KLA CORP (KLA.DE) Stock Fundamental Analysis
Europe - FRA:KLA - US4824801009 - Common Stock
928.7 EUR
-6.8 (-0.73%)
KLA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 65 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 shows excellent growth, but is valued quite expensive already. These ratings would make KLA suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
KLA had positive earnings in the past year.
KLA had a positive operating cash flow in the past year.
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 25.28%. This is amongst the best in the industry. KLA outperforms 95.38% of its industry peers.
KLA has a better Return On Equity (86.56%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 37.37%, KLA belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KLA is significantly above the industry average of 14.69%.
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
The Profit Margin of KLA (33.41%) is better than 95.38% of its industry peers.
KLA's Profit Margin has improved in the last couple of years.
KLA's Operating Margin of 42.33% is amongst the best of the industry. KLA outperforms 95.38% 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 86.15% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KLA is creating value.
KLA has less shares outstanding than it did 1 year ago.
KLA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KLA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.01 indicates that KLA is not in any danger for bankruptcy at the moment.
KLA has a Altman-Z score of 10.01. This is in the better half of the industry: KLA outperforms 73.85% 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.
KLA has a better Debt to FCF ratio (1.57) than 66.15% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that KLA has dependencies on debt financing.
KLA has a worse Debt to Equity ratio (1.25) than 90.77% 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 | 1.25 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 10.01 |
ROIC/WACC3.24
WACC11.55%
2.3 Liquidity
A Current Ratio of 2.62 indicates that KLA has no problem at all paying its short term obligations.
The Current ratio of KLA (2.62) is better than 67.69% of its industry peers.
A Quick Ratio of 1.83 indicates that KLA should not have too much problems paying its short term obligations.
KLA has a Quick ratio of 1.83. This is in the better half of the industry: KLA outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
KLA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.24%, which is quite impressive.
KLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.37% yearly.
KLA shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.89%.
The Revenue has been growing by 15.93% on average over the past years. This is quite good.
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
KLA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.29% yearly.
KLA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.04% yearly.
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
Based on the Price/Earnings ratio of 32.47, the valuation of KLA can be described as expensive.
KLA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.29. KLA is around the same levels.
With a Price/Forward Earnings ratio of 30.31, KLA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KLA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, KLA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.47 | ||
| Fwd PE | 30.31 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than KLA, based on the Enterprise Value to EBITDA ratio.
61.54% 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 | 38.07 | ||
| EV/EBITDA | 25.53 |
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)4.55
PEG (5Y)1.23
EPS Next 2Y9.04%
EPS Next 3Y10.47%
5. Dividend
5.1 Amount
KLA has a yearly dividend return of 0.72%, which is pretty low.
Compared to an average industry Dividend Yield of 1.13, KLA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, KLA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of KLA is nicely growing with an annual growth rate of 15.33%!
Dividend Growth(5Y)15.33%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
22.27% of the earnings are spent on dividend by KLA. This is a low number and sustainable payout ratio.
KLA'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%
FRA:KLA (10/16/2025, 7:00:00 PM)
928.7
-6.8 (-0.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.51%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap122.29B
Analysts75.15
Price Target809.04 (-12.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend5.87
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)1.81%
PT rev (3m)10.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.53%
EPS NY rev (1m)0.05%
EPS NY rev (3m)5.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.83%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.47 | ||
| Fwd PE | 30.31 | ||
| P/S | 11.72 | ||
| P/FCF | 38.07 | ||
| P/OCF | 34.9 | ||
| P/B | 30.36 | ||
| P/tB | 58.02 | ||
| EV/EBITDA | 25.53 |
EPS(TTM)28.6
EY3.08%
EPS(NY)30.64
Fwd EY3.3%
FCF(TTM)24.39
FCFY2.63%
OCF(TTM)26.61
OCFY2.87%
SpS79.25
BVpS30.59
TBVpS16.01
PEG (NY)4.55
PEG (5Y)1.23
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 | 10.01 |
F-Score9
WACC11.55%
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%