KLA CORP (KLAC) Stock Fundamental Analysis
NASDAQ:KLAC - Nasdaq - US4824801009 - Common Stock
KLAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC scores excellent on profitability, but there are some minor concerns on its financial health. KLAC has a correct valuation and a medium growth rate.
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.
KLAC had positive earnings in each of the past 5 years.
In the past 5 years KLAC always reported a positive cash flow from operatings.
1.2 Ratios
KLAC has a better Return On Assets (18.92%) than 93.52% of its industry peers.
Looking at the Return On Equity, with a value of 83.33%, KLAC belongs to the top of the industry, outperforming 99.07% of the companies in the same industry.
The Return On Invested Capital of KLAC (32.68%) is better than 98.15% of its industry peers.
KLAC had an Average Return On Invested Capital over the past 3 years of 33.80%. This is significantly above the industry average of 11.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 83.33% | ||
| ROIC | 32.68% |
ROA(3y)22.78%
ROA(5y)20.34%
ROE(3y)145.04%
ROE(5y)108.46%
ROIC(3y)33.8%
ROIC(5y)29.72%
1.3 Margins
KLAC's Profit Margin of 28.92% is amongst the best of the industry. KLAC outperforms 90.74% of its industry peers.
In the last couple of years the Profit Margin of KLAC has grown nicely.
KLAC has a Operating Margin of 39.41%. This is amongst the best in the industry. KLAC outperforms 97.22% of its industry peers.
In the last couple of years the Operating Margin of KLAC has grown nicely.
KLAC has a Gross Margin of 61.56%. This is amongst the best in the industry. KLAC outperforms 87.04% of its industry peers.
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 | 39.41% | ||
| PM (TTM) | 28.92% | ||
| GM | 61.56% |
OM growth 3Y2.69%
OM growth 5Y5.1%
PM growth 3Y-2.14%
PM growth 5Y1.81%
GM growth 3Y1.07%
GM growth 5Y0.93%
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 worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.05 indicates that KLAC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.05, KLAC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of KLAC is 2.10, which is a good value as it means it would take KLAC, 2.10 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.10, KLAC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
KLAC has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
KLAC has a worse Debt to Equity ratio (1.65) than 90.74% 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 | 1.65 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 7.05 |
ROIC/WACC2.23
WACC14.63%
2.3 Liquidity
KLAC has a Current Ratio of 2.13. This indicates that KLAC is financially healthy and has no problem in meeting its short term obligations.
KLAC has a worse Current ratio (2.13) than 71.30% of its industry peers.
KLAC has a Quick Ratio of 1.48. 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 (1.48) is worse than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.58% over the past year.
KLAC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.88% yearly.
KLAC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.87%.
KLAC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.52% yearly.
EPS 1Y (TTM)5.58%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%27.7%
Revenue 1Y (TTM)0.87%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%18.55%
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 13.95% yearly.
KLAC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.68% yearly.
EPS Next Y30.93%
EPS Next 2Y18.76%
EPS Next 3Y17.23%
EPS Next 5Y13.95%
Revenue Next Year19.02%
Revenue Next 2Y12.41%
Revenue Next 3Y11.13%
Revenue Next 5Y9.68%
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 30.27 indicates a quite expensive valuation of KLAC.
Compared to the rest of the industry, the Price/Earnings ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 71.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, KLAC is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.89, the valuation of KLAC can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KLAC indicates a somewhat cheap valuation: KLAC is cheaper than 74.07% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. KLAC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 22.89 |
4.2 Price Multiples
KLAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 69.44% of the companies in the same industry.
KLAC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.58 | ||
| EV/EBITDA | 22.68 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of KLAC may justify a higher PE ratio.
A more expensive valuation may be justified as KLAC's earnings are expected to grow with 17.23% in the coming years.
PEG (NY)0.98
PEG (5Y)1.32
EPS Next 2Y18.76%
EPS Next 3Y17.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, KLAC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.28, KLAC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, KLAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
The dividend of KLAC is nicely growing with an annual growth rate of 13.33%!
KLAC has been paying a dividend for at least 10 years, so it has a reliable track record.
KLAC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.33%
Div Incr Years15
Div Non Decr Years19
5.3 Sustainability
KLAC pays out 26.62% of its income as dividend. This is a sustainable payout ratio.
