Lam Research Corporation
LRCX NASDAQLam Research Corporation looks about 58% overvalued against its cash-flow value. Its growth outlook scores strong; the balance sheet is solid.
At a glance
tap a tile to dig inOtto's verdict
the tiles above, in a line each- Value Looks ~58% overvalued against Otto's cash-flow estimate.
- Health 16 of 21 health checks pass.
- Growth Revenue trend ≈ +14%/yr (extended trend, not a forecast).
- Street Analysts lean strong buy · avg target +38% from here.
- Dividend Pays a dividend — yields 0.39%.
- Insiders Insiders, last 12 months: 0 buys · 7 sells.
Not investment advice — Otto just crunches numbers.
Price trend
+220.8% over one year · S&P 500 +20.5%
What think
The market's move: +220.8% over the past year
Trading 51% up its 52-week range. Price is the market's live vote — not advice.
Analyst consensus: Strong Buy · 31 analysts
Average 12-month target ₹35,634.99 — +38.1% vs today.
Yahoo Finance's analyst aggregate. Sentiment, not advice.
Insiders: 0 buys · 7 sales in recent filings
Open-market trades from SEC Form 4. Sales are often pre-planned (10b5-1); buys tend to say more. Sentiment, not advice.
InvestRight readers: 0 watching
This site's own activity — not a broad measure. Sentiment, not advice.
The snowflake
checks passed on each axis- Value 0/2 checks
- Future 4/4 checks
- Past 4/4 checks
- Health 6/6 checks
- Dividend 2/5 checks
What does this show?
Five quick health scores — Value, Future, Past, Health and Dividend — each 0–100%. A bigger, more even shape means a stock that scores well across the board; a spiky one is strong on some axes and weak on others.
Learn more on Investopedia →Fair value
our estimate · not analyst forecast58% above our estimate — the price sits over what our numbers support.
How we got there
A 2-stage discounted-cash-flow on owner earnings (net income): grow it at the capped historical trend for five years, fade to a 2.5% long-run rate, discount everything at 9.0%. It's a transparent estimate from past numbers, not a licensed forecast — treat it as one lens, not truth.
What does this show?
Our estimate of what one share is worth based on the cash the business is expected to generate (a discounted-cash-flow model), next to today's price. Below fair value hints undervalued, above hints expensive — it's an estimate, not a guarantee.
Learn more on Investopedia →Health checks
21 checks run on free data- ⚠ Trading below our fair-value estimate -58% vs our DCF estimate
- ⚠ No dividend cut in recent years a cut shows in the record
- ⚠ More than 20% below fair value -58% margin of safety
- ⚠ Yield beats the market yield 0.39% vs market ~1.5%
- ⚠ Yield in the top quartile of payers yield 0.39% vs 2.70% cut among the 60 payers Otto tracks
- ✓ Debt/equity falling over time long-term debt/equity 37.7% vs 57.3%
Show all 21 checks by axis
Value 0/2 passed
- ⚠ Trading below our fair-value estimate -58% vs our DCF estimate
- – P/B below industry industry P/B not on the free feed
- – P/E below industry industry P/E not on the free feed
- – P/E below peer average peer P/Es land after the next refresh
- – P/S sane vs its own history needs multi-year P/S (Tier B)
- ⚠ More than 20% below fair value -58% margin of safety
Future 4/4 passed
- ✓ Earnings trending up 21.7%/yr over 9yr
- – Growth beats the industry industry growth not on the free feed
- ✓ Earnings growth beats the market 21.7%/yr vs market ~9.0%
- ✓ Revenue trending up 13.5%/yr over 9yr
- ✓ Return on equity improving ROE 54.3% vs 15.5% 9yr ago
Past 4/4 passed
- ✓ Earnings grew over the period 914.0M → 5.4B
- – High-quality earnings (few one-offs) one-off detection deferred — needs statement detail
- ✓ Growth accelerating vs its average latest 40.0%/yr vs 21.7% average
- ✓ Revenue higher than five years ago 5.9B → 18.4B
- ✓ Return on equity above 20% ROE 66.8%
Health 6/6 passed
- ✓ Debt/equity falling over time long-term debt/equity 37.7% vs 57.3%
- ✓ Debt is under 40% of equity debt/equity 35%
- ✓ Debt well covered by cash flow operating cash flow covers 138.0% of debt
- ✓ Interest comfortably covered by profit EBIT covers interest 33.3×
- ✓ Short-term assets cover long-term debt 14.5B vs 4.9B
- ✓ Short-term assets cover short-term bills 14.5B vs 6.6B
Dividend 2/5 passed
- – Dividend covered by earnings and cash flow n/a
- ✓ Dividend growing over time over 10yr on record
- ⚠ No dividend cut in recent years a cut shows in the record
- ✓ Payout ratio under 75% payout 19.1% of earnings
- ⚠ Yield beats the market yield 0.39% vs market ~1.5%
- ⚠ Yield in the top quartile of payers yield 0.39% vs 2.70% cut among the 60 payers Otto tracks
What does this show?
Pass/fail rules on the company's finances — debt levels, profitability, cash cover and so on. More greens means a sturdier balance sheet; an n/a just means we didn't have that data point.
