Lam Research Corp. (NASDAQ:LRCX)

The analysis of the financial data over the reported periods reveals notable trends in share price, operating profit per share, and the price-to-operating profit (P/OP) ratio.

Share Price

The share price exhibited a general upward trajectory from $2.93 in August 2005 to $102 by August 2025. Initial values fluctuated modestly between $2.93 and approximately $4.64 until 2013, followed by a more pronounced increase beginning in 2014, reaching peaks above $50 by 2021. Despite a decline observed in 2022 to $46.3, the share price rebounded strongly in subsequent years, culminating in the highest reported value of $102 in 2025. This pattern indicates significant growth potential and overall appreciation in market valuation over the two-decade horizon.

Operating Profit per Share (OPPS)

Operating profit per share shows considerable variability across the periods. The earliest periods report relatively low values, with an initial $0.29 in 2005 maintaining stability through 2006 before increasing to $0.62 in March 2008. The period ending August 2009 records a negative operating profit per share (-$0.22), indicating operational challenges. Following this, values recover and show a generally positive trend, peaking at $3.93 in August 2022 before slightly declining to $3.28 in 2024 and rising again to $4.66 by 2025. The general upward trend since 2009 suggests improvements in operational efficiency and profitability over the medium to long term.

Price-to-Operating Profit (P/OP) Ratio

The P/OP ratio displays significant fluctuations throughout the observed timeline. Early values ranged widely, from 10.23 up to 64.12 in August 2013, reflecting periods of high market valuation relative to operating profit, perhaps due to market speculation or transitional business phases. Notably high ratios in the years 2012 and 2013 (26.84 and 64.12 respectively) suggest the market price significantly outpaced operating profits during these periods. The following years, including 2014 to 2018, saw a narrowing of this ratio range generally between approximately 8.67 and 20.4, indicating enhanced alignment between market valuation and underlying operational earnings. However, the ratio rises again in the most recent years, reaching values around 24.29 in 2024 and 21.88 in 2025, pointing to a market premium relative to operating profits that may reflect growth expectations or valuation adjustments.

Collectively, the data indicates a company experiencing growth in share price and operating profitability with intermittent periods of volatility. The variability in P/OP ratios highlights changing investor sentiment and valuation perspectives, emphasizing the importance of considering both market conditions and operational results when evaluating the company's financial performance over time.