Aureus
AExcellent

Lam Research Corporation(LRCX)

A

Financial data as of Jun 30, 2026Declining · Technology

FCF Margin19.4%Free Cash Flow / Revenue
Cash Conversion80.6%Operating CF / Net Income
Free Cash Flow$4.9B
Revenue$23.2B
Net Cash$1.8BCash exceeds debt
Debt / FCF0.8xManageable debt load
Current Ratio2.63Adequate short-term liquidity
YoY FCF Growth-49.1%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
+0.5Healthy FCF margin with manageable debt (19.4%, 0.8x)
→
-1Significant YoY FCF decline (-49.1%)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.8x)
→
+0.25Solid revenue growth (30.0% YoY)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (19.4%)
  • Net cash position ($1.8B)
  • Very low debt relative to cash flow (0.8x)
  • Strong liquidity (current ratio: 2.63)
  • Strong revenue growth (30.0% YoY)

Concerns

  • Significant YoY FCF decline (-49.1%)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin19.4%
Net Margin31.3%
Operating CF Margin25.2%
CapEx Ratio4.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$1.8BCash exceeds debt
Debt / FCF0.8xManageable debt load
Current Ratio2.63Strong liquidity
Debt / Equity0.30Low leverage

Quarterly FCF Trend

-49.1% YoYDeclining (-49.1%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameLam Research Corporation
SectorTechnology
Free Cash Flow$4.9B
Revenue$23.2B
Net Income$7.3B
Operating Cash Flow$5.9B
Capital Expenditure$966.4M
FCF Margin19.4%
Cash Conversion Rate80.6%
Net Margin31.3%
Total Debt$3.7B
Total Cash$5.6B
Net Cash$1.8B
Current Ratio2.63
Debt / Equity0.30
Debt / FCF0.8x
YoY FCF Growth-49.1%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateJun 30, 2026
GradeA
Data SourceYahoo Finance

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