Lam ResearchXSWX:LRCX 85 3-Year ROIIC % is 37.84 as of Jun. 2025, which is 36% below its 10-year median of 58.77. 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 997 Semiconductors companies, Lam Research ranks better than 78.54% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Lam Research's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 37.84%. 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 3-Year ROIIC % or its related term are showing as below:
XSWX:LRCX's 3-Year ROIIC % is ranked better than 78.54% of 997
companies
in the Semiconductors industry
Industry Median: -0.2
vs XSWX:LRCX: 37.84
Lam Research (XSWX:LRCX) 3-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 3-Year ROIIC % Related Terms
Lam Research 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Lam Research's 3-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 3-Year ROIIC %, along with its competitors' market caps and 3-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 3-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Lam Research's 3-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 3-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 3-Year ROIIC % of 37.84 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Lam Research and its competitors. This is 36% below median its historical median of 58.77. According to the industry distribution chart, Lam Research ranks #214 out of 997 companies in the Semiconductors industry, placing it in the top 21.5%.
Is Lam Research's 3-Year ROIIC % too high?
Lam Research's current 3-Year ROIIC % of 37.84 is 36% below median its 10-year median of 58.77. Based on the distribution chart, Lam Research ranks #214 out of 997 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 3-Year ROIIC % compare to ?
According to the Semiconductors industry distribution chart, Lam Research ranks #214 out of 997 companies for 3-Year ROIIC %. This places Lam Research in the top 22% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Semiconductors company?
A good 3-Year ROIIC % depends on the Semiconductors industry context. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Lam Research and its competitors. Lam Research's current 3-Year ROIIC % is 37.84, which is 36% below median its own 10-year median of 58.77. 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 3-Year ROIIC % of 37.84. The stock's GF Value™ is CHF109.03, compared to a current price of CHF292.25 — trading 168% above its estimated fair value. The current 3-Year ROIIC % is 37.84, which is 36% below median its 10-year median of 58.77. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Lam Research (XSWX:LRCX), the current 3-Year ROIIC % is 37.84 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 CHF292.25 is trading 168% above its estimated GF Value™ of CHF109.03.
Key valuation signals for XSWX:LRCX:
3-Year ROIIC %: 37.84 (36% below median its 10-year median of 58.77)
GF Value™: CHF109.03 vs. price of CHF292.25 (168% 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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