Lam Research Corp. (NASDAQ:LRCX)

The financial ratios exhibit notable fluctuations over the examined periods, indicating variable market perceptions and operational performance.

Price to Earnings (P/E) Ratio

The P/E ratio declined from 24.23 in mid-2020 to a low of 13.77 in mid-2022, suggesting a period of either increasing earnings or declining share prices relative to earnings. Subsequently, it increased significantly to 27.05 in mid-2024, before moderating slightly to 24.09 by mid-2025. This pattern reflects increased market optimism or lower earnings in the middle years, followed by renewed valuation strength.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio follows a similar trajectory to the P/E ratio, decreasing from 20.4 in 2020 to 11.79 in 2022, indicating improved operating profitability or a lower market valuation relative to operating profit. The ratio then rose sharply, reaching 24.29 in 2024 before settling to 21.88 in 2025, suggesting market expectations of stronger operational performance or fluctuating investor sentiment.

Price to Sales (P/S) Ratio

The P/S ratio experienced a decline from 5.43 in 2020 to 3.68 in 2022, reflecting either sales growth outpacing stock price appreciation or market undervaluation. After this trough, the ratio increased consistently, peaking at 7.0 in 2025. This upward movement indicates rising market valuation relative to sales, possibly due to improved sales quality, higher margins, or positive growth prospects.

Price to Book Value (P/BV) Ratio

The P/BV ratio fluctuated within a narrower band compared to other ratios, starting at 10.55 in 2020 and peaking at 13.64 in 2021. It dipped to 10.1 in 2022 before trending upward to 13.09 in 2025. This pattern suggests moderate variations in market valuation relative to net asset value, with increased investor confidence or asset revaluations in the latter years.

Overall, the analyzed ratios demonstrate a period of contraction in valuation multiples around 2022, followed by a recovery and growth phase extending to 2025. This indicates that despite some volatility, market confidence in earnings, operating profit, sales, and book value strengthened toward the most recent periods.

Share Price

The share price exhibited an overall upward trend from June 2020 to June 2025. Beginning at $37.46 in 2020, there was a significant increase to $57.90 in 2021, followed by a decline to $46.30 in 2022. Subsequently, the price rebounded strongly, reaching $65.58 in 2023 and continuing to rise through 2024 and 2025, ultimately attaining a value of $102. This pattern indicates volatility with a recovery phase leading to sustained growth in the later years.

Earnings per Share (EPS)

EPS demonstrated a mostly positive trajectory over the period, starting at $1.55 in 2020 and increasing steadily to $3.40 by 2023. A decline occurred in 2024, with EPS dropping to $2.95. However, this decrease was temporary as EPS surged to $4.23 in 2025, marking the highest value in the five-year range. Overall, the EPS growth suggests an improving profitability trend despite the brief setback in 2024.

Price-to-Earnings (P/E) Ratio

The P/E ratio showed fluctuating behavior across the years. It began at 24.23 in 2020 and decreased through 2021 and 2022, reaching a low of 13.77. Following this, the ratio increased considerably to 19.26 in 2023 and escalated further to 27.05 in 2024. In 2025, it slightly decreased to 24.09. This variation reflects changing market expectations regarding the company's future earnings and possibly the influence of share price volatility in relation to earnings.

Share Price

The share price exhibited an overall upward trend over the analyzed periods, increasing from $37.46 in June 2020 to $102 in June 2025. There was a notable rise between 2023 and 2025, where the share price climbed from $65.58 to $102, indicating growing market confidence or positive company performance expectations during this period. However, a decline was observed from 2021 ($57.90) to 2022 ($46.30), suggesting some volatility or external factors impacting market valuation during that year.

