Price to Operating Profit (P/OP)
since 2005
Calculation
Lam Research Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 29, 2024 | 24.29 | = | 79.73 | ÷ | 3.28 | 3.28 | = | 4,263,913 | ÷ | 1,298,760,000 | |
| Aug 15, 2023 | 16.79 | = | 65.58 | ÷ | 3.91 | 3.91 | = | 5,174,860 | ÷ | 1,325,117,010 | |
| Aug 24, 2022 | 11.79 | = | 46.30 | ÷ | 3.93 | 3.93 | = | 5,381,822 | ÷ | 1,369,877,920 | |
| Aug 17, 2021 | 18.34 | = | 57.90 | ÷ | 3.16 | 3.16 | = | 4,482,023 | ÷ | 1,419,536,810 | |
| Aug 18, 2020 | 20.40 | = | 37.46 | ÷ | 1.84 | 1.84 | = | 2,673,802 | ÷ | 1,456,252,250 | |
| Aug 20, 2019 | 12.13 | = | 20.68 | ÷ | 1.71 | 1.71 | = | 2,464,732 | ÷ | 1,445,329,980 | |
| Aug 14, 2018 | 8.67 | = | 17.67 | ÷ | 2.04 | 2.04 | = | 3,213,299 | ÷ | 1,575,799,840 | |
| Aug 15, 2017 | 13.68 | = | 16.02 | ÷ | 1.17 | 1.17 | = | 1,902,132 | ÷ | 1,624,546,860 | |
| Aug 17, 2016 | 13.46 | = | 9.02 | ÷ | 0.67 | 0.67 | = | 1,074,256 | ÷ | 1,602,600,090 | |
| Aug 13, 2015 | 14.45 | = | 7.20 | ÷ | 0.50 | 0.50 | = | 788,039 | ÷ | 1,581,869,760 | |
| Aug 26, 2014 | 16.98 | = | 7.10 | ÷ | 0.42 | 0.42 | = | 677,669 | ÷ | 1,620,752,370 | |
| Aug 27, 2013 | 64.12 | = | 4.64 | ÷ | 0.07 | 0.07 | = | 118,071 | ÷ | 1,631,499,770 | |
| Aug 22, 2012 | 26.84 | = | 3.50 | ÷ | 0.13 | 0.13 | = | 237,733 | ÷ | 1,823,063,620 | |
| Aug 19, 2011 | 5.54 | = | 3.60 | ÷ | 0.65 | 0.65 | = | 804,285 | ÷ | 1,237,854,290 | |
| Aug 23, 2010 | 10.92 | = | 3.74 | ÷ | 0.34 | 0.34 | = | 425,410 | ÷ | 1,241,722,010 | |
| Aug 27, 2009 | — | = | 3.06 | ÷ | -0.22 | -0.22 | = | -281,243 | ÷ | 1,266,368,860 | |
| Aug 28, 2008 | 9.41 | = | 3.82 | ÷ | 0.41 | 0.41 | = | 509,431 | ÷ | 1,254,293,880 | |
| Mar 31, 2008 | 6.12 | = | 3.82 | ÷ | 0.62 | 0.62 | = | 778,660 | ÷ | 1,247,810,470 | |
| Aug 17, 2006 | 14.39 | = | 4.12 | ÷ | 0.29 | 0.29 | = | 406,265 | ÷ | 1,418,610,730 | |
| Aug 18, 2005 | 10.23 | = | 2.93 | ÷ | 0.29 | 0.29 | = | 391,002 | ÷ | 1,364,538,810 |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26), 10-K (reporting date: 2015-06-28), 10-K (reporting date: 2014-06-29), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-24), 10-K (reporting date: 2011-06-26), 10-K (reporting date: 2010-06-27), 10-K (reporting date: 2009-06-28), 10-K (reporting date: 2008-06-29), 10-K (reporting date: 2007-06-24), 10-K (reporting date: 2006-06-25), 10-K (reporting date: 2005-06-26).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Lam Research Corp. Annual Report.
The share price of the company exhibits an overall upward trend from August 2005 to August 2024. The price starts at $2.93 in 2005 and experiences moderate fluctuations in the early years, with values remaining mostly below $5 until around 2013. From 2013 onwards, a more pronounced growth is evident, peaking at $79.73 in August 2024. Notably, after reaching $57.90 in 2021, the price dips to $46.30 in 2022 but recovers strongly thereafter.
Operating profit per share shows variability over the observed periods. Initial values in 2005 and 2006 are stable at $0.29. There is a peak at $0.62 in March 2008, followed by a decline and even a negative value of -$0.22 in August 2009, indicating a loss during that time. Post-2009, the operating profit per share generally increases, attaining a high of $3.93 in 2022. However, slight decreases are recorded in the last two years, with $3.91 in 2023 and $3.28 in 2024, suggesting some recent pressure on operating profitability.
