KLA CORP (KLAC) Fundamental Analysis & Valuation
NASDAQ:KLAC • US4824801009
Current stock price
1737.28 USD
+10.02 (+0.58%)
At close:
1740.01 USD
+2.73 (+0.16%)
After Hours:
This KLAC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. KLAC Profitability Analysis
1.1 Basic Checks
- KLAC had positive earnings in the past year.
- KLAC had a positive operating cash flow in the past year.
- Each year in the past 5 years KLAC has been profitable.
- In the past 5 years KLAC always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 27.26%, KLAC belongs to the best of the industry, outperforming 98.26% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 83.39%, KLAC belongs to the top of the industry, outperforming 99.13% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 37.18%, KLAC belongs to the top of the industry, outperforming 98.26% of the companies in the same industry.
- KLAC had an Average Return On Invested Capital over the past 3 years of 34.16%. This is significantly above the industry average of 10.70%.
- The last Return On Invested Capital (37.18%) for KLAC is above the 3 year average (34.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.26% | ||
| ROE | 83.39% | ||
| ROIC | 37.18% |
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
- Looking at the Profit Margin, with a value of 35.76%, KLAC belongs to the top of the industry, outperforming 94.78% of the companies in the same industry.
- KLAC's Profit Margin has improved in the last couple of years.
- KLAC has a Operating Margin of 42.71%. This is amongst the best in the industry. KLAC outperforms 96.52% of its industry peers.
- KLAC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 61.91%, KLAC belongs to the top of the industry, outperforming 86.09% of the companies in the same industry.
- KLAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.71% | ||
| PM (TTM) | 35.76% | ||
| GM | 61.91% |
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. KLAC Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KLAC is creating value.
- The number of shares outstanding for KLAC has been reduced compared to 1 year ago.
- Compared to 5 years ago, KLAC has less shares outstanding
- Compared to 1 year ago, KLAC has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 14.67 indicates that KLAC is not in any danger for bankruptcy at the moment.
- KLAC's Altman-Z score of 14.67 is fine compared to the rest of the industry. KLAC outperforms 78.26% of its industry peers.
- KLAC has a debt to FCF ratio of 1.34. This is a very positive value and a sign of high solvency as it would only need 1.34 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.34, KLAC is doing good in the industry, outperforming 69.57% of the companies in the same industry.
- A Debt/Equity ratio of 1.08 is on the high side and indicates that KLAC has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.08, KLAC is doing worse than 87.83% of the companies in the same industry.
- Even though the debt/equity ratio score it not favorable for KLAC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 14.67 |
ROIC/WACC3.21
WACC11.57%
2.3 Liquidity
- KLAC has a Current Ratio of 2.83. This indicates that KLAC is financially healthy and has no problem in meeting its short term obligations.
- KLAC has a Current ratio of 2.83. This is comparable to the rest of the industry: KLAC outperforms 47.83% of its industry peers.
- A Quick Ratio of 2.00 indicates that KLAC has no problem at all paying its short term obligations.
- KLAC has a Quick ratio (2.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2 |
3. KLAC Growth Analysis
3.1 Past
- KLAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.43%, which is quite impressive.
- KLAC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.37% yearly.
- The Revenue has grown by 17.49% in the past year. This is quite good.
- KLAC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.93% yearly.
EPS 1Y (TTM)29.43%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%7.93%
Revenue 1Y (TTM)17.49%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%7.16%
3.2 Future
- Based on estimates for the next years, KLAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.23% on average per year.
- The Revenue is expected to grow by 12.55% on average over the next years. This is quite good.
EPS Next Y11.72%
EPS Next 2Y19.61%
EPS Next 3Y17.48%
EPS Next 5Y18.23%
Revenue Next Year11.08%
Revenue Next 2Y16.52%
Revenue Next 3Y14.67%
Revenue Next 5Y12.55%
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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. KLAC Valuation Analysis
4.1 Price/Earnings Ratio
- KLAC is valuated quite expensively with a Price/Earnings ratio of 49.01.
- 68.70% of the companies in the same industry are more expensive than KLAC, based on the Price/Earnings ratio.
- KLAC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.78.
- With a Price/Forward Earnings ratio of 36.44, KLAC can be considered very expensive at the moment.
- KLAC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 61.74% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.54. KLAC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.01 | ||
| Fwd PE | 36.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KLAC is valued a bit cheaper than the industry average as 67.83% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, KLAC is valued a bit cheaper than 68.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.02 | ||
| EV/EBITDA | 38.45 |
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 KLAC may justify a higher PE ratio.
