1238.91 USD
+13.3 (+1.09%)
1231.11 USD
-7.8 (-0.63%)
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 not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, KLAC could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year KLAC was profitable.
In the past year KLAC had a positive cash flow from operations.
Each year in the past 5 years KLAC has been profitable.
KLAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 25.96%, KLAC belongs to the top of the industry, outperforming 97.32% of the companies in the same industry.
Looking at the Return On Equity, with a value of 84.99%, KLAC belongs to the top of the industry, outperforming 99.11% of the companies in the same industry.
KLAC has a better Return On Invested Capital (38.07%) than 99.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KLAC is significantly above the industry average of 10.82%.
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's Profit Margin of 33.83% is amongst the best of 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 42.86%. This is amongst the best in the industry. KLAC outperforms 97.32% of its industry peers.
In the last couple of years the Operating Margin of KLAC has grown nicely.
KLAC has a better Gross Margin (61.99%) than 86.61% of its industry peers.
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.
Compared to 5 years ago, KLAC has less shares outstanding
KLAC has a better debt/assets ratio than last year.
2.2 Solvency
KLAC has an Altman-Z score of 11.19. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
KLAC has a better Altman-Z score (11.19) than 74.11% 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.
The Debt to FCF ratio of KLAC (1.52) is better than 70.54% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that KLAC has dependencies on debt financing.
KLAC has a Debt to Equity ratio of 1.18. This is amonst the worse of the industry: KLAC underperforms 90.18% of its industry peers.
Although KLAC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 | 1.18 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 11.19 |
ROIC/WACC3.63
WACC10.48%
2.3 Liquidity
KLAC has a Current Ratio of 2.69. This indicates that KLAC is financially healthy and has no problem in meeting its short term obligations.
KLAC has a Current ratio of 2.69. This is comparable to the rest of the industry: KLAC outperforms 45.54% of its industry peers.
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.
The Quick ratio of KLAC (1.88) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 1.88 |
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.
Looking at the last year, KLAC shows a very strong growth in Revenue. The Revenue has grown by 22.11%.
KLAC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.93% yearly.
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
KLAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.51% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 35.60, KLAC can be considered very expensive at the moment.
72.32% of the companies in the same industry are more expensive than KLAC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KLAC to the average of the S&P500 Index (26.59), we can say KLAC is valued slightly more expensively.
A Price/Forward Earnings ratio of 29.03 indicates a quite expensive valuation of KLAC.
Based on the Price/Forward Earnings ratio, KLAC is valued a bit cheaper than 65.18% 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 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.6 | ||
| Fwd PE | 29.03 |
4.2 Price Multiples
66.96% of the companies in the same industry are more expensive than KLAC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KLAC is valued a bit cheaper than 74.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.03 | ||
| EV/EBITDA | 27.98 |
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.
PEG (NY)3.74
PEG (5Y)1.35
EPS Next 2Y13.17%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, KLAC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.09, KLAC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, KLAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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 22.67% of its income as dividend. This is a sustainable payout ratio.
KLAC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.67%
EPS Next 2Y13.17%
EPS Next 3Y11.88%
1238.91
+13.3 (+1.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.4%
Inst Owner Change1.37%
Ins Owners0.06%
Ins Owner Change-0.83%
Market Cap162.78B
Revenue(TTM)12.52B
Net Income(TTM)4.24B
Analysts73.14
Price Target1310.3 (5.76%)
Short Float %2.83%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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)40.33%
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)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.6 | ||
| Fwd PE | 29.03 | ||
| P/S | 13 | ||
| P/FCF | 42.03 | ||
| P/OCF | 38.32 | ||
| P/B | 32.65 | ||
| P/tB | 58.2 | ||
| EV/EBITDA | 27.98 |
EPS(TTM)34.8
EY2.81%
EPS(NY)42.67
Fwd EY3.44%
FCF(TTM)29.47
FCFY2.38%
OCF(TTM)32.33
OCFY2.61%
SpS95.32
BVpS37.94
TBVpS21.29
PEG (NY)3.74
PEG (5Y)1.35
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 | 11.19 |
F-Score9
WACC10.48%
ROIC/WACC3.63
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.