KLAC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP26.62%
EPS Next 2Y18.76%
EPS Next 3Y17.23%
KLA CORP
NASDAQ:KLAC (1/21/2025, 10:19:54 PM)
After market: 767.24 0 (0%)767.24
+9.77 (+1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.53%
Inst Owner Change-0.11%
Ins Owners0.12%
Ins Owner Change1.38%
Market Cap102.63B
Analysts78.82
Price Target807.83 (5.29%)
Short Float %2.43%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend5.7
Dividend Growth(5Y)13.33%
DP26.62%
Div Incr Years15
Div Non Decr Years19
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.61%
Min EPS beat(2)1.95%
Max EPS beat(2)5.27%
EPS beat(4)4
Avg EPS beat(4)3.05%
Min EPS beat(4)1.95%
Max EPS beat(4)5.27%
EPS beat(8)8
Avg EPS beat(8)3.55%
EPS beat(12)12
Avg EPS beat(12)4.02%
EPS beat(16)15
Avg EPS beat(16)3.85%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.05%
Max Revenue beat(2)1.01%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)1.01%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)8
Avg Revenue beat(12)0.83%
Revenue beat(16)11
Avg Revenue beat(16)0.81%
PT rev (1m)-1.77%
PT rev (3m)-7.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.19%
EPS NY rev (1m)0%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.86%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 22.89 | ||
| P/S | 10.01 | ||
| P/FCF | 32.58 | ||
| P/OCF | 30.01 | ||
| P/B | 28.83 | ||
| P/tB | 110.12 | ||
| EV/EBITDA | 22.68 |
EPS(TTM)25.35
EY3.3%
EPS(NY)33.51
Fwd EY4.37%
FCF(TTM)23.55
FCFY3.07%
OCF(TTM)25.57
OCFY3.33%
SpS76.68
BVpS26.61
TBVpS6.97
PEG (NY)0.98
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 83.33% | ||
| ROCE | 37.14% | ||
| ROIC | 32.68% | ||
| ROICexc | 56.87% | ||
| ROICexgc | 98.09% | ||
| OM | 39.41% | ||
| PM (TTM) | 28.92% | ||
| GM | 61.56% | ||
| FCFM | 30.71% |
ROA(3y)22.78%
ROA(5y)20.34%
ROE(3y)145.04%
ROE(5y)108.46%
ROIC(3y)33.8%
ROIC(5y)29.72%
ROICexc(3y)51.15%
ROICexc(5y)43.94%
ROICexgc(3y)94.92%
ROICexgc(5y)88.94%
ROCE(3y)38.41%
ROCE(5y)33.78%
ROICexcg growth 3Y2%
ROICexcg growth 5Y5.85%
ROICexc growth 3Y11.6%
ROICexc growth 5Y19.31%
OM growth 3Y2.69%
OM growth 5Y5.1%
PM growth 3Y-2.14%
PM growth 5Y1.81%
GM growth 3Y1.07%
GM growth 5Y0.93%
F-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 68.27% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 13.73 | ||
| Cash Conversion | 77.07% | ||
| Profit Quality | 106.2% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 7.05 |
F-Score6
WACC14.63%
ROIC/WACC2.23
Cap/Depr(3y)78.64%
Cap/Depr(5y)69.86%
Cap/Sales(3y)3.14%
Cap/Sales(5y)3.08%
Profit Quality(3y)99.49%
Profit Quality(5y)105.22%
High Growth Momentum
Growth
EPS 1Y (TTM)5.58%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%27.7%
EPS Next Y30.93%
EPS Next 2Y18.76%
EPS Next 3Y17.23%
EPS Next 5Y13.95%
Revenue 1Y (TTM)0.87%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%18.55%
Revenue Next Year19.02%
Revenue Next 2Y12.41%
Revenue Next 3Y11.13%
Revenue Next 5Y9.68%
EBIT growth 1Y1.95%
EBIT growth 3Y15.38%
EBIT growth 5Y22.46%
EBIT Next Year36.22%
EBIT Next 3Y17.04%
EBIT Next 5Y12.95%
FCF growth 1Y0.4%
FCF growth 3Y15.77%
FCF growth 5Y24.29%
OCF growth 1Y-1.16%
OCF growth 3Y14.83%
OCF growth 5Y23.48%