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.

9

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.
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

  • 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 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

  • 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 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

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
  • Compared to 1 year ago, KLAC has an improved debt to assets ratio.
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 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 RankSector Rank
Debt/Equity 1.08
Debt/FCF 1.34
Altman-Z 14.67
ROIC/WACC3.21
WACC11.57%
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 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 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

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 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.
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

4

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 RankSector Rank
PE 49.01
Fwd PE 36.44
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

  • 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 RankSector Rank
P/FCF 52.02
EV/EBITDA 38.45
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 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%

6

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 RankSector 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
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.
  • 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 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

KLAC Fundamentals: All Metrics, Ratios and Statistics

KLA CORP

NASDAQ:KLAC (4/10/2026, 8:00:02 PM)

After market: 1740.01 +2.73 (+0.16%)

1737.28

+10.02 (+0.58%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29
Earnings (Next)04-23
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 RankSector 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
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 RankSector 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 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 14.67
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%.