10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Lam Research's 10-Year ROIIC % for the quarter that ended in Jun. 2025 was 57.25%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Lam Research's 10-Year ROIIC % or its related term are showing as below:
XSWX:LRCX's 10-Year ROIIC % is ranked better than 91.79% of 865
companies
in the Semiconductors industry
Industry Median: 4.19
vs XSWX:LRCX: 57.25
Lam Research (XSWX:LRCX) 10-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Lam Research 10-Year ROIIC % Related Terms
Lam Research 10-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Lam Research's 10-Year ROIIC % 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 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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 10-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Lam Research's 10-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Lam Research (XSWX:LRCX) has a 10-Year ROIIC % of 57.25 as of Jun. 2025. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Lam Research and its competitors. According to the industry distribution chart, Lam Research ranks #71 out of 865 companies in the Semiconductors industry, placing it in the top 8.2%.
Is Lam Research's 10-Year ROIIC % too high?
Lam Research's current 10-Year ROIIC % is 57.25. The Semiconductors industry median 10-Year ROIIC % is 4.19. Lam Research's value of 57.25 is 1266.3% above this industry median. Based on the distribution chart, Lam Research ranks #71 out of 865 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 10-Year ROIIC % compare to ?
According to the Semiconductors industry distribution chart, Lam Research ranks #71 out of 865 companies for 10-Year ROIIC %. This places Lam Research in the top 8% of its industry — outperforming the majority of peers. The industry median 10-Year ROIIC % is 4.19. Lam Research's value of 57.25 is 1266.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year ROIIC % for a Semiconductors company?
The median 10-Year ROIIC % among Semiconductors companies is 4.19, based on 865 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current 10-Year ROIIC % of 57.25 is 1266.3% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Lam Research and its competitors. For the Semiconductors industry, the median 10-Year ROIIC % is 4.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current 10-Year ROIIC % is 57.25. 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 10-Year ROIIC % of 57.25. 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 10-Year ROIIC % is 57.25 and 1266.3% above the Semiconductors industry median of 4.19. 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 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For Lam Research (XSWX:LRCX), the current 10-Year ROIIC % is 57.25 as of Jun. 2025. 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:
10-Year ROIIC %: 57.25
GF Value™: CHF109.03 vs. price of CHF295.85 (171.3% above fair value)
Industry Position: 1266.3% above the Semiconductors median (#71 of 865)
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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