The Price to Operating Profit (P/OP) ratio fluctuates considerably. Early values range from about 5.54 to 14.39, with an outlier missing for 2009. The ratio spikes significantly in August 2012 at 26.84 and reaches a notably high level of 64.12 in 2013, suggesting the market price was very high relative to operating profit per share during that year. Afterward, the ratio declines and stabilizes mostly between 8 and 20, with spikes in some years such as 20.40 in 2019 and 24.29 in 2024. This indicates periods where market valuation outpaced operating earnings growth. The high P/OP ratios correspond to periods of rapid share price appreciation or relatively lower operating profit per share.
In summary, the data reveals strong share price growth over the long term, with operating profit per share generally improving but experiencing some intermittent setbacks. The variability in the P/OP ratio reflects changing market sentiments and valuation levels relative to operational profitability. Notably, recent years show high market valuation multiples despite some moderation in operating profit growth, pointing to possibly elevated investor expectations or market optimism.
Comparison to Competitors
Lam Research Corp., P/OP, long-term trends, comparison to competitors
| Lam Research Corp. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|
| Aug 29, 2024 | 24.29 | 95.53 | 53.48 | 17.52 | 76.87 | — | 86.94 | 51.16 | 19.08 | 30.49 |
| Aug 15, 2023 | 16.79 | 675.69 | 23.53 | 17.58 | 31.96 | 1,984.43 | — | 136.19 | 15.85 | 19.75 |
| Aug 24, 2022 | 11.79 | 100.42 | 26.16 | 11.35 | 16.33 | 49.91 | 5.93 | 66.12 | 7.95 | 16.29 |
| Aug 17, 2021 | 18.34 | 39.48 | 56.12 | 18.85 | 30.78 | 10.82 | 12.48 | 75.08 | 15.84 | 17.67 |
| Aug 18, 2020 | 20.40 | 75.77 | 33.76 | 18.50 | 44.04 | 9.72 | 19.51 | 66.40 | 23.32 | 26.53 |
| Aug 20, 2019 | 12.13 | 91.66 | 24.74 | 16.36 | 36.85 | 13.29 | 6.83 | 24.79 | 12.60 | 21.46 |
| Aug 14, 2018 | 8.67 | 51.38 | 17.62 | 6.74 | 19.42 | 9.40 | 3.20 | 45.61 | 103.26 | 15.00 |
| Aug 15, 2017 | 13.68 | 59.52 | 30.97 | 14.35 | 44.92 | 11.86 | 7.98 | 31.31 | 30.15 | 16.81 |
| Aug 17, 2016 | 13.46 | — | 21.85 | 16.54 | — | 13.40 | 106.63 | 23.80 | 15.26 | 16.07 |
| Aug 13, 2015 | 14.45 | — | 22.69 | 12.92 | 23.80 | 9.66 | 6.04 | 16.52 | 15.68 | 12.34 |
| Aug 26, 2014 | 16.98 | — | 23.01 | 19.66 | 59.05 | 10.60 | 11.23 | 19.66 | 17.00 | 15.64 |
| Aug 27, 2013 | 64.12 | 26.08 | 20.62 | 46.30 | 23.31 | 10.02 | 74.52 | 12.16 | 16.30 | 17.02 |
| Aug 22, 2012 | 26.84 | — | 14.67 | 31.47 | 13.51 | 7.13 | — | 14.06 | 17.43 | 19.14 |
| Aug 19, 2011 | 5.54 | 14.16 | 9.26 | 6.04 | 12.05 | 7.62 | 7.18 | 40.70 | 17.45 | 12.75 |
| Aug 23, 2010 | 10.92 | 7.42 | 11.93 | 12.82 | 13.69 | 7.79 | 4.84 | — | 22.51 | 9.25 |
| Aug 27, 2009 | — | 8.03 | 30.48 | — | 81.90 | 20.19 | — | — | 32.90 | 15.16 |
| Aug 28, 2008 | 9.41 | — | 7.90 | 10.25 | — | 7.50 | — | 13.27 | 14.67 | 8.01 |
| Mar 31, 2008 | 6.12 | — | 16.49 | 10.36 | — | 14.36 | — | 22.39 | 22.57 | 11.81 |
| Aug 17, 2006 | 14.39 | — | 20.89 | 12.54 | — | 21.27 | 30.18 | 24.63 | 22.34 | 13.27 |
| Aug 18, 2005 | 10.23 | 84.32 | 26.80 | 21.07 | — | 9.99 | 39.55 | 37.70 | 27.83 | 17.12 |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-24), 10-K (reporting date: 2017-06-25), 10-K (reporting date: 2016-06-26), 10-K (reporting date: 2015-06-28), 10-K (reporting date: 2014-06-29), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-24), 10-K (reporting date: 2011-06-26), 10-K (reporting date: 2010-06-27), 10-K (reporting date: 2009-06-28), 10-K (reporting date: 2008-06-29), 10-K (reporting date: 2007-06-24), 10-K (reporting date: 2006-06-25), 10-K (reporting date: 2005-06-26).