Lam ResearchLRCX +8.39%85 Interest Coverage is 52.04 as of Mar. 2026, which is 133% above its 10-year median of 22.31. GuruFocus rates LRCX with a GF Score™ of 85/100 and a GF Value™ of $130.59 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 636 Semiconductors companies, Lam Research ranks better than 61.64% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Lam Research's
Operating Income
for the
three
months ended in Mar. 2026 was $2,047 Mil. Lam Research's Interest Expense for the
three
months ended in Mar. 2026 was $-39 Mil.
Lam Research's interest coverage for the quarter that ended in Mar. 2026 was 52.04.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Lam Research's Interest Coverage or its related term are showing as below:
LRCX'
s Interest Coverage Range Over the Past 10 Years
Min: 7.97 Med: 22.31 Max: 44.89
Current: 44.89
LRCX's Interest Coverage is ranked better than 61.64% of 636
companies
in the Semiconductors industry
Industry Median: 20.225
vs LRCX: 44.89
Lam Research (NAS:LRCX) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Lam Research Interest Coverage Related Terms
Lam Research Interest Coverage Historical Data
* Premium members only.
The historical data trend for Lam Research's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LRCX vs AMAT, KLAC, TER: Interest Coverage Comparison
For the Semiconductor Equipment & Materials subindustry, Lam Research's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Lam Research's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Lam Research (LRCX) has a Interest Coverage of 52.04 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Lam Research and its competitors. This is 133% above median its historical median of 22.31. Over the past decade, Lam Research's Interest Coverage has ranged from 7.97 to 44.89. According to the industry distribution chart, Lam Research ranks #244 out of 636 companies in the Semiconductors industry, placing it in the top 38.4%.
Is Lam Research's Interest Coverage too high?
Lam Research's current Interest Coverage of 52.04 is 133% above median its 10-year median of 22.31. Over the past 10 years, this metric has ranged from a low of 7.97 to a high of 44.89. The Semiconductors industry median Interest Coverage is 20.23. Lam Research's value of 52.04 is 157.3% above this industry median. Based on the distribution chart, Lam Research ranks #244 out of 636 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Lam Research has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lam Research's Interest Coverage compare to AMAT and KLAC?
According to the Semiconductors industry distribution chart, Lam Research ranks #244 out of 636 companies for Interest Coverage. This puts Lam Research in the upper half of its industry. The industry median Interest Coverage is 20.23. Lam Research's value of 52.04 is 157.3% above this benchmark. Historically, Lam Research's own Interest Coverage has ranged from 7.97 to 44.89 over the past decade. While the company's 10-year median is 22.31 vs. the industry median of 20.23, Lam Research has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 636 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current Interest Coverage of 52.04 is 157.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Lam Research and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current Interest Coverage is 52.04, which is 133% above median its own 10-year median of 22.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lam Research stock overvalued right now?
Based on GuruFocus' analysis, Lam Research (LRCX) is currently considered Significantly Overvalued. The stock's GF Value™ is $130.59, compared to a current price of $410.91 — trading 214.7% above its estimated fair value. The current Interest Coverage is 52.04, which is 133% above median its 10-year median of 22.31 and 157.3% above the Semiconductors industry median of 20.23. Lam Research's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Lam Research (LRCX), the current Interest Coverage is 52.04 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lam Research (LRCX) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Research stock appears to be overvalued.
The current stock price of $410.91 is trading 214.7% above its estimated GF Value™ of $130.59.
GuruFocus considers Lam Research to be Significantly Overvalued.
Key valuation signals for LRCX:
Interest Coverage: 52.04 (133% above median its 10-year median of 22.31)
GF Value™: $130.59 vs. price of $410.91 (214.7% above fair value)
Industry Position: 157.3% above the Semiconductors median (#244 of 636)
No single metric tells the full story. See the LRCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. It specializes in deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.
85GF Score
Get the complete analysis for LRCX
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