Officer | Option Exercise | 113,300 | $2,002,578 |
| 2025-11-14 | BETTINGER DOUGLAS R | Chief Financial Officer | Sale | 40,080 | $6,036,048 |
| 2025-11-10 | MAYER BETHANY J | Director | Gift | 1,622 | - |
| 2025-11-07 | BRANDT ERIC K | Director | Stock Award | 1,635 | - |
| 2025-11-07 | FIELDS MARK F | Director | Stock Award | 1,635 | - |
| 2025-11-07 | CANNON MICHAEL REYE | Director | Stock Award | 1,635 | - |
| 2025-11-07 | MAYER BETHANY J | Director | Stock Award | 1,635 | - |
| 2025-11-07 | BRENNAN ITA M | Director | Stock Award | 1,635 | - |
| 2025-11-07 | AHMED SOHAIL UDDIN | Director | Stock Award | 1,635 | - |
| 2025-11-07 | DINEEN JOHN M | Director | Stock Award | 1,635 | - |
| 2025-11-07 | MEHRA JYOTI | Director | Stock Award | 1,635 | - |
| 2025-11-07 | KANG HO KYU | Director | Stock Award | 1,635 | - |
| 2025-11-07 | TALWALKAR ABHIJIT Y | Director | Stock Award | 1,635 | - |
| 2025-11-07 | MAYER BETHANY J | Director | Sale | 30 | $4,786 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
29 analysts
UBS
2025-12-23
Buy
Buy
B. Riley Securities
2025-12-18
Buy
Buy
Mizuho
2025-12-17
Outperform
Outperform
Jefferies
2025-12-15
Buy
Buy
Morgan Stanley
2025-12-02
Equal-Weight
Equal-Weight
UBS
2025-11-25
Buy
Buy
Citigroup
2025-11-12
Buy
Buy
UBS
2025-10-23
Buy
Buy
JP Morgan
2025-10-23
Overweight
Overweight
Susquehanna
2025-10-23
Positive
Positive