KLA CORP (KLAC) Stock Fundamental Analysis
USA - NASDAQ:KLAC - US4824801009 - Common Stock
1147.43 USD
-5.46 (-0.47%)
1147.43 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to KLAC. KLAC was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KLAC is valued quite expensive, but it does show an excellent growth. These ratings would make KLAC suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year KLAC was profitable.
KLAC had a positive operating cash flow in the past year.
In the past 5 years KLAC has always been profitable.
In the past 5 years KLAC always reported a positive cash flow from operatings.
1.2 Ratios
KLAC has a Return On Assets of 25.28%. This is amongst the best in the industry. KLAC outperforms 97.32% of its industry peers.
Looking at the Return On Equity, with a value of 86.56%, KLAC belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
With an excellent Return On Invested Capital value of 37.37%, KLAC belongs to the best of the industry, outperforming 99.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KLAC is significantly above the industry average of 10.98%.
The last Return On Invested Capital (37.37%) for KLAC is above the 3 year average (34.16%), which is a sign of increasing profitability.
| 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
KLAC has a Profit Margin of 33.41%. This is amongst the best in the industry. KLAC outperforms 93.75% of its industry peers.
In the last couple of years the Profit Margin of KLAC has grown nicely.
With an excellent Operating Margin value of 42.33%, KLAC belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
In the last couple of years the Operating Margin of KLAC has grown nicely.
KLAC has a Gross Margin of 61.99%. This is amongst the best in the industry. KLAC outperforms 87.50% of its industry peers.
KLAC's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KLAC is creating value.
KLAC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KLAC has less shares outstanding
KLAC has a better debt/assets ratio than last year.
2.2 Solvency
KLAC has an Altman-Z score of 10.47. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
KLAC's Altman-Z score of 10.47 is fine compared to the rest of the industry. KLAC outperforms 70.54% of its industry peers.
The Debt to FCF ratio of KLAC is 1.57, which is an excellent value as it means it would take KLAC, only 1.57 years of fcf income to pay off all of its debts.
KLAC has a Debt to FCF ratio of 1.57. This is in the better half of the industry: KLAC outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that KLAC has dependencies on debt financing.
The Debt to Equity ratio of KLAC (1.25) is worse than 89.29% of its industry peers.
Even though the debt/equity ratio score it not favorable for KLAC, 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 | 10.47 |
ROIC/WACC3.24
WACC11.54%
2.3 Liquidity
A Current Ratio of 2.62 indicates that KLAC has no problem at all paying its short term obligations.
With a Current ratio value of 2.62, KLAC perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
A Quick Ratio of 1.83 indicates that KLAC should not have too much problems paying its short term obligations.
KLAC has a Quick ratio (1.83) which is in line with its industry peers.
| 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, KLAC 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!
KLAC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.93% yearly.
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, KLAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.29% on average per year.
Based on estimates for the next years, KLAC will show a quite strong growth in Revenue. The Revenue will grow by 8.04% on average per year.
EPS Next Y7.13%
EPS Next 2Y9.04%
EPS Next 3Y10.47%
EPS Next 5Y11.29%
Revenue Next Year6.72%
Revenue Next 2Y7.46%
Revenue Next 3Y7.86%
Revenue Next 5Y8.04%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 34.44 indicates a quite expensive valuation of KLAC.
KLAC's Price/Earnings ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 71.43% of the companies in the same industry.
KLAC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.77.
KLAC is valuated quite expensively with a Price/Forward Earnings ratio of 32.14.
KLAC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, KLAC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.44 | ||
| Fwd PE | 32.14 |
4.2 Price Multiples
66.96% of the companies in the same industry are more expensive than KLAC, based on the Enterprise Value to EBITDA ratio.
71.43% of the companies in the same industry are more expensive than KLAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.38 | ||
| EV/EBITDA | 27.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KLAC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.83
PEG (5Y)1.31
EPS Next 2Y9.04%
EPS Next 3Y10.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, KLAC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.12, KLAC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.69, KLAC pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of KLAC grows each year by 15.33%, which is quite nice.
KLAC has been paying a dividend for at least 10 years, so it has a reliable track record.
KLAC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.33%
Div Incr Years15
Div Non Decr Years19
5.3 Sustainability
22.27% of the earnings are spent on dividend by KLAC. This is a low number and sustainable payout ratio.
KLAC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.27%
EPS Next 2Y9.04%
EPS Next 3Y10.47%
1147.43
-5.46 (-0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.51%
Inst Owner Change-0.04%
Ins Owners0.06%
Ins Owner Change-1.38%
Market Cap151.09B
Revenue(TTM)12.16B
Net Income(TTM)4.06B
Analysts75.15
Price Target947.67 (-17.41%)
Short Float %2.83%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP22.27%
Div Incr Years15
Div Non Decr Years19
Ex-Date
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)1.45%
PT rev (3m)10.11%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)5.58%
EPS NY rev (1m)0.05%
EPS NY rev (3m)5.21%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.44 | ||
| Fwd PE | 32.14 | ||
| P/S | 12.43 | ||
| P/FCF | 40.38 | ||
| P/OCF | 37.02 | ||
| P/B | 32.2 | ||
| P/tB | 61.53 | ||
| EV/EBITDA | 27.09 |
EPS(TTM)33.32
EY2.9%
EPS(NY)35.7
Fwd EY3.11%
FCF(TTM)28.42
FCFY2.48%
OCF(TTM)31
OCFY2.7%
SpS92.32
BVpS35.64
TBVpS18.65
PEG (NY)4.83
PEG (5Y)1.31
Graham Number163.45
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%
ROICexgc growth 3Y-4.35%
ROICexgc 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 | 10.47 |
F-Score9
WACC11.54%
ROIC/WACC3.24
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 Y7.13%
EPS Next 2Y9.04%
EPS Next 3Y10.47%
EPS Next 5Y11.29%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%23.59%
Revenue Next Year6.72%
Revenue Next 2Y7.46%
Revenue Next 3Y7.86%
Revenue Next 5Y8.04%
EBIT growth 1Y34.62%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year12.95%
EBIT Next 3Y11.15%
EBIT Next 5Y9.85%
FCF growth 1Y23.44%
FCF growth 3Y7.58%
FCF growth 5Y18.14%
OCF growth 1Y23.37%
OCF growth 3Y7.21%
OCF growth 5Y18.07%