Fundamental Analysis
OVERVIEW
As a trusted, collaborative partner to the world’s leading semiconductor companies, Lam Research is a fundamental enabler of the silicon roadmap. In fact, today, nearly every advanced chip is built with Lam technology.
Our innovative wafer fabrication equipment and services allow chipmakers to build smaller, faster, and better performing electronic devices. We combine superior systems engineering, technology leadership, a strong values-based culture, and unwavering commitment to customer success to accelerate innovation, enabling our customers to shape the future.
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see LAM RESEARCH CORP makes a margin of 46% on Gross Level and about 27% on Net level This means that out of $1 that it makes $0.27 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see LAM RESEARCH CORP grew at an good rate of 34% in the revenue and the net profit figures grew by 40%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see LAM RESEARCH CORP makes a Return on Assets of 23% and Return of Equity of 46% which is pretty good.
Here we see that LAM RESEARCH CORP scores high on each and every one of the parameters that we have selected when compared to our reasonable barriers that we have kept.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by LAM RESEARCH CORP to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
