KLA CORP (KLA.DE) Stock Fundamental Analysis
FRA:KLA - Deutsche Boerse Ag - US4824801009 - Common Stock - Currency: EUR
Taking everything into account, KLA scores 7 out of 10 in our fundamental rating. KLA was compared to 58 industry peers in the Semiconductors & Semiconductor Equipment industry. KLA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KLA is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes KLA very considerable for growth and quality investing!
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.
KLA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KLA's Return On Assets of 21.39% is amongst the best of the industry. KLA outperforms 93.10% of its industry peers.
KLA's Return On Equity of 89.51% is amongst the best of the industry. KLA outperforms 96.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 35.07%, KLA belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
KLA had an Average Return On Invested Capital over the past 3 years of 33.80%. This is significantly above the industry average of 16.14%.
The last Return On Invested Capital (35.07%) for KLA is above the 3 year average (33.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.39% | ||
| ROE | 89.51% | ||
| ROIC | 35.07% |
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
KLA's Profit Margin of 29.58% is amongst the best of the industry. KLA outperforms 89.66% of its industry peers.
In the last couple of years the Profit Margin of KLA has grown nicely.
The Operating Margin of KLA (39.92%) is better than 96.55% of its industry peers.
KLA's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 61.37%, KLA belongs to the best of the industry, outperforming 84.48% 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 | 39.92% | ||
| PM (TTM) | 29.58% | ||
| GM | 61.37% |
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
The number of shares outstanding for KLA has been reduced compared to 5 years ago.
Compared to 1 year ago, KLA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.03 indicates that KLA is not in any danger for bankruptcy at the moment.
KLA has a better Altman-Z score (7.03) than 67.24% of its industry peers.
KLA has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.75, KLA is doing good in the industry, outperforming 72.41% of the companies in the same industry.
A Debt/Equity ratio of 1.64 is on the high side and indicates that KLA has dependencies on debt financing.
With a Debt to Equity ratio value of 1.64, KLA is not doing good in the industry: 91.38% of the companies in the same industry are doing better.
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 | 1.64 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 7.03 |
ROIC/WACC3.17
WACC11.08%
2.3 Liquidity
KLA has a Current Ratio of 2.36. This indicates that KLA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of KLA (2.36) is comparable to the rest of the industry.
KLA has a Quick Ratio of 1.63. This is a normal value and indicates that KLA is financially healthy and should not expect problems in meeting its short term obligations.
KLA's Quick ratio of 1.63 is in line compared to the rest of the industry. KLA outperforms 48.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.18% over the past year.
KLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.88% yearly.
KLA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.15%.
KLA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.52% yearly.
EPS 1Y (TTM)20.18%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%33.12%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%23.73%
3.2 Future
Based on estimates for the next years, KLA will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.95% on average per year.
The Revenue is expected to grow by 9.68% on average over the next years. This is quite good.
EPS Next Y35.83%
EPS Next 2Y18.31%
EPS Next 3Y17.2%
EPS Next 5Y13.95%
Revenue Next Year21.92%
Revenue Next 2Y12.51%
Revenue Next 3Y11.49%
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
KLA is valuated quite expensively with a Price/Earnings ratio of 25.03.
Compared to the rest of the industry, the Price/Earnings ratio of KLA is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.35, KLA is valued at the same level.
The Price/Forward Earnings ratio is 20.61, which indicates a rather expensive current valuation of KLA.
KLA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, KLA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.03 | ||
| Fwd PE | 20.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KLA.
Based on the Price/Free Cash Flow ratio, KLA is valued cheaper than 81.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.1 | ||
| EV/EBITDA | 19.3 |
4.3 Compensation for Growth
KLA's 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.
A more expensive valuation may be justified as KLA's earnings are expected to grow with 17.20% in the coming years.
PEG (NY)0.7
PEG (5Y)1.09
EPS Next 2Y18.31%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, KLA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.50, KLA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.98, KLA pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
On average, the dividend of KLA grows each year by 13.33%, which is quite nice.
Dividend Growth(5Y)13.33%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
25.54% of the earnings are spent on dividend by KLA. This is a low number and 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.
DP25.54%
EPS Next 2Y18.31%
EPS Next 3Y17.2%
FRA:KLA (3/7/2025, 7:00:00 PM)
631.5
-20.5 (-3.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.97%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap83.92B
Analysts79.38
Price Target800.62 (26.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend5.25
Dividend Growth(5Y)13.33%
DP25.54%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.83%
Min EPS beat(2)1.95%
Max EPS beat(2)3.72%
EPS beat(4)4
Avg EPS beat(4)3.45%
Min EPS beat(4)1.95%
Max EPS beat(4)5.27%
EPS beat(8)8
Avg EPS beat(8)3.77%
EPS beat(12)12
Avg EPS beat(12)4.28%
EPS beat(16)16
Avg EPS beat(16)4.12%
Revenue beat(2)2
Avg Revenue beat(2)1.84%
Min Revenue beat(2)1.01%
Max Revenue beat(2)2.66%
Revenue beat(4)3
Avg Revenue beat(4)0.93%
Min Revenue beat(4)-0.05%
Max Revenue beat(4)2.66%
Revenue beat(8)5
Avg Revenue beat(8)0.62%
Revenue beat(12)9
Avg Revenue beat(12)1.15%
Revenue beat(16)11
Avg Revenue beat(16)0.9%
PT rev (1m)4.62%
PT rev (3m)1.6%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)4.89%
EPS NY rev (1m)4.53%
EPS NY rev (3m)3.27%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)2.16%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.03 | ||
| Fwd PE | 20.61 | ||
| P/S | 8.4 | ||
| P/FCF | 27.1 | ||
| P/OCF | 24.98 | ||
| P/B | 25.42 | ||
| P/tB | 72.85 | ||
| EV/EBITDA | 19.3 |
EPS(TTM)25.23
EY4%
EPS(NY)30.63
Fwd EY4.85%
FCF(TTM)23.3
FCFY3.69%
OCF(TTM)25.28
OCFY4%
SpS75.18
BVpS24.84
TBVpS8.67
PEG (NY)0.7
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.39% | ||
| ROE | 89.51% | ||
| ROCE | 39.86% | ||
| ROIC | 35.07% | ||
| ROICexc | 53.79% | ||
| ROICexgc | 80.22% | ||
| OM | 39.92% | ||
| PM (TTM) | 29.58% | ||
| GM | 61.37% | ||
| FCFM | 31% |
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-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 1.75 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 71.31% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 14.69 | ||
| Cash Conversion | 77.11% | ||
| Profit Quality | 104.79% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 7.03 |
F-Score7
WACC11.08%
ROIC/WACC3.17
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 Y35.83%
EPS Next 2Y18.31%
EPS Next 3Y17.2%
EPS Next 5Y13.95%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%23.73%
Revenue Next Year21.92%
Revenue Next 2Y12.51%
Revenue Next 3Y11.49%
Revenue Next 5Y9.68%
EBIT growth 1Y16.26%
EBIT growth 3Y15.38%
EBIT growth 5Y22.46%
EBIT Next Year39.77%
EBIT Next 3Y17.97%
EBIT Next 5Y12.95%
FCF growth 1Y12.58%
FCF growth 3Y15.77%
FCF growth 5Y24.29%
OCF growth 1Y9.27%
OCF growth 3Y14.83%
OCF growth 5Y23.48%