LRCXLam Research
Is the business good?
A genuinely good business: 8 of 9 health tests passed, earnings fully cash-backed (0.9×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 61% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LRCX?
Lam Research earns 75% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 66 points above what the capital costs: growth creates value
- Operating margin
- 37%
Operating margin · Semiconductor Equipment & Materials median 10% · 12 months to Q1 2027
- Cash conversion
- 0.90×
Cash conversion · 1.11× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 31% |
| FY2022 | 31% |
| FY2023 | 30% |
| FY2024 | 29% |
| FY2025 | 32% |
| FY2026 | 35% |
Details›
- Gross margin12 months to Q1 2027
- 51%
- Operating margin12 months to Q1 2027
- 37%
- Net margin12 months to Q1 2027
- 32%
- Free cash flow margin
- 25%
- R&D as % of revenue
- 9.4%
- Revenue, trailing twelve months
- $26.1B
- Free cash flow, trailing twelve months
- $6.54B
- Net income, trailing twelve months
- $8.45B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 75%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from LRCX and who it buys from, as the companies report it.
- Customer 116%
Share of revenue · FY2026 10-K
- Customer 215%
Share of revenue · FY2026 10-K
- Customer 312%
Share of revenue · FY2026 10-K
- Customer 412%
Share of revenue · FY2026 10-K
- MUMicron Technology
Named in LRCX’s FY2026 10-K
- ICHRIchor Holdings, Ltd.37%
LRCX is 37% of its revenue · FY2025 10-K
- UCTTUltra Clean Holdings, Inc.37%
LRCX is 37% of its revenue · FY2025 10-K
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; LRCX’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported. A link without a share is named in one of the two companies’ annual reports, without a figure.
Semiconductor Equipment & Materials
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