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Lam Research Corporation

LRCX
73
Semiconductors · Technology
Also trades as: LRCX.BA USD 7,635.00 (-4.32%) · 0JT5.L GBP 2.67 (-2.28%)
Price
$263.94
-13.52 (-4.87%)
Market Cap
$330.30B
Exchange
NASDAQ
Winston Score
73
Winston is happy
A high-quality business with solid fundamentals.
Data as of Oct 18, 2026 · filings through Jun 28, 2026

§How the score breaks down

Quality
Exceptional
26/30
Growth
Exceptional
20/20
Cash Flow
Strong
7/10
Stability
Exceptional
10/10
Valuation
Good
5/10
Ownership
Weak
2/15
Dividends
Good
3/5

73 of 100 counted points = Winston Score 73.

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Share count falling — buybacks

−10.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.41B (2022) → 1.26B (2026)

§Winston Score History

The full picture

Lam Research makes the machines that chip factories use to build semiconductors. Its equipment deposits thin layers of material onto silicon wafers and etches away unwanted parts — two critical steps in making chips for smartphones, computers, and data centers. The company sells to major chipmakers like Samsung, TSMC, and Micron, making it a key supplier in the global semiconductor manufacturing industry.

Lam earns money by selling its equipment outright and then charging for ongoing services, spare parts, and upgrades — a model that creates steady repeat revenue. It operates globally, with significant business in Asia where most chip fabrication happens, and generates over $15 billion in annual revenue. Its deep technical expertise and the high cost of switching to a competitor give it a strong moat, but the business is heavily tied to chipmakers' spending cycles, and US export restrictions on advanced chip equipment to China remain a significant ongoing risk.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+30.0% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+34.8% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$2.4B/ year

↑ Rising (+13% vs prior year)

10.2% of revenue

Below sector average (15%)

Investing heavily in future products and technology

Insider Activity

0.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$5.6B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Lam Research Corporation grew revenue 30% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
51.7%
Healthy — 51.7% gross margin
Profit after running costs
Operating Margin
37.4%
Excellent — 37.4% operating margin
Return on the money invested
ROCE
50.6%
Exceptional — 50.6% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+26.0%
Fast-growing sales (+26.0% YoY)
Profit growth
EPS YoY
+38.5%
Earnings growing fast (+38.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
81%
Modest — 81% of profit becomes cash
Spare cash per sale
FCF Margin
19.5%
Converts sales into free cash efficiently (19.5%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.30
Conservative — low debt load (0.30)
Covers its interest
Interest Cover
65.98x
Comfortably covers interest (66.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
45.6x
Expensive — P/E 45.6

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+22.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (45.6 → 23.4)

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Dividends

Dividend
Dividend Yield
0.40%
Small dividend — 0.40% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+16.8%
Dividend growing fast (16.8% YoY)
Payout Ratio
17%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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