KLA CORP (KLAC)
US4824801009 - Common Stock
We assign a fundamental rating of 7 out of 10 to KLAC. KLAC was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC scores excellent on profitability, but there are some minor concerns on its financial health. KLAC has a correct valuation and a medium growth rate. KLAC also has an excellent dividend rating. With these ratings, KLAC could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
KLAC had positive earnings in the past year.
In the past year KLAC had a positive cash flow from operations.
KLAC had positive earnings in each of the past 5 years.
Each year in the past 5 years KLAC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 18.92%, KLAC belongs to the best of the industry, outperforming 93.52% of the companies in the same industry.
KLAC's Return On Equity of 83.33% is amongst the best of the industry. KLAC outperforms 99.07% of its industry peers.
KLAC has a Return On Invested Capital of 32.68%. This is amongst the best in the industry. KLAC outperforms 99.07% of its industry peers.
KLAC had an Average Return On Invested Capital over the past 3 years of 33.80%. This is significantly above the industry average of 11.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 83.33% | ||
| ROIC | 32.68% |
ROA(3y)22.78%
ROA(5y)20.34%
ROE(3y)145.04%
ROE(5y)108.46%
ROIC(3y)33.8%
ROIC(5y)29.72%
1.3 Margins
Looking at the Profit Margin, with a value of 28.92%, KLAC belongs to the top of the industry, outperforming 90.74% of the companies in the same industry.
In the last couple of years the Profit Margin of KLAC has grown nicely.
Looking at the Operating Margin, with a value of 39.41%, KLAC belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
In the last couple of years the Operating Margin of KLAC has grown nicely.
KLAC's Gross Margin of 61.56% is amongst the best of the industry. KLAC outperforms 87.04% of its industry peers.
KLAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.41% | ||
| PM (TTM) | 28.92% | ||
| GM | 61.56% |
OM growth 3Y2.69%
OM growth 5Y5.1%
PM growth 3Y-2.14%
PM growth 5Y1.81%
GM growth 3Y1.07%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KLAC is creating value.
Compared to 1 year ago, KLAC has less shares outstanding
The number of shares outstanding for KLAC has been reduced compared to 5 years ago.
Compared to 1 year ago, KLAC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.21 indicates that KLAC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.21, KLAC is doing good in the industry, outperforming 65.74% of the companies in the same industry.
The Debt to FCF ratio of KLAC is 2.10, which is a good value as it means it would take KLAC, 2.10 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.10, KLAC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 1.65 is on the high side and indicates that KLAC has dependencies on debt financing.
KLAC has a Debt to Equity ratio of 1.65. This is amonst the worse of the industry: KLAC underperforms 89.81% 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 | 1.65 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 6.21 |
ROIC/WACC2.13
WACC15.32%
2.3 Liquidity
A Current Ratio of 2.13 indicates that KLAC has no problem at all paying its short term obligations.
KLAC's Current ratio of 2.13 is on the low side compared to the rest of the industry. KLAC is outperformed by 69.44% of its industry peers.
KLAC has a Quick Ratio of 1.48. This is a normal value and indicates that KLAC is financially healthy and should not expect problems in meeting its short term obligations.
KLAC's Quick ratio of 1.48 is on the low side compared to the rest of the industry. KLAC is outperformed by 67.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
KLAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.58%.
The Earnings Per Share has been growing by 22.88% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 0.87% in the past year.
KLAC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.52% yearly.
EPS 1Y (TTM)5.58%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%27.7%
Revenue 1Y (TTM)0.87%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%18.55%
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 13.95% on average per year.
KLAC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.68% yearly.
EPS Next Y30.93%
EPS Next 2Y18.76%
EPS Next 3Y17.23%
EPS Next 5Y13.95%
Revenue Next Year19.3%
Revenue Next 2Y13.26%
Revenue Next 3Y11.32%
Revenue Next 5Y9.68%
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
The Price/Earnings ratio is 24.83, which indicates a rather expensive current valuation of KLAC.
Based on the Price/Earnings ratio, KLAC is valued a bit cheaper than 72.22% of the companies in the same industry.
When comparing the Price/Earnings ratio of KLAC to the average of the S&P500 Index (27.73), we can say KLAC is valued inline with the index average.
A Price/Forward Earnings ratio of 18.78 indicates a rather expensive valuation of KLAC.
79.63% of the companies in the same industry are more expensive than KLAC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, KLAC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.83 | ||
| Fwd PE | 18.78 |
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.
Based on the Price/Free Cash Flow ratio, KLAC is valued cheaper than 81.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.72 | ||
| EV/EBITDA | 18.82 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of KLAC may justify a higher PE ratio.
