KLA CORP (KLA.DE) Stock Fundamental Analysis
FRA:KLA - Deutsche Boerse Ag - US4824801009 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to KLA. KLA was compared to 56 industry peers in the Semiconductors & Semiconductor Equipment industry. KLA has an excellent profitability rating, but there are some minor concerns on its financial health. KLA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
KLA had positive earnings in the past year.
In the past year KLA had a positive cash flow from operations.
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's Return On Assets of 18.92% is amongst the best of the industry. KLA outperforms 82.14% of its industry peers.
KLA's Return On Equity of 83.33% is amongst the best of the industry. KLA outperforms 96.43% of its industry peers.
KLA has a Return On Invested Capital of 32.68%. This is amongst the best in the industry. KLA outperforms 96.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KLA is significantly above the industry average of 16.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 83.33% | ||
| ROIC | 32.68% |
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
The Profit Margin of KLA (28.92%) is better than 83.93% of its industry peers.
KLA's Profit Margin has improved in the last couple of years.
The Operating Margin of KLA (39.41%) is better than 96.43% of its industry peers.
In the last couple of years the Operating Margin of KLA has grown nicely.
KLA's Gross Margin of 61.56% is amongst the best of the industry. KLA outperforms 83.93% of its industry peers.
KLA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.41% | ||
| PM (TTM) | 28.92% | ||
| GM | 61.56% |
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
KLA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, KLA has less shares outstanding
KLA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KLA has a worse debt to assets ratio.
2.2 Solvency
KLA has an Altman-Z score of 7.01. This indicates that KLA is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 7.01, KLA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
KLA has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as KLA would need 2.10 years to pay back of all of its debts.
KLA has a better Debt to FCF ratio (2.10) than 64.29% of its industry peers.
KLA has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
KLA has a worse Debt to Equity ratio (1.65) than 92.86% of its industry peers.
Even though the debt/equity ratio score it not favorable for KLA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 7.01 |
ROIC/WACC2.35
WACC13.9%
2.3 Liquidity
KLA has a Current Ratio of 2.13. This indicates that KLA is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.13, KLA perfoms like the industry average, outperforming 41.07% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that KLA should not have too much problems paying its short term obligations.
KLA has a Quick ratio (1.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.18% over the past year.
Measured over the past years, KLA shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.88% on average per year.
The Revenue has decreased by -6.51% in the past year.
The Revenue has been growing by 16.52% on average over the past years. This is quite good.
EPS 1Y (TTM)20.18%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%33.12%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%23.73%
3.2 Future
The Earnings Per Share is expected to grow by 13.95% 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 9.68% yearly.
EPS Next Y29.95%
EPS Next 2Y17.57%
EPS Next 3Y16.84%
EPS Next 5Y13.95%
Revenue Next Year18.66%
Revenue Next 2Y12.1%
Revenue Next 3Y10.88%
Revenue Next 5Y9.68%
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 27.44 indicates a quite expensive valuation of KLA.
Compared to the rest of the industry, the Price/Earnings ratio of KLA is on the same level as its industry peers.
KLA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.58.
With a Price/Forward Earnings ratio of 22.88, KLA is valued on the expensive side.
KLA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 95.03. KLA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.44 | ||
| Fwd PE | 22.88 |
4.2 Price Multiples
KLA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, KLA is valued a bit cheaper than the industry average as 69.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.91 | ||
| EV/EBITDA | 22.5 |
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.
KLA has an outstanding profitability rating, which may justify a higher PE ratio.
KLA's earnings are expected to grow with 16.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)1.2
EPS Next 2Y17.57%
EPS Next 3Y16.84%
5. Dividend
5.1 Amount
KLA has a yearly dividend return of 0.92%, which is pretty low.
Compared to an average industry Dividend Yield of 1.49, KLA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.92, KLA pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
The dividend of KLA is nicely growing with an annual growth rate of 13.33%!
Dividend Growth(5Y)13.33%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
KLA pays out 26.62% of its income as dividend. This is a sustainable payout ratio.
KLA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP26.62%
EPS Next 2Y17.57%
EPS Next 3Y16.84%
KLA CORP
FRA:KLA (2/4/2025, 7:00:00 PM)
727.1
+4.1 (+0.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.53%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap97.26B
Analysts78.82
Price Target765.24 (5.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend5.7
Dividend Growth(5Y)13.33%
DP26.62%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.61%
Min EPS beat(2)1.95%
Max EPS beat(2)5.27%
EPS beat(4)4
Avg EPS beat(4)3.05%
Min EPS beat(4)1.95%
Max EPS beat(4)5.27%
EPS beat(8)8
Avg EPS beat(8)3.55%
EPS beat(12)12
Avg EPS beat(12)4.02%
EPS beat(16)15
Avg EPS beat(16)3.85%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.05%
Max Revenue beat(2)1.01%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)1.01%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)8
Avg Revenue beat(12)0.83%
Revenue beat(16)11
Avg Revenue beat(16)0.81%
PT rev (1m)1.36%
PT rev (3m)-2.58%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)10.52%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)7.11%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.44 | ||
| Fwd PE | 22.88 | ||
| P/S | 9.8 | ||
| P/FCF | 31.91 | ||
| P/OCF | 29.39 | ||
| P/B | 28.24 | ||
| P/tB | 107.85 | ||
| EV/EBITDA | 22.5 |
EPS(TTM)26.5
EY3.64%
EPS(NY)31.78
Fwd EY4.37%
FCF(TTM)22.79
FCFY3.13%
OCF(TTM)24.74
OCFY3.4%
SpS74.2
BVpS25.75
TBVpS6.74
PEG (NY)0.92
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 83.33% | ||
| ROCE | 37.14% | ||
| ROIC | 32.68% | ||
| ROICexc | 56.87% | ||
| ROICexgc | 98.09% | ||
| OM | 39.41% | ||
| PM (TTM) | 28.92% | ||
| GM | 61.56% | ||
| FCFM | 30.71% |
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-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 68.27% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 13.73 | ||
| Cash Conversion | 77.07% | ||
| Profit Quality | 106.2% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 7.01 |
F-Score6
WACC13.9%
ROIC/WACC2.35
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)20.18%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%33.12%
EPS Next Y29.95%
EPS Next 2Y17.57%
EPS Next 3Y16.84%
EPS Next 5Y13.95%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%23.73%
Revenue Next Year18.66%
Revenue Next 2Y12.1%
Revenue Next 3Y10.88%
Revenue Next 5Y9.68%
EBIT growth 1Y1.95%
EBIT growth 3Y15.38%
EBIT growth 5Y22.46%
EBIT Next Year36.22%
EBIT Next 3Y17.04%
EBIT Next 5Y12.95%
FCF growth 1Y0.4%
FCF growth 3Y15.77%
FCF growth 5Y24.29%
OCF growth 1Y-1.16%
OCF growth 3Y14.83%
OCF growth 5Y23.48%