KLA CORP (KLA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:KLA - US4824801009 - Common Stock
1350 EUR
+5 (+0.37%)
KLA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 69 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 is valued quite expensive, but it does show an excellent growth. With these ratings, KLA could be worth investigating further for growth and 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
- KLA has a better Return On Assets (25.96%) than 92.75% of its industry peers.
- KLA's Return On Equity of 84.99% is amongst the best of the industry. KLA outperforms 100.00% of its industry peers.
- KLA's Return On Invested Capital of 38.07% is amongst the best of the industry. KLA outperforms 95.65% of its industry peers.
- KLA had an Average Return On Invested Capital over the past 3 years of 34.16%. This is significantly above the industry average of 14.31%.
- The last Return On Invested Capital (38.07%) for KLA is above the 3 year average (34.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.96% | ||
| ROE | 84.99% | ||
| ROIC | 38.07% |
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 better Profit Margin (33.83%) than 91.30% of its industry peers.
- In the last couple of years the Profit Margin of KLA has grown nicely.
- KLA has a Operating Margin of 42.86%. This is amongst the best in the industry. KLA outperforms 95.65% of its industry peers.
- KLA's Operating Margin has improved in the last couple of years.
- KLA has a Gross Margin of 61.99%. This is amongst the best in the industry. KLA outperforms 84.06% of its industry peers.
- KLA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.86% | ||
| PM (TTM) | 33.83% | ||
| 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.
- 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
- KLA has a better debt/assets ratio than last year.
2.2 Solvency
- KLA has an Altman-Z score of 13.73. This indicates that KLA is financially healthy and has little risk of bankruptcy at the moment.
- KLA has a better Altman-Z score (13.73) than 79.71% of its industry peers.
- The Debt to FCF ratio of KLA is 1.52, which is an excellent value as it means it would take KLA, only 1.52 years of fcf income to pay off all of its debts.
- KLA has a Debt to FCF ratio of 1.52. This is in the better half of the industry: KLA outperforms 63.77% of its industry peers.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that KLA has dependencies on debt financing.
- The Debt to Equity ratio of KLA (1.18) is worse than 92.75% 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 | 1.18 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 13.73 |
ROIC/WACC3.5
WACC10.87%
2.3 Liquidity
- KLA has a Current Ratio of 2.69. This indicates that KLA is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.69, KLA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- A Quick Ratio of 1.88 indicates that KLA should not have too much problems paying its short term obligations.
- KLA has a better Quick ratio (1.88) than 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 37.28% over the past year.
- KLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.37% yearly.
- Looking at the last year, KLA shows a very strong growth in Revenue. The Revenue has grown by 22.11%.
- The Revenue has been growing by 15.93% on average over the past years. This is quite good.
EPS 1Y (TTM)37.28%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%20.19%
Revenue 1Y (TTM)22.11%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%12.96%
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 12.51% yearly.
- The Revenue is expected to grow by 8.56% on average over the next years. This is quite good.
EPS Next Y9.93%
EPS Next 2Y15.16%
EPS Next 3Y12.62%
EPS Next 5Y12.51%
Revenue Next Year8.74%
Revenue Next 2Y11.76%
Revenue Next 3Y10.53%
Revenue Next 5Y8.56%
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
- Based on the Price/Earnings ratio of 46.28, the valuation of KLA can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as KLA.
- The average S&P500 Price/Earnings ratio is at 28.82. KLA is valued rather expensively when compared to this.
- KLA is valuated quite expensively with a Price/Forward Earnings ratio of 36.45.
- KLA's Price/Forward Earnings ratio is in line with the industry average.
- KLA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.28 | ||
| Fwd PE | 36.45 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KLA is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KLA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.64 | ||
| EV/EBITDA | 36.31 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- KLA has an outstanding profitability rating, which may justify a higher PE ratio.
- KLA's earnings are expected to grow with 12.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.66
PEG (5Y)1.76
EPS Next 2Y15.16%
EPS Next 3Y12.62%
5. Dividend
5.1 Amount
- KLA has a yearly dividend return of 0.51%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.74, KLA has a dividend in line with its industry peers.
- With a Dividend Yield of 0.51, KLA pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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
- 22.67% of the earnings are spent on dividend by KLA. This is a low number and sustainable payout ratio.
- The dividend of KLA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.67%
EPS Next 2Y15.16%
EPS Next 3Y12.62%
KLA CORP / KLA.DE FAQ
What is the ChartMill fundamental rating of KLA CORP (KLA.DE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to KLA.DE.
What is the valuation status for KLA stock?
ChartMill assigns a valuation rating of 2 / 10 to KLA CORP (KLA.DE). This can be considered as Overvalued.
How profitable is KLA CORP (KLA.DE) stock?
KLA CORP (KLA.DE) has a profitability rating of 9 / 10.
Can you provide the financial health for KLA stock?
The financial health rating of KLA CORP (KLA.DE) is 8 / 10.
How sustainable is the dividend of KLA CORP (KLA.DE) stock?
The dividend rating of KLA CORP (KLA.DE) is 3 / 10 and the dividend payout ratio is 22.67%.