Lam Research Corporation

LRCX

Semiconductors · Technology

Also trades as: LRCX.BA · 0JT5.L

Exchange

NASDAQ

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Jun 28, 2026

How the score breaks down

Quality

Exceptional

Growth

Exceptional

Cash Flow

Strong

Stability

Exceptional

Valuation

Good

Dividends

Weak

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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

For growth stock investors

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

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.

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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)

54.2x

no trend

Expensive — P/E 54.2

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

Cheaper or dearer next year

P/E vs Forward

+32.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (54.2 → 21.7)

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Dividends

Dividend

Dividend Yield

0.35%

no trend

Small dividend — 0.35% yield

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

Dividend record

Dividend Growth

-65.2%

no trend

Dividend cut (-65.2% YoY) — warning sign

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