KLA CORP (KLAC) Stock Fundamental Analysis
NASDAQ:KLAC • US4824801009
1524.31 USD
-22.37 (-1.45%)
At close: Feb 26, 2026
1522.99 USD
-1.32 (-0.09%)
After Hours: 2/26/2026, 5:20:02 PM
KLAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 114 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make KLAC suitable 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.
- Each year in the past 5 years KLAC had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 27.26%, KLAC belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 83.39%, KLAC belongs to the top of the industry, outperforming 98.25% of the companies in the same industry.
- KLAC has a Return On Invested Capital of 37.18%. This is amongst the best in the industry. KLAC outperforms 98.25% 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 10.62%.
- The 3 year average ROIC (34.16%) for KLAC is below the current ROIC(37.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.26% | ||
| ROE | 83.39% | ||
| ROIC | 37.18% |
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
- With an excellent Profit Margin value of 35.76%, KLAC belongs to the best of the industry, outperforming 93.86% of the companies in the same industry.
- KLAC's Profit Margin has improved in the last couple of years.
- The Operating Margin of KLAC (42.71%) is better than 97.37% of its industry peers.
- In the last couple of years the Operating Margin of KLAC has grown nicely.
- KLAC's Gross Margin of 61.91% is amongst the best of the industry. KLAC outperforms 85.96% of its industry peers.
- KLAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.71% | ||
| PM (TTM) | 35.76% | ||
| GM | 61.91% |
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
- KLAC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- KLAC has less shares outstanding than it did 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
- KLAC has an Altman-Z score of 13.41. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of KLAC (13.41) is better than 79.82% of its industry peers.
- The Debt to FCF ratio of KLAC is 1.34, which is an excellent value as it means it would take KLAC, only 1.34 years of fcf income to pay off all of its debts.
- KLAC's Debt to FCF ratio of 1.34 is fine compared to the rest of the industry. KLAC outperforms 69.30% of its industry peers.
- KLAC has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
- KLAC has a worse Debt to Equity ratio (1.08) than 86.84% 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 | 1.08 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 13.41 |
ROIC/WACC3.48
WACC10.7%
2.3 Liquidity
- KLAC has a Current Ratio of 2.83. This indicates that KLAC is financially healthy and has no problem in meeting its short term obligations.
- KLAC has a Current ratio of 2.83. This is comparable to the rest of the industry: KLAC outperforms 50.00% of its industry peers.
- KLAC has a Quick Ratio of 2.00. This indicates that KLAC is financially healthy and has no problem in meeting its short term obligations.
- KLAC has a Quick ratio (2.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 29.43% 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
- Looking at the last year, KLAC shows a quite strong growth in Revenue. The Revenue has grown by 17.49% in the last year.
- The Revenue has been growing by 15.93% on average over the past years. This is quite good.
EPS 1Y (TTM)29.43%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%7.93%
Revenue 1Y (TTM)17.49%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%7.16%
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 18.23% yearly.
- Based on estimates for the next years, KLAC will show a quite strong growth in Revenue. The Revenue will grow by 10.14% on average per year.
EPS Next Y11.53%
EPS Next 2Y18.55%
EPS Next 3Y16.77%
EPS Next 5Y18.23%
Revenue Next Year10.71%
Revenue Next 2Y14.55%
Revenue Next 3Y13%
Revenue Next 5Y10.14%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 43.00, which means the current valuation is very expensive for KLAC.
- KLAC's Price/Earnings ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 71.93% of the companies in the same industry.
- KLAC is valuated expensively when we compare the Price/Earnings ratio to 27.05, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 32.55, the valuation of KLAC can be described as expensive.
- Based on the Price/Forward Earnings ratio, KLAC is valued a bit cheaper than the industry average as 65.79% of the companies are valued more expensively.
- KLAC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43 | ||
| Fwd PE | 32.55 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KLAC is valued a bit cheaper than 67.54% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, KLAC is valued a bit cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.65 | ||
| EV/EBITDA | 34.4 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KLAC does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of KLAC may justify a higher PE ratio.
- KLAC's earnings are expected to grow with 16.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.73
PEG (5Y)1.63
EPS Next 2Y18.55%
EPS Next 3Y16.77%
5. Dividend
5.1 Amount
- KLAC has a yearly dividend return of 0.52%, which is pretty low.
