1097.12 USD
-5.33 (-0.48%)
1098.94 USD
+1.82 (+0.17%)
Taking everything into account, KLAC scores 7 out of 10 in our fundamental rating. KLAC was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC gets an excellent profitability rating and is at the same time showing great financial health properties. 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. 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
KLAC has a better Return On Assets (25.96%) than 97.32% of its industry peers.
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.
With an excellent Return On Invested Capital value of 38.07%, KLAC belongs to the best of the industry, outperforming 99.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KLAC is significantly above the industry average of 10.75%.
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
The Profit Margin of KLAC (33.83%) is better than 95.54% of its industry peers.
KLAC's Profit Margin has improved in the last couple of years.
KLAC's Operating Margin of 42.86% is amongst the best of 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 86.61% 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 | 42.86% | ||
| 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.
Compared to 1 year ago, KLAC has less shares outstanding
Compared to 5 years ago, KLAC has less shares outstanding
KLAC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.22 indicates that KLAC is not in any danger for bankruptcy at the moment.
KLAC has a Altman-Z score of 10.22. This is in the better half of the industry: KLAC outperforms 75.89% 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.
KLAC has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KLAC (1.18) is worse than 90.18% 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 | 10.22 |
ROIC/WACC3.58
WACC10.62%
2.3 Liquidity
A Current Ratio of 2.69 indicates that KLAC has no problem at all paying its short term obligations.
The Current ratio of KLAC (2.69) is comparable to the rest of the industry.
A Quick Ratio of 1.88 indicates that KLAC should not have too much problems paying its short term obligations.
KLAC has a Quick ratio (1.88) which is in line with 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.
The Earnings Per Share has been growing by 26.37% on average over the past years. This is a very strong growth
KLAC shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.11%.
The Revenue has been growing by 15.93% on average over the past years. This is quite good.
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
Based on estimates for the next years, KLAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.51% on average per year.
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 Y9.08%
EPS Next 2Y12.56%
EPS Next 3Y11.91%
EPS Next 5Y12.51%
Revenue Next Year8.11%
Revenue Next 2Y9.54%
Revenue Next 3Y8.96%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.53 indicates a quite expensive valuation of KLAC.
KLAC's Price/Earnings ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 69.64% 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 25.47.
With a Price/Forward Earnings ratio of 25.99, KLAC can be considered very expensive at the moment.
62.50% of the companies in the same industry are more expensive than KLAC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KLAC to the average of the S&P500 Index (34.42), we can say KLAC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.53 | ||
| Fwd PE | 25.99 |
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 66.96% of the companies listed in the same industry.
KLAC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.31 | ||
| EV/EBITDA | 24.8 |
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)3.47
PEG (5Y)1.2
EPS Next 2Y12.56%
EPS Next 3Y11.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, KLAC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.35, KLAC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, KLAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of KLAC grows each year by 15.33%, which is quite nice.
KLAC has been paying a dividend for at least 10 years, so it has 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
22.67% of the earnings are spent on dividend by KLAC. This is a low number and 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 2Y12.56%
EPS Next 3Y11.91%
1097.12
-5.33 (-0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.51%
Inst Owner Change1.33%
Ins Owners0.06%
Ins Owner Change-0.83%
Market Cap144.47B
Revenue(TTM)12.52B
Net Income(TTM)4.24B
Analysts73.71
Price Target1307.85 (19.21%)
Short Float %2.41%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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)38.01%
PT rev (3m)40.07%
EPS NQ rev (1m)3.24%
EPS NQ rev (3m)3.59%
EPS NY rev (1m)0.4%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)2.07%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.53 | ||
| Fwd PE | 25.99 | ||
| P/S | 11.54 | ||
| P/FCF | 37.31 | ||
| P/OCF | 34.01 | ||
| P/B | 28.98 | ||
| P/tB | 51.66 | ||
| EV/EBITDA | 24.8 |
EPS(TTM)34.8
EY3.17%
EPS(NY)42.22
Fwd EY3.85%
FCF(TTM)29.41
FCFY2.68%
OCF(TTM)32.26
OCFY2.94%
SpS95.11
BVpS37.86
TBVpS21.24
PEG (NY)3.47
PEG (5Y)1.2
Graham Number172.17
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 | 10.22 |
F-Score9
WACC10.62%
ROIC/WACC3.58
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 Y9.08%
EPS Next 2Y12.56%
EPS Next 3Y11.91%
EPS Next 5Y12.51%
Revenue 1Y (TTM)22.11%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%12.96%
Revenue Next Year8.11%
Revenue Next 2Y9.54%
Revenue Next 3Y8.96%
Revenue Next 5Y8.43%
EBIT growth 1Y32.78%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year12.95%
EBIT Next 3Y12.49%
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 9.08% in the next year.