KLA CORP (1KLAC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1KLAC - US4824801009 - Common Stock
1079.4 EUR
+98.1 (+10%)
1KLAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 68 industry peers in the Semiconductors & Semiconductor Equipment industry. 1KLAC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1KLAC shows excellent growth, but is valued quite expensive already. With these ratings, 1KLAC could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- 1KLAC had positive earnings in the past year.
- In the past year 1KLAC had a positive cash flow from operations.
- 1KLAC had positive earnings in each of the past 5 years.
- 1KLAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1KLAC's Return On Assets of 25.96% is amongst the best of the industry. 1KLAC outperforms 93.85% of its industry peers.
- Looking at the Return On Equity, with a value of 84.99%, 1KLAC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Invested Capital of 1KLAC (38.07%) is better than 95.38% of its industry peers.
- 1KLAC had an Average Return On Invested Capital over the past 3 years of 34.16%. This is significantly above the industry average of 14.62%.
- The 3 year average ROIC (34.16%) for 1KLAC is below the current ROIC(38.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.96% | ||
| ROE | 84.99% | ||
| ROIC | 38.07% |
ROA(3y)22.41%
ROA(5y)22.77%
ROE(3y)94.85%
ROE(5y)116.64%
ROIC(3y)34.16%
ROIC(5y)32.64%
1.3 Margins
- Looking at the Profit Margin, with a value of 33.83%, 1KLAC belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1KLAC has grown nicely.
- 1KLAC has a Operating Margin of 42.86%. This is amongst the best in the industry. 1KLAC outperforms 95.38% of its industry peers.
- In the last couple of years the Operating Margin of 1KLAC has grown nicely.
- Looking at the Gross Margin, with a value of 61.99%, 1KLAC belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1KLAC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.86% | ||
| PM (TTM) | 33.83% | ||
| GM | 61.99% |
OM growth 3Y-0.21%
OM growth 5Y6.37%
PM growth 3Y-2.51%
PM growth 5Y9.77%
GM growth 3Y-1.04%
GM growth 5Y1.05%
2. Health
2.1 Basic Checks
- 1KLAC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, 1KLAC has less shares outstanding
- Compared to 5 years ago, 1KLAC has less shares outstanding
- Compared to 1 year ago, 1KLAC has an improved debt to assets ratio.
2.2 Solvency
- 1KLAC has an Altman-Z score of 11.31. This indicates that 1KLAC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of 1KLAC (11.31) is better than 72.31% of its industry peers.
- The Debt to FCF ratio of 1KLAC is 1.52, which is an excellent value as it means it would take 1KLAC, only 1.52 years of fcf income to pay off all of its debts.
- 1KLAC has a better Debt to FCF ratio (1.52) than 64.62% of its industry peers.
- 1KLAC has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.18, 1KLAC is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
- Although 1KLAC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 11.31 |
ROIC/WACC3.52
WACC10.83%
2.3 Liquidity
- A Current Ratio of 2.69 indicates that 1KLAC has no problem at all paying its short term obligations.
- 1KLAC's Current ratio of 2.69 is fine compared to the rest of the industry. 1KLAC outperforms 69.23% of its industry peers.
- 1KLAC has a Quick Ratio of 1.88. This is a normal value and indicates that 1KLAC is financially healthy and should not expect problems in meeting its short term obligations.
- 1KLAC has a better Quick ratio (1.88) than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 37.28% over the past year.
- 1KLAC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.37% yearly.
- 1KLAC shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.11%.
- Measured over the past years, 1KLAC shows a quite strong growth in Revenue. The Revenue has been growing by 15.93% on average per year.
EPS 1Y (TTM)37.28%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%20.19%
Revenue 1Y (TTM)22.11%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%12.96%
3.2 Future
- 1KLAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.51% yearly.
- The Revenue is expected to grow by 8.56% on average over the next years. This is quite good.
EPS Next Y9.51%
EPS Next 2Y13.36%
EPS Next 3Y11.96%
EPS Next 5Y12.51%
Revenue Next Year8.5%
Revenue Next 2Y10.26%
Revenue Next 3Y9.35%
Revenue Next 5Y8.56%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 36.11, which means the current valuation is very expensive for 1KLAC.
- Compared to the rest of the industry, the Price/Earnings ratio of 1KLAC is on the same level as its industry peers.
- 1KLAC is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- 1KLAC is valuated quite expensively with a Price/Forward Earnings ratio of 29.35.
- 1KLAC's Price/Forward Earnings is on the same level as the industry average.
- 1KLAC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 29.35 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1KLAC.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1KLAC indicates a somewhat cheap valuation: 1KLAC is cheaper than 73.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.64 | ||
| EV/EBITDA | 28.38 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1KLAC does not grow enough to justify the current Price/Earnings ratio.
- 1KLAC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.8
PEG (5Y)1.37
EPS Next 2Y13.36%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
- 1KLAC has a yearly dividend return of 0.57%, which is pretty low.
- 1KLAC's Dividend Yield is comparable with the industry average which is at 0.72.
- With a Dividend Yield of 0.57, 1KLAC pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
- On average, the dividend of 1KLAC grows each year by 15.33%, which is quite nice.
Dividend Growth(5Y)15.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1KLAC pays out 22.67% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 1KLAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.67%
EPS Next 2Y13.36%
EPS Next 3Y11.96%
KLA CORP / 1KLAC.MI FAQ
What is the ChartMill fundamental rating of KLA CORP (1KLAC.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1KLAC.MI.
Can you provide the valuation status for KLA CORP?
ChartMill assigns a valuation rating of 3 / 10 to KLA CORP (1KLAC.MI). This can be considered as Overvalued.
What is the profitability of 1KLAC stock?
KLA CORP (1KLAC.MI) has a profitability rating of 9 / 10.
What are the PE and PB ratios of KLA CORP (1KLAC.MI) stock?
The Price/Earnings (PE) ratio for KLA CORP (1KLAC.MI) is 36.11 and the Price/Book (PB) ratio is 33.12.
Is the dividend of KLA CORP sustainable?
The dividend rating of KLA CORP (1KLAC.MI) is 3 / 10 and the dividend payout ratio is 22.67%.