Lam Research Corporation [LRCX] saw a change by 4.72% with the Thursday trading session, closing the trade at the price of $205.57. The company is holding 154.65M shares with keeping 149.33M floating shares. With the latest trading session, the stock is set at 67.62% off compared to its 52-week low, sliding -5.91% from high for the same period of time.

Since its 90-day high, the share price saw a move by -6.04%, trading +20.02% in oppose to its 90-day low While during the day, 154.65M shares valued at 1.28 million were bought and sold.

Lam Research Corporation [NASDAQ:LRCX]: Analyst Rating and Earnings

Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Lam Research Corporation [LRCX], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in June. On average, stock market experts give LRCX an Outperform rating. Its stock price has been found in the range of 122.64 to 218.49. This is compared to its latest closing price of $196.31.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Lam Research Corporation [LRCX] is sitting at 2.22. This is compared to 1 month ago, when its average rating was 2.29.

For the quarter ending in Jun-19 Lam Research Corporation [LRCX] generated $2.36 billion in sales. That’s 0.02% lower than the average estimate of $2.36 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.

Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Tue 15 Oct (In 63 Days).

Fundamental Analysis of Lam Research Corporation [LRCX]

Now let’s turn to look at profitability: with a current Operating Margin for Lam Research Corporation [LRCX] sitting at +25.53 and its Gross Margin at +45.15, this company’s Net Margin is now 30.10%. These measurements indicate that Lam Research Corporation [LRCX] is generating considerably more profit, after expenses are accounted for, compared to its market peers.

This company’s Return on Total Capital is 27.07, and its Return on Invested Capital has reached 33.30%. Its Return on Equity is 39.22, and its Return on Assets is 17.90. These metrics all suggest that Lam Research Corporation is doing well at using the money it earns to generate returns.

Turning to investigate this organization’s capital structure, Lam Research Corporation [LRCX] has generated a Total Debt to Total Equity ratio of 97.12. Similarly, its Total Debt to Total Capital is 49.27, while its Total Debt to Total Assets stands at 37.82. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 82.85, and its Long-Term Debt to Total Capital is 42.03. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.

What about valuation? This company’s Enterprise Value to EBITDA is 9.85 and its Total Debt to EBITDA Value is 1.64. The Enterprise Value to Sales for this firm is now 2.83, and its Total Debt to Enterprise Value stands at 0.16. Lam Research Corporation [LRCX] has a Price to Book Ratio of 5.80, a Price to Cash Flow Ratio of 9.46 and P/E Ratio of 14.99. These metrics all suggest that Lam Research Corporation is more likely to generate a positive ROI.

Similarly, this company’s Receivables Turnover is 5.32 and its Total Asset Turnover is 0.79. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.96 and its Current Ratio is 3.61. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Lam Research Corporation [LRCX] has 154.65M shares outstanding, amounting to a total market cap of $30.36B. Its stock price has been found in the range of 122.64 to 218.49. At its current price, it has moved down by -5.91% from its 52-week high, and it has moved up 67.62% from its 52-week low.

This stock’s Beta value is currently 1.65, which indicates that it is 2.73% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 58.11. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Lam Research Corporation [LRCX] a Reliable Buy?

Shares of Lam Research Corporation [LRCX], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.