KLA CORP (KLAC) Stock Fundamental Analysis
USA - NASDAQ:KLAC - US4824801009 - Common Stock
1097.12 USD
-5.33 (-0.48%)
1097.12 USD
0 (0%)
KLAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC gets an excellent profitability rating and is at the same time showing great financial health properties. KLAC is growing strongly while it is still valued neutral. This is a good combination! These ratings would make KLAC suitable for growth and quality investing!
1. Profitability
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.
Each year in the past 5 years KLAC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KLAC (25.96%) is better than 96.43% of its industry peers.
KLAC's Return On Equity of 84.99% is amongst the best of the industry. KLAC outperforms 98.21% of its industry peers.
KLAC has a better Return On Invested Capital (38.07%) than 99.11% 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 10.86%.
The last Return On Invested Capital (38.07%) for KLAC is above the 3 year average (34.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.96% | ||
| ROE | 84.99% | ||
| ROIC | 38.07% |
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 (33.83%) than 94.64% of its industry peers.
In the last couple of years the Profit Margin of KLAC has grown nicely.
With an excellent Operating Margin value of 42.86%, KLAC belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
In the last couple of years the Operating Margin of KLAC has grown nicely.
KLAC has a better Gross Margin (61.99%) than 87.50% of its industry peers.
KLAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.86% | ||
| PM (TTM) | 33.83% | ||
| GM | 61.99% |
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. Health
2.1 Basic Checks
KLAC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for KLAC has been reduced compared to 1 year ago.
The number of shares outstanding for KLAC has been reduced compared to 5 years ago.
Compared to 1 year ago, KLAC has an improved debt to assets ratio.
2.2 Solvency
KLAC has an Altman-Z score of 10.26. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
KLAC's Altman-Z score of 10.26 is fine compared to the rest of the industry. KLAC outperforms 76.79% of its industry peers.
KLAC has a debt to FCF ratio of 1.52. This is a very positive value and a sign of high solvency as it would only need 1.52 years to pay back of all of its debts.
KLAC has a better Debt to FCF ratio (1.52) than 70.54% of its industry peers.
KLAC has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
KLAC has a worse Debt to Equity ratio (1.18) than 90.18% 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 | 1.18 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 10.26 |
ROIC/WACC3.57
WACC10.66%
2.3 Liquidity
A Current Ratio of 2.69 indicates that KLAC has no problem at all paying its short term obligations.
KLAC's Current ratio of 2.69 is in line compared to the rest of the industry. KLAC outperforms 47.32% of its industry peers.
KLAC has a Quick Ratio of 1.88. This is a normal value and indicates that KLAC is financially healthy and should not expect problems in meeting its short term obligations.
KLAC has a Quick ratio (1.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
KLAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.28%, 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
KLAC shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.11%.
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)37.28%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%20.19%
Revenue 1Y (TTM)22.11%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%12.96%
3.2 Future
The Earnings Per Share is expected to grow by 12.51% on average over the next years. This is quite good.
KLAC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.43% yearly.
EPS Next Y9.08%
EPS Next 2Y12.56%
EPS Next 3Y11.91%
EPS Next 5Y12.51%
Revenue Next Year8.11%
Revenue Next 2Y9.54%
Revenue Next 3Y8.96%
Revenue Next 5Y8.43%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.53, the valuation of KLAC can be described as expensive.
KLAC's Price/Earnings ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.07. KLAC is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 25.99, which means the current valuation is very expensive for KLAC.
KLAC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 61.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KLAC to the average of the S&P500 Index (34.08), we can say KLAC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.53 | ||
| Fwd PE | 25.99 |
4.2 Price Multiples
65.18% of the companies in the same industry are more expensive than KLAC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KLAC is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.31 | ||
| EV/EBITDA | 24.92 |
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.
