Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin35.3%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin31.3%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
A
Years to Pay Off Debt0.5 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$6.0B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$9.7B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
A
Free Cash Flow$4.9B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income13.3%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$8.7B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit50.5%
Operating Margin35.3%
Net Margin31.3%
Company Info
Showing Key Metrics
Income Highlights
Metric
2026
2025
2024
2023
Gross Profit %
50.5%▲
48.7%▲
47.3%▲
44.6%
Operating Margin %
35.3%▲
32.0%▲
28.7%▼
29.9%
Net Income %
31.3%▲
29.1%▲
25.7%▼
25.9%
Diluted EPS
5.76▲
4.15▲
2.90▼
3.32
Balance Sheet Highlights
Metric
2026
2025
2024
2023
2022
Total Assets
$23.5B
$21.3B
$18.7B
$18.8B
N/A
Total Debt
$3.7B▼
$4.5B▼
$5.0B▼
$5.0B•
N/A
Working Capital
$9.7B▲
$7.9B▼
$8.5B▼
$9.0B•
N/A
Years to Pay Debt
0.51
0.84
1.30
1.11
N/A
Cash Flow Highlights
Metric
2026
2025
2024
2023
2022
Free Cash Flow
$4.9B▼
$5.4B▲
$4.3B▼
$4.7B•
N/A
Owner Earnings
$8.7B
$6.5B
$4.6B
$5.4B
N/A
CapEx % of Net Income
13.3%
14.2%
10.4%
11.1%
N/A
Income Statement
2026
2025
2024
2023
Tax Effect Of Unusual Items
-3,640
-2,668
-2,812
-5,760
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
8,890,972
6,549,021
4,928,181
5,687,332
Total Unusual Items
-30,082
-26,412
-23,024
-49,228
Total Unusual Items Excluding Goodwill
-30,082
-26,412
-23,024
-49,228
Net Income From Continuing Operation Net Minority Interest
7,265,396
5,358,217
3,827,772
4,510,931
Reconciled Depreciation
441,533
386,277
359,699
342,432
Reconciled Cost Of Revenue
11,507,382
9,456,532
7,852,595
9,651,591
EBITDA
8,860,890
6,522,609
4,905,157
5,638,104
EBIT
8,419,357
6,136,332
4,545,458
5,295,672
Net Interest Income
39,305
53,128
66,702
-47,478
Interest Expense
156,884
178,203
185,236
186,462
Interest Income
196,189
231,331
251,938
138,984
Normalized Income
7,291,838
5,381,961
3,847,984
4,554,399
Net Income From Continuing And Discontinued Operation
7,265,396
5,358,217
3,827,772
4,510,931
Total Expenses
15,032,895
12,534,623
10,623,286
12,211,506
Total Operating Income As Reported
8,199,795
5,900,968
4,263,913
5,174,860
Diluted Average Shares
1,261,102
1,290,142
1,319,950
1,358,340
Basic Average Shares
1,255,079
1,286,101
1,314,100
1,354,720
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
7,265,396
5,358,217
3,827,772
4,510,931
Net Income Common Stockholders
7,265,396
5,358,217
3,827,772
4,510,931
Net Income
7,265,396
5,358,217
3,827,772
4,510,931
Net Income Including Noncontrolling Interests
7,265,396
5,358,217
3,827,772
4,510,931
Net Income Continuous Operations
7,265,396
5,358,217
3,827,772
4,510,931
Tax Provision
997,077
599,912
532,450
598,279
Pretax Income
8,262,473
5,958,129
4,360,222
5,109,210
Other Income Expense
23,373
4,033
11,420
-60,322
Other Non Operating Income Expenses
53,455
30,445
34,444
-11,094
Special Income Charges
0
0
-18,187
-42,150
Restructuring And Mergern Acquisition
0
0
18,187
42,150
Gain On Sale Of Security
-30,082
-26,412
-4,837
-7,078
Net Non Operating Interest Income Expense
39,305
53,128
66,702
-47,478
Interest Expense Non Operating
156,884
178,203
185,236
186,462
Interest Income Non Operating
196,189
231,331
251,938
138,984
Operating Income
8,199,795
5,900,968
4,282,100
5,217,010
Operating Expense
3,525,513
3,078,091
2,770,691
2,559,915
Research And Development
2,375,873
2,096,387
1,902,444
1,727,162
Selling General And Administration
1,149,640
981,704
868,247
832,753
Gross Profit
11,725,308
8,979,059
7,052,791
7,776,925
Cost Of Revenue
11,507,382
9,456,532
7,852,595
9,651,591
Total Revenue
23,232,690
18,435,591
14,905,386
17,428,516
Operating Revenue
23,232,690
18,435,591
14,905,386
17,428,516
Balance Sheet
2026
2025
2024
2023
2022
Treasury Shares Number
1,687,582
1,648,240
1,613,800
1,570,870
Ordinary Shares Number
1,251,278
1,268,740
1,303,770
1,332,970
Share Issued
1,251,278
2,956,322
2,952,010
2,946,770
Net Debt
1,440,458
Total Debt
3,734,563
4,484,505
4,983,334
5,011,541
Tangible Book Value
10,575,062
8,052,934
6,774,381
6,419,229
Invested Capital
16,192,982
14,330,983
