Balance sheet analysis
Lam Research’s total assets were $18.8 billion and $17.2 billion as of June 25, 2023 and June 26, 2022, respectively.
Total current assets were $13.2 billion at June 25, 2023, accounting for 70% of total assets.
The corporation had $5.3 billion of cash and cash equivalents as of June 25, 2023, consisting of 28.2% of total assets.
Property and equipment, net were $1.86 billion at June 25, 2023, making up 9.9% of total assets.
Goodwill was $1.62 billion at June 25, 2023, constituting 8.6% of total assets.
Total current liabilities were $4.18 billion as of June 25, 2023.
Total liabilities were $10.6 billion as of June 25, 2023.
The current ratio was 3.16 times for fiscal 2023.
The debt ratio was 56.4% of total assets for fiscal 2023.
The balance sheet was very healthy, the company’s liquidity very high and the debt ratio was low.
Profitability analysis
Lam Research’s revenue reached $17.4 billion, $17.2 billion and $14.6 billion as of June 25, 2023, June 26, 2022 and June 27, 2021, respectively.
The revenue in 2023 was almost flat year on year.
The revenue in 2022 was up 17.8% year on year.
Net income was $4.5 billion, $4.6 billion and $3.9 billion in fiscal 2023, 2022 and 2021, respectively.
The net profit margin was 25.8%, 26.7% and 26.7% in fiscal 2023, 2022 and 2021, respectively.
Total stockholders’ equity was $8.2 billion and $6.28 billion as of June 25, 2023 and June 26, 2022, respectively.
The return on equity was 54.9% and 73.2% in fiscal 2023 and 2022, respectively.
Cash flow analysis
Net cash provided by operating activities was $5.18 billion, $3.1 billion and $3.6 billion in fiscal 2023, 2022 and 2021, respectively.
Capital expenditure was $501.6 million, $546 million and $349 million in fiscal 2023, 2022 and 2021, respectively.
Treasury stock repurchases were $2 billion, $3.87 billion and $2.7 billion in fiscal 2023, 2022 and 2021, respectively.
Dividends paid were $908 million, $815 million and $727 million for fiscal 2023, 2022 and 2021, respectively.
Lam Research’s operating results for the nine months ended March 31, 2024.
The revenue was $11 billion and $14.2 billion in the nine months ended March 31, 2024 and the nine months ended March 26, 2023, respectively.
In the nine months ended March 31, 2024, the revenue was down 22.5% year on year.
Net income was $2.8 billion and $3.7 billion in the nine months ended March 31, 2024 and the nine months ended March 26, 2023, respectively.
Net cash provided by operating activities was $3.79 billion and $4 billion in the nine months ended March 31, 2024 and the nine months ended March 26, 2023, respectively.
Conclusion
Lam Research’s revenue dropped extremely by 22.5% in the nine months ended March 31, 2024, which is related to the business model.
Its revenue has depended on another companies’ capital expenditure.
The company’s advantage is that the amount of fixed assets was low as percentage of total assets, so its capital expenditure was very low.
We reckon that the reasonable valuation is $60 billion.
At least, the cash returns is 5%.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
Incorporated in 1980, Lam Research Corporation (“Lam Research,” “Lam,” “we,” “our,” “us,” or the “Company”) is a Delaware corporation, headquartered in Fremont, California.
We are a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. We have built a strong global presence with core competencies in areas such as nanoscale applications enablement, chemistry, plasma and fluidics, advanced systems engineering, and a broad range of operational disciplines. Our products and services are designed to help our customers build smaller and better performing devices that are used in a variety of electronic products, including mobile phones, personal computers, servers, wearables, automotive vehicles, and data storage devices.
Our customer base includes leading semiconductor memory, foundry, and integrated device manufacturers (“IDMs”) that make products such as non-volatile memory (“NVM”), dynamic random-access memory (“DRAM”), and logic devices. Their continued success is part of our commitment to driving semiconductor breakthroughs that define the next generation. Our core technical competency is integrating hardware, process, materials, software, and process control enabling results on the wafer.
Semiconductor manufacturing, our customers’ business, involves the complete fabrication of multiple dies or integrated circuits (“ICs”) on a wafer. This involves the repetition of a set of core processes and can require hundreds of individual steps. Fabricating these devices requires highly sophisticated process technologies to integrate an increasing array of new materials with precise control at the atomic scale. Along with meeting technical requirements, wafer processing equipment must deliver high productivity and be cost-effective.
