KLA CORP (KLAC) Fundamental Analysis & Valuation
NASDAQ:KLAC • US4824801009
1421.1 USD
-8 (-0.56%)
Last: Mar 10, 2026, 12:16 PM
This KLAC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
KLAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 115 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KLAC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make KLAC a good candidate for growth and quality investing.
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.
- In the past 5 years KLAC has always been profitable.
- KLAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- KLAC's Return On Assets of 27.26% is amongst the best of the industry. KLAC outperforms 97.39% of its industry peers.
- With an excellent Return On Equity value of 83.39%, KLAC belongs to the best of the industry, outperforming 99.13% of the companies in the same industry.
- KLAC has a better Return On Invested Capital (37.18%) than 98.26% of its industry peers.
- KLAC had an Average Return On Invested Capital over the past 3 years of 34.16%. This is significantly above the industry average of 10.52%.
- 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
- KLAC has a better Profit Margin (35.76%) than 93.91% of its industry peers.
- 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 97.39% of its industry peers.
- In the last couple of years the Operating Margin of KLAC has grown nicely.
- With an excellent Gross Margin value of 61.91%, KLAC belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- In the last couple of years the Gross Margin of KLAC has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KLAC is creating value.
- KLAC has less shares outstanding than it did 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
- KLAC has an Altman-Z score of 12.59. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 12.59, KLAC is doing good in the industry, outperforming 75.65% of the companies in the same industry.
- 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.
- KLAC's Debt to FCF ratio of 1.34 is fine compared to the rest of the industry. KLAC outperforms 70.43% of its industry peers.
- KLAC has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.08, KLAC is not doing good in the industry: 87.83% of the companies in the same industry are doing better.
- Although KLAC's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 1.08 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 12.59 |
ROIC/WACC3.28
WACC11.33%
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.
- The Current ratio of KLAC (2.83) is comparable to the rest of the industry.
- A Quick Ratio of 2.00 indicates that KLAC has no problem at all paying its short term obligations.
- The Quick ratio of KLAC (2.00) is comparable to the rest of the industry.
| 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.
- Measured over the past years, KLAC shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.37% on average per year.
- The Revenue has grown by 17.49% in the past year. This is quite good.
- Measured over the past years, KLAC shows a quite strong growth in Revenue. The Revenue has been growing by 15.93% on average per year.
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
- KLAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.23% yearly.
- Based on estimates for the next years, KLAC will show a quite strong growth in Revenue. The Revenue will grow by 12.55% on average per year.
EPS Next Y11.72%
EPS Next 2Y19.61%
EPS Next 3Y17.48%
EPS Next 5Y18.23%
Revenue Next Year10.91%
Revenue Next 2Y15.33%
Revenue Next 3Y13.43%
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 40.09.
- 71.30% of the companies in the same industry are more expensive than KLAC, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of KLAC to the average of the S&P500 Index (26.45), we can say KLAC is valued expensively.
- A Price/Forward Earnings ratio of 29.81 indicates a quite expensive valuation of KLAC.
- Based on the Price/Forward Earnings ratio, KLAC is valued a bit cheaper than the industry average as 61.74% of the companies are valued more expensively.
- KLAC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.09 | ||
| Fwd PE | 29.81 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 66.96% of the companies listed in the same industry.
- KLAC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 74.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.55 | ||
| EV/EBITDA | 31.75 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KLAC does not grow enough to justify the current Price/Earnings ratio.
- KLAC has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as KLAC's earnings are expected to grow with 17.48% in the coming years.
PEG (NY)3.42
PEG (5Y)1.52
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 0.49, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
- On average, the dividend of KLAC grows each year by 15.33%, which is quite nice.
- 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 Years15
Div Non Decr Years19
5.3 Sustainability
- 21.58% of the earnings are spent on dividend by KLAC. This is a low number and sustainable payout ratio.
- The dividend of KLAC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP21.58%
EPS Next 2Y19.61%
EPS Next 3Y17.48%
KLAC Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:KLAC (3/10/2026, 12:16:00 PM)
1421.1
-8 (-0.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners93.59%
Inst Owner Change1.58%
Ins Owners0.05%
Ins Owner Change-2.85%
Market Cap186.28B
Revenue(TTM)12.74B
Net Income(TTM)4.56B
Analysts77.84
Price Target1700.62 (19.67%)
Short Float %2.22%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP21.58%
Div Incr Years15
Div Non Decr Years19
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)1.89%
PT rev (3m)29.79%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)3.14%
EPS NY rev (1m)0.17%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)3.06%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.09 | ||
| Fwd PE | 29.81 | ||
| P/S | 14.62 | ||
| P/FCF | 42.55 | ||
| P/OCF | 39.08 | ||
| P/B | 34.08 | ||
| P/tB | 55.99 | ||
| EV/EBITDA | 31.75 |
EPS(TTM)35.45
EY2.49%
EPS(NY)47.67
Fwd EY3.35%
FCF(TTM)33.39
FCFY2.35%
OCF(TTM)36.36
OCFY2.56%
SpS97.23
BVpS41.7
TBVpS25.38
PEG (NY)3.42
PEG (5Y)1.52
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 | 12.59 |
F-Score9
WACC11.33%
ROIC/WACC3.28
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 Year10.91%
Revenue Next 2Y15.33%
Revenue Next 3Y13.43%
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 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.
Can you provide the profitability details for KLA CORP?
KLA CORP (KLAC) has a profitability rating of 9 / 10.
What is the financial health of KLA CORP (KLAC) stock?
The financial health rating of KLA CORP (KLAC) is 8 / 10.
Can you provide the expected EPS growth for KLAC stock?
The Earnings per Share (EPS) of KLA CORP (KLAC) is expected to grow by 11.72% in the next year.