LRCX FCF Yield Analysis
Higher than 45% of TECHNOLOGY sector peers
Updated 197h ago·SEC filings & market data
Key Takeaway
The current FCF Yield of 1.4% means that for every $100 invested in LRCX stock, the company generates $1.40 in free cash flow per share annually—free cash flow being the cash left after operating expenses and capital spending.
Sector Performance
45th percentileLRCX
1.2%
Sector Median
1.3%
Sector Avg
2.3%
Prior Period
1.4%(Jul 2026)
Deep Analysis
The current FCF Yield of 1.4% means that for every $100 invested in LRCX stock, the company generates $1.40 in free cash flow per share annually—free cash flow being the cash left after operating expenses and capital spending.
This yield sits exactly at the sector median of 1.4% and places LRCX at the 50th percentile among its technology peers, indicating a typical cash return relative to the industry. Over the last eight quarters, the metric has been increasing, with the most recent quarter-over-quarter change showing a rise of +27.3% from 1.1% to 1.4%; year-over-year data is not available. The combination of a median-level yield and an upward trend suggests improving cash generation without offering a distinct valuation edge, implying moderate investment risk and a balanced opportunity. This performance supports the overall NEUTRAL verdict, as the FCF Yield is neither unusually low to signal distress nor high to suggest a bargain, aligning with a hold-equal-weight view.
Frequently Asked Questions
What does the FCF Yield tell investors about LRCX?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does LRCX's FCF Yield compare to its sector?
LRCX's FCF Yield of 1.2% compares to a TECHNOLOGY sector median of 1.3%, placing it in the 45th percentile.
Who are LRCX's closest peers by FCF Yield?
The closest TECHNOLOGY peers by FCF Yield include: KLAC (1.3%), HPE (1.0%), TXN (1.0%), MRVL (0.6%), CSCO (3.0%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master LRCX's Valuation
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1.2%
Sector Median
1.3%
Sector Avg
2.3%
How LRCX's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.