KLA CORP (KLAC) Stock Fundamental Analysis
NASDAQ:KLAC - Nasdaq - US4824801009 - Common Stock - Currency: USD
Overall KLAC gets a fundamental rating of 7 out of 10. We evaluated KLAC against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC scores excellent on profitability, but there are some minor concerns on its financial health. KLAC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make KLAC a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
KLAC had positive earnings in the past year.
In the past year KLAC had a positive cash flow from operations.
In the past 5 years KLAC has always been profitable.
KLAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KLAC's Return On Assets of 24.33% is amongst the best of the industry. KLAC outperforms 97.27% of its industry peers.
Looking at the Return On Equity, with a value of 92.27%, KLAC belongs to the top of the industry, outperforming 99.09% of the companies in the same industry.
KLAC has a Return On Invested Capital of 37.60%. This is amongst the best in the industry. KLAC outperforms 99.09% of its industry peers.
KLAC had an Average Return On Invested Capital over the past 3 years of 33.80%. This is significantly above the industry average of 10.57%.
The 3 year average ROIC (33.80%) for KLAC is below the current ROIC(37.60%), indicating increased profibility in the last year.
| 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
KLAC has a Profit Margin of 31.99%. This is amongst the best in the industry. KLAC outperforms 92.73% of its industry peers.
In the last couple of years the Profit Margin of KLAC has grown nicely.
KLAC has a Operating Margin of 41.73%. This is amongst the best in the industry. KLAC outperforms 97.27% of its industry peers.
In the last couple of years the Operating Margin of KLAC has grown nicely.
KLAC has a better Gross Margin (62.13%) than 88.18% of its industry peers.
KLAC's Gross Margin has been stable in the last couple of years.
| 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), KLAC is creating value.
Compared to 1 year ago, KLAC has less shares outstanding
Compared to 5 years ago, KLAC has less shares outstanding
Compared to 1 year ago, KLAC has a worse debt to assets ratio.
2.2 Solvency
KLAC has an Altman-Z score of 8.65. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
KLAC has a better Altman-Z score (8.65) than 74.55% of its industry peers.
KLAC 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, KLAC is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
KLAC 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 KLAC (1.47) is worse than 91.82% of its industry peers.
Although KLAC 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 | 8.65 |
ROIC/WACC3.36
WACC11.19%
2.3 Liquidity
KLAC has a Current Ratio of 2.54. This indicates that KLAC is financially healthy and has no problem in meeting its short term obligations.
KLAC has a Current ratio of 2.54. This is in the lower half of the industry: KLAC underperforms 60.00% of its industry peers.
A Quick Ratio of 1.74 indicates that KLAC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, KLAC is doing worse than 67.27% of the companies in the same 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, KLAC shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.88% on average per year.
KLAC shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.33%.
The Revenue has been growing by 16.52% on average over the past years. This is quite good.
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
Based on estimates for the next years, KLAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.32% 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 9.69% on average per year.
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
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
KLAC is valuated quite expensively with a Price/Earnings ratio of 28.62.
Compared to the rest of the industry, the Price/Earnings ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 65.45% of the companies listed in the same industry.
KLAC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
KLAC is valuated quite expensively with a Price/Forward Earnings ratio of 25.95.
KLAC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, KLAC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.62 | ||
| Fwd PE | 25.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KLAC is valued a bit cheaper than the industry average as 64.55% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.08 | ||
| EV/EBITDA | 22.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KLAC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as KLAC's earnings are expected to grow with 16.92% in the coming years.
PEG (NY)0.73
PEG (5Y)1.25
EPS Next 2Y19.05%
EPS Next 3Y16.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, KLAC is not a good candidate for dividend investing.
KLAC's Dividend Yield is a higher than the industry average which is at 2.61.
Compared to an average S&P500 Dividend Yield of 2.39, KLAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of KLAC is nicely growing with an annual growth rate of 13.33%!
KLAC has paid a dividend for at least 10 years, which is a reliable track record.
KLAC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.33%
Div Incr Years15
Div Non Decr Years19
5.3 Sustainability
22.95% of the earnings are spent on dividend by KLAC. This is a low number and sustainable payout ratio.
KLAC'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%
NASDAQ:KLAC (6/12/2025, 12:56:04 PM)
874
+2 (+0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.97%
Inst Owner Change0.09%
Ins Owners0.1%
Ins Owner Change-4.65%
Market Cap116.15B
Analysts78.13
Price Target808.07 (-7.54%)
Short Float %2.47%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend5.7
Dividend Growth(5Y)13.33%
DP22.95%
Div Incr Years15
Div Non Decr Years19
Ex-Date
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)0.16%
PT rev (3m)-3.82%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)7.18%
EPS NY rev (1m)2.53%
EPS NY rev (3m)2.55%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.62 | ||
| Fwd PE | 25.95 | ||
| P/S | 10.06 | ||
| P/FCF | 33.08 | ||
| P/OCF | 30.49 | ||
| P/B | 29 | ||
| P/tB | 67.46 | ||
| EV/EBITDA | 22.14 |
EPS(TTM)30.54
EY3.49%
EPS(NY)33.68
Fwd EY3.85%
FCF(TTM)26.42
FCFY3.02%
OCF(TTM)28.67
OCFY3.28%
SpS86.92
BVpS30.14
TBVpS12.96
PEG (NY)0.73
PEG (5Y)1.25
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 | 8.65 |
F-Score9
WACC11.19%
ROIC/WACC3.36
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%