Lam Research Corp. (NASDAQ:LRCX)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibited notable fluctuations over the period. Starting at 13.64 in mid-2019, it rose sharply to 24.23 in 2020, indicating increased market valuation relative to earnings. This was followed by a slight decline to 21.03 in 2021 and a significant dip back to near the initial level at 13.77 in 2022. Subsequently, the ratio increased again, reaching 19.26 in 2023 and peaking at 27.05 in 2024, the highest value in the observed timeframe. This pattern suggests periods of varying investor optimism and changes in earnings performance affecting valuation.

Price to Operating Profit (P/OP) Ratio

This ratio followed a similar trend to the P/E ratio, starting at 12.13 in 2019 and rising sharply to 20.4 in 2020. It decreased to 18.34 in 2021 and then dropped significantly to 11.79 in 2022, indicating a lower market valuation relative to operating profit during that year. The ratio then increased steadily to 16.79 in 2023 and further to 24.29 in 2024, reaching its highest point. This suggests that operating profitability valuation mirrored the changes seen in overall earnings valuation, reflecting shifts in market perception and company performance.

Price to Sales (P/S) Ratio

The Price to Sales ratio showed an upward trend with some volatility. It increased from 3.1 in 2019 to 5.43 in 2020 and slightly rose again to 5.62 in 2021. This was followed by a significant decline to 3.68 in 2022. Afterward, the ratio increased to 4.99 in 2023 and reached 6.95 in 2024, the highest point across the period. The fluctuations indicate varying valuation of the company’s sales, with increased valuation relative to sales in the most recent years.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio showed a general upward trend with some variability. Beginning at 6.4 in 2019, it rose steadily to 10.55 in 2020 and then to 13.64 in 2021. The ratio then declined to 10.1 in 2022 but rebounded slightly to 10.58 in 2023 and increased further to 12.13 in 2024. This trend reflects changes in how the market values the company’s net assets, with a notable peak in 2021 and a partial recovery after the subsequent dip.

Share Price

The share price exhibits an overall upward trend over the six-year period. Beginning at $20.68 in mid-2019, it increased substantially to $37.46 in mid-2020 and further to $57.90 in mid-2021. A decline is observed in mid-2022 to $46.30, followed by a recovery to $65.58 in mid-2023 and continued growth to $79.73 in mid-2024. This pattern suggests periods of strong investor confidence interspersed with some market corrections or external influences impacting the stock price.

Earnings per Share (EPS)

The EPS demonstrates a progressive increase from $1.52 in mid-2019 to a peak of $3.40 in mid-2023, reflecting improving profitability. The growth is relatively steady, except for a slight decrease to $2.95 in mid-2024. This recent decline may indicate emerging challenges such as increased costs, reduced margins, or other operational factors affecting net earnings.

Price-to-Earnings (P/E) Ratio

The P/E ratio fluctuates notably throughout the period. Starting at 13.64 in mid-2019, it peaks at 24.23 in mid-2020, suggesting growing market expectations on future earnings. It then decreases consistently to 13.77 in mid-2022, indicating a potential undervaluation or market skepticism, before rising again to 19.26 in mid-2023 and reaching 27.05 in mid-2024. The rising P/E ratio in the last two years, especially alongside a slight decline in EPS in mid-2024, could imply increased investor optimism or anticipation of future growth despite recent earnings softness.

Share Price Trend

The share price demonstrated a consistent upward trajectory from June 2019 to June 2024. Starting at $20.68, it more than tripled to reach $79.73 by June 2024. Notably, some fluctuations were observed; for instance, a decline occurred from $57.90 in June 2021 to $46.30 in June 2022, followed by a recovery to $79.73 in June 2024.

Operating Profit per Share

The operating profit per share increased steadily from $1.71 in June 2019 to a peak of $3.93 in June 2022. However, this figure slightly decreased in the two subsequent years, falling to $3.28 in June 2024. Despite these declines, the recent values remain significantly higher than the initial values in 2019.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio showed considerable volatility over the period. Initially, it rose sharply from 12.13 in June 2019 to 20.40 in June 2020. After a decline to 11.79 in June 2022, the ratio increased again to 24.29 by June 2024, marking the highest value in the given timeframe. This suggests variations in market valuation relative to operating profit per share.

Overall Insights

The company's share price growth outpaced the growth in operating profit per share, especially after 2022, as reflected in the rising P/OP ratio. This may indicate increased market optimism or expectations of future earnings growth not yet realized in operating profits. The declining trend in operating profit per share since 2022, coupled with the increasing share price and P/OP ratio, suggests a possible divergence between market valuation and fundamental operating performance in the most recent years.

Share price

The share price showed an overall increasing trend from 2019 to 2024. It rose significantly from $20.68 in June 2019 to $57.90 in June 2021, indicating strong market confidence or performance during this period. However, in June 2022, the price declined to $46.30 before bouncing back to $65.58 in June 2023 and reaching $79.73 by June 2024. Despite the mid-period dip, the general trajectory is upward, demonstrating robust growth in market valuation over the six-year span.

Sales per share

Sales per share increased steadily from $6.68 in June 2019 to a peak of $13.15 in June 2023. This suggests an improvement in the company’s revenue generation on a per-share basis. However, in June 2024, sales per share decreased to $11.48, reflecting a retreat from the previously observed upward trend. This decline may indicate emerging challenges in revenue growth or increased competition impacting sales.

Price-to-Sales (P/S) ratio

The P/S ratio fluctuated throughout the period. It started at 3.1 in June 2019 and increased sharply to 5.62 by June 2021, suggesting growing investor willingness to pay a higher price relative to sales, potentially driven by expectations of higher future growth or profitability. The ratio then dropped to 3.68 in June 2022, followed by a recovery to 6.95 in June 2024, reaching the highest value in the dataset. This volatility implies changing market sentiment and valuation perspectives, with the latest figures indicating elevated investor expectations despite the recent decline in sales per share.

The financial data reveals several notable trends over the six-year period ending June 30, 2024. The share price has demonstrated substantial growth, starting from $20.68 in mid-2019 and reaching $79.73 by mid-2024. Despite some volatility, such as the decline from $57.90 in 2021 to $46.30 in 2022, the overall trajectory is upward, showing strong market appreciation.

Book value per share (BVPS) has steadily increased each year, from $3.23 in 2019 to $6.58 in 2024. This consistent rise in BVPS indicates a strengthening in the company's net asset value per share, reflecting retained earnings growth or asset accumulation over time.

The price-to-book value (P/BV) ratio exhibits fluctuations but remains relatively high throughout the period. Starting at 6.4 in 2019, it peaked at 13.64 in 2021, indicating investor willingness to pay a significant premium over book value at that point. Although it dropped to 10.1 in 2022, the ratio increased again to 12.13 by mid-2024. These levels suggest continued investor confidence, albeit with some variation corresponding to market conditions and company performance trends.

Share Price

Strong overall upward trend with some year-to-year volatility.

Book Value Per Share (BVPS)

Steady and consistent growth each year, indicative of improving asset base or retained earnings.

Price-to-Book Value Ratio (P/BV)

High and fluctuating ratios reflect market premium and changing investor sentiment.