Learn more on Investopedia →Past performance
10-yr history from SEC EDGAR filingsRevenue
Earnings
dashed line = what it'd look like growing at our ~9% market-average benchmark, for comparison
What does this show?
How revenue, earnings and free cash flow have grown over the years. Bars rising left-to-right show a growing business; the dashed line is a market-average pace for comparison.
Learn more on Investopedia →Revenue & expenses
Annual · all periods| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Revenue | ₹1.76T (+24%) | ₹1.43T (-14%) | ₹1.67T (+1%) | ₹1.65T |
| Cost of sales | ₹905.08B (+20%) | ₹751.57B (-19%) | ₹923.75B (+3%) | ₹895.39B |
| Gross profit | ₹859.39B (+27%) | ₹675.02B (-9%) | ₹744.33B (-1%) | ₹753.41B |
| Research & development | ₹200.65B (+10%) | ₹182.08B (+10%) | ₹165.31B (+8%) | ₹153.54B |
| Sales, general & admin | ₹93.96B (+13%) | ₹83.10B (+4%) | ₹79.70B (-6%) | ₹84.77B |
| Operating profit | ₹564.78B | — | ₹499.32B (-3%) | ₹515.09B |
| Tax | ₹57.42B | — | ₹57.26B (+2%) | ₹56.26B |
| Interest & other | — | — | ₹10.32B (-43%) | ₹18.06B |
| Tax & other | — | ₹43.48B | — | — |
| Net income | ₹512.83B (+40%) | ₹366.36B (-15%) | ₹431.74B (-2%) | ₹440.77B |
Change in brackets is vs. the same period a year earlier. Reported figures from Yahoo Finance, shown in INR.
What does this show?
How a company turns sales into profit. Revenue splits into the direct cost of sales and the gross profit left over; from that gross profit come operating costs (R&D, SG&A), tax and interest — what survives is net income. Every figure is also shown as a share of revenue, so you can compare periods and companies of different sizes.
Learn more on Investopedia →Future
trend, not analyst forecastRevenue · extended at 13.5%/yr
Earnings · extended at 15.0%/yr
Dashed bars just extend the historical trend (capped at ±15%/yr) — the same growth our DCF uses. It's arithmetic on the past, not an analyst forecast; real futures bend.
What does this show?
Solid bars are history; dashed bars simply extend the past growth trend a few years forward — capped so it stays sane. It's a trend line, not an analyst forecast.
Learn more on Investopedia →Dividend
from cash actually paid, not promisesTotal dividends paid · split-proof, unlike per-share history
What does this show?
The share of profit paid back to shareholders as cash. Yield is that cash as a % of the price; the payout gauge shows how much of earnings is paid out (over ~75% can be hard to sustain).
Learn more on Investopedia →Ownership & insiders
from SEC Form 4 filings0 open-market buys · 7 sales in the last 10 saved filings
- Sell Talwalkar Abhijit Y · Director 18,282 sh · ₹586.17M 2026-07-13
- Exercise Archer Timothy · President and CEO 30,000 sh · ₹86.23M 2026-07-02
- Sell Archer Timothy · President and CEO 30,000 sh · ₹1.12B 2026-07-02
- Sell Brandt Eric · Director 54,500 sh · ₹1.92B 2026-06-12
- Sell Brandt Eric · Director 54,500 sh · ₹1.83B 2026-06-11
- Sell Fernandes Neil J · Senior Vice President 7,659 sh · ₹226.95M 2026-06-01
- Sell Fernandes Neil J · Senior Vice President 18,170 sh · ₹443.70M 2026-05-01
- Exercise Harter Ava · Chief Legal Officer 6,010 sh · ₹44.31M 2026-04-27
- Sell Harter Ava · Chief Legal Officer 6,010 sh · ₹148.79M 2026-04-27
- Gift Talwalkar Abhijit Y · Director 4,571 sh 2026-03-10
Insiders must report within two business days. Sales are often pre-planned (10b5-1) rather than a signal — buys tend to say more.
What does this show?
Buys and sells by the company's own directors and officers, from their SEC filings. Insiders sell for many reasons, but clusters of open-market buying can signal confidence.
Learn more on Investopedia →Spot a missing competitor? Sign in to add it — it'll show for everyone.
What does this show?
A few peers in the same business, each with its own mini snowflake, so you can see how this company stacks up rather than judging it in isolation. Anyone signed in can add a missing competitor — it shows for everyone, marked as user-added.
Learn more on Investopedia →Leadership
Yahoo Finance · photos & bios via Wikidata-
Ms. Ava A. Harter J.D.
Senior VP, Chief Legal Officer & Secretary
- Age
- 55
- Total yearly comp
- ₹161.30M
-
Mr. Vahid Vahedi Ph.D.
Senior VP, Chief Technology & Sustainability Officer
- Age
- 59
- Total yearly comp
- ₹116.69M
-
Mr. Karthik Rammohan
Senior Vice President of Global Operations & Enterprise Solutions
Ranked by title — reporting lines aren't public data. Compensation is the total Yahoo reports; blank means it isn't disclosed there.
In the news
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- 3 Reasons Lam Research Is Worth a Closer Look Before July 29 Q4 Earnings
My notes
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