KLA CORP (KLA.DE) Stock Fundamental Analysis
FRA:KLA - Deutsche Boerse Ag - US4824801009 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to KLA. KLA was compared to 55 industry peers in the Semiconductors & Semiconductor Equipment industry. KLA gets an excellent profitability rating and is at the same time showing great financial health properties. KLA is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, KLA could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
KLA had positive earnings in the past year.
In the past year KLA had a positive cash flow from operations.
KLA had positive earnings in each of the past 5 years.
In the past 5 years KLA always reported a positive cash flow from operatings.
1.2 Ratios
KLA has a better Return On Assets (24.33%) than 96.36% of its industry peers.
The Return On Equity of KLA (92.27%) is better than 100.00% of its industry peers.
KLA has a better Return On Invested Capital (37.60%) than 96.36% of its industry peers.
KLA had an Average Return On Invested Capital over the past 3 years of 33.80%. This is significantly above the industry average of 15.29%.
The last Return On Invested Capital (37.60%) for KLA is above the 3 year average (33.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.33% | ||
| ROE | 92.27% | ||
| ROIC | 37.6% |
ROA(3y)22.78%
ROA(5y)20.34%
ROE(3y)145.04%
ROE(5y)108.46%
ROIC(3y)33.8%
ROIC(5y)29.72%
1.3 Margins
KLA's Profit Margin of 31.99% is amongst the best of the industry. KLA outperforms 96.36% of its industry peers.
KLA's Profit Margin has improved in the last couple of years.
The Operating Margin of KLA (41.73%) is better than 96.36% of its industry peers.
In the last couple of years the Operating Margin of KLA has grown nicely.
Looking at the Gross Margin, with a value of 62.13%, KLA belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
In the last couple of years the Gross Margin of KLA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.73% | ||
| PM (TTM) | 31.99% | ||
| GM | 62.13% |
OM growth 3Y2.69%
OM growth 5Y5.1%
PM growth 3Y-2.14%
PM growth 5Y1.81%
GM growth 3Y1.07%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KLA is creating value.
KLA has less shares outstanding than it did 1 year ago.
KLA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KLA is higher compared to a year ago.
2.2 Solvency
KLA has an Altman-Z score of 8.56. This indicates that KLA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KLA (8.56) is better than 74.55% of its industry peers.
KLA has a debt to FCF ratio of 1.68. This is a very positive value and a sign of high solvency as it would only need 1.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.68, KLA is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
KLA has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KLA (1.47) is worse than 94.55% of its industry peers.
Although KLA 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 | 1.47 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 8.56 |
ROIC/WACC3.76
WACC10.01%
2.3 Liquidity
A Current Ratio of 2.54 indicates that KLA has no problem at all paying its short term obligations.
With a Current ratio value of 2.54, KLA perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
KLA has a Quick Ratio of 1.74. This is a normal value and indicates that KLA is financially healthy and should not expect problems in meeting its short term obligations.
KLA has a Quick ratio (1.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.37% over the past year.
Measured over the past years, KLA shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.88% on average per year.
The Revenue has grown by 20.33% in the past year. This is a very strong growth!
Measured over the past years, KLA shows a quite strong growth in Revenue. The Revenue has been growing by 16.52% on average per year.
EPS 1Y (TTM)35.37%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%59.89%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%29.8%
3.2 Future
The Earnings Per Share is expected to grow by 14.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.69% on average over the next years. This is quite good.
EPS Next Y39.3%
EPS Next 2Y19.05%
EPS Next 3Y16.92%
EPS Next 5Y14.32%
Revenue Next Year23.23%
Revenue Next 2Y12.54%
Revenue Next 3Y11.33%
Revenue Next 5Y9.69%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KLA is valuated quite expensively with a Price/Earnings ratio of 28.13.
Compared to the rest of the industry, the Price/Earnings ratio of KLA is on the same level as its industry peers.
KLA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 25.51, the valuation of KLA can be described as expensive.
Based on the Price/Forward Earnings ratio, KLA is valued a bit more expensive than 67.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. KLA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 25.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KLA.
Based on the Price/Free Cash Flow ratio, KLA is valued a bit cheaper than the industry average as 65.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.52 | ||
| EV/EBITDA | 21.82 |
4.3 Compensation for Growth
KLA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of KLA may justify a higher PE ratio.
