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 51 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making KLA a very profitable company, without any liquidiy or solvency issues. KLA is growing strongly while it is still valued neutral. This is a good combination! This makes KLA very considerable 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.
In the past 5 years KLA has always been profitable.
KLA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KLA's Return On Assets of 24.33% is amongst the best of the industry. KLA outperforms 96.08% of its industry peers.
Looking at the Return On Equity, with a value of 92.27%, KLA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
KLA has a better Return On Invested Capital (37.60%) than 96.08% of its industry peers.
KLA had an Average Return On Invested Capital over the past 3 years of 33.80%. This is significantly above the industry average of 15.31%.
The 3 year average ROIC (33.80%) for KLA is below the current ROIC(37.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.33% | ||
| ROE | 92.27% | ||
| ROIC | 37.6% |
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 (31.99%) is better than 94.12% of its industry peers.
KLA's Profit Margin has improved in the last couple of years.
KLA has a better Operating Margin (41.73%) than 96.08% of its industry peers.
In the last couple of years the Operating Margin of KLA has grown nicely.
KLA has a better Gross Margin (62.13%) than 82.35% of its industry peers.
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 | 41.73% | ||
| PM (TTM) | 31.99% | ||
| GM | 62.13% |
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.
KLA has a worse debt/assets ratio than last year.
2.2 Solvency
KLA has an Altman-Z score of 8.86. This indicates that KLA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KLA (8.86) is better than 72.55% of its industry peers.
KLA has a debt to FCF ratio of 1.68. This is a very positive value and a sign of high solvency as it would only need 1.68 years to pay back of all of its debts.
KLA's Debt to FCF ratio of 1.68 is fine compared to the rest of the industry. KLA outperforms 64.71% of its industry peers.
KLA has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.47, KLA is not doing good in the industry: 94.12% 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 | 1.47 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 8.86 |
ROIC/WACC3.75
WACC10.03%
2.3 Liquidity
A Current Ratio of 2.54 indicates that KLA has no problem at all paying its short term obligations.
KLA has a Current ratio (2.54) which is in line with its industry peers.
KLA has a Quick Ratio of 1.74. 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 (1.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.37% 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.
KLA shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.33%.
Measured over the past years, KLA shows a quite strong growth in Revenue. The Revenue has been growing by 16.52% on average per year.
EPS 1Y (TTM)35.37%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%59.89%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%29.8%
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 14.51% yearly.
Based on estimates for the next years, KLA will show a quite strong growth in Revenue. The Revenue will grow by 9.87% on average per year.
EPS Next Y39.19%
EPS Next 2Y19.31%
EPS Next 3Y17.16%
EPS Next 5Y14.51%
Revenue Next Year23.35%
Revenue Next 2Y12.57%
Revenue Next 3Y11.38%
Revenue Next 5Y9.87%
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.
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 29.52 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.
When comparing the Price/Earnings ratio of KLA to the average of the S&P500 Index (27.15), we can say KLA is valued inline with the index average.
KLA is valuated quite expensively with a Price/Forward Earnings ratio of 26.65.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KLA indicates a slightly more expensive valuation: KLA is more expensive than 64.71% of the companies listed in the same industry.
KLA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.52 | ||
| Fwd PE | 26.65 |
4.2 Price Multiples
KLA's Enterprise Value to EBITDA ratio is in line with the industry average.
66.67% 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 | 34.11 | ||
| EV/EBITDA | 22.89 |
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.
The excellent profitability rating of KLA may justify a higher PE ratio.
KLA's earnings are expected to grow with 17.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)1.29
EPS Next 2Y19.31%
EPS Next 3Y17.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, KLA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.15, KLA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, KLA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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
22.95% 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.
DP22.95%
EPS Next 2Y19.31%
EPS Next 3Y17.16%
FRA:KLA (6/26/2025, 7:00:00 PM)
770.1
+5.4 (+0.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.28%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap102.34B
Analysts78.13
Price Target730.17 (-5.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend4.87
Dividend Growth(5Y)13.33%
DP22.95%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.77%
Min EPS beat(2)1.83%
Max EPS beat(2)3.72%
EPS beat(4)4
Avg EPS beat(4)3.19%
Min EPS beat(4)1.83%
Max EPS beat(4)5.27%
EPS beat(8)8
Avg EPS beat(8)3.86%
EPS beat(12)12
Avg EPS beat(12)4.08%
EPS beat(16)16
Avg EPS beat(16)3.96%
Revenue beat(2)1
Avg Revenue beat(2)1.19%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)2.66%
Revenue beat(4)2
Avg Revenue beat(4)0.83%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)2.66%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)8
Avg Revenue beat(12)0.98%
Revenue beat(16)10
Avg Revenue beat(16)0.82%
PT rev (1m)2.23%
PT rev (3m)-3.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.25%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.58%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.52 | ||
| Fwd PE | 26.65 | ||
| P/S | 10.37 | ||
| P/FCF | 34.11 | ||
| P/OCF | 31.44 | ||
| P/B | 29.91 | ||
| P/tB | 69.57 | ||
| EV/EBITDA | 22.89 |
EPS(TTM)26.09
EY3.39%
EPS(NY)28.9
Fwd EY3.75%
FCF(TTM)22.57
FCFY2.93%
OCF(TTM)24.49
OCFY3.18%
SpS74.26
BVpS25.75
TBVpS11.07
PEG (NY)0.75
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.33% | ||
| ROE | 92.27% | ||
| ROCE | 42.74% | ||
| ROIC | 37.6% | ||
| ROICexc | 58.5% | ||
| ROICexgc | 85.39% | ||
| OM | 41.73% | ||
| PM (TTM) | 31.99% | ||
| GM | 62.13% | ||
| FCFM | 30.4% |
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-Score9
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 74.83% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 15.54 | ||
| Cash Conversion | 72.99% | ||
| Profit Quality | 95.02% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 8.86 |
F-Score9
WACC10.03%
ROIC/WACC3.75
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)35.37%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%59.89%
EPS Next Y39.19%
EPS Next 2Y19.31%
EPS Next 3Y17.16%
EPS Next 5Y14.51%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%29.8%
Revenue Next Year23.35%
Revenue Next 2Y12.57%
Revenue Next 3Y11.38%
Revenue Next 5Y9.87%
EBIT growth 1Y31.44%
EBIT growth 3Y15.38%
EBIT growth 5Y22.46%
EBIT Next Year44.45%
EBIT Next 3Y17.19%
EBIT Next 5Y13.19%
FCF growth 1Y9.93%
FCF growth 3Y15.77%
FCF growth 5Y24.29%
OCF growth 1Y7.92%
OCF growth 3Y14.83%
OCF growth 5Y23.48%