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Lam Research Corporation LRCX

TechnologySemiconductorsNASDAQ📅 Scored March 14, 2026
Price at analysis: $219.26
Crucible Score
58.0
C+
Quality × Value Composite
KQI — Quality
76.0
B+
Fundamental Quality Index
KVI — Value
36.0
D-
Valuation Attractiveness Index
Crucible Verdict — LRCX

Lam Research Corporation delivers exceptional financial quality and market position strength, earning a solid C+ grade despite a significant quality-value disconnect driven by its expensive valuation relative to modest growth prospects. LRCX trades near fair value with limited upside potential, making it a name for quality-focused investors willing to pay premium multiples. CEO performance-based compensation alignment remains a positive catalyst.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality
90.5
Growth Profile
67.8
Moat Durability
70.6
Management Effectiveness
77.1
Diversification & Resilience
49.2
Market Position
87.0
Weakest dimension: Diversification & Resilience (49.2)

◆ KVI Value Dimensions

DCF Margin of Safety
53.4
FCF Yield & Cash Returns
32.2
Relative Valuation
42.5
Growth-Adjusted Value
13.5
Historical Valuation
13.5
Macro Context
41.1

◆ DCF Valuation Scenarios

Bear Case
$148.52
Base Case
$228.74
Bull Case
$345.18
Price at Analysis
$219.26
ScenarioFair ValueRev CAGR (5yr)Terminal MarginWACC
🔴 Bear$148.525.0%28.0%14.3%
🟢 Base$228.748.0%31.0%13.3%
🟢 Bull$345.1812.0%34.0%12.3%
Key Assumptions: WACC calculated using CAPM with 4.39% risk-free rate, 1.79 beta, and 5.25% ERP yielding ~13.8% base cost of equity; debt is modest relative to equity so WACC is close to cost of equity at 13.3% base. Revenue growth anchored to 5-year historical CAGR of ~5-6% with cyclical semiconductor upside in bull case driven by AI/advanced packaging demand. Operating margins held near historical 29-32% range with modest expansion in bull case reflecting operating leverage, while bear case assumes competitive and regulatory headwinds compress margins toward 28%.

◆ Financial Snapshot

Profitability

Gross Margin49.8%
Operating Margin33.8%
Net Margin30.2%
ROIC37.5%
ROE61.2%

Balance Sheet

Balance SheetD/E: 0.44*, CR: 2.26* (* = TTM)
Cash ConversionFCF/EPS: 1.07x
Capital IntensityCapex/Rev: 4.1%
Altman Z-Score18.51 (Safe)
Piotroski F-Score8/9 (Strong)

Growth

Revenue CAGR6.0% CAGR
Earnings CAGR8.2% CAGR
Growth ConsistencyCV: 1.35
Segment Breadth2/2 growing (100%)
Quarterly TrendRev↑, Margin↑
Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$257.29
Analysts Covering (Quarter)34
Avg Target (Last Year)$215.31
Analysts (Year)54

Leadership & Governance

CEONavid Fouladian · 3 years
CEO Ownership< 1%
Compensation96% performance-based
Insider ActivitySelling
Capital AllocationROIC 37.5% vs WACC 3.0%
Earnings Beat Rate91% (20/22)

◆ Company Profile

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.

CEO
Timothy Archer
Employees
18600
Headquarters
Fremont, CA, US
IPO Date
May 4, 1984
Exchange
NASDAQ

◆ Related Companies in Our Universe

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ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+
MethodologyAll ScoresCrucible BriefsPerformance@KaladinCI

Analysis conducted March 14, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.

© 2026 Kaladin Capital Intelligence — Conviction Through Scrutiny