Is the business good?
How good a business is LRCX?
Lam Research earns 61% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
61%
Return on invested capital · cost of capital 9.0% · 52 points above what the capital costs: growth creates value
- Operating margin
- 35%
Operating margin · Semiconductor Equipment & Materials median 8.4% · 12 months to Q4 2026
- Cash conversion
- 0.67×
Cash conversion · 1.01× a year ago · some of the reported profit has not turned into cash yet
- R&D as % of revenue
- 10%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 31% |
| FY2022 | 31% |
| FY2023 | 30% |
| FY2024 | 29% |
| FY2025 | 32% |
| FY2026 | 35% |
Details›
- Gross margin12 months to Q4 2026
- 50%
- Operating margin12 months to Q4 2026
- 35%
- Net margin12 months to Q4 2026
- 31%
- Free cash flow margin
- 21%
- R&D as % of revenue
- 10%
- Revenue, trailing twelve months
- $23.2B
- Free cash flow, trailing twelve months
- $4.89B
- Net income, trailing twelve months
- $7.27B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 61%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Semiconductor Equipment & Materials
Ranks #2 of 22 by Smart Score