1567.82 USD
+22.86 (+1.48%)
1518.58 USD
-49.24 (-3.14%)
Taking everything into account, KLAC scores 7 out of 10 in our fundamental rating. KLAC was compared to 113 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 shows excellent growth, but is valued quite expensive already. These ratings could make KLAC a good candidate 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.
- In the past 5 years KLAC has always been profitable.
- In the past 5 years KLAC always reported a positive cash flow from operatings.
1.2 Ratios
- KLAC has a better Return On Assets (25.96%) than 97.35% of its industry peers.
- With an excellent Return On Equity value of 84.99%, KLAC belongs to the best of the industry, outperforming 99.11% of the companies in the same industry.
- The Return On Invested Capital of KLAC (38.07%) is better than 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 10.75%.
- The last Return On Invested Capital (38.07%) for KLAC is above the 3 year average (34.16%), which is a sign of increasing profitability.
| 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.
- 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 97.35% of its industry peers.
- In the last couple of years the Operating Margin of KLAC has grown nicely.
- The Gross Margin of KLAC (61.99%) is better than 86.73% 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 | 42.86% | ||
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
- The debt/assets ratio for KLAC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 13.48 indicates that KLAC is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 13.48, KLAC is doing good in the industry, outperforming 76.99% of the companies in the same industry.
- KLAC has a debt to FCF ratio of 1.52. This is a very positive value and a sign of high solvency as it would only need 1.52 years to pay back of all of its debts.
- The Debt to FCF ratio of KLAC (1.52) is better than 70.80% 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.
- Looking at the Debt to Equity ratio, with a value of 1.18, KLAC is doing worse than 88.50% 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 | 1.18 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 13.48 |
ROIC/WACC3.53
WACC10.78%
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.
- 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 40.71% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 26.37% on average over the past years. This is a very strong growth
- The Revenue has grown by 22.11% in the past year. This is a very strong growth!
- 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.
- The Revenue is expected to grow by 8.56% on average over the next years. This is quite good.
EPS Next Y9.51%
EPS Next 2Y13.36%
EPS Next 3Y11.96%
EPS Next 5Y12.51%
Revenue Next Year8.63%
Revenue Next 2Y11.14%
Revenue Next 3Y9.35%
Revenue Next 5Y8.56%
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.
- 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
- With a Price/Earnings ratio of 45.05, KLAC can be considered very expensive at the moment.
- 69.03% 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 (27.38), we can say KLAC is valued expensively.
- With a Price/Forward Earnings ratio of 36.62, KLAC can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KLAC is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, KLAC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.05 | ||
| Fwd PE | 36.62 |
4.2 Price Multiples
- KLAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 65.49% 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 69.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.19 | ||
| EV/EBITDA | 35.48 |
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)4.74
PEG (5Y)1.71
EPS Next 2Y13.36%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.49%, KLAC is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.51, KLAC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.84, KLAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
- 22.67% 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.
DP22.67%
EPS Next 2Y13.36%
EPS Next 3Y11.96%
1567.82
+22.86 (+1.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)01-30 2026-01-30/amc
Inst Owners94.36%
Inst Owner Change-0.05%
Ins Owners0.05%
Ins Owner Change1.63%
Market Cap206.00B
Revenue(TTM)12.52B
Net Income(TTM)4.24B
Analysts74.29
Price Target1397.21 (-10.88%)
Short Float %2.56%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP22.67%
Div Incr Years15
Div Non Decr Years19
Ex-DateN/A
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)6.63%
PT rev (3m)47.44%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)3.17%
EPS NY rev (1m)0%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.05 | ||
| Fwd PE | 36.62 | ||
| P/S | 16.45 | ||
| P/FCF | 53.19 | ||
| P/OCF | 48.49 | ||
| P/B | 41.32 | ||
| P/tB | 73.66 | ||
| EV/EBITDA | 35.48 |
EPS(TTM)34.8
EY2.22%
EPS(NY)42.81
Fwd EY2.73%
FCF(TTM)29.47
FCFY1.88%
OCF(TTM)32.33
OCFY2.06%
SpS95.32
BVpS37.94
TBVpS21.29
PEG (NY)4.74
PEG (5Y)1.71
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 | 13.48 |
F-Score9
WACC10.78%
ROIC/WACC3.53
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 2Y13.36%
EPS Next 3Y11.96%
EPS Next 5Y12.51%
Revenue 1Y (TTM)22.11%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%12.96%
Revenue Next Year8.63%
Revenue Next 2Y11.14%
Revenue Next 3Y9.35%
Revenue Next 5Y8.56%
EBIT growth 1Y32.78%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year15.05%
EBIT Next 3Y12.5%
EBIT Next 5Y11.09%
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.
Can you provide the valuation status for KLA CORP?
ChartMill assigns a valuation rating of 3 / 10 to KLA CORP (KLAC). This can be considered as Overvalued.
Can you provide the profitability details for KLA CORP?
KLA CORP (KLAC) has a profitability rating of 9 / 10.
What is the financial health of KLA CORP (KLAC) stock?
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.