KLA's earnings are expected to grow with 16.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)1.23
EPS Next 2Y19.05%
EPS Next 3Y16.92%
5. Dividend
5.1 Amount
KLA has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 1.28, KLA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, KLA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
On average, the dividend of KLA grows each year by 13.33%, which is quite nice.
Dividend Growth(5Y)13.33%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
KLA pays out 22.95% of its income as dividend. This is a sustainable payout ratio.
KLA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP22.95%
EPS Next 2Y19.05%
EPS Next 3Y16.92%
FRA:KLA (6/19/2025, 7:00:00 PM)
748.6
-20.6 (-2.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.28%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap99.48B
Analysts78.13
Price Target716.91 (-4.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend4.95
Dividend Growth(5Y)13.33%
DP22.95%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.77%
Min EPS beat(2)1.83%
Max EPS beat(2)3.72%
EPS beat(4)4
Avg EPS beat(4)3.19%
Min EPS beat(4)1.83%
Max EPS beat(4)5.27%
EPS beat(8)8
Avg EPS beat(8)3.86%
EPS beat(12)12
Avg EPS beat(12)4.08%
EPS beat(16)16
Avg EPS beat(16)3.96%
Revenue beat(2)1
Avg Revenue beat(2)1.19%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)2.66%
Revenue beat(4)2
Avg Revenue beat(4)0.83%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)2.66%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)8
Avg Revenue beat(12)0.98%
Revenue beat(16)10
Avg Revenue beat(16)0.82%
PT rev (1m)0.37%
PT rev (3m)-10.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.25%
EPS NY rev (1m)0%
EPS NY rev (3m)2.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.58%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 25.51 | ||
| P/S | 9.89 | ||
| P/FCF | 32.52 | ||
| P/OCF | 29.97 | ||
| P/B | 28.51 | ||
| P/tB | 66.32 | ||
| EV/EBITDA | 21.82 |
EPS(TTM)26.61
EY3.55%
EPS(NY)29.34
Fwd EY3.92%
FCF(TTM)23.02
FCFY3.07%
OCF(TTM)24.98
OCFY3.34%
SpS75.72
BVpS26.26
TBVpS11.29
PEG (NY)0.72
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.33% | ||
| ROE | 92.27% | ||
| ROCE | 42.74% | ||
| ROIC | 37.6% | ||
| ROICexc | 58.5% | ||
| ROICexgc | 85.39% | ||
| OM | 41.73% | ||
| PM (TTM) | 31.99% | ||
| GM | 62.13% | ||
| FCFM | 30.4% |
ROA(3y)22.78%
ROA(5y)20.34%
ROE(3y)145.04%
ROE(5y)108.46%
ROIC(3y)33.8%
ROIC(5y)29.72%
ROICexc(3y)51.15%
ROICexc(5y)43.94%
ROICexgc(3y)94.92%
ROICexgc(5y)88.94%
ROCE(3y)38.41%
ROCE(5y)33.78%
ROICexcg growth 3Y2%
ROICexcg growth 5Y5.85%
ROICexc growth 3Y11.6%
ROICexc growth 5Y19.31%
OM growth 3Y2.69%
OM growth 5Y5.1%
PM growth 3Y-2.14%
PM growth 5Y1.81%
GM growth 3Y1.07%
GM growth 5Y0.93%
F-Score9
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 74.83% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 15.54 | ||
| Cash Conversion | 72.99% | ||
| Profit Quality | 95.02% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 8.56 |
F-Score9
WACC10.01%
ROIC/WACC3.76
Cap/Depr(3y)78.64%
Cap/Depr(5y)69.86%
Cap/Sales(3y)3.14%
Cap/Sales(5y)3.08%
Profit Quality(3y)99.49%
Profit Quality(5y)105.22%
High Growth Momentum
Growth
EPS 1Y (TTM)35.37%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%59.89%
EPS Next Y39.3%
EPS Next 2Y19.05%
EPS Next 3Y16.92%
EPS Next 5Y14.32%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%29.8%
Revenue Next Year23.23%
Revenue Next 2Y12.54%
Revenue Next 3Y11.33%
Revenue Next 5Y9.69%
EBIT growth 1Y31.44%
EBIT growth 3Y15.38%
EBIT growth 5Y22.46%
EBIT Next Year44.45%
EBIT Next 3Y17.19%
EBIT Next 5Y13%
FCF growth 1Y9.93%
FCF growth 3Y15.77%
FCF growth 5Y24.29%
OCF growth 1Y7.92%
OCF growth 3Y14.83%
OCF growth 5Y23.48%