KLAC's earnings are expected to grow with 17.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)1.08
EPS Next 2Y18.76%
EPS Next 3Y17.23%
5. Dividend
5.1 Amount
KLAC has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
KLAC's Dividend Yield is rather good when compared to the industry average which is at 2.31. KLAC pays more dividend than 80.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, KLAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of KLAC is nicely growing with an annual growth rate of 13.33%!
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)13.33%
Div Incr Years15
Div Non Decr Years19
5.3 Sustainability
26.62% 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.
DP26.62%
EPS Next 2Y18.76%
EPS Next 3Y17.23%
KLA CORP
NASDAQ:KLAC (12/20/2024, 8:21:17 PM)
After market: 628.348 -1.02 (-0.16%)629.37
+7.19 (+1.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.53%
Inst Owner Change1.81%
Ins Owners0.12%
Ins Owner Change1.38%
Market Cap84.18B
Analysts78.82
Price Target822.37 (30.67%)
Short Float %2.23%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Dividend Growth(5Y)13.33%
DP26.62%
Div Incr Years15
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.61%
Min EPS beat(2)1.95%
Max EPS beat(2)5.27%
EPS beat(4)4
Avg EPS beat(4)3.05%
Min EPS beat(4)1.95%
Max EPS beat(4)5.27%
EPS beat(8)8
Avg EPS beat(8)3.55%
EPS beat(12)12
Avg EPS beat(12)4.02%
EPS beat(16)15
Avg EPS beat(16)3.85%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.05%
Max Revenue beat(2)1.01%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)1.01%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)8
Avg Revenue beat(12)0.83%
Revenue beat(16)11
Avg Revenue beat(16)0.81%
PT rev (1m)-3.41%
PT rev (3m)-7.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.19%
EPS NY rev (1m)-0.56%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.86%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.83 | ||
| Fwd PE | 18.78 | ||
| P/S | 8.21 | ||
| P/FCF | 26.72 | ||
| P/OCF | 24.61 | ||
| P/B | 23.65 | ||
| P/tB | 90.33 | ||
| EV/EBITDA | 18.82 |
EPS(TTM)25.35
EY4.03%
EPS(NY)33.51
Fwd EY5.32%
FCF(TTM)23.55
FCFY3.74%
OCF(TTM)25.57
OCFY4.06%
SpS76.68
BVpS26.61
TBVpS6.97
PEG (NY)0.8
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 83.33% | ||
| ROCE | 37.14% | ||
| ROIC | 32.68% | ||
| ROICexc | 56.87% | ||
| ROICexgc | 98.09% | ||
| OM | 39.41% | ||
| PM (TTM) | 28.92% | ||
| GM | 61.56% | ||
| FCFM | 30.71% |
ROA(3y)22.78%
ROA(5y)20.34%
ROE(3y)145.04%
ROE(5y)108.46%
ROIC(3y)33.8%
ROIC(5y)29.72%
ROICexc(3y)51.15%
ROICexc(5y)43.94%
ROICexgc(3y)94.92%
ROICexgc(5y)88.94%
ROCE(3y)38.41%
ROCE(5y)33.78%
ROICexcg growth 3Y2%
ROICexcg growth 5Y5.85%
ROICexc growth 3Y11.6%
ROICexc growth 5Y19.31%
OM growth 3Y2.69%
OM growth 5Y5.1%
PM growth 3Y-2.14%
PM growth 5Y1.81%
GM growth 3Y1.07%
GM growth 5Y0.93%
F-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 68.27% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 13.73 | ||
| Cash Conversion | 77.07% | ||
| Profit Quality | 106.2% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 6.21 |
F-Score6
WACC15.32%
ROIC/WACC2.13
Cap/Depr(3y)78.64%
Cap/Depr(5y)69.86%
Cap/Sales(3y)3.14%
Cap/Sales(5y)3.08%
Profit Quality(3y)99.49%
Profit Quality(5y)105.22%
High Growth Momentum
Growth
EPS 1Y (TTM)5.58%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%27.7%
EPS Next Y30.93%
EPS Next 2Y18.76%
EPS Next 3Y17.23%
EPS Next 5Y13.95%
Revenue 1Y (TTM)0.87%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%18.55%
Revenue Next Year19.3%
Revenue Next 2Y13.26%
Revenue Next 3Y11.32%
Revenue Next 5Y9.68%
EBIT growth 1Y1.95%
EBIT growth 3Y15.38%
EBIT growth 5Y22.46%
EBIT Next Year37.13%
EBIT Next 3Y17.92%
EBIT Next 5Y12.95%
FCF growth 1Y0.4%
FCF growth 3Y15.77%
FCF growth 5Y24.29%
OCF growth 1Y-1.16%
OCF growth 3Y14.83%
OCF growth 5Y23.48%