1245.67 USD
+23.28 (+1.9%)
1252 USD
+6.33 (+0.51%)
KLAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making KLAC a very profitable company, without any liquidiy or solvency issues. KLAC is not overvalued while it is showing excellent growth. This is an interesting 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.
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 25.96%, KLAC belongs to the best of the industry, outperforming 97.35% of the companies in the same industry.
KLAC has a better Return On Equity (84.99%) than 99.11% of its industry peers.
KLAC has a Return On Invested Capital of 38.07%. This is amongst the best in the industry. KLAC outperforms 99.11% 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 10.77%.
The 3 year average ROIC (34.16%) for KLAC is below the current ROIC(38.07%), indicating increased profibility in the last year.
| 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 Profit Margin of 33.83%. This is amongst the best in the industry. KLAC outperforms 92.92% of its industry peers.
In the last couple of years the Profit Margin of KLAC has grown nicely.
KLAC's Operating Margin of 42.86% is amongst the best of the industry. KLAC outperforms 97.35% of its industry peers.
KLAC's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 61.99%, KLAC belongs to the best of the industry, outperforming 86.73% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KLAC is creating value.
KLAC has less shares outstanding than it did 1 year ago.
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 11.24. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
KLAC's Altman-Z score of 11.24 is fine compared to the rest of the industry. KLAC outperforms 76.11% of its industry peers.
The Debt to FCF ratio of KLAC is 1.52, which is an excellent value as it means it would take KLAC, only 1.52 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.52, KLAC is doing good in the industry, outperforming 70.80% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that KLAC has dependencies on debt financing.
The Debt to Equity ratio of KLAC (1.18) is worse than 90.27% 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 | 11.24 |
ROIC/WACC3.65
WACC10.42%
2.3 Liquidity
A Current Ratio of 2.69 indicates that KLAC has no problem at all paying its short term obligations.
With a Current ratio value of 2.69, KLAC perfoms like the industry average, outperforming 46.02% of the companies in the same industry.
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's Quick ratio of 1.88 is in line compared to the rest of the industry. KLAC outperforms 41.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.28% over the past year.
Measured over the past years, KLAC shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.37% on average per year.
KLAC shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.11%.
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)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 Y9.51%
EPS Next 2Y13.17%
EPS Next 3Y11.88%
EPS Next 5Y12.51%
Revenue Next Year8.44%
Revenue Next 2Y10.07%
Revenue Next 3Y9.22%
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.
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
Based on the Price/Earnings ratio of 35.80, the valuation of KLAC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 69.03% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, KLAC is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.19, the valuation of KLAC can be described as expensive.
KLAC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 61.95% of the companies in the same industry.
KLAC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.8 | ||
| Fwd PE | 29.19 |
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 65.49% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KLAC is valued a bit cheaper than the industry average as 72.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.26 | ||
| EV/EBITDA | 28.13 |
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)3.76
PEG (5Y)1.36
EPS Next 2Y13.17%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, KLAC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.56, KLAC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, KLAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 22.67% 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.
DP22.67%
EPS Next 2Y13.17%
EPS Next 3Y11.88%
1245.67
+23.28 (+1.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.4%
Inst Owner Change1.38%
Ins Owners0.06%
Ins Owner Change-1.36%
Market Cap163.67B
Revenue(TTM)12.52B
Net Income(TTM)4.24B
Analysts73.14
Price Target1310.3 (5.19%)
Short Float %2.52%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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)21.96%
PT rev (3m)40.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.59%
EPS NY rev (1m)0.39%
EPS NY rev (3m)2.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.8 | ||
| Fwd PE | 29.19 | ||
| P/S | 13.07 | ||
| P/FCF | 42.26 | ||
| P/OCF | 38.53 | ||
| P/B | 32.83 | ||
| P/tB | 58.52 | ||
| EV/EBITDA | 28.13 |
EPS(TTM)34.8
EY2.79%
EPS(NY)42.67
Fwd EY3.43%
FCF(TTM)29.47
FCFY2.37%
OCF(TTM)32.33
OCFY2.6%
SpS95.32
BVpS37.94
TBVpS21.29
PEG (NY)3.76
PEG (5Y)1.36
Graham Number172.36
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 | 11.24 |
F-Score9
WACC10.42%
ROIC/WACC3.65
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 Y9.51%
EPS Next 2Y13.17%
EPS Next 3Y11.88%
EPS Next 5Y12.51%
Revenue 1Y (TTM)22.11%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%12.96%
Revenue Next Year8.44%
Revenue Next 2Y10.07%
Revenue Next 3Y9.22%
Revenue Next 5Y8.43%
EBIT growth 1Y32.78%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year15.49%
EBIT Next 3Y12.4%
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 9.51% in the next year.