Operating Profit per Share

Operating profit per share showed a generally increasing pattern from $1.84 in 2020 to $4.66 in 2025. There was consistent growth from 2020 through 2022, reaching $3.93, followed by a slight dip in 2024 to $3.28. Despite this temporary decline, the value recovered strongly in 2025. This trend reflects an overall improvement in operational efficiency or profitability on a per-share basis, with some fluctuations indicating variability in operational performance.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio demonstrated variability over the periods, starting at 20.4 in 2020 and reaching a low of 11.79 in 2022, before rising again to 24.29 in 2024 and slightly decreasing to 21.88 in 2025. The decrease through 2022 corresponds with increasing operating profit per share, indicating that shares were potentially undervalued during that timeframe relative to earnings. The subsequent increase in the ratio suggests a higher market valuation relative to operating profit later on, possibly due to elevated growth expectations or changes in investor sentiment.

Overall Insights

The data reveals that the company experienced growth in both market valuation and operating profitability over the five-year span, though not without some short-term volatility. The fluctuations in the P/OP ratio indicate changing market perceptions relative to profitability, with periods of both undervaluation and premium valuation. The strong recovery in operating profit per share and share price in the latest period implies improved financial performance and investor confidence towards the end of the timeline.

Share Price Trend

The share price exhibited a generally upward trajectory over the analyzed periods. Starting at $37.46 in mid-2020, it increased to $57.90 in mid-2021, then experienced a decline to $46.30 in mid-2022. Following this dip, the share price rebounded strongly, reaching $65.58 in mid-2023 and continuing its ascent to $79.73 in mid-2024 and $102 by mid-2025. This indicates recovering market confidence and potentially strong company performance after mid-2022.

Sales per Share Dynamics

Sales per share showed consistent growth from $6.90 in mid-2020 to $13.15 in mid-2023, marking nearly a doubling over three years. However, there was a slight contraction to $11.48 in mid-2024, followed by a robust recovery to $14.57 in mid-2025. This pattern suggests some volatility in sales efficiency but overall growth momentum is maintained.

Price-to-Sales Ratio (P/S) Evolution

The P/S ratio began at 5.43 in mid-2020 and remained relatively stable at 5.62 in mid-2021. It then dropped sharply to 3.68 in mid-2022, coinciding with the decline in share price and an increase in sales per share, possibly signaling undervaluation or market adjustment during that period. The P/S ratio rose again to 4.99 in mid-2023 and saw significant increases to 6.95 in mid-2024 and 7.00 in mid-2025, indicating rising market valuations relative to sales in the latest periods.

Overall Insights

The data reflects a company experiencing growth in sales per share alongside fluctuations in market valuation and share price. The share price recovery after mid-2022 and increase in P/S ratio suggest enhanced investor sentiment and perceived growth prospects. The temporary dip in sales per share and price in mid-2024 suggests some short-term challenges but the subsequent rise indicates resilience. The increasing P/S toward the latest period might imply market optimism or increased expectations for future revenue growth.

Share Price Trend

The share price exhibited a generally upward trend over the observed periods, increasing from $37.46 in June 2020 to $102 in June 2025. Notable fluctuations include a decline from $57.9 in June 2021 to $46.3 in June 2022, followed by a recovery and steady growth moving forward, reaching a peak at $102 in the final reported period.

Book Value per Share (BVPS) Trend

The book value per share showed a consistent upward trajectory throughout the periods considered. Starting at $3.55 in June 2020, it increased steadily each year, reaching $7.79 by June 2025. This reflects a significant improvement in the company's net asset value per share over the five-year span.

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

The P/BV ratio demonstrated variability but generally remained elevated. After starting at 10.55 in June 2020, it climbed to 13.64 in June 2021, then declined to 10.1 by June 2022. Subsequently, it increased again, reaching 13.09 in June 2025. This suggests fluctuating market valuation relative to the company’s book value, with periods of both increased and decreased investor confidence or market premium.

Overall Insights

The data indicates a company experiencing growth in fundamental book value alongside an increasing share price, pointing to enhanced intrinsic value and market recognition. The fluctuations in the P/BV ratio may imply market revaluations influenced by external factors or shifts in investor sentiment, despite the steady fundamental growth. The strong increase in share price, especially from 2023 onwards, suggests positive market dynamics or perceived future growth prospects.