KLA CORP (KLA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:KLA - US4824801009 - Common Stock
1262.6 EUR
+51.2 (+4.23%)
KLA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 industry peers in the Semiconductors & Semiconductor Equipment industry. KLA gets an excellent profitability rating and is at the same time showing great financial health properties. KLA is valued quite expensively, but it does show have an excellent growth rating. These ratings could make KLA a good candidate 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.
Each year in the past 5 years KLA has been profitable.
In the past 5 years KLA always reported a positive cash flow from operatings.
1.2 Ratios
KLA has a Return On Assets of 25.96%. This is amongst the best in the industry. KLA outperforms 94.37% of its industry peers.
KLA has a Return On Equity of 84.99%. This is amongst the best in the industry. KLA outperforms 100.00% of its industry peers.
KLA has a Return On Invested Capital of 38.07%. This is amongst the best in the industry. KLA outperforms 95.77% 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 13.85%.
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 Profit Margin of 33.83%. This is amongst the best in the industry. KLA outperforms 94.37% of its industry peers.
In the last couple of years the Profit Margin of KLA has grown nicely.
The Operating Margin of KLA (42.86%) is better than 95.77% of its industry peers.
KLA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 61.99%, KLA belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
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
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.
KLA has a better debt/assets ratio than last year.
2.2 Solvency
KLA has an Altman-Z score of 12.42. This indicates that KLA is financially healthy and has little risk of bankruptcy at the moment.
KLA has a better Altman-Z score (12.42) than 80.28% 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.
Looking at the Debt to FCF ratio, with a value of 1.52, KLA is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
KLA has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KLA (1.18) is worse than 92.96% 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 | 12.42 |
ROIC/WACC3.55
WACC10.73%
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.
The Current ratio of KLA (2.69) is better than 67.61% of its industry peers.
KLA has a Quick Ratio of 1.88. This is a normal value and indicates that KLA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KLA (1.88) is better than 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
KLA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.28%, which is quite impressive.
Measured over the past years, KLA shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.37% on average per year.
Looking at the last year, KLA shows a very strong growth in Revenue. The Revenue has grown by 22.11%.
KLA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.93% yearly.
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
The Earnings Per Share is expected to grow by 12.51% on average over the next years. This is quite good.
KLA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.56% yearly.
EPS Next Y9.51%
EPS Next 2Y13.36%
EPS Next 3Y11.96%
EPS Next 5Y12.51%
Revenue Next Year8.5%
Revenue Next 2Y10.26%
Revenue Next 3Y9.35%
Revenue Next 5Y8.56%
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
KLA is valuated quite expensively with a Price/Earnings ratio of 42.43.
KLA's Price/Earnings ratio is in line with the industry average.
KLA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 34.48 indicates a quite expensive valuation of KLA.
Based on the Price/Forward Earnings ratio, KLA is valued a bit more expensive than 63.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, KLA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.43 | ||
| Fwd PE | 34.48 |
4.2 Price Multiples
64.79% of the companies in the same industry are cheaper than KLA, based on the Enterprise Value to EBITDA ratio.
60.56% 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 | 50.09 | ||
| EV/EBITDA | 32.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of KLA may justify a higher PE ratio.
PEG (NY)4.46
PEG (5Y)1.61
EPS Next 2Y13.36%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
KLA has a yearly dividend return of 0.57%, which is pretty low.
KLA's Dividend Yield is comparable with the industry average which is at 0.79.
Compared to an average S&P500 Dividend Yield of 1.92, KLA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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
22.67% 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 2Y13.36%
EPS Next 3Y11.96%
FRA:KLA (1/13/2026, 3:07:42 PM)
1262.6
+51.2 (+4.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.36%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap165.89B
Revenue(TTM)12.52B
Net Income(TTM)4.24B
Analysts74.29
Price Target1151.57 (-8.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend5.83
Dividend Growth(5Y)15.33%
DP22.67%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.89%
Min EPS beat(2)0.34%
Max EPS beat(2)7.44%
EPS beat(4)4
Avg EPS beat(4)3.33%
Min EPS beat(4)0.34%
Max EPS beat(4)7.44%
EPS beat(8)8
Avg EPS beat(8)3.19%
EPS beat(12)12
Avg EPS beat(12)3.48%
EPS beat(16)16
Avg EPS beat(16)3.85%
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)0.98%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)2.66%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)7
Avg Revenue beat(12)0.73%
Revenue beat(16)10
Avg Revenue beat(16)0.79%
PT rev (1m)2.48%
PT rev (3m)42.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)0%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.43 | ||
| Fwd PE | 34.48 | ||
| P/S | 15.49 | ||
| P/FCF | 50.09 | ||
| P/OCF | 45.66 | ||
| P/B | 38.91 | ||
| P/tB | 69.35 | ||
| EV/EBITDA | 32.03 |
EPS(TTM)29.76
EY2.36%
EPS(NY)36.62
Fwd EY2.9%
FCF(TTM)25.21
FCFY2%
OCF(TTM)27.65
OCFY2.19%
SpS81.53
BVpS32.45
TBVpS18.21
PEG (NY)4.46
PEG (5Y)1.61
Graham Number147.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.96% | ||
| ROE | 84.99% | ||
| ROCE | 43.75% | ||
| ROIC | 38.07% | ||
| ROICexc | 61.58% | ||
| ROICexgc | 86.56% | ||
| OM | 42.86% | ||
| PM (TTM) | 33.83% | ||
| GM | 61.99% | ||
| FCFM | 30.92% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 95.05% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 18.31 | ||
| Cash Conversion | 73.72% | ||
| Profit Quality | 91.4% | ||
| Current Ratio | 2.69 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 12.42 |
F-Score9
WACC10.73%
ROIC/WACC3.55
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)37.28%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%20.19%
EPS Next Y9.51%
EPS Next 2Y13.36%
EPS Next 3Y11.96%
EPS Next 5Y12.51%
Revenue 1Y (TTM)22.11%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%12.96%
Revenue Next Year8.5%
Revenue Next 2Y10.26%
Revenue Next 3Y9.35%
Revenue Next 5Y8.56%
EBIT growth 1Y32.78%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year15.05%
EBIT Next 3Y12.5%
EBIT Next 5Y11.09%
FCF growth 1Y20.39%
FCF growth 3Y7.58%
FCF growth 5Y18.14%
OCF growth 1Y19.94%
OCF growth 3Y7.21%
OCF growth 5Y18.07%
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%.