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Lam Research has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Lam Research Corp shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Lam Research's Interest Coverage for the quarter that ended in Jun. 2026 was 73.49.
Lam Research's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.14.
As of today, Lam Research's Altman Z-Score is 28.08.
Lam Research (XSWX:LRCX) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Lam Research has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Lam Research Financial Strength Related Terms
XSWX:LRCX vs AMAT, KLAC, TER: Financial Strength Comparison
For the Semiconductor Equipment & Materials subindustry, Lam Research's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Financial Strength distribution charts can be found below:
* The bar in red indicates where Lam Research's Financial Strength 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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Lam Research has a Z-score of 28.08, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 28.08 is strong.
* 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 (XSWX:LRCX) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Lam Research and its competitors. This is near median its historical median of 8.00. Over the past decade, Lam Research's Financial Strength has ranged from 8.00 to 8.00.
Is Lam Research's Financial Strength too high?
Lam Research's current Financial Strength of 8 is near median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 8.00. Overall, Lam Research has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Lam Research's Financial Strength compare to AMAT and KLAC?
Lam Research's Financial Strength of 8 can be compared against companies in the Semiconductors industry. Historically, Lam Research's own Financial Strength has ranged from 8.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Semiconductors company?
A good Financial Strength depends on the Semiconductors industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Lam Research and its competitors. Lam Research's current Financial Strength is 8, which is near median its own 10-year median of 8.00. 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?
Lam Research (XSWX:LRCX) has a current Financial Strength of 8. The stock's GF Value™ is CHF118.19, compared to a current price of CHF274.85 — trading 132.5% above its estimated fair value. The current Financial Strength is 8, which is near median its 10-year median of 8.00. Lam Research's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Lam Research (XSWX:LRCX), the current Financial Strength is 8 as of Jun. 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 (XSWX:LRCX) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Research stock appears to be overvalued.
The current stock price of CHF274.85 is trading 132.5% above its estimated GF Value™ of CHF118.19.
Key valuation signals for XSWX:LRCX:
Financial Strength: 8 (near median its 10-year median of 8.00)
GF Value™: CHF118.19 vs. price of CHF274.85 (132.5% above fair value)
No single metric tells the full story. See the XSWX: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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