1400 USD
+75.4 (+5.69%)
1399 USD
-1 (-0.07%)
KLAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 is not overvalued while it is showing excellent growth. This is an interesting combination. This makes KLAC very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year KLAC was profitable.
In the past year KLAC had a positive cash flow from operations.
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 Return On Assets of 25.96%. This is amongst the best in the industry. KLAC outperforms 97.35% of its industry peers.
KLAC has a better Return On Equity (84.99%) than 99.11% of its industry peers.
KLAC's Return On Invested Capital of 38.07% is amongst the best of the industry. KLAC outperforms 99.11% of its industry peers.
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 better Profit Margin (33.83%) than 92.92% of its industry peers.
KLAC's Profit Margin has improved in the last couple of years.
The Operating Margin of KLAC (42.86%) is better than 97.35% of its industry peers.
In the last couple of years the Operating Margin of KLAC has grown nicely.
Looking at the Gross Margin, with a value of 61.99%, KLAC belongs to the top of the industry, outperforming 86.73% of the companies in the same industry.
KLAC's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, KLAC has less shares outstanding
The number of shares outstanding for KLAC has been reduced compared to 5 years ago.
KLAC has a better debt/assets ratio than last year.
2.2 Solvency
KLAC has an Altman-Z score of 12.31. This indicates that KLAC is financially healthy and has little risk of bankruptcy at the moment.
KLAC's Altman-Z score of 12.31 is fine compared to the rest of the industry. KLAC outperforms 77.88% 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.
KLAC has a Debt to FCF ratio of 1.52. This is in the better half of the industry: KLAC outperforms 70.80% 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.
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/WACC3.55
WACC10.73%
2.3 Liquidity
A Current Ratio of 2.69 indicates that KLAC has no problem at all paying its short term obligations.
KLAC's Current ratio of 2.69 is in line compared to the rest of the industry. KLAC outperforms 46.90% of 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.
The Quick ratio of KLAC (1.88) is comparable to the rest of the industry.
| 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%.
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
The Earnings Per Share is expected to grow by 12.51% on average over the next years. This is quite good.
KLAC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.56% yearly.
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
KLAC is valuated quite expensively with a Price/Earnings ratio of 40.23.
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.
Based on the Price/Forward Earnings ratio, KLAC is valued a bit cheaper than the industry average as 60.18% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.92. KLAC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.23 | ||
| Fwd PE | 32.7 |
4.2 Price Multiples
KLAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KLAC is cheaper than 64.60% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KLAC is valued a bit cheaper than the industry average as 71.68% of the companies are valued more expensively.
| 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 an expensive valuation of the company.
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
KLAC has a yearly dividend return of 0.57%, which is pretty low.
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
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
KLAC pays out 22.67% of its income as dividend. This is a 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 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
WACC10.73%
ROIC/WACC3.55
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.