LAM RESEARCH CORP
LAM RESEARCH CORP (LRCX) exhibits strong business quality, financial strength, and profitability, alongside attractive valuation. While revenue and PAT have grown, EPS and book value have seen declines over the analysis period. The company maintains a healthy cash flow generation and efficient capital allocation.
Business Performance (CAGR)
Valuation Snapshot
Financial Health
Profitability Metrics
Cash Flow Intelligence
Intrinsic Value
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AI Business Verdict
LAM RESEARCH CORP demonstrates exceptional operational efficiency, strong financial health, and robust cash flow. While negative trends in EPS and Book Value are notable, the overall profitability, growth in revenue and PAT, and attractive valuation with a significant margin of safety make it a compelling subject for further business analysis.
- Exceptional profitability with high ROE (54.33%), ROCE (42.81%), Net Margin (29.06%), and Operating Margin (33.28%).
- Very strong financial health, evidenced by a low Debt to Equity ratio (0.45) and high Interest Coverage (34.62x).
- Robust cash flow generation, with OCF to PAT exceeding 100% and a 16.04% FCF CAGR.
- High business quality and financial strength scores (84 and 92, respectively).
Balance Sheet
LAM RESEARCH CORP maintains a balanced sheet with adequate liquidity and manageable leverage.
Capacity to fund growth, withstand downturns and return capital.
- LAM RESEARCH CORP maintains a balanced sheet with adequate liquidity and manageable leverage.
- Net cash position — debt fully covered by cash & investments
- Large cash & investment reserves
- High interest coverage
- Comfortable short-term liquidity cushion
- Long working capital cycle
- Slow book value compounding