KLA CORP (KLAC) Fundamental Analysis & Valuation

NASDAQ:KLAC • US4824801009

Current stock price

1726.26 USD
-24.09 (-1.38%)
At close:
1725.75 USD
-0.51 (-0.03%)
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.
  • In the past year KLAC had a positive cash flow from operations.
  • In the past 5 years KLAC has always 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 98.26% of its industry peers.
  • KLAC has a better Return On Equity (83.39%) than 99.13% of its industry peers.
  • KLAC has a better Return On Invested Capital (37.18%) than 97.39% 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 10.73%.
  • 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

  • The Profit Margin of KLAC (35.76%) is better than 93.91% of its industry peers.
  • KLAC's Profit Margin has improved in the last couple of years.
  • The Operating Margin of KLAC (42.71%) is better than 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 86.96% of its industry peers.
  • 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

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7

2. KLAC Health Analysis

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.
  • 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 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

  • KLAC has an Altman-Z score of 14.66. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
  • KLAC has a Altman-Z score of 14.66. This is in the better half of the industry: KLAC outperforms 76.52% of its industry peers.
  • The Debt to FCF ratio of KLAC is 1.34, which is an excellent value as it means it would take KLAC, only 1.34 years of fcf income to pay off 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.
  • KLAC has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.08, KLAC is doing worse than 89.57% of the companies in the same industry.
  • Although KLAC's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 1.08
Debt/FCF 1.34
Altman-Z 14.66
ROIC/WACC2.89
WACC12.88%
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 (2.83) which is comparable to the rest of the industry.
  • KLAC has a Quick Ratio of 2.00. This indicates that KLAC is financially healthy and has no problem in meeting its short term obligations.
  • KLAC has a worse Quick ratio (2.00) than 60.87% of 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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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 19.32%, which is quite good.
  • 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 23.89%.
  • The Revenue has been growing by 15.93% on average over the past years. This is quite good.
EPS 1Y (TTM)19.32%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%11.77%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%11.49%

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 19.02% on average per year.
  • KLAC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.85% yearly.
EPS Next Y11.94%
EPS Next 2Y21.12%
EPS Next 3Y19.11%
EPS Next 5Y19.02%
Revenue Next Year11.04%
Revenue Next 2Y16.55%
Revenue Next 3Y14.59%
Revenue Next 5Y14.85%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 2031 5B 10B 15B 20B 25B
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 2031 20 40 60 80

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4

4. KLAC Valuation Analysis

4.1 Price/Earnings Ratio

  • KLAC is valuated quite expensively with a Price/Earnings ratio of 47.37.
  • Based on the Price/Earnings ratio, KLAC is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 26.64. KLAC is valued rather expensively when compared to this.
  • Based on the Price/Forward Earnings ratio of 35.32, the valuation of KLAC can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 67.83% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, KLAC is valued quite expensively.
Industry RankSector Rank
PE 47.37
Fwd PE 35.32
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 71.30% of the companies are valued more expensively.
  • KLAC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 73.04% of the companies in the same industry.
Industry RankSector Rank
P/FCF 51.69
EV/EBITDA 38.43
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.
  • KLAC has an outstanding profitability rating, which may justify a higher PE ratio.
  • KLAC's earnings are expected to grow with 19.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.97
PEG (5Y)1.8
EPS Next 2Y21.12%
EPS Next 3Y19.11%

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6

5. KLAC Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.43%, KLAC is not a good candidate for dividend investing.
  • KLAC's Dividend Yield is a higher than the industry average which is at 0.46.
  • With a Dividend Yield of 0.43, KLAC pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.43%

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 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 more than its dividend. This makes the dividend growth sustainable.
DP21.58%
EPS Next 2Y21.12%
EPS Next 3Y19.11%
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 (5/1/2026, 9:44:50 PM)

After market: 1725.75 -0.51 (-0.03%)

1726.26

-24.09 (-1.38%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry Strength100
Industry Growth73.29
Earnings (Last)04-29
Earnings (Next)07-29
Inst Owners93.9%
Inst Owner Change0.62%
Ins Owners0.05%
Ins Owner Change-2.85%
Market Cap226.28B
Revenue(TTM)12.16B
Net Income(TTM)4.56B
Analysts78.89
Price Target1724.48 (-0.1%)
Short Float %2.55%
Short Ratio3.63
Dividend
Industry RankSector Rank
Dividend Yield 0.43%
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)1.41%
PT rev (3m)23.42%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)0.2%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)2.81%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)2.11%
Valuation
Industry RankSector Rank
PE 47.37
Fwd PE 35.32
P/S 17.75
P/FCF 51.69
P/OCF 47.47
P/B 41.4
P/tB 68.01
EV/EBITDA 38.43
EPS(TTM)36.44
EY2.11%
EPS(NY)48.88
Fwd EY2.83%
FCF(TTM)33.39
FCFY1.93%
OCF(TTM)36.36
OCFY2.11%
SpS97.23
BVpS41.7
TBVpS25.38
PEG (NY)3.97
PEG (5Y)1.8
Graham Number184.9 (-89.29%)
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 14.66
F-Score9
WACC12.88%
ROIC/WACC2.89
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)19.32%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%11.77%
EPS Next Y11.94%
EPS Next 2Y21.12%
EPS Next 3Y19.11%
EPS Next 5Y19.02%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%11.49%
Revenue Next Year11.04%
Revenue Next 2Y16.55%
Revenue Next 3Y14.59%
Revenue Next 5Y14.85%
EBIT growth 1Y25.71%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year18.1%
EBIT Next 3Y19.03%
EBIT Next 5Y16.67%
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 11.94% 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%.