Home News Valuation Today: Lam Research Corporation (NASDAQ: LRCX)

Valuation Today: Lam Research Corporation (NASDAQ: LRCX)


Lam Research Corporation is in the semiconductors industry and technology sector. The company CEO is Timothy M. Archer. Lam Research Corp functions in the semiconductor industry. It develops and sells semiconductor processing systems that are used in the fabrication of integrated circuits.

Previous Intraday Trading Performance:

The LRCX stock showed a previous change of -0.24% with an open at 172.68 and a close of 175.30. It reached an intraday high of 175.64 and a low of 171.65.

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The stock has a market cap of $26.7b with 152.6m shares outstanding, of which the float is 151.1m shares. Trading volume reached 1,584,116 shares compared to its average volume of 3,089,260 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Lam Research Corporation shares returned 1.24% and in the past 30 trading days it returned 31.53%. Over three months, it changed 29.99%. In one year it has changed -8.59% and within that year its 52-week high was 234.88 and its 52-week low was 122.64. LRCX stock is 42.94% above its 52 Week Low.

Our calculations show a 200 day moving average of 163.51 and a 50 day moving average of 147.61. Currently LRCX stock is trading 7.21% above its 200 day moving average.

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The last annual fiscal EPS for the company was reported at 13.2 that ended on 30th of June 2018, which according to the previous close, that is a PE of 13.28. Based on 8 analyst estimates, the consensus EPS for the next quarter is 4.98. The TTM EPS is 17.90, which comes to a TTM PE of 9.79. Historically, the PE high was 101.50 and the PE low was 9.79. LRCX stock has set a new PE low record!

The following are the last four quarter reported earnings per share:
12-31-2018:  3.87
09-30-2018:  3.36
06-30-2018:  5.31
03-31-2018:  4.79

The dividend per share is currently 4.40, which is a dividend yield of 2.51%. Also, the payout ratio is 24.58%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 204.18, which means it is possibly undervalued and has a margin of safety of 14.14%

Indicators to Watch:

Based on the latest filings, there is 148.80% of institutional ownership. Short-interest is 0, which is 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio is 0.00.

The current calculated beta is 1.54

CNBC:  Chip stocks fall after Goldman and others warn they’ve gotten ahead of themselves

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 48.66%, return on assets is 24.51%, profit margin is 26.70%, price-to-sales is 2.47 and price-to-book is 4.62.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 6  :Past Performance Score
 5  :Financial Strength Score
 2  :Future Growth Score
 3  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.