13,506,815
13,175,537
Working Capital
9,673,456
7,948,570
8,544,782
9,043,494
Net Tangible Assets
10,575,062
8,052,934
6,774,381
6,419,229
Capital Lease Obligations
12,502
15,141
15,973
46,176
Common Stock Equity
12,470,921
9,861,619
8,539,454
8,210,172
Total Capitalization
16,192,835
13,581,313
13,005,499
13,175,116
Total Equity Gross Minority Interest
12,470,921
9,861,619
8,539,454
8,210,172
Stockholders Equity
12,470,921
9,861,619
8,539,454
8,210,172
Gains Losses Not Affecting Retained Earnings
-127,088
-62,423
-130,428
-100,706
Other Equity Adjustments
-127,088
-62,423
-130,428
-100,706
Treasury Stock
31,597,945
27,763,430
24,365,783
21,530,353
Retained Earnings
34,950,254
28,988,914
24,811,315
22,032,096
Additional Paid In Capital
9,244,449
8,697,290
8,223,046
7,809,002
Capital Stock
1,251
1,268
1,304
133
Common Stock
1,251
1,268
1,304
133
Total Liabilities Net Minority Interest
11,058,822
11,483,641
10,205,274
10,571,471
Total Non Current Liabilities Net Minority Interest
5,121,573
4,915,216
5,866,836
6,386,553
Other Non Current Liabilities
709,886
581,610
575,012
501,286
Derivative Product Liabilities
4,835
Tradeand Other Payables Non Current
681,197
603,412
813,304
882,084
Long Term Debt And Capital Lease Obligation
3,730,490
3,730,194
4,478,520
5,003,183
Long Term Capital Lease Obligation
8,576
10,500
12,475
38,239
Long Term Debt
3,721,914
3,719,694
4,466,045
4,964,944
Current Liabilities
5,937,249
6,568,425
4,338,438
4,184,918
Other Current Liabilities
797,392
693,806
609,495
580,605
Current Deferred Liabilities
2,279,168
2,565,540
1,417,781
1,695,221
Current Deferred Revenue
2,279,168
2,565,540
1,417,781
1,695,221
Current Debt And Capital Lease Obligation
4,073
754,311
504,814
8,358
Current Capital Lease Obligation
3,926
4,641
3,498
7,937
Current Debt
147
749,670
501,316
421
Other Current Borrowings
147
749,670
501,316
421
Pensionand Other Post Retirement Benefit Plans Current
695,498
618,370
516,717
481,354
Current Provisions
270,044
248,783
228,060
256,781
Payables And Accrued Expenses
1,891,074
1,687,615
1,061,571
1,162,599
Payables
1,891,074
1,687,615
1,061,571
1,162,599
Dividends Payable
325,402
291,981
260,905
231,267
Total Tax Payable
263,205
541,426
186,700
460,630
Accounts Payable
1,302,467
854,208
613,966
470,702
Total Assets
23,529,743
21,345,260
18,744,728
18,781,643
Total Non Current Assets
7,919,038
6,828,265
5,861,508
5,553,231
Other Non Current Assets
3,066,707
2,590,836
1,941,917
1,905,616
Goodwill And Other Intangible Assets
1,895,859
1,808,685
1,765,073
1,790,943
Other Intangible Assets
182,200
138,545
168,454
101,850
Goodwill
1,626,485
1,626,528
1,622,489
1,515,113
Net PPE
2,956,472
2,428,744
2,154,518
1,856,672
Accumulated Depreciation
-2,484,833
-2,169,641
-1,860,664
-1,642,456
Gross PPE
5,441,305
4,598,385
4,015,182
3,499,128
Other Properties
20,469
23,222
24,536
53,721
Machinery Furniture Equipment
2,867,121
2,494,386
2,221,048
2,059,819
Buildings And Improvements
2,289,208
1,914,570
1,605,802
1,286,849
Land And Improvements
264,507
166,207
163,796
98,739
Current Assets
15,610,705
14,516,995
12,883,220
13,228,412
Other Current Assets
415,741
440,274
298,190
251,790
Prepaid Assets
347,391
Inventory
4,276,111
4,307,991
4,217,924
4,816,190
Finished Goods
1,275,292
1,362,858
1,012,707
1,293,591
Work In Process
449,669
282,885
284,078
325,611
Raw Materials
2,551,150
2,662,248
2,921,139
3,196,988
Receivables
5,339,682
3,378,071
2,519,250
2,823,376
Accounts Receivable
5,339,682
3,378,071
2,519,250
2,823,376
Allowance For Doubtful Accounts Receivable
-6,496
-8,071
-5,277
-5,344
Gross Accounts Receivable
5,346,178
3,386,142
2,524,527
2,828,720
Cash Cash Equivalents And Short Term Investments
5,579,171
6,390,659
5,847,856
5,337,056
Other Short Term Investments
37,641
135,731
Cash And Cash Equivalents
5,579,171
6,390,659
5,847,856
5,337,056
Cash Equivalents
3,507,900
4,728,423
4,279,541
3,204,534
Cash Financial
2,071,271
1,662,236
1,568,315
2,132,522
Cash Flow
2026
2025
2024
2023
2022
Free Cash Flow
4,891,252
5,414,078
4,255,599
4,677,370
Repurchase Of Capital Stock
-3,851,343
-3,422,321
-2,842,807
-2,017,012
Repayment Of Debt
-755,428
-507,488
-256,104
-23,206
Issuance Of Capital Stock
17,447
2,452
15,553
11,111
Capital Expenditure
-966,405
-759,186
-396,670
-501,568
