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Lam Research Piotroski F-Score

: 6 (As of Today)
View and export this data going back to 1984. Start your Free Trial

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lam Research has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Lam Research's Piotroski F-Score or its related term are showing as below:

NAS:LRCX' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 9
Current: 6

1
9

During the past 13 years, the highest Piotroski F-Score of Lam Research was 9. The lowest was 1. And the median was 5.


Lam Research Piotroski F-Score Historical Data

The historical data trend for Lam Research's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lam Research Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 8.00 5.00 6.00 7.00

Lam Research Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 7.00 7.00 6.00

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, Lam Research's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Lam Research Piotroski F-Score Distribution

For the Semiconductors industry and Technology sector, Lam Research's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Lam Research's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep21) TTM:Last Year (Sep20) TTM:
Net Income was 869.229 + 1071.121 + 1144.657 + 1179.744 = $4,265 Mil.
Cash Flow from Operations was 344.637 + 1165.08 + 1435.935 + 457.524 = $3,403 Mil.
Revenue was 3456.237 + 3847.654 + 4145.179 + 4304.465 = $15,754 Mil.
Gross Profit was 1603.795 + 1780.131 + 1915.201 + 1976.754 = $7,276 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(15057.008 + 15370.374 + 15284.913 + 15892.152 + 15565.552) / 5 = $15433.9998 Mil.
Total Assets at the begining of this year (Sep20) was $15,057 Mil.
Long-Term Debt & Capital Lease Obligation was $4,989 Mil.
Total Current Assets was $11,145 Mil.
Total Current Liabilities was $3,409 Mil.
Net Income was 514.51 + 574.781 + 696.673 + 823.451 = $2,609 Mil.

Revenue was 2583.501 + 2503.625 + 2791.864 + 3177.08 = $11,056 Mil.
Gross Profit was 1179.644 + 1167.007 + 1280.332 + 1506.179 = $5,133 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(12343.502 + 11914.122 + 12938.635 + 14559.047 + 15057.008) / 5 = $13362.4628 Mil.
Total Assets at the begining of last year (Sep19) was $12,344 Mil.
Long-Term Debt & Capital Lease Obligation was $4,993 Mil.
Total Current Assets was $11,275 Mil.
Total Current Liabilities was $3,407 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lam Research's current Net Income (TTM) was 4,265. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lam Research's current Cash Flow from Operations (TTM) was 3,403. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep20)
=4264.751/15057.008
=0.28324027

ROA (Last Year)=Net Income/Total Assets (Sep19)
=2609.415/12343.502
=0.21139989

Lam Research's return on assets of this year was 0.28324027. Lam Research's return on assets of last year was 0.21139989. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Lam Research's current Net Income (TTM) was 4,265. Lam Research's current Cash Flow from Operations (TTM) was 3,403. ==> 3,403 <= 4,265 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=4988.964/15433.9998
=0.32324505

Gearing (Last Year: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=4993.495/13362.4628
=0.37369571

Lam Research's gearing of this year was 0.32324505. Lam Research's gearing of last year was 0.37369571. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep21)=Total Current Assets/Total Current Liabilities
=11144.682/3409.22
=3.26898293

Current Ratio (Last Year: Sep20)=Total Current Assets/Total Current Liabilities
=11274.883/3406.868
=3.30945696

Lam Research's current ratio of this year was 3.26898293. Lam Research's current ratio of last year was 3.30945696. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Lam Research's number of shares in issue this year was 142.612. Lam Research's number of shares in issue last year was 147.248. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=7275.881/15753.535
=0.46185704

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5133.162/11056.07
=0.46428451

Lam Research's gross margin of this year was 0.46185704. Lam Research's gross margin of last year was 0.46428451. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep20)
=15753.535/15057.008
=1.04625932

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep19)
=11056.07/12343.502
=0.89569962

Lam Research's asset turnover of this year was 1.04625932. Lam Research's asset turnover of last year was 0.89569962. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+0+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lam Research has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Lam Research  (NAS:LRCX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Lam Research Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Lam Research's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Lam Research Business Description

Lam Research logo
Industry
Technology » Semiconductors NAICS : 333249 SIC : 3559
Address
4650 Cushing Parkway, Fremont, CA, USA, 94538
Lam Research manufactures equipment used to fabricate semiconductors. The firm is focused on the etch, deposition, and clean markets, which are key steps in the semiconductor manufacturing process, especially for 3D NAND flash storage, advanced DRAM, and leading-edge logic/foundry chipmakers. Lam's flagship Kiyo, Vector, and Sabre products are sold in all major geographies to key customers such as Samsung Electronics, Micron, and Taiwan Semiconductor Manufacturing.
Executives
Archer Timothy officer: President and CEO 4650 CUSHING PARKWAY FREMONT CA 94538
Bettinger Douglas R officer: Chief Financial Officer & EVP C/O LAM RESEARCH CORPORATION 4650 CUSHING PARKWAY FREMONT CA 94538
Meikle Scott Gerald officer: Senior Vice President 1007 N. 17TH STREET BOISE ID 83702
Gottscho Richard A officer: Executive Vice President & CTO 4650 CUSHING PARKWAY FREMONT CA 94560
Lord Patrick J officer: Executive Vice President C/O LAM RESEARCH CORP 4650 CUSHING PARKWAY FREMONT CA 94538
Jennings Kevin officer: Senior Vice President PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: JENNINGS KEVIN a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Vahedi Vahid officer: Senior Vice President LAM RESEARCH CORPORATION 4650 CUSHING PARKWAY FREMONT CA 94538
El Mansy Youssef A director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: EL MANSY YOUSSEF A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Ahmed Sohail U director 4650 CUSHING PARKWAY FREMONT CA 94538
Hahn Ava officer: Chief Legal Officer & SVP 4650 CUSHING PARKWAY C/O LAM RESEARCH FREMONT CA 94538
Varadarajan Seshasayee officer: Senior Vice President LAM RESEARCH CORPORATION 4650 CUSHING PARKWAY FREMONT CA 94538
Talwalkar Abhijit Y director ONE AMD PLACE PO BOX 3453 SUNNYVALE CA 94088
Tsai Lih Shyng (rick) director 4650 CUSHING PARKWAY FREMONT CA 94538
Mayer Bethany director C/O IXIA 26601 W. AGOURA ROAD CALABASAS CA 91302
Varon Leslie F director C/O DENTSPLY SIRONA INC 13320 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277

Lam Research Headlines

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