| Company name | Lam Research Corporation |
| Stock ticker | LRCX |
| Live stock price | [stckqut]LRCX[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $291.33 |
| Target stock price (averages with growth) | $428.89 |
| Target stock price (averages with no growth) | $291.33 |
| Target stock price (manual assumptions) | $304.53 |
The following company description is from Google Finance: https://finance.google.com/finance?q=lrcx
Lam Research Corporation is a supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes and services semiconductor processing systems that are used in the fabrication of integrated circuits (ICs). It operates through manufacturing and servicing of wafer processing semiconductor manufacturing equipment segment. Its products are designed to enable its customers build a range of devices that are used in a range of electronic products, including cell phones, tablets, computers, storage devices, and networking equipment. Its customer base includes semiconductor memory, foundry, and integrated device manufacturers (IDMs) that make products, such as dynamic random-access memory (DRAM), negative-AND (NAND) memory and logic devices. It offers a portfolio of products that are used in several areas of the semiconductor manufacturing process flow, including thin film deposition, plasma etch and single-wafer clean.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Lam Research Corporation as long as the indicators that I describe in my book The Confident Investor are favorable. I am adding Lam Research to my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Lam Research Corporation calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $188.6
- Growth: 0.2
- Current EPS (TTM): $10.95
- P/E: 18
- Future EPS Calc: $27.24
- Future Stock Price Calc: $490.44
- Target stock price: $304.52
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I hope that this makes you a Confident Investor.