- KLAC's Dividend Yield is a higher than the industry average which is at 0.50.
- Compared to an average S&P500 Dividend Yield of 1.80, KLAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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
- 21.58% of the earnings are spent on dividend by KLAC. This is a low number and sustainable payout ratio.
- The dividend of KLAC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP21.58%
EPS Next 2Y18.55%
EPS Next 3Y16.77%
1524.31
-22.37 (-1.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners94.36%
Inst Owner Change1.42%
Ins Owners0.05%
Ins Owner Change-7.18%
Market Cap199.81B
Revenue(TTM)12.74B
Net Income(TTM)4.56B
Analysts77.3
Price Target1669.04 (9.49%)
Short Float %1.99%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend6.79
Dividend Growth(5Y)15.33%
DP21.58%
Div Incr Years15
Div Non Decr Years19
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.55%
Min EPS beat(2)-1.45%
Max EPS beat(2)0.34%
EPS beat(4)3
Avg EPS beat(4)2.04%
Min EPS beat(4)-1.45%
Max EPS beat(4)7.44%
EPS beat(8)7
Avg EPS beat(8)2.75%
EPS beat(12)11
Avg EPS beat(12)3.2%
EPS beat(16)15
Avg EPS beat(16)3.72%
Revenue beat(2)0
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.51%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)0.98%
Revenue beat(8)4
Avg Revenue beat(8)0.4%
Revenue beat(12)6
Avg Revenue beat(12)0.37%
Revenue beat(16)10
Avg Revenue beat(16)0.83%
PT rev (1m)19.46%
PT rev (3m)27.62%
EPS NQ rev (1m)2.41%
EPS NQ rev (3m)3.13%
EPS NY rev (1m)1.45%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)2.66%
Revenue NQ rev (3m)3%
Revenue NY rev (1m)1.81%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43 | ||
| Fwd PE | 32.55 | ||
| P/S | 15.68 | ||
| P/FCF | 45.65 | ||
| P/OCF | 41.92 | ||
| P/B | 36.56 | ||
| P/tB | 60.05 | ||
| EV/EBITDA | 34.4 |
EPS(TTM)35.45
EY2.33%
EPS(NY)46.83
Fwd EY3.07%
FCF(TTM)33.39
FCFY2.19%
OCF(TTM)36.36
OCFY2.39%
SpS97.23
BVpS41.7
TBVpS25.38
PEG (NY)3.73
PEG (5Y)1.63
Graham Number182.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.26% | ||
| ROE | 83.39% | ||
| ROCE | 42.73% | ||
| ROIC | 37.18% | ||
| ROICexc | 62.9% | ||
| ROICexgc | 87.85% | ||
| OM | 42.71% | ||
| PM (TTM) | 35.76% | ||
| GM | 61.91% | ||
| FCFM | 34.35% |
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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 1.34 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 99.57% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 19.74 | ||
| Cash Conversion | 81.7% | ||
| Profit Quality | 96.04% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 13.41 |
F-Score9
WACC10.7%
ROIC/WACC3.48
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)29.43%
EPS 3Y16.32%
EPS 5Y26.37%
EPS Q2Q%7.93%
EPS Next Y11.53%
EPS Next 2Y18.55%
EPS Next 3Y16.77%
EPS Next 5Y18.23%
Revenue 1Y (TTM)17.49%
Revenue growth 3Y9.69%
Revenue growth 5Y15.93%
Sales Q2Q%7.16%
Revenue Next Year10.71%
Revenue Next 2Y14.55%
Revenue Next 3Y13%
Revenue Next 5Y10.14%
EBIT growth 1Y25.71%
EBIT growth 3Y9.45%
EBIT growth 5Y23.31%
EBIT Next Year15.2%
EBIT Next 3Y14.02%
EBIT Next 5Y14.24%
FCF growth 1Y38.2%
FCF growth 3Y7.58%
FCF growth 5Y18.14%
OCF growth 1Y37.12%
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 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.
What is the financial health of KLA CORP (KLAC) stock?
The financial health rating of KLA CORP (KLAC) is 8 / 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 11.53% in the next year.