Interest Paid Supplemental Data
150,101
172,355
173,094
174,745
Income Tax Paid Supplemental Data
1,333,996
972,513
991,821
809,748
End Cash Position
5,597,943
6,407,656
5,850,803
5,587,372
Beginning Cash Position
6,407,656
5,850,803
5,587,372
3,773,535
Effect Of Exchange Rate Changes
-27,431
28,324
-22,374
128
Changes In Cash
-782,282
528,529
285,805
1,813,709
Financing Cash Flow
-5,717,787
-4,936,643
-3,995,850
-2,830,667
Cash Flow From Continuing Financing Activities
-5,717,787
-4,936,643
-3,995,850
-2,830,667
Net Other Financing Charges
-13,793
143
-13,543
-3,552
Proceeds From Stock Option Exercised
155,965
140,113
119,966
109,899
Cash Dividends Paid
-1,270,635
-1,149,542
-1,018,915
-907,907
Common Stock Dividend Paid
-1,270,635
-1,149,542
-1,018,915
-907,907
Net Common Stock Issuance
-3,833,896
-3,419,869
-2,827,254
-2,005,901
Common Stock Payments
-3,851,343
-3,422,321
-2,842,807
-2,017,012
Common Stock Issuance
17,447
2,452
15,553
11,111
Net Issuance Payments Of Debt
-755,428
-507,488
-256,104
-23,206
Net Long Term Debt Issuance
-755,428
-507,488
-256,104
-23,206
Long Term Debt Payments
-755,428
-507,488
-256,104
-23,206
Investing Cash Flow
-922,152
-708,092
-370,614
-534,562
Cash Flow From Continuing Investing Activities
-922,152
-708,092
-370,614
-534,562
Net Other Investing Changes
44,253
51,094
-11,710
-11,171
Net Investment Purchase And Sale
0
0
37,766
98,132
Sale Of Investment
0
0
37,766
98,132
Purchase Of Investment
0
0
-567,819
Net Business Purchase And Sale
0
0
-119,955
0
Purchase Of Business
0
0
-119,955
0
Capital Expenditure Reported
-966,405
-759,186
-396,670
-501,568
Operating Cash Flow
5,857,657
6,173,264
4,652,269
5,178,938
Cash Flow From Continuing Operating Activities
5,857,657
6,173,264
4,652,269
5,178,938
Change In Working Capital
-1,913,879
441,801
360,478
158,738
Change In Other Working Capital
-286,372
1,147,759
-277,440
163,467
Change In Payables And Accrued Expense
378,221
540,252
-178,713
-631,033
Change In Accrued Expense
-39,286
328,252
-304,652
-108,833
Change In Payable
417,507
212,000
125,939
-522,200
Change In Account Payable
417,507
212,000
125,939
-522,200
Change In Prepaid Assets
50,240
-206,729
-15,535
136,016
Change In Inventory
-93,860
-180,733
528,723
-961,968
Change In Receivables
-1,962,108
-858,748
303,443
1,452,256
Changes In Account Receivables
-1,962,108
-858,748
303,443
1,452,256
Other Non Cash Items
-32,712
6,845
10,243
52,298
Stock Based Compensation
386,381
343,371
293,058
286,600
Deferred Tax
-289,062
-363,247
-198,981
-172,061
Deferred Income Tax
-289,062
-363,247
-198,981
-172,061
Depreciation Amortization Depletion
441,533
386,277
359,699
342,432
Depreciation And Amortization
441,533
386,277
359,699
342,432
Net Income From Continuing Operations
7,265,396
5,358,217
3,827,772
4,510,931
4/5
Graham Score
Enterprising Investor
Requires deeper research. Suited for active investors.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $12.5B
Warren's Owner Earnings
$8.7B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
4/5 — Enterprising Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$23.2B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
2.63x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $3.32 to $5.76 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+73.4% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $23.2Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 2.63xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $3.32 to $5.76 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what LRCX is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
36.8%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2026
2025
2024
2023
2022
Capital Expenditure % of Net Income
13.3%
14.2%
10.4%
11.1%
N/A
Repurchase of Capital Stock
-$3.9B
-$3.4B
-$2.8B
-$2.0B
N/A
Free Cash Flow
$4.9B▼
$5.4B▲
$4.3B▼
$4.7B•
N/A•
Warren's Owner Earnings
$8.7B
$6.5B
$4.6B
$5.4B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare LRCX against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
LRCX (LRCX) fundamental analysis — Overall grade A based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 50.5%. Operating margin: 35.3%. Net margin: 31.3%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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