1400 USD
+75.4 (+5.69%)
1399 USD
-1 (-0.07%)
We assign a fundamental rating of 7 out of 10 to KLAC. KLAC was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making KLAC a very profitable company, without any liquidiy or solvency issues. KLAC is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make KLAC a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year KLAC was profitable.
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
KLAC has a Return On Assets of 25.96%. This is amongst the best in the industry. KLAC outperforms 97.35% of its industry peers.
The Return On Equity of KLAC (84.99%) is better than 99.11% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years 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
KLAC has a Profit Margin of 33.83%. This is amongst the best in the industry. KLAC outperforms 92.92% of its industry peers.
In the last couple of years the Profit Margin of KLAC has grown nicely.
KLAC's Operating Margin of 42.86% is amongst the best of the industry. KLAC outperforms 97.35% of its industry peers.
KLAC's Operating Margin has improved in the last couple of years.
KLAC has a better Gross Margin (61.99%) 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
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.
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 12.31 indicates that KLAC is not in any danger for bankruptcy at the moment.
The Altman-Z score of KLAC (12.31) is better than 77.88% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.52, KLAC is in the better half of the industry, outperforming 70.80% of the companies in the same industry.
KLAC has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external 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 | 12.31 |
ROIC/WACC3.51
WACC10.84%
2.3 Liquidity
A Current Ratio of 2.69 indicates that KLAC has no problem at all paying its short term obligations.
KLAC has a Current ratio (2.69) which is in line with its industry peers.
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.
With a Quick ratio value of 1.88, KLAC perfoms like the industry average, outperforming 40.71% of the companies in the same industry.
| 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.
Measured over the past years, KLAC shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.37% on average per year.
The Revenue has grown by 22.11% in the past year. This is a very strong growth!
Measured over the past years, KLAC shows a quite strong growth in Revenue. The Revenue has been growing by 15.93% on average per year.
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
KLAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.51% yearly.
Based on estimates for the next years, KLAC will show a quite strong growth in Revenue. The Revenue will grow by 8.56% on average per year.
EPS Next Y9.51%
EPS Next 2Y13.36%
EPS Next 3Y11.96%
EPS Next 5Y12.51%
Revenue Next Year8.5%
Revenue Next 2Y10.26%
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
The Price/Earnings ratio is 40.23, which means the current valuation is very expensive for KLAC.
Based on the Price/Earnings ratio, KLAC is valued a bit cheaper than the industry average as 69.91% of the companies are valued more expensively.
KLAC is valuated rather expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.70, which means the current valuation is very expensive for KLAC.
60.18% of the companies in the same industry are more expensive than KLAC, based on the Price/Forward Earnings ratio.
KLAC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.23 | ||
| Fwd PE | 32.7 |
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 64.60% 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 71.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.5 | ||
| EV/EBITDA | 31.65 |
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.
KLAC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.23
PEG (5Y)1.53
EPS Next 2Y13.36%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, KLAC is not a good candidate for dividend investing.
KLAC's Dividend Yield is a higher than the industry average which is at 0.53.
With a Dividend Yield of 0.57, KLAC pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
On average, the dividend of KLAC grows each year by 15.33%, which is quite nice.
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
KLAC pays out 22.67% of its income as dividend. This is a 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%
1400
+75.4 (+5.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.36%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change1.63%
Market Cap183.95B
Revenue(TTM)12.52B
Net Income(TTM)4.24B
Analysts74.29
Price Target1343.15 (-4.06%)
Short Float %2.72%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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)2.51%
PT rev (3m)41.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)0%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.23 | ||
| Fwd PE | 32.7 | ||
| P/S | 14.69 | ||
| P/FCF | 47.5 | ||
| P/OCF | 43.3 | ||
| P/B | 36.9 | ||
| P/tB | 65.77 | ||
| EV/EBITDA | 31.65 |
EPS(TTM)34.8
EY2.49%
EPS(NY)42.81
Fwd EY3.06%
FCF(TTM)29.47
FCFY2.11%
OCF(TTM)32.33
OCFY2.31%
SpS95.32
BVpS37.94
TBVpS21.29
PEG (NY)4.23
PEG (5Y)1.53
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 | 12.31 |
F-Score9
WACC10.84%
ROIC/WACC3.51
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 Year8.5%
Revenue Next 2Y10.26%
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 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 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.