Lam Research Corporation Fundamental Analysis (XETRA: LAR0.DE)
Lam Research Corporation (XETRA: LAR0.DE) shows strong financial fundamentals with a PE ratio of 36.20, profit margin of 32.30%, and ROE of 71.48%. The company generates $25.2B 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 89.7/100 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
ModerateLAR0.DE shows balanced valuation metrics.
Growth Score
ExcellentLAR0.DE delivers strong and consistent growth momentum.
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 36.20 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LAR0.DE's PEG of 0.77 indicates potential undervaluation.
Price to Book
The market values Lam Research Corporation at 23.90 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 30.57 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 Corporation keeps $32.30 as profit after all expenses.
Operating Margin
Core operations generate 36.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $71.48 in profit for every $100 of shareholder equity.
ROA
Lam Research Corporation generates $34.92 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 $7.17B, reflecting robust business health.
Free Cash Flow
Lam Research Corporation generates strong free cash flow of $6.16B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.92 in free cash annually.
FCF Yield
LAR0.DE converts 2.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
23.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.71
vs 25 benchmark
ROA
Return on assets percentage
0.35
vs 25 benchmark
ROCE
Return on capital employed
0.55
vs 25 benchmark
How LAR0.DE Stacks Against Its Sector Peers
| Metric | LAR0.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.20 | 33.33 | Neutral |
| ROE | 71.48% | 862.00% | Weak |
| Net Margin | 32.30% | -2063.00% (disorted) | Strong |
| Debt/Equity | 0.27 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 2.48 | 12.86 | Strong Liquidity |
| ROA | 34.92% | 14.00% | Excellent |
LAR0.DE outperforms its industry in 4 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