Lam Research Corporation Fundamental Analysis (XETRA: LAR.DE)
Lam Research Corporation (XETRA: LAR.DE) shows strong financial fundamentals with a PE ratio of 22.12, profit margin of 30.21%, and ROE of 48.39%. The company generates $17.1B in annual revenue with strong year-over-year growth of 23.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LAR.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLAR.DE demonstrates superior asset utilization.
Valuation Score
ModerateLAR.DE shows balanced valuation metrics.
Growth Score
ExcellentLAR.DE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLAR.DE maintains a strong and stable balance sheet.
Profitability Score
ExcellentLAR.DE achieves industry-leading margins.
Key Financial Metrics
Is LAR.DE Expensive or Cheap?
P/E Ratio
LAR.DE trades at 22.12 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LAR.DE's PEG of 3.88 indicates potential overvaluation.
Price to Book
The market values Lam Research Corporation at 10.38 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.10 times EBITDA. This signals the market has high growth expectations.
How Well Does LAR.DE Make Money?
Net Profit Margin
For every $100 in sales, Lam Research Corporation keeps $30.21 as profit after all expenses.
Operating Margin
Core operations generate 34.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $48.39 in profit for every $100 of shareholder equity.
ROA
Lam Research Corporation generates $24.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lam Research Corporation generates strong operating cash flow of $4.56B, reflecting robust business health.
Free Cash Flow
Lam Research Corporation generates strong free cash flow of $3.75B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.89 in free cash annually.
FCF Yield
LAR.DE converts 3.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.48
vs 25 benchmark
ROA
Return on assets percentage
0.24
vs 25 benchmark
ROCE
Return on capital employed
0.37
vs 25 benchmark
How LAR.DE Stacks Against Its Sector Peers
| Metric | LAR.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.12 | 34.40 | Better (Cheaper) |
| ROE | 48.39% | 730.00% | Weak |
| Net Margin | 30.21% | -3110.00% (disorted) | Strong |
| Debt/Equity | 0.35 | 0.22 | Weak (High Leverage) |
| Current Ratio | 2.54 | 6.05 | Strong Liquidity |
| ROA | 24.03% | 254.00% | Weak |
LAR.DE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lam Research Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
106.66%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
167.94%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
226.88%
Industry Style: Growth, Innovation, High Beta
High Growth