KLA CORP (KLA.DE) Stock Fundamental Analysis
FRA:KLA - US4824801009 - Common Stock
755.2 EUR
+9.3 (+1.25%)
We assign a fundamental rating of 7 out of 10 to KLA. KLA was compared to 60 industry peers in the Semiconductors & Semiconductor Equipment industry. KLA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KLA is not valued too expensively and it also shows a decent growth rate. These ratings could make KLA a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year KLA was profitable.
KLA had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 25.28%, KLA belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
With an excellent Return On Equity value of 86.56%, KLA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 37.37%, KLA belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
KLA had an Average Return On Invested Capital over the past 3 years of 34.16%. This is significantly above the industry average of 13.83%.
The 3 year average ROIC (34.16%) for KLA is below the current ROIC(37.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.28% | ||
| ROE | 86.56% | ||
| ROIC | 37.37% |
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
KLA has a Profit Margin of 33.41%. This is amongst the best in the industry. KLA outperforms 96.67% of its industry peers.
KLA's Profit Margin has improved in the last couple of years.
KLA has a Operating Margin of 42.33%. This is amongst the best in the industry. KLA outperforms 96.67% 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 61.99%, KLA belongs to the top of the industry, outperforming 85.00% 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 | 42.33% | ||
| PM (TTM) | 33.41% | ||
| 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
KLA 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, KLA has less shares outstanding
KLA has less shares outstanding than it did 5 years ago.
KLA has a better debt/assets ratio than last year.
2.2 Solvency
KLA has an Altman-Z score of 8.54. This indicates that KLA is financially healthy and has little risk of bankruptcy at the moment.
KLA has a better Altman-Z score (8.54) than 70.00% of its industry peers.
The Debt to FCF ratio of KLA is 1.57, which is an excellent value as it means it would take KLA, only 1.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.57, KLA is in the better half of the industry, outperforming 68.33% of the companies in the same industry.
KLA has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KLA (1.25) is worse than 91.67% of its industry peers.
Even though the debt/equity ratio score it not favorable for KLA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 8.54 |
ROIC/WACC3.34
WACC11.19%
2.3 Liquidity
A Current Ratio of 2.62 indicates that KLA has no problem at all paying its short term obligations.
KLA has a better Current ratio (2.62) than 65.00% of its industry peers.
KLA has a Quick Ratio of 1.83. This is a normal value and indicates that KLA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.83, KLA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.24% 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 26.37% on average per year.
The Revenue has grown by 23.89% 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 15.93% on average per year.
EPS 1Y (TTM)40.24%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%42.12%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%23.59%
3.2 Future
Based on estimates for the next years, KLA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.95% on average per year.
KLA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.10% yearly.
EPS Next Y7.08%
EPS Next 2Y9.09%
EPS Next 3Y9.68%
EPS Next 5Y9.95%
Revenue Next Year6.47%
Revenue Next 2Y7.08%
Revenue Next 3Y7.36%
Revenue Next 5Y7.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 26.40, which means the current valuation is very expensive for KLA.
Based on the Price/Earnings ratio, KLA is valued a bit cheaper than the industry average as 68.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.06, KLA is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.65, the valuation of KLA can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as KLA.
KLA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.4 | ||
| Fwd PE | 24.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KLA.
63.33% of the companies in the same industry are more expensive than KLA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.02 | ||
| EV/EBITDA | 20.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KLA does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of KLA may justify a higher PE ratio.
PEG (NY)3.73
PEG (5Y)1
EPS Next 2Y9.09%
EPS Next 3Y9.68%
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 1.29, KLA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.87, KLA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
On average, the dividend of KLA grows each year by 15.33%, which is quite nice.
Dividend Growth(5Y)15.33%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
KLA pays out 22.27% of its income as dividend. This is a sustainable payout ratio.
