Lam Research Corporation (LRCX)Growth Analysis: Profit Driven by Strength

Lam Research Corporation (LRCX) is owned by a number of high-value investors. Its largest direct holder is Timothy M. Archer President, Director and Chief Executive Officer with 105,061 shares. The second-largest direct holder is Douglas R. Bettinger Executive Vice President, Chief Financial Officer and Chief Accounting Officer, with 103,801 shares of the company’s stock. In third place with 67,872 shares of LRCX is Richard A. Gottscho Executive Vice President and Chief Technology Officer.

Now turning to institutional ownership of Lam Research Corporation (LRCX), The Vanguard Group, Inc. is the top holder with 11.28 million shares. The next largest fund holder of this company’s stock is BlackRock Fund Advisors with 8.14 million shares. In the third-place spot with 7.87 million shares is Fidelity Management & Research Co..

This company’s stock price was $262.94 at the previous market close, with its latest volume reaching 1297492. Compare that to its average daily volume of 1.68M. Given the fact that this stock has 147.31M shares outstanding, its current market value is sitting at $38.73B. This publicly-traded stock’s 60-month Beta is 1.65. Its Price to Sales ratio is 4.08, its Price to Cash Flow ratio is 6.93, and its Price to Book ratio is 7.71.

LRCX stock has achieved a 5-day range of $261.33 to $272.05, with a total performance of -2.26% during that period. Meanwhile, in the past month of trading, this stock has traded in the range of $260.12 to $285.87, generating a -5.51% change during the period. In the past three months, this stock’s price has changed by +24.91%, trading in the range of $209.02 to $285.87.

In the past 5 days, shares of LRCX have made a new high 2 times. In the last month, it has made a new high 2 times, and in the past 3 months, it has made a new high 18 times.

Now let’s turn to this public company’s earnings. For the quarter ending 9/29/2019, the earnings per share (EPS) was reported at 3.18. This is a 0.17 difference compared to the consensus estimate of 3.01, amounting to an earnings surprise of 5.60%. In the previous quarter, which ended in 9/29/2019, the consensus estimate was 3.42, making for an earnings surprise of 5.80%. For the quarter ending 3/30/2019, EPS was reported at 3.7, generating a 9.50% earnings surprise.

The Net Income for the most recent full fiscal year, which ended in 06-2019, was $2.19 billion. This is compared to the prior year, where Net Income was $2.38 billion. Meanwhile, this company’s Operating Cash Flow was $3.18 billion for the year, compared to $2.66 billion in 2017. Capital Expenditures for the year were reportedly -$303.49 million, compared to -$273.47 million, and Free Cash flow was $2.87 billion compared to the prior year’s $2.38 billion.

Lam Research Corporation (LRCX) stock currently has a Financial Strength score of 7/10. This is due to a combination of factors, including a Cash to Debt ratio of 1.26, an Equity to Asset ratio of 0.4, a Debt to Equity ratio of 0.89 and a Debt to EBITDA of 1.58. The Interest Coverage of this stock is 17.28, its Piotroski F-Score is 6, its Altman Z-Score is 6.38 and its Beneish M-Score is -2.97.

This publicly-traded company’s Profitability and Growth score is 9/10, thanks to a combination of things: an Operating Margin of 25.4, a Net Margin of 22.38, a ROE of 40.43, and a ROC of 98.62.

Shifting focus now to Valuation and Return for LRCX, this company’s Price to Tangible Book is 11.58 and its Price to Median PS Value is 1.77. Price to Peter Lynch Fair Value for LRCX is now 0.77, and this organization’s Price to Graham Number is 3.16. Meanwhile, its Forward Rate of Return (Yactman) is 23.87.

Certain ratios provide helpful insights into how a stock is performing. The Quick Ratio for LRCX is sitting at 2.99, while its Current Ratio is 3.59 and its PEG Ratio is 0.65. This stock’s PB Ratio is 7.64, its PS Ratio is 4.33, its Forward PE Ratio is 18.05, and its PE Ratio without NRI is 19.38. Similarly, its Shiller PE Ratio is 39.88, its Price to Owner Earnings is 15.46, its Price to Free Cash Flow is 15.63 and its Price to Operating Cash Flow is 14.11.