KLA CORP (KLAC) Stock Fundamental Analysis
USA - NASDAQ:KLAC - US4824801009 - Common Stock
989.87 USD
-0.7 (-0.07%)
991 USD
+1.13 (+0.11%)
Overall KLAC gets a fundamental rating of 7 out of 10. We evaluated KLAC against 112 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 has a decent growth rate and is not valued too expensively. These ratings would make KLAC suitable for 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.
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
KLAC's Return On Assets of 25.28% is amongst the best of the industry. KLAC outperforms 97.32% of its industry peers.
The Return On Equity of KLAC (86.56%) is better than 98.21% of its industry peers.
KLAC has a better Return On Invested Capital (37.37%) than 99.11% of its industry peers.
KLAC had an Average Return On Invested Capital over the past 3 years of 34.16%. This is significantly above the industry average of 10.87%.
The last Return On Invested Capital (37.37%) for KLAC is above the 3 year average (34.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.28% | ||
| ROE | 86.56% | ||
| ROIC | 37.37% |
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 (33.41%) than 93.75% of its industry peers.
In the last couple of years the Profit Margin of KLAC has grown nicely.
With an excellent Operating Margin value of 42.33%, KLAC belongs to the best of the industry, outperforming 97.32% of the companies in the same industry.
In the last couple of years the Operating Margin of KLAC has grown nicely.
KLAC has a Gross Margin of 61.99%. This is amongst the best in the industry. KLAC outperforms 87.50% 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 | 42.33% | ||
| PM (TTM) | 33.41% | ||
| 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.
The number of shares outstanding for KLAC has been reduced compared to 1 year ago.
KLAC has less shares outstanding than it did 5 years ago.
KLAC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.39 indicates that KLAC is not in any danger for bankruptcy at the moment.
KLAC has a better Altman-Z score (9.39) than 75.00% of its industry peers.
KLAC has a debt to FCF ratio of 1.57. This is a very positive value and a sign of high solvency as it would only need 1.57 years to pay back of all of its debts.
KLAC has a Debt to FCF ratio of 1.57. This is in the better half of the industry: KLAC outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that KLAC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.25, KLAC is doing worse than 90.18% of the companies in the same industry.
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 | 1.25 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 9.39 |
ROIC/WACC3.31
WACC11.29%
2.3 Liquidity
A Current Ratio of 2.62 indicates that KLAC has no problem at all paying its short term obligations.
The Current ratio of KLAC (2.62) is comparable to the rest of the industry.
KLAC has a Quick Ratio of 1.83. This is a normal value and indicates that KLAC is financially healthy and should not expect problems in meeting its short term obligations.
KLAC has a Quick ratio of 1.83. This is comparable to the rest of the industry: KLAC outperforms 41.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
KLAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.24%, which is quite impressive.
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 23.89%.
The Revenue has been growing by 15.93% on average over the past years. This is quite good.
EPS 1Y (TTM)40.24%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%42.12%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%23.59%
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 9.95% yearly.
The Revenue is expected to grow by 7.10% on average over the next years.
EPS Next Y7.08%
EPS Next 2Y9.09%
EPS Next 3Y9.68%
EPS Next 5Y9.95%
Revenue Next Year6.51%
Revenue Next 2Y7.03%
Revenue Next 3Y7.42%
Revenue Next 5Y7.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
KLAC is valuated quite expensively with a Price/Earnings ratio of 29.71.
Based on the Price/Earnings ratio, KLAC is valued a bit cheaper than 69.64% of the companies in the same industry.
KLAC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 27.74, which means the current valuation is very expensive for KLAC.
KLAC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.70. KLAC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.71 | ||
| Fwd PE | 27.74 |
4.2 Price Multiples
KLAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 68.75% 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 72.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.91 | ||
| EV/EBITDA | 23.41 |
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)4.2
PEG (5Y)1.13
EPS Next 2Y9.09%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
KLAC has a yearly dividend return of 0.79%, which is pretty low.
KLAC's Dividend Yield is a higher than the industry average which is at 2.31.
With a Dividend Yield of 0.79, KLAC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.33%
Div Incr Years15
Div Non Decr Years19
5.3 Sustainability
22.27% of the earnings are spent on dividend by KLAC. This is a low number and sustainable payout ratio.
KLAC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.27%
EPS Next 2Y9.09%
EPS Next 3Y9.68%
989.87
-0.7 (-0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.01%
Inst Owner Change0.27%
Ins Owners0.07%
Ins Owner Change-2.97%
Market Cap130.62B
Analysts76.36
Price Target934.15 (-5.63%)
Short Float %2.56%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP22.27%
Div Incr Years15
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.63%
Min EPS beat(2)1.83%
Max EPS beat(2)7.44%
EPS beat(4)4
Avg EPS beat(4)3.73%
Min EPS beat(4)1.83%
Max EPS beat(4)7.44%
EPS beat(8)8
Avg EPS beat(8)3.66%
EPS beat(12)12
Avg EPS beat(12)4.41%
EPS beat(16)16
Avg EPS beat(16)3.87%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)0.98%
Revenue beat(4)3
Avg Revenue beat(4)1.09%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)2.66%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)0.83%
PT rev (1m)0.39%
PT rev (3m)15.6%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)6.16%
EPS NY rev (1m)5.15%
EPS NY rev (3m)5.95%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)3.93%
Revenue NY rev (1m)3.5%
Revenue NY rev (3m)3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.71 | ||
| Fwd PE | 27.74 | ||
| P/S | 10.75 | ||
| P/FCF | 34.91 | ||
| P/OCF | 32 | ||
| P/B | 27.84 | ||
| P/tB | 53.2 | ||
| EV/EBITDA | 23.41 |
EPS(TTM)33.32
EY3.37%
EPS(NY)35.68
Fwd EY3.6%
FCF(TTM)28.35
FCFY2.86%
OCF(TTM)30.93
OCFY3.12%
SpS92.12
BVpS35.56
TBVpS18.61
PEG (NY)4.2
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.28% | ||
| ROE | 86.56% | ||
| ROCE | 42.95% | ||
| ROIC | 37.37% | ||
| ROICexc | 59.8% | ||
| ROICexgc | 85.28% | ||
| OM | 42.33% | ||
| PM (TTM) | 33.41% | ||
| GM | 61.99% | ||
| FCFM | 30.78% |
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%
ROICexcg growth 3Y-4.35%
ROICexcg 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 | 1.25 | ||
| Debt/FCF | 1.57 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 86.33% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 17.58 | ||
| Cash Conversion | 73.68% | ||
| Profit Quality | 92.12% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 9.39 |
F-Score9
WACC11.29%
ROIC/WACC3.31
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)40.24%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%42.12%
EPS Next Y7.08%
EPS Next 2Y9.09%
EPS Next 3Y9.68%
EPS Next 5Y9.95%
Revenue 1Y (TTM)23.89%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%23.59%
Revenue Next Year6.51%
Revenue Next 2Y7.03%
Revenue Next 3Y7.42%
Revenue Next 5Y7.1%
EBIT growth 1Y34.62%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year12.59%
EBIT Next 3Y10.33%
EBIT Next 5Y8.48%
FCF growth 1Y23.44%
FCF growth 3Y7.58%
FCF growth 5Y18.14%
OCF growth 1Y23.37%
OCF growth 3Y7.21%
OCF growth 5Y18.07%