Lam Research Corp. R
Lam Research Corp. R Fundamental Analysis
Lam Research Corp. R (LAR0.DE) shows moderate financial fundamentals with a PE ratio of 46.54, profit margin of 29.66%, and ROE of 60.57%. The company generates $19.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.0/100 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 LAR0.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLAR0.DE demonstrates superior asset utilization.
Valuation Score
WeakLAR0.DE trades at a premium to fair value.
Growth Score
ModerateLAR0.DE shows steady but slowing expansion.
Financial Health Score
ExcellentLAR0.DE maintains a strong and stable balance sheet.
Profitability Score
ExcellentLAR0.DE achieves industry-leading margins.
Key Financial Metrics
Is LAR0.DE Expensive or Cheap?
P/E Ratio
LAR0.DE trades at 46.54 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LAR0.DE's PEG of 4.48 indicates potential overvaluation.
Price to Book
The market values Lam Research Corp. R at 26.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 37.97 times EBITDA. This signals the market has high growth expectations.
How Well Does LAR0.DE Make Money?
Net Profit Margin
For every $100 in sales, Lam Research Corp. R keeps $29.66 as profit after all expenses.
Operating Margin
Core operations generate 33.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $60.57 in profit for every $100 of shareholder equity.
ROA
Lam Research Corp. R generates $26.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lam Research Corp. R generates strong operating cash flow of $6.30B, reflecting robust business health.
Free Cash Flow
Lam Research Corp. R generates strong free cash flow of $5.48B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.39 in free cash annually.
FCF Yield
LAR0.DE converts 2.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
46.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
26.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.61
vs 25 benchmark
ROA
Return on assets percentage
0.27
vs 25 benchmark
ROCE
Return on capital employed
0.43
vs 25 benchmark
How LAR0.DE Stacks Against Its Sector Peers
| Metric | LAR0.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 46.54 | 25.84 | Worse (Expensive) |
| ROE | 60.57% | 1279.00% | Weak |
| Net Margin | 29.66% | -43714.00% (disorted) | Strong |
| Debt/Equity | 0.44 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 2.21 | 10.62 | Strong Liquidity |
| ROA | 26.53% | -1537441.00% (disorted) | Strong |
LAR0.DE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lam Research Corp. R's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure