Lam ResearchLRCX +7.21%85 OCF Yield % is 1.38 as of Jun. 25, 2026, which is 75% below its 10-year median of 5.58. GuruFocus rates LRCX with a GF Score™ of 85/100 and a GF Value™ of $130.49 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,028 Semiconductors companies, Lam Research ranks better than 52.53% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Lam Research OCF Yield % Related Terms
Lam Research OCF Yield % Historical Data
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The historical data trend for Lam Research's OCF Yield % 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.
For the Semiconductor Equipment & Materials subindustry, Lam Research's OCF Yield %, along with its competitors' market caps and OCF Yield % 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 OCF Yield % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Lam Research's OCF Yield % falls into.
* 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 OCF Yield % of 1.38 as of Jun. 25, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Lam Research and its competitors. This is 75% below median its historical median of 5.58. Over the past decade, Lam Research's OCF Yield % has ranged from 1.36 to 13.99. According to the industry distribution chart, Lam Research ranks #488 out of 1028 companies in the Semiconductors industry, placing it in the top 47.5%.
Is Lam Research's OCF Yield % too high?
Lam Research's current OCF Yield % of 1.38 is 75% below median its 10-year median of 5.58. Over the past 10 years, this metric has ranged from a low of 1.36 to a high of 13.99. The Semiconductors industry median OCF Yield % is 1.30. Lam Research's value of 1.38 is 6.2% above this industry median. Based on the distribution chart, Lam Research ranks #488 out of 1028 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 OCF Yield % compare to AMAT and KLAC?
According to the Semiconductors industry distribution chart, Lam Research ranks #488 out of 1028 companies for OCF Yield %. This puts Lam Research in the upper half of its industry. The industry median OCF Yield % is 1.30. Lam Research's value of 1.38 is 6.2% above this benchmark. Historically, Lam Research's own OCF Yield % has ranged from 1.36 to 13.99 over the past decade. While the company's 10-year median is 5.58 vs. the industry median of 1.30, 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 OCF Yield % for a Semiconductors company?
The median OCF Yield % among Semiconductors companies is 1.30, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current OCF Yield % of 1.38 is 6.2% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Lam Research and its competitors. For the Semiconductors industry, the median OCF Yield % is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current OCF Yield % is 1.38, which is 75% below median its own 10-year median of 5.58. 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 $130.49, compared to a current price of $401.82 — trading 207.9% above its estimated fair value. The current OCF Yield % is 1.38, which is 75% below median its 10-year median of 5.58 and 6.2% above the Semiconductors industry median of 1.30. 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 OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Lam Research (LRCX), the current OCF Yield % is 1.38 as of Jun. 25, 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 $401.82 is trading 207.9% above its estimated GF Value™ of $130.49.
GuruFocus considers Lam Research to be Significantly Overvalued.
Key valuation signals for LRCX:
OCF Yield %: 1.38 (75% below median its 10-year median of 5.58)
GF Value™: $130.49 vs. price of $401.82 (207.9% above fair value)
Industry Position: 6.2% above the Semiconductors median (#488 of 1028)
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
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