KLA CORP (KLAC) Fundamental Analysis & Valuation

NASDAQ:KLAC • US4824801009

Current stock price

1498.67 USD
-12.85 (-0.85%)
At close:
1502.21 USD
+3.54 (+0.24%)
After Hours:

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.
  • 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.
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

  • KLAC's Return On Assets of 27.26% is amongst the best of the industry. KLAC outperforms 97.39% of its industry peers.
  • KLAC has a better Return On Equity (83.39%) than 99.13% of its industry peers.
  • The Return On Invested Capital of KLAC (37.18%) is better than 98.26% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for KLAC is significantly above the industry average of 10.52%.
  • 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

  • With an excellent Profit Margin value of 35.76%, KLAC belongs to the best of the industry, outperforming 93.91% of the companies in the same industry.
  • KLAC's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 42.71%, KLAC belongs to the top of the industry, outperforming 97.39% of the companies in the same industry.
  • In the last couple of years the Operating Margin of KLAC has grown nicely.
  • KLAC has a Gross Margin of 61.91%. This is amongst the best in the industry. KLAC outperforms 86.96% of its industry peers.
  • 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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8

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
  • The debt/assets ratio for KLAC has been reduced compared to a year ago.
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

  • An Altman-Z score of 13.16 indicates that KLAC is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 13.16, KLAC is in the better half of 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.
  • With a decent Debt to FCF ratio value of 1.34, KLAC is doing good in the industry, outperforming 70.43% 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 RankSector Rank
Debt/Equity 1.08
Debt/FCF 1.34
Altman-Z 13.16
ROIC/WACC3.27
WACC11.37%
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

  • A Current Ratio of 2.83 indicates that KLAC has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.83, KLAC is in line with its industry, outperforming 49.57% of the companies in the same industry.
  • 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 comparable to the rest of the industry.
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

  • The Earnings Per Share has grown by an impressive 29.43% over the past year.
  • 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.
  • 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.
  • 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

  • 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.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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 5B 10B 15B 20B
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 20 40 60

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4

4. KLAC Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 42.28, KLAC can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 69.57% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.23. KLAC is valued rather expensively when compared to this.
  • KLAC is valuated quite expensively with a Price/Forward Earnings ratio of 31.44.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of KLAC is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of KLAC to the average of the S&P500 Index (23.28), we can say KLAC is valued slightly more expensively.
Industry RankSector Rank
PE 42.28
Fwd PE 31.44
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 66.09% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, KLAC is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 44.88
EV/EBITDA 33.61
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 17.48% in the coming years.
PEG (NY)3.61
PEG (5Y)1.6
EPS Next 2Y19.61%
EPS Next 3Y17.48%

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6

5. KLAC Dividend Analysis

5.1 Amount

  • KLAC has a yearly dividend return of 0.54%, which is pretty low.
  • KLAC's Dividend Yield is a higher than the industry average which is at 0.49.
  • Compared to an average S&P500 Dividend Yield of 1.91, KLAC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.54%

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 Years15
Div Non Decr Years19
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

  • 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 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 (3/20/2026, 7:07:25 PM)

After market: 1502.21 +3.54 (+0.24%)

1498.67

-12.85 (-0.85%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners93.59%
Inst Owner Change1.58%
Ins Owners0.05%
Ins Owner Change-2.85%
Market Cap196.45B
Revenue(TTM)12.74B
Net Income(TTM)4.56B
Analysts77.84
Price Target1700.62 (13.48%)
Short Float %2.26%
Short Ratio2.57
Dividend
Industry RankSector Rank
Dividend Yield 0.54%
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP21.58%
Div Incr Years15
Div Non Decr Years19
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)1.89%
PT rev (3m)29.79%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)3.28%
EPS NY rev (1m)0.17%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)3.18%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)2.28%
Valuation
Industry RankSector Rank
PE 42.28
Fwd PE 31.44
P/S 15.41
P/FCF 44.88
P/OCF 41.22
P/B 35.94
P/tB 59.04
EV/EBITDA 33.61
EPS(TTM)35.45
EY2.37%
EPS(NY)47.67
Fwd EY3.18%
FCF(TTM)33.39
FCFY2.23%
OCF(TTM)36.36
OCFY2.43%
SpS97.23
BVpS41.7
TBVpS25.38
PEG (NY)3.61
PEG (5Y)1.6
Graham Number182.37
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 13.16
F-Score9
WACC11.37%
ROIC/WACC3.27
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 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.


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.