Attractive stocks have exceptional fundamentals. In the case of Lam Research Corporation (NASDAQ:LRCX), there's is a company with great financial health as well as a an impressive history of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Lam Research here.
Proven track record with adequate balance sheet
LRCX delivered a satisfying double-digit returns of 47% in the most recent year. Not surprisingly, LRCX outperformed its industry which returned 12%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. LRCX's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that LRCX manages its cash and cost levels well, which is a crucial insight into the health of the company. LRCX appears to have made good use of debt, producing operating cash levels of 0.72x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Lam Research, I've compiled three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for LRCX’s future growth? Take a look at our free research report of analyst consensus for LRCX’s outlook.
- Valuation: What is LRCX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LRCX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LRCX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.