PEG (NY)3.47
PEG (5Y)1.2
EPS Next 2Y12.56%
EPS Next 3Y11.91%
5. Dividend
5.1 Amount
KLAC has a yearly dividend return of 0.65%, which is pretty low.
KLAC's Dividend Yield is a higher than the industry average which is at 2.21.
With a Dividend Yield of 0.65, KLAC pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 Years15
Div Non Decr Years19
5.3 Sustainability
22.67% of the earnings are spent on dividend by KLAC. This is a low number and sustainable payout ratio.
The dividend of KLAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.67%
EPS Next 2Y12.56%
EPS Next 3Y11.91%
1097.12
-5.33 (-0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.51%
Inst Owner Change1.46%
Ins Owners0.06%
Ins Owner Change-1.8%
Market Cap144.47B
Revenue(TTM)12.52B
Net Income(TTM)4.24B
Analysts73.71
Price Target1074.37 (-2.07%)
Short Float %2.41%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP22.67%
Div Incr Years15
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.89%
Min EPS beat(2)0.34%
Max EPS beat(2)7.44%
EPS beat(4)4
Avg EPS beat(4)3.33%
Min EPS beat(4)0.34%
Max EPS beat(4)7.44%
EPS beat(8)8
Avg EPS beat(8)3.19%
EPS beat(12)12
Avg EPS beat(12)3.48%
EPS beat(16)16
Avg EPS beat(16)3.85%
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)0.98%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)2.66%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)7
Avg Revenue beat(12)0.73%
Revenue beat(16)10
Avg Revenue beat(16)0.79%
PT rev (1m)13.37%
PT rev (3m)15.46%
EPS NQ rev (1m)3.18%
EPS NQ rev (3m)3.77%
EPS NY rev (1m)1.82%
EPS NY rev (3m)7.12%
Revenue NQ rev (1m)2%
Revenue NQ rev (3m)2.76%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)5.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.53 | ||
| Fwd PE | 25.99 | ||
| P/S | 11.54 | ||
| P/FCF | 37.31 | ||
| P/OCF | 34.01 | ||
| P/B | 28.98 | ||
| P/tB | 51.66 | ||
| EV/EBITDA | 24.92 |
EPS(TTM)34.8
EY3.17%
EPS(NY)42.22
Fwd EY3.85%
FCF(TTM)29.41
FCFY2.68%
OCF(TTM)32.26
OCFY2.94%
SpS95.11
BVpS37.86
TBVpS21.24
PEG (NY)3.47
PEG (5Y)1.2
Graham Number172.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.96% | ||
| ROE | 84.99% | ||
| ROCE | 43.75% | ||
| ROIC | 38.07% | ||
| ROICexc | 61.58% | ||
| ROICexgc | 86.56% | ||
| OM | 42.86% | ||
| PM (TTM) | 33.83% | ||
| GM | 61.99% | ||
| FCFM | 30.92% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 95.05% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 18.31 | ||
| Cash Conversion | 73.72% | ||
| Profit Quality | 91.4% | ||
| Current Ratio | 2.69 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 10.26 |
F-Score9
WACC10.66%
ROIC/WACC3.57
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)37.28%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%20.19%
EPS Next Y9.08%
EPS Next 2Y12.56%
EPS Next 3Y11.91%
EPS Next 5Y12.51%
Revenue 1Y (TTM)22.11%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%12.96%
Revenue Next Year8.11%
Revenue Next 2Y9.54%
Revenue Next 3Y8.96%
Revenue Next 5Y8.43%
EBIT growth 1Y32.78%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year12.95%
EBIT Next 3Y12.49%
EBIT Next 5Y11.22%
FCF growth 1Y20.39%
FCF growth 3Y7.58%
FCF growth 5Y18.14%
OCF growth 1Y19.94%
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.
What is the valuation status for KLAC stock?
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.
How financially healthy is KLA CORP?
The financial health rating of KLA CORP (KLAC) is 7 / 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 9.08% in the next year.