LAM RESEARCH CORP (LRCX)
Special Industry Machinery, NEC · Special Industry Machinery, NEC · NASDAQ
$307.17
-6.33%
Investingg Score
61.7 / 100
Hold
Business overview
- Gross margin is 50.5%
- Operating margin is 35.3%
- Free cash flow margin is 21.1%
These high margins demonstrate the company's strong ability to generate profitability and cash flow from its revenue.
Financial health
- Balance sheet pillar score is 89
- Free cash flow yield is 1.3%
- FCF margin stands at 21.1%
The high balance sheet score and steady cash flow generation indicate a financially stable foundation, though the low FCF yield points to a high equity price relative to cash generation.
- Gross Margin
- 50.5%
- Operating Margin
- 35.3%
- Current Ratio
- 2.6x
- Debt / Equity
- 0.30
- Free Cash Flow (TTM)
- $4.9B
- Interest Coverage
- 53x
Valuation
- Price-to-earnings ratio is 60.83
- Forward P/E ratio is 32.24
- EV to EBITDA is 49.74
- Price-to-sales ratio is 18.1
These elevated valuation multiples reflect high market expectations, contributing to a weak valuation score of 29.
- P/E (TTM)
- 60.8x
- Forward P/E
- 32.2x
- Price / Sales
- 18.1x
- EV / EBITDA
- 49.7x
- FCF Yield
- 1.3%
Key risks
- High trailing P/E ratio of 60.83 creates valuation risk if growth slows.
- Stock price is 9.1% below its 50-day simple moving average, indicating short-term downward pressure.
- Free cash flow yield is low at 1.3%, offering limited cash return relative to the current market cap.
Market cap $384.4B · data as of 2026-08-19
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Analyze LRCX with Investingg AINot investment advice. Investingg AI summarizes public data and AI-generated analysis for informational purposes only.