Don't Buy Lam Research (LRCX) Before Checking Its Fundamentals!

Lam Research logged a -2.8% change during today's afternoon session, and is now trading at a price of $676.91 per share. On average, analysts give it a target price of $673.95.

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The large-cap company is based in the United States. Lam Research currently returns an annual dividend yield of 1.0%.

Make Sure to Consider the Following Before Buying Lam Research:

  • Lam Research has moved 56.0% over the last year.

  • LRCX has a forward P/E ratio of 18.9 based on its EPS guidance of 35.81.

  • Over the last 6 years, earnings per share (EPS) have been growing at a compounded average rate of 23.8%.

  • The company has a price to earnings growth (PEG) ratio of 3.03.

  • Its Price to Book (P/B) ratio is 10.99

Lam Research Has Irregular Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2022-08-24 3,099,674 -546,034 3,645,708 -7.4
2021-08-17 3,588,163 -349,096 3,937,259 69.0
2020-08-18 2,126,451 -203,239 2,329,690 -33.05
2019-08-20 3,176,013 -303,491 3,479,504 18.79
2018-08-14 2,655,747 -273,469 2,929,216 34.04
2017-08-15 2,029,282 -156,128 2,185,410

Lam Research's free cash flows have a decent average of $3.08 Billion over the last 6 years, but they are highly variable since their coefficient of variability is 5317018701.2%. The compounded average growth rate over this period is 0.0%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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