At the moment, the debt-to-equity of Lam Research Corporation (NASDAQ:LRCX) is high, standing at 38.37, a figure that is higher than the 6.29 average recorded by the industry. This means that the company is currently holding a debt level at 2.41 B. LRCX shares have a strong debt-to-equity ratio but their quick ratio which reads 2.00 is strong and might cause problems for them later in the future.

Even though there was a drop of -6.37% in revenue, the company failed to succeed in outperforming the industry average of 35.62%. For the most recent quarter, the net income has dropped by -9.71%. This weakness in their income has affected them and thus increased their earnings to $664.85 M. The -5.95% yoy growth of LRCX’s revenue has gone down that of the industry average by -29.32%. For the past 12 months, Lam Research Corporation revenue has gone up by 23.37%. The sustained growth in their revenue has helped boost their earnings per share.

Lam Research Corporation (LRCX) has seen their earnings per share increased to $3.23 during the last quarter in comparison to the same quarter last year. They have recorded a -44.58% declining earnings per share earnings. They have recorded a -44.58% declining earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $3.22. In the fiscal year 2018, Lam Research Corporation overcame its bottom line by hitting earning $13.17 per share compared to the $9.24 in 2017.

The 12-month return on equity has significantly fallen to 46.35 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Technology sector, the industry average is 28.14 while 17.89 is of the sector.

LRCX total operating cash flow had jumped to $720 million compared to $718 million in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 7.02 ratio of the stock is lower than the industry’s 10.40.

Lam Research Corporation (NASDAQ:LRCX) has a price-to-earnings ratio of 8.60 which is lower than the 12.18 industry average at the moment. In addition to their unfavorable P/E ratio, Lam Research Corporation has maintained a gross margin of 46.42. This shows whether the company has what it takes to effectively turn the revenue into profit.

The company’s ROA is 24.99 when compared to 18.71 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Lam Research Corporation ROE is above 17.89 that of both the sector average.

The operating profit margin for Lam Research Corporation (LRCX) is 28.09%, a figure which is considered to be strong. It has gone 23.39 from the 21.75 over the past 5 years. In addition to this, their operating margin is 4.7 higher than the industry average.

The net profit margin which stood at 19.73 on average in the past 5 years has jumped to 26.70 in the last 12 months. Added to that, this ratio has surpassed the industry net margin that stands at 18.11.

Analysts meanwhile rate Lam Research Corporation (NASDAQ:LRCX) as a buy. Still some above discussed indicators of the $22.47B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the LRCX shares to either perform positively or negatively when compared to other stocks. The primary strengths of Lam Research Corporation can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.