KLA CORP (KLA.DE) Stock Fundamental Analysis
FRA:KLA - Deutsche Boerse Ag - US4824801009 - Common Stock - Currency: EUR
Overall KLA gets a fundamental rating of 7 out of 10. We evaluated KLA against 52 industry peers in the Semiconductors & Semiconductor Equipment industry. KLA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KLA has a decent growth rate and is not valued too expensively. With these ratings, KLA could be worth investigating further for 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.
KLA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KLA has a Return On Assets of 21.39%. This is amongst the best in the industry. KLA outperforms 94.23% of its industry peers.
KLA has a better Return On Equity (89.51%) than 96.15% of its industry peers.
The Return On Invested Capital of KLA (35.07%) is better than 96.15% 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 15.85%.
The 3 year average ROIC (33.80%) for KLA is below the current ROIC(35.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.39% | ||
| ROE | 89.51% | ||
| ROIC | 35.07% |
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
The Profit Margin of KLA (29.58%) is better than 86.54% of its industry peers.
In the last couple of years the Profit Margin of KLA has grown nicely.
The Operating Margin of KLA (39.92%) is better than 96.15% of its industry peers.
In the last couple of years the Operating Margin of KLA has grown nicely.
KLA has a Gross Margin of 61.37%. This is amongst the best in the industry. KLA outperforms 82.69% of its industry peers.
KLA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.92% | ||
| PM (TTM) | 29.58% | ||
| GM | 61.37% |
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
KLA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for KLA has been reduced compared to 1 year ago.
Compared to 5 years ago, KLA has less shares outstanding
The debt/assets ratio for KLA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.15 indicates that KLA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.15, KLA is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
The Debt to FCF ratio of KLA is 1.75, which is an excellent value as it means it would take KLA, only 1.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KLA (1.75) is better than 69.23% of its industry peers.
A Debt/Equity ratio of 1.64 is on the high side and indicates that KLA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.64, KLA is doing worse than 94.23% of the companies in the same industry.
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 | 1.64 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 7.15 |
ROIC/WACC3.71
WACC9.45%
2.3 Liquidity
A Current Ratio of 2.36 indicates that KLA has no problem at all paying its short term obligations.
KLA has a Current ratio (2.36) which is in line with its industry peers.
KLA has a Quick Ratio of 1.63. This is a normal value and indicates that KLA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.63, KLA perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.37% over the past year.
KLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.88% yearly.
KLA shows a decrease in Revenue. In the last year, the revenue decreased by -6.51%.
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)-6.51%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%29.8%
3.2 Future
KLA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.06% yearly.
The Revenue is expected to grow by 9.66% on average over the next years. This is quite good.
EPS Next Y35.86%
EPS Next 2Y17.96%
EPS Next 3Y16.52%
EPS Next 5Y14.06%
Revenue Next Year21.96%
Revenue Next 2Y12.14%
Revenue Next 3Y10.96%
Revenue Next 5Y9.66%
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
KLA is valuated rather expensively with a Price/Earnings ratio of 22.77.
KLA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.18. KLA is around the same levels.
The Price/Forward Earnings ratio is 21.03, which indicates a rather expensive current valuation of KLA.
KLA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, KLA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 21.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KLA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, KLA is valued a bit cheaper than the industry average as 71.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.48 | ||
| EV/EBITDA | 19.77 |
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 16.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)1
EPS Next 2Y17.96%
EPS Next 3Y16.52%
5. Dividend
5.1 Amount
KLA has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
KLA's Dividend Yield is a higher than the industry average which is at 1.48.
With a Dividend Yield of 1.01, KLA pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of KLA is nicely growing with an annual growth rate of 13.33%!
Dividend Growth(5Y)13.33%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
KLA pays out 25.54% 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.
DP25.54%
EPS Next 2Y17.96%
EPS Next 3Y16.52%
FRA:KLA (5/5/2025, 4:38:38 PM)
613
-6.3 (-1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.97%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap81.46B
Analysts79.35
Price Target704.9 (14.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend5.02
Dividend Growth(5Y)13.33%
DP25.54%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.83%
Min EPS beat(2)1.95%
Max EPS beat(2)3.72%
EPS beat(4)4
Avg EPS beat(4)3.45%
Min EPS beat(4)1.95%
Max EPS beat(4)5.27%
EPS beat(8)8
Avg EPS beat(8)3.77%
EPS beat(12)12
Avg EPS beat(12)4.28%
EPS beat(16)16
Avg EPS beat(16)4.12%
Revenue beat(2)2
Avg Revenue beat(2)1.84%
Min Revenue beat(2)1.01%
Max Revenue beat(2)2.66%
Revenue beat(4)3
Avg Revenue beat(4)0.93%
Min Revenue beat(4)-0.05%
Max Revenue beat(4)2.66%
Revenue beat(8)5
Avg Revenue beat(8)0.62%
Revenue beat(12)9
Avg Revenue beat(12)1.15%
Revenue beat(16)11
Avg Revenue beat(16)0.9%
PT rev (1m)-7.15%
PT rev (3m)-7.88%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)7.62%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.55%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)4.18%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 21.03 | ||
| P/S | 8.52 | ||
| P/FCF | 27.48 | ||
| P/OCF | 25.33 | ||
| P/B | 25.78 | ||
| P/tB | 73.89 | ||
| EV/EBITDA | 19.77 |
EPS(TTM)26.92
EY4.39%
EPS(NY)29.14
Fwd EY4.75%
FCF(TTM)22.3
FCFY3.64%
OCF(TTM)24.2
OCFY3.95%
SpS71.96
BVpS23.78
TBVpS8.3
PEG (NY)0.64
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.39% | ||
| ROE | 89.51% | ||
| ROCE | 39.86% | ||
| ROIC | 35.07% | ||
| ROICexc | 53.79% | ||
| ROICexgc | 80.22% | ||
| OM | 39.92% | ||
| PM (TTM) | 29.58% | ||
| GM | 61.37% | ||
| FCFM | 31% |
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-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 1.75 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 71.31% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 14.69 | ||
| Cash Conversion | 77.11% | ||
| Profit Quality | 104.79% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 7.15 |
F-Score7
WACC9.45%
ROIC/WACC3.71
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 Y35.86%
EPS Next 2Y17.96%
EPS Next 3Y16.52%
EPS Next 5Y14.06%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%29.8%
Revenue Next Year21.96%
Revenue Next 2Y12.14%
Revenue Next 3Y10.96%
Revenue Next 5Y9.66%
EBIT growth 1Y16.26%
EBIT growth 3Y15.38%
EBIT growth 5Y22.46%
EBIT Next Year41.58%
EBIT Next 3Y17.89%
EBIT Next 5Y12.88%
FCF growth 1Y12.58%
FCF growth 3Y15.77%
FCF growth 5Y24.29%
OCF growth 1Y9.27%
OCF growth 3Y14.83%
OCF growth 5Y23.48%