- KLAC's earnings are expected to grow with 17.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.18
PEG (5Y)1.86
EPS Next 2Y19.61%
EPS Next 3Y17.48%
5. KLAC Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.53%, KLAC is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.52, KLAC pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.53, KLAC pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
- The dividend of KLAC is nicely growing with an annual growth rate of 15.33%!
- KLAC has been paying a dividend for at least 10 years, so it has a reliable track record.
- KLAC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.33%
Div Incr Years16
Div Non Decr Years20
5.3 Sustainability
- KLAC pays out 21.58% of its income as dividend. This is a sustainable payout ratio.
- KLAC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.58%
EPS Next 2Y19.61%
EPS Next 3Y17.48%
KLAC Fundamentals: All Metrics, Ratios and Statistics
1737.28
+10.02 (+0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-23 2026-04-23/amc
Inst Owners93.59%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change-2.85%
Market Cap227.72B
Revenue(TTM)12.74B
Net Income(TTM)4.56B
Analysts78.89
Price Target1700.54 (-2.11%)
Short Float %2.29%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP21.58%
Div Incr Years16
Div Non Decr Years20
Ex-Date02-17 2026-02-17 (1.9)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.55%
Min EPS beat(2)-1.45%
Max EPS beat(2)0.34%
EPS beat(4)3
Avg EPS beat(4)2.04%
Min EPS beat(4)-1.45%
Max EPS beat(4)7.44%
EPS beat(8)7
Avg EPS beat(8)2.75%
EPS beat(12)11
Avg EPS beat(12)3.2%
EPS beat(16)15
Avg EPS beat(16)3.72%
Revenue beat(2)0
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.51%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)0.98%
Revenue beat(8)4
Avg Revenue beat(8)0.4%
Revenue beat(12)6
Avg Revenue beat(12)0.37%
Revenue beat(16)10
Avg Revenue beat(16)0.83%
PT rev (1m)0%
PT rev (3m)26.61%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)0%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)3.27%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.01 | ||
| Fwd PE | 36.44 | ||
| P/S | 17.87 | ||
| P/FCF | 52.02 | ||
| P/OCF | 47.78 | ||
| P/B | 41.66 | ||
| P/tB | 68.44 | ||
| EV/EBITDA | 38.45 |
EPS(TTM)35.45
EY2.04%
EPS(NY)47.67
Fwd EY2.74%
FCF(TTM)33.39
FCFY1.92%
OCF(TTM)36.36
OCFY2.09%
SpS97.23
BVpS41.7
TBVpS25.38
PEG (NY)4.18
PEG (5Y)1.86
Graham Number182.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.26% | ||
| ROE | 83.39% | ||
| ROCE | 42.73% | ||
| ROIC | 37.18% | ||
| ROICexc | 62.9% | ||
| ROICexgc | 87.85% | ||
| OM | 42.71% | ||
| PM (TTM) | 35.76% | ||
| GM | 61.91% | ||
| FCFM | 34.35% |
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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1.34 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 99.57% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 19.74 | ||
| Cash Conversion | 81.7% | ||
| Profit Quality | 96.04% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 14.67 |
F-Score9
WACC11.57%
ROIC/WACC3.21
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)29.43%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%7.93%
EPS Next Y11.72%
EPS Next 2Y19.61%
EPS Next 3Y17.48%
EPS Next 5Y18.23%
Revenue 1Y (TTM)17.49%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%7.16%
Revenue Next Year11.08%
Revenue Next 2Y16.52%
Revenue Next 3Y14.67%
Revenue Next 5Y12.55%
EBIT growth 1Y25.71%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year18.27%
EBIT Next 3Y17.78%
EBIT Next 5Y15.61%
FCF growth 1Y38.2%
FCF growth 3Y7.58%
FCF growth 5Y18.14%
OCF growth 1Y37.12%
OCF growth 3Y7.21%
OCF growth 5Y18.07%
KLA CORP / KLAC Fundamental Analysis FAQ
What is the ChartMill fundamental rating of KLA CORP (KLAC) stock?
ChartMill assigns a fundamental rating of 7 / 10 to KLAC.
Can you provide the valuation status for KLA CORP?
ChartMill assigns a valuation rating of 4 / 10 to KLA CORP (KLAC). This can be considered as Fairly Valued.
What is the profitability of KLAC stock?
KLA CORP (KLAC) has a profitability rating of 9 / 10.
What is the expected EPS growth for KLA CORP (KLAC) stock?
The Earnings per Share (EPS) of KLA CORP (KLAC) is expected to grow by 11.72% in the next year.
Is the dividend of KLA CORP sustainable?
The dividend rating of KLA CORP (KLAC) is 6 / 10 and the dividend payout ratio is 21.58%.