KLA CORP (KLAC) Fundamental Analysis & Valuation
NASDAQ:KLAC • US4824801009
1344.55 USD
-84.81 (-5.93%)
At close: Mar 6, 2026
1338.69 USD
-5.86 (-0.44%)
After Hours: 3/6/2026, 8:00:02 PM
This KLAC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, KLAC scores 7 out of 10 in our fundamental rating. KLAC was compared to 115 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KLAC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes KLAC very considerable for growth and quality investing!
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.
- 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
- KLAC's Return On Assets of 27.26% is amongst the best of the industry. KLAC outperforms 97.39% of its industry peers.
- KLAC's Return On Equity of 83.39% is amongst the best of the industry. KLAC outperforms 99.13% of its industry peers.
- With an excellent Return On Invested Capital value of 37.18%, KLAC belongs to the best of the industry, outperforming 98.26% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for KLAC is significantly above the industry average of 10.48%.
- 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 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
- KLAC has a better Profit Margin (35.76%) than 93.91% of its industry peers.
- KLAC's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 42.71%, KLAC belongs to the best of the industry, outperforming 97.39% of the companies in the same industry.
- KLAC's Operating Margin has improved in the last couple of years.
- KLAC has a better Gross Margin (61.91%) than 86.96% of its industry peers.
- KLAC's Gross Margin has been stable in the last couple of years.
| 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
- KLAC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- KLAC has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, KLAC has less shares outstanding
- The debt/assets ratio for KLAC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 11.99 indicates that KLAC is not in any danger for bankruptcy at the moment.
- KLAC has a better Altman-Z score (11.99) than 77.39% 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.
- KLAC has a Debt to FCF ratio of 1.34. This is in the better half of the industry: KLAC outperforms 70.43% of its industry peers.
- 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 87.83% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 11.99 |
ROIC/WACC3.33
WACC11.15%
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 in line with its industry peers.
- 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 Quick ratio of 2.00. This is comparable to the rest of the industry: KLAC outperforms 43.48% 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.
- KLAC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.37% yearly.
- KLAC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.49%.
- The Revenue has been growing by 15.93% on average over the past years. This is quite good.
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
- KLAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.23% yearly.
- Based on estimates for the next years, KLAC will show a quite strong growth in Revenue. The Revenue will grow by 12.55% on average per year.
EPS Next Y11.72%
EPS Next 2Y19.61%
EPS Next 3Y17.48%
EPS Next 5Y18.23%
Revenue Next Year10.91%
Revenue Next 2Y15.33%
Revenue Next 3Y13.43%
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
- With a Price/Earnings ratio of 37.93, KLAC can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, KLAC is valued a bit cheaper than 71.30% of the companies in the same industry.
- KLAC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.29.
- With a Price/Forward Earnings ratio of 28.20, KLAC can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, KLAC is valued a bit cheaper than the industry average as 63.48% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of KLAC to the average of the S&P500 Index (24.60), we can say KLAC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.93 | ||
| Fwd PE | 28.2 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 68.70% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 74.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.26 | ||
| EV/EBITDA | 29.85 |
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.
- KLAC has an outstanding profitability rating, which 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)3.24
PEG (5Y)1.44
EPS Next 2Y19.61%
EPS Next 3Y17.48%
5. KLAC Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.53%, KLAC is not a good candidate for dividend investing.
- KLAC's Dividend Yield is a higher than the industry average which is at 0.49.
- With a Dividend Yield of 0.53, KLAC pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
- The dividend of KLAC is nicely growing with an annual growth rate of 15.33%!
- 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 21.58% of its income as dividend. This is a 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
1344.55
-84.81 (-5.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners93.59%
Inst Owner Change1.58%
Ins Owners0.05%
Ins Owner Change-2.85%
Market Cap176.24B
Revenue(TTM)12.74B
Net Income(TTM)4.56B
Analysts77.84
Price Target1700.62 (26.48%)
Short Float %2.22%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP21.58%
Div Incr Years15
Div Non Decr Years19
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)1.89%
PT rev (3m)29.79%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)3.14%
EPS NY rev (1m)0.17%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)3.06%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.93 | ||
| Fwd PE | 28.2 | ||
| P/S | 13.83 | ||
| P/FCF | 40.26 | ||
| P/OCF | 36.98 | ||
| P/B | 32.25 | ||
| P/tB | 52.97 | ||
| EV/EBITDA | 29.85 |
EPS(TTM)35.45
EY2.64%
EPS(NY)47.67
Fwd EY3.55%
FCF(TTM)33.39
FCFY2.48%
OCF(TTM)36.36
OCFY2.7%
SpS97.23
BVpS41.7
TBVpS25.38
PEG (NY)3.24
PEG (5Y)1.44
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 | 11.99 |
F-Score9
WACC11.15%
ROIC/WACC3.33
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 Year10.91%
Revenue Next 2Y15.33%
Revenue Next 3Y13.43%
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 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.
Can you provide the profitability details for KLA CORP?
KLA CORP (KLAC) has a profitability rating of 9 / 10.
What is the financial health of KLA CORP (KLAC) stock?
The financial health rating of KLA CORP (KLAC) is 8 / 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 11.72% in the next year.