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
- In the past year KLAC was profitable.
- 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.
- The Return On Equity of KLAC (83.39%) is better than 99.13% of its industry peers.
- KLAC has a better Return On Invested Capital (37.18%) than 98.26% 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 10.70%.
- The 3 year average ROIC (34.16%) for KLAC is below the current ROIC(37.18%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 35.76%, KLAC belongs to the best of the industry, outperforming 94.78% of the companies in the same industry.
- In the last couple of years the Profit Margin of KLAC has grown nicely.
- KLAC has a Operating Margin of 42.71%. This is amongst the best in the industry. KLAC outperforms 96.52% of its industry peers.
- 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 86.09% 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 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
- KLAC has a better debt/assets ratio than last year.
2.2 Solvency
- KLAC has an Altman-Z score of 14.67. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
- KLAC has a better Altman-Z score (14.67) than 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.
- KLAC has a Debt to Equity ratio of 1.08. This is amonst the worse of the industry: KLAC underperforms 87.83% of its industry peers.
- 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/WACC3.2
WACC11.62%
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's Quick ratio of 2.00 is in line compared to the rest of the industry. KLAC outperforms 41.74% of 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.
- The Earnings Per Share has been growing by 26.37% on average over the past years. This is a very strong growth
- Looking at the last year, KLAC shows a quite strong growth in Revenue. The Revenue has grown by 17.49% in the last year.
- 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
- 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.
- 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.
4. KLAC Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 49.01, which means the current valuation is very expensive for KLAC.
- KLAC's Price/Earnings ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 68.70% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.78. KLAC is valued rather expensively when compared to this.
- KLAC is valuated quite expensively with a Price/Forward Earnings ratio of 36.44.
- Based on the Price/Forward Earnings ratio, KLAC is valued a bit cheaper than 61.74% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of KLAC to the average of the S&P500 Index (23.54), we can say KLAC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.01 | ||
| Fwd PE | 36.44 |
4.2 Price Multiples
- KLAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 67.83% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, KLAC is valued a bit cheaper than the industry average as 68.70% of the companies are valued more expensively.
| 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 KLAC does not grow enough to justify the current Price/Earnings ratio.
- 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
- KLAC has a yearly dividend return of 0.44%, which is pretty low.
- KLAC's Dividend Yield is a higher than the industry average which is at 0.52.
- With a Dividend Yield of 0.44, KLAC pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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 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
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
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 Owners93.9%
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 Target1706.43 (-1.78%)
Short Float %2.29%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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
WACC11.62%
ROIC/WACC3.2
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%.