KLA CORP (KLAC) Stock Fundamental Analysis
USA - NASDAQ:KLAC - US4824801009 - Common Stock
1205.42 USD
-8.99 (-0.74%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KLAC is growing strongly while it is still valued neutral. This is a good combination! This makes KLAC very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
KLAC had positive earnings in the past year.
KLAC had a positive operating cash flow in the past year.
KLAC had positive earnings in each of the past 5 years.
KLAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KLAC (25.28%) is better than 96.43% of its industry peers.
KLAC has a better Return On Equity (86.56%) than 98.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 37.37%, KLAC belongs to the top of the industry, outperforming 98.21% 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 11.03%.
The last Return On Invested Capital (37.37%) for KLAC is above the 3 year average (34.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.28% | ||
| ROE | 86.56% | ||
| ROIC | 37.37% |
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 Profit Margin of 33.41%. This is amongst the best in the industry. KLAC outperforms 93.75% of its industry peers.
In the last couple of years the Profit Margin of KLAC has grown nicely.
KLAC has a Operating Margin of 42.33%. This is amongst the best in the industry. KLAC outperforms 97.32% 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 61.99%, KLAC belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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 | 42.33% | ||
| PM (TTM) | 33.41% | ||
| 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.
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.
KLAC has a better debt/assets ratio than last year.
2.2 Solvency
KLAC has an Altman-Z score of 10.93. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
KLAC has a better Altman-Z score (10.93) than 73.21% of its industry peers.
The Debt to FCF ratio of KLAC is 1.57, which is an excellent value as it means it would take KLAC, only 1.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.57, KLAC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 1.25 is on the high side and indicates that KLAC has dependencies on debt financing.
KLAC's Debt to Equity ratio of 1.25 is on the low side compared to the rest of the industry. KLAC is outperformed by 89.29% 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 | 1.25 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 10.93 |
ROIC/WACC3.19
WACC11.7%
2.3 Liquidity
KLAC has a Current Ratio of 2.62. This indicates that KLAC is financially healthy and has no problem in meeting its short term obligations.
KLAC has a Current ratio of 2.62. This is comparable to the rest of the industry: KLAC outperforms 46.43% of its industry peers.
KLAC has a Quick Ratio of 1.83. This is a normal value and indicates that KLAC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KLAC (1.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 |
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.
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 23.89% in the past year. This is a very strong growth!
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)37.28%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%20.19%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%12.96%
3.2 Future
The Earnings Per Share is expected to grow by 11.29% 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 8.04% yearly.
EPS Next Y8.65%
EPS Next 2Y10.5%
EPS Next 3Y11.12%
EPS Next 5Y11.29%
Revenue Next Year7.23%
Revenue Next 2Y7.86%
Revenue Next 3Y8.47%
Revenue Next 5Y8.04%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.64 indicates a quite expensive valuation of KLAC.
Based on the Price/Earnings ratio, KLAC is valued a bit cheaper than the industry average as 69.64% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.19, KLAC is valued a bit more expensive.
KLAC is valuated quite expensively with a Price/Forward Earnings ratio of 29.63.
KLAC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 63.39% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, KLAC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.64 | ||
| Fwd PE | 29.63 |
4.2 Price Multiples
KLAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 66.07% of the companies in the same industry.
73.21% of the companies in the same industry are more expensive than KLAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.42 | ||
| EV/EBITDA | 28.68 |
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.
PEG (NY)4.01
PEG (5Y)1.31
EPS Next 2Y10.5%
EPS Next 3Y11.12%
5. Dividend
5.1 Amount
KLAC has a yearly dividend return of 0.62%, which is pretty low.
KLAC's Dividend Yield is a higher than the industry average which is at 2.18.
Compared to an average S&P500 Dividend Yield of 2.33, KLAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 Years15
Div Non Decr Years19
5.3 Sustainability
KLAC pays out 22.27% of its income as dividend. This is a sustainable payout ratio.
The dividend of KLAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.27%
EPS Next 2Y10.5%
EPS Next 3Y11.12%
NASDAQ:KLAC (10/31/2025, 1:13:40 PM)
1205.42
-8.99 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.51%
Inst Owner Change0.11%
Ins Owners0.06%
Ins Owner Change-1.38%
Market Cap158.73B
Revenue(TTM)12.16B
Net Income(TTM)4.06B
Analysts75.15
Price Target1074.37 (-10.87%)
Short Float %2.24%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP22.27%
Div Incr Years15
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.63%
Min EPS beat(2)1.83%
Max EPS beat(2)7.44%
EPS beat(4)4
Avg EPS beat(4)3.73%
Min EPS beat(4)1.83%
Max EPS beat(4)7.44%
EPS beat(8)8
Avg EPS beat(8)3.66%
EPS beat(12)12
Avg EPS beat(12)4.41%
EPS beat(16)16
Avg EPS beat(16)3.87%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)0.98%
Revenue beat(4)3
Avg Revenue beat(4)1.09%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)2.66%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)0.83%
PT rev (1m)1.45%
PT rev (3m)10.11%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)5.65%
EPS NY rev (1m)1.41%
EPS NY rev (3m)6.69%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)3.99%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)4.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.64 | ||
| Fwd PE | 29.63 | ||
| P/S | 13.06 | ||
| P/FCF | 42.42 | ||
| P/OCF | 38.89 | ||
| P/B | 33.83 | ||
| P/tB | 64.64 | ||
| EV/EBITDA | 28.68 |
EPS(TTM)34.8
EY2.89%
EPS(NY)40.68
Fwd EY3.38%
FCF(TTM)28.42
FCFY2.36%
OCF(TTM)31
OCFY2.57%
SpS92.32
BVpS35.64
TBVpS18.65
PEG (NY)4.01
PEG (5Y)1.31
Graham Number167.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.28% | ||
| ROE | 86.56% | ||
| ROCE | 42.95% | ||
| ROIC | 37.37% | ||
| ROICexc | 59.8% | ||
| ROICexgc | 85.28% | ||
| OM | 42.33% | ||
| PM (TTM) | 33.41% | ||
| GM | 61.99% | ||
| FCFM | 30.78% |
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 | 1.25 | ||
| Debt/FCF | 1.57 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 86.33% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 17.58 | ||
| Cash Conversion | 73.68% | ||
| Profit Quality | 92.12% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 10.93 |
F-Score9
WACC11.7%
ROIC/WACC3.19
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 Y8.65%
EPS Next 2Y10.5%
EPS Next 3Y11.12%
EPS Next 5Y11.29%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%12.96%
Revenue Next Year7.23%
Revenue Next 2Y7.86%
Revenue Next 3Y8.47%
Revenue Next 5Y8.04%
EBIT growth 1Y34.62%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year12.95%
EBIT Next 3Y11.15%
EBIT Next 5Y9.85%
FCF growth 1Y23.44%
FCF growth 3Y7.58%
FCF growth 5Y18.14%
OCF growth 1Y23.37%
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 8.65% in the next year.