With your permission, we use privacy-limited analytics to understand which research journeys work. We do not run advertising trackers or session replay. You can change this choice in Preferences. Read the Privacy Policy.
Educational research only - not investment advice, an offer, or a trade instruction. Confirm current data and do your own due diligence before acting.
LRCX trades against a final fair-value range of $132.71-$237.30, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs.
A severe stress test incorporating a 30% reduction to next-year internal valuation cross-checks revenueRevenueRevenue is an income-statement line item used to reconcile revenue to operating profit, pre-tax income, net income, or per-share earnings. It should be compared across periods and against peer disclosure conventions. and structurally lower terminal margins drops fair valueFair valueOur composite estimate of intrinsic per-share value, blended across DCF, exit-multiple, and reverse-DCF methods. Reported as a low/mid/high range to capture model uncertainty. toward the $130 level. This highlights the extreme fragility of the current high multiples assigned by the market, which completely ignore inherent downcycle risks.
Extended reduction in NAND and DRAM capex significantly depresses equipment sales and margins beyond modeled downcycle parameters.
Complete ban on trailing-edge and advanced equipment sales to China abruptly eliminates a major high-margin revenue vector.
Competitors dominate next-generation advanced packaging and gate-all-around deposition transitions, permanently eroding Lam's market share.
| Line item | 2022-06-30 | 2023-06-30 | 2024-06-30 | 2025-06-30 | Trend |
|---|---|---|---|---|---|
| Revenue | $17.23B | $17.43B+1.2% | $14.91B-14.5% | $18.44B+23.7% | +2.3% |
| Gross profit | $7.87B | $7.78B | $7.05B | $8.98B | +4.5% |
| Operating income | $5.38B | $5.22B | $4.28B | $5.90B | +3.1% |
| Net income | $4.61B | $4.51B-2.2% | $3.83B-15.1% | $5.36B+39.9% | +5.2% |
| EPS (diluted) | $3.28 | $3.32 | $2.90 | $4.15 | +8.2% |
| EBITDA | $5.71B | $5.64B | $4.91B | $6.52B | +4.5% |
| R&D | $1.60B | $1.73B | $1.90B | $2.10B | +9.3% |
| SG&A | $885.7M | $832.8M | $868.2M | $981.7M | +3.5% |
Cash-flow quality is reflected in the OCFOperating cash flowCash generated from the company's core operations after working-capital changes but before capital expenditures. The first line of the cash-flow statement. / net incomeNet IncomeNet Income is an income-statement line item used to reconcile revenue to operating profit, pre-tax income, net income, or per-share earnings. It should be compared across periods and against peer disclosure conventions., accounting-quality, and ROICROICReturn on invested capital. Operating profit (after tax) divided by invested capital. The single best gauge of capital-efficiency. Spread over WACC = economic value created. rows above.
Capital allocation should be evaluated against reinvestment needs, balance-sheet strength, and shareholder returns.
| Deterioration versus the report thesis |
| Margin compression signaling price competition in trailing-edge tools. | Monitor | Deterioration versus the report thesis |
| Rising inventory days signaling a severe industry downcycle. | Monitor | Deterioration versus the report thesis |
