KLA CORP (KLAC) Fundamental Analysis & Valuation

NASDAQ:KLAC • US4824801009

Current stock price

1738.38 USD
-11.97 (-0.68%)
Last:

This KLAC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. KLAC Profitability Analysis

1.1 Basic Checks

  • In the past year KLAC was profitable.
  • In the past year KLAC had a positive cash flow from operations.
  • In the past 5 years KLAC has always been profitable.
  • In the past 5 years KLAC always reported a positive cash flow from operatings.
KLAC Yearly Net Income VS EBIT VS OCF VS FCFKLAC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

1.2 Ratios

  • The Return On Assets of KLAC (27.26%) is better than 98.26% 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 Return On Invested Capital of 37.18%. This is amongst the best in the industry. KLAC outperforms 97.39% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for KLAC is significantly above the industry average of 10.73%.
  • The 3 year average ROIC (34.16%) for KLAC is below the current ROIC(37.18%), indicating increased profibility in the last year.
Industry RankSector 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%
KLAC Yearly ROA, ROE, ROICKLAC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 100 150 200

1.3 Margins

  • KLAC has a better Profit Margin (35.76%) than 93.91% of its industry peers.
  • In the last couple of years the Profit Margin of KLAC has grown nicely.
  • KLAC has a better Operating Margin (42.71%) than 96.52% of its industry peers.
  • KLAC's Operating Margin has improved in the last couple of years.
  • 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 RankSector 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%
KLAC Yearly Profit, Operating, Gross MarginsKLAC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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7

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.
  • KLAC has less shares outstanding than it did 1 year ago.
  • KLAC has less shares outstanding than it did 5 years ago.
  • KLAC has a better debt/assets ratio than last year.
KLAC Yearly Shares OutstandingKLAC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
KLAC Yearly Total Debt VS Total AssetsKLAC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • KLAC has an Altman-Z score of 14.83. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 14.83, KLAC is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
  • The Debt to FCF ratio of KLAC is 1.34, which is an excellent value as it means it would take KLAC, only 1.34 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of KLAC (1.34) is better than 69.57% of its industry peers.
  • A Debt/Equity ratio of 1.08 is on the high side and indicates that KLAC has dependencies on debt financing.
  • KLAC has a Debt to Equity ratio of 1.08. This is amonst the worse of the industry: KLAC underperforms 89.57% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 1.08
Debt/FCF 1.34
Altman-Z 14.83
ROIC/WACC2.91
WACC12.8%
KLAC Yearly LT Debt VS Equity VS FCFKLAC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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 46.96% 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 of 2.00. This is in the lower half of the industry: KLAC underperforms 60.87% of its industry peers.
Industry RankSector Rank
Current Ratio 2.83
Quick Ratio 2
KLAC Yearly Current Assets VS Current LiabilitesKLAC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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7

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 19.32%, which is quite good.
  • KLAC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.37% yearly.
  • KLAC shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.89%.
  • 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)19.32%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%11.77%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%11.49%

3.2 Future

  • The Earnings Per Share is expected to grow by 19.02% on average over the next years. This is quite good.
  • Based on estimates for the next years, KLAC will show a quite strong growth in Revenue. The Revenue will grow by 14.85% on average per year.
EPS Next Y11.94%
EPS Next 2Y21.12%
EPS Next 3Y19.11%
EPS Next 5Y19.02%
Revenue Next Year11.04%
Revenue Next 2Y16.55%
Revenue Next 3Y14.59%
Revenue Next 5Y14.85%

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 stable.
KLAC Yearly Revenue VS EstimatesKLAC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5B 10B 15B 20B 25B
KLAC Yearly EPS VS EstimatesKLAC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 20 40 60 80

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4

4. KLAC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 47.71, which means the current valuation is very expensive for KLAC.
  • Based on the Price/Earnings ratio, KLAC is valued a bit cheaper than 73.91% of the companies in the same industry.
  • KLAC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.77.
  • KLAC is valuated quite expensively with a Price/Forward Earnings ratio of 35.57.
  • 67.83% of the companies in the same industry are more expensive than KLAC, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of KLAC to the average of the S&P500 Index (21.75), we can say KLAC is valued expensively.
Industry RankSector Rank
PE 47.71
Fwd PE 35.57
KLAC Price Earnings VS Forward Price EarningsKLAC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • KLAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 71.30% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 73.04% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 52.06
EV/EBITDA 38.97
KLAC Per share dataKLAC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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.
  • The excellent profitability rating of KLAC may justify a higher PE ratio.
  • A more expensive valuation may be justified as KLAC's earnings are expected to grow with 19.11% in the coming years.
PEG (NY)4
PEG (5Y)1.81
EPS Next 2Y21.12%
EPS Next 3Y19.11%

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6

5. KLAC Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.42%, KLAC is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.41, KLAC pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.42, KLAC pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.42%

5.2 History

  • On average, the dividend of KLAC grows each year by 15.33%, which is quite nice.
  • KLAC has paid a dividend for at least 10 years, which is a reliable track record.
  • KLAC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.33%
Div Incr Years16
Div Non Decr Years20
KLAC Yearly Dividends per shareKLAC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • KLAC pays out 21.58% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of KLAC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.58%
EPS Next 2Y21.12%
EPS Next 3Y19.11%
KLAC Yearly Income VS Free CF VS DividendKLAC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
KLAC Dividend Payout.KLAC Dividend Payout, showing the Payout Ratio.KLAC Dividend Payout.PayoutRetained Earnings

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KLAC Fundamentals: All Metrics, Ratios and Statistics

KLA CORP

NASDAQ:KLAC (5/1/2026, 10:22:10 AM)

1738.38

-11.97 (-0.68%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry Strength100
Industry Growth70.81
Earnings (Last)04-29
Earnings (Next)07-29
Inst Owners93.9%
Inst Owner Change0.62%
Ins Owners0.05%
Ins Owner Change-2.85%
Market Cap227.87B
Revenue(TTM)12.16B
Net Income(TTM)4.56B
Analysts78.89
Price Target1724.48 (-0.8%)
Short Float %2.55%
Short Ratio3.63
Dividend
Industry RankSector Rank
Dividend Yield 0.42%
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP21.58%
Div Incr Years16
Div Non Decr Years20
Ex-Date02-17
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)0.34%
PT rev (3m)22.13%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)0.2%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)2.81%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)2.11%
Valuation
Industry RankSector Rank
PE 47.71
Fwd PE 35.57
P/S 17.88
P/FCF 52.06
P/OCF 47.81
P/B 41.69
P/tB 68.49
EV/EBITDA 38.97
EPS(TTM)36.44
EY2.1%
EPS(NY)48.88
Fwd EY2.81%
FCF(TTM)33.39
FCFY1.92%
OCF(TTM)36.36
OCFY2.09%
SpS97.23
BVpS41.7
TBVpS25.38
PEG (NY)4
PEG (5Y)1.81
Graham Number184.9 (-89.36%)
Profitability
Industry RankSector 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 RankSector 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 14.83
F-Score9
WACC12.8%
ROIC/WACC2.91
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)19.32%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%11.77%
EPS Next Y11.94%
EPS Next 2Y21.12%
EPS Next 3Y19.11%
EPS Next 5Y19.02%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%11.49%
Revenue Next Year11.04%
Revenue Next 2Y16.55%
Revenue Next 3Y14.59%
Revenue Next 5Y14.85%
EBIT growth 1Y25.71%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year18.1%
EBIT Next 3Y19.03%
EBIT Next 5Y16.67%
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 11.94% 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%.