The dividend of KLA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.27%
EPS Next 2Y9.09%
EPS Next 3Y9.68%
FRA:KLA (9/5/2025, 7:00:00 PM)
755.2
+9.3 (+1.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.01%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap99.66B
Analysts76.36
Price Target794.63 (5.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend5.8
Dividend Growth(5Y)15.33%
DP22.27%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.63%
Min EPS beat(2)1.83%
Max EPS beat(2)7.44%
EPS beat(4)4
Avg EPS beat(4)3.73%
Min EPS beat(4)1.83%
Max EPS beat(4)7.44%
EPS beat(8)8
Avg EPS beat(8)3.66%
EPS beat(12)12
Avg EPS beat(12)4.41%
EPS beat(16)16
Avg EPS beat(16)3.87%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)0.98%
Revenue beat(4)3
Avg Revenue beat(4)1.09%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)2.66%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)0.83%
PT rev (1m)6.65%
PT rev (3m)11.26%
EPS NQ rev (1m)5.32%
EPS NQ rev (3m)10.72%
EPS NY rev (1m)5.15%
EPS NY rev (3m)5.95%
Revenue NQ rev (1m)3.83%
Revenue NQ rev (3m)5.77%
Revenue NY rev (1m)3.47%
Revenue NY rev (3m)3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.4 | ||
| Fwd PE | 24.65 | ||
| P/S | 9.55 | ||
| P/FCF | 31.02 | ||
| P/OCF | 28.44 | ||
| P/B | 24.74 | ||
| P/tB | 47.27 | ||
| EV/EBITDA | 20.51 |
EPS(TTM)28.61
EY3.79%
EPS(NY)30.63
Fwd EY4.06%
FCF(TTM)24.35
FCFY3.22%
OCF(TTM)26.56
OCFY3.52%
SpS79.09
BVpS30.53
TBVpS15.98
PEG (NY)3.73
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.28% | ||
| ROE | 86.56% | ||
| ROCE | 42.95% | ||
| ROIC | 37.37% | ||
| ROICexc | 59.8% | ||
| ROICexgc | 85.28% | ||
| OM | 42.33% | ||
| PM (TTM) | 33.41% | ||
| GM | 61.99% | ||
| FCFM | 30.78% |
ROA(3y)22.41%
ROA(5y)22.77%
ROE(3y)94.85%
ROE(5y)116.64%
ROIC(3y)34.16%
ROIC(5y)32.64%
ROICexc(3y)54.21%
ROICexc(5y)49.64%
ROICexgc(3y)89.92%
ROICexgc(5y)90.43%
ROCE(3y)39.26%
ROCE(5y)37.51%
ROICexcg growth 3Y-4.35%
ROICexcg growth 5Y3.28%
ROICexc growth 3Y7.12%
ROICexc growth 5Y16.35%
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%
F-Score9
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 1.57 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 86.33% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 17.58 | ||
| Cash Conversion | 73.68% | ||
| Profit Quality | 92.12% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 8.54 |
F-Score9
WACC11.19%
ROIC/WACC3.34
Cap/Depr(3y)79.22%
Cap/Depr(5y)78.35%
Cap/Sales(3y)2.96%
Cap/Sales(5y)3.11%
Profit Quality(3y)100.05%
Profit Quality(5y)96.92%
High Growth Momentum
Growth
EPS 1Y (TTM)40.24%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%42.12%
EPS Next Y7.08%
EPS Next 2Y9.09%
EPS Next 3Y9.68%
EPS Next 5Y9.95%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%23.59%
Revenue Next Year6.47%
Revenue Next 2Y7.08%
Revenue Next 3Y7.36%
Revenue Next 5Y7.1%
EBIT growth 1Y34.62%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year12.59%
EBIT Next 3Y10.33%
EBIT Next 5Y8.48%
FCF growth 1Y23.44%
FCF growth 3Y7.58%
FCF growth 5Y18.14%
OCF growth 1Y23.37%
OCF growth 3Y7.21%
OCF growth 5Y18.07%