Lam ResearchXSWX:LRCX +1.23%85 Return-on-Tangible-Asset is 37.99% as of Mar. 2026, which is 68% above its 10-year median of 22.61. GuruFocus rates XSWX:LRCX with a GF Score™ of 85/100 and a GF Value™ of CHF109.03. The stock has 6 warning signs investors should review. Among 1,026 Semiconductors companies, Lam Research ranks better than 98.44% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Lam Research's annualizedNet Income for the quarter that ended in Mar. 2026 was CHF7,302 Mil. Lam Research's average total tangible assets for the quarter that ended in Mar. 2026 was CHF19,219 Mil. Therefore, Lam Research's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 37.99%.
The historical rank and industry rank for Lam Research's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:LRCX'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 10.41 Med: 22.61 Max: 34.86
Current: 34.86
During the past 13 years, Lam Research's highest Return-on-Tangible-Asset was 34.86%. The lowest was 10.41%. And the median was 22.61%.
XSWX:LRCX's Return-on-Tangible-Asset is ranked better than 98.44% of 1026
companies
in the Semiconductors industry
Industry Median: 2.59
vs XSWX:LRCX: 34.86
Lam Research (XSWX:LRCX) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Lam Research Return-on-Tangible-Asset Related Terms
Lam Research Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Lam Research's Return-on-Tangible-Asset 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.
XSWX:LRCX vs : Return-on-Tangible-Asset Comparison
For the Semiconductor Equipment & Materials subindustry, Lam Research's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Lam Research's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 37.99% mean?
Lam Research (XSWX:LRCX) has a Return-on-Tangible-Asset of 37.99% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lam Research and its competitors. This is 68% above median its historical median of 22.61. Over the past decade, Lam Research's Return-on-Tangible-Asset has ranged from 10.41 to 34.86. According to the industry distribution chart, Lam Research ranks #16 out of 1026 companies in the Semiconductors industry, placing it in the top 1.6%.
Is Lam Research's Return-on-Tangible-Asset too high?
Lam Research's current Return-on-Tangible-Asset of 37.99% is 68% above median its 10-year median of 22.61. Over the past 10 years, this metric has ranged from a low of 10.41 to a high of 34.86. The Semiconductors industry median Return-on-Tangible-Asset is 2.59. Lam Research's value of 37.99% is 1366.8% above this industry median. Based on the distribution chart, Lam Research ranks #16 out of 1026 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Asset compare to ?
According to the Semiconductors industry distribution chart, Lam Research ranks #16 out of 1026 companies for Return-on-Tangible-Asset. This places Lam Research in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.59. Lam Research's value of 37.99% is 1366.8% above this benchmark. Historically, Lam Research's own Return-on-Tangible-Asset has ranged from 10.41 to 34.86 over the past decade. While the company's 10-year median is 22.61 vs. the industry median of 2.59, 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 Return-on-Tangible-Asset for a Semiconductors company?
The median Return-on-Tangible-Asset among Semiconductors companies is 2.59, based on 1,026 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current Return-on-Tangible-Asset of 37.99% is 1366.8% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lam Research and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Asset is 2.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current Return-on-Tangible-Asset is 37.99%, which is 68% above median its own 10-year median of 22.61. 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 Return-on-Tangible-Asset of 37.99%. The stock's GF Value™ is CHF109.03, compared to a current price of CHF295.85 — trading 171.3% above its estimated fair value. The current Return-on-Tangible-Asset is 37.99%, which is 68% above median its 10-year median of 22.61 and 1366.8% above the Semiconductors industry median of 2.59. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Lam Research (XSWX:LRCX), the current Return-on-Tangible-Asset is 37.99% 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 (XSWX:LRCX) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Research stock appears to be overvalued.
The current stock price of CHF295.85 is trading 171.3% above its estimated GF Value™ of CHF109.03.
Key valuation signals for XSWX:LRCX:
Return-on-Tangible-Asset: 37.99% (68% above median its 10-year median of 22.61)
GF Value™: CHF109.03 vs. price of CHF295.85 (171.3% above fair value)
Industry Position: 1366.8% above the Semiconductors median (#16 of 1026)
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
Get the complete analysis for XSWX:LRCX
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:LRCX has been successfully added to your 
