KLA CORP (KLAC) Stock Fundamental Analysis
NASDAQ:KLAC - Nasdaq - US4824801009 - Common Stock - Currency: USD
Overall KLAC gets a fundamental rating of 7 out of 10. We evaluated KLAC against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. While KLAC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KLAC is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, KLAC could be worth investigating further for growth 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.
KLAC had positive earnings in each of the past 5 years.
KLAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 21.39%, KLAC belongs to the best of the industry, outperforming 95.37% of the companies in the same industry.
KLAC has a Return On Equity of 89.51%. This is amongst the best in the industry. KLAC outperforms 98.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 35.07%, KLAC belongs to the top of the industry, outperforming 98.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KLAC is significantly above the industry average of 11.67%.
The last Return On Invested Capital (35.07%) for KLAC is above the 3 year average (33.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.39% | ||
| ROE | 89.51% | ||
| ROIC | 35.07% |
ROA(3y)22.78%
ROA(5y)20.34%
ROE(3y)145.04%
ROE(5y)108.46%
ROIC(3y)33.8%
ROIC(5y)29.72%
1.3 Margins
Looking at the Profit Margin, with a value of 29.58%, KLAC belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of KLAC has grown nicely.
Looking at the Operating Margin, with a value of 39.92%, KLAC belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
In the last couple of years the Operating Margin of KLAC has grown nicely.
KLAC has a better Gross Margin (61.37%) than 87.04% of its industry peers.
KLAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.92% | ||
| PM (TTM) | 29.58% | ||
| GM | 61.37% |
OM growth 3Y2.69%
OM growth 5Y5.1%
PM growth 3Y-2.14%
PM growth 5Y1.81%
GM growth 3Y1.07%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KLAC is creating value.
KLAC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KLAC has less shares outstanding
Compared to 1 year ago, KLAC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.68 indicates that KLAC is not in any danger for bankruptcy at the moment.
KLAC has a better Altman-Z score (7.68) than 70.37% of its industry peers.
KLAC has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.75, KLAC is doing good in the industry, outperforming 72.22% of the companies in the same industry.
KLAC has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
KLAC has a Debt to Equity ratio of 1.64. This is amonst the worse of the industry: KLAC underperforms 89.81% of its industry peers.
Even though the debt/equity ratio score it not favorable for KLAC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 7.68 |
ROIC/WACC2.97
WACC11.81%
2.3 Liquidity
KLAC has a Current Ratio of 2.36. This indicates that KLAC is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.36, KLAC is not doing good in the industry: 62.04% of the companies in the same industry are doing better.
A Quick Ratio of 1.63 indicates that KLAC should not have too much problems paying its short term obligations.
KLAC's Quick ratio of 1.63 is on the low side compared to the rest of the industry. KLAC is outperformed by 68.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.18% over the past year.
The Earnings Per Share has been growing by 22.88% on average over the past years. This is a very strong growth
The Revenue has grown by 12.15% in the past year. This is quite good.
KLAC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.52% yearly.
EPS 1Y (TTM)20.18%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%33.12%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%23.73%
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 13.95% yearly.
KLAC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.68% yearly.
EPS Next Y35.83%
EPS Next 2Y18.51%
EPS Next 3Y17.63%
EPS Next 5Y13.95%
Revenue Next Year21.42%
Revenue Next 2Y12.45%
Revenue Next 3Y11.57%
Revenue Next 5Y9.68%
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.
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
Based on the Price/Earnings ratio of 27.54, the valuation of KLAC can be described as expensive.
Based on the Price/Earnings ratio, KLAC is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. KLAC is around the same levels.
The Price/Forward Earnings ratio is 22.61, which indicates a rather expensive current valuation of KLAC.
74.07% of the companies in the same industry are more expensive than KLAC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, KLAC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 22.61 |
4.2 Price Multiples
69.44% of the companies in the same industry are more expensive than KLAC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KLAC is valued cheaper than 81.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.81 | ||
| EV/EBITDA | 21.88 |
4.3 Compensation for Growth
KLAC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of KLAC may justify a higher PE ratio.
A more expensive valuation may be justified as KLAC's earnings are expected to grow with 17.63% in the coming years.
PEG (NY)0.77
PEG (5Y)1.2
EPS Next 2Y18.51%
EPS Next 3Y17.63%
5. Dividend
5.1 Amount
KLAC has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 2.34, KLAC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, KLAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
On average, the dividend of KLAC grows each year by 13.33%, which is quite nice.
KLAC has paid a dividend for at least 10 years, which is a reliable track record.
KLAC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.33%
Div Incr Years15
Div Non Decr Years19
5.3 Sustainability
KLAC pays out 25.54% of its income as dividend. This is a 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.
DP25.54%
EPS Next 2Y18.51%
EPS Next 3Y17.63%
754.3
-23.33 (-3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.53%
Inst Owner Change-3.42%
Ins Owners0.12%
Ins Owner Change-4.6%
Market Cap100.24B
Analysts79.41
Price Target805.36 (6.77%)
Short Float %2%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend5.7
Dividend Growth(5Y)13.33%
DP25.54%
Div Incr Years15
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.83%
Min EPS beat(2)1.95%
Max EPS beat(2)3.72%
EPS beat(4)4
Avg EPS beat(4)3.45%
Min EPS beat(4)1.95%
Max EPS beat(4)5.27%
EPS beat(8)8
Avg EPS beat(8)3.77%
EPS beat(12)12
Avg EPS beat(12)4.28%
EPS beat(16)16
Avg EPS beat(16)4.12%
Revenue beat(2)2
Avg Revenue beat(2)1.84%
Min Revenue beat(2)1.01%
Max Revenue beat(2)2.66%
Revenue beat(4)3
Avg Revenue beat(4)0.93%
Min Revenue beat(4)-0.05%
Max Revenue beat(4)2.66%
Revenue beat(8)5
Avg Revenue beat(8)0.62%
Revenue beat(12)9
Avg Revenue beat(12)1.15%
Revenue beat(16)11
Avg Revenue beat(16)0.9%
PT rev (1m)-0.31%
PT rev (3m)-5.41%
EPS NQ rev (1m)4.87%
EPS NQ rev (3m)11.55%
EPS NY rev (1m)3.74%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)2.13%
Revenue NQ rev (3m)7.05%
Revenue NY rev (1m)2.01%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 22.61 | ||
| P/S | 9.24 | ||
| P/FCF | 29.81 | ||
| P/OCF | 27.48 | ||
| P/B | 27.96 | ||
| P/tB | 80.15 | ||
| EV/EBITDA | 21.88 |
EPS(TTM)27.39
EY3.63%
EPS(NY)33.37
Fwd EY4.42%
FCF(TTM)25.3
FCFY3.35%
OCF(TTM)27.45
OCFY3.64%
SpS81.62
BVpS26.97
TBVpS9.41
PEG (NY)0.77
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.39% | ||
| ROE | 89.51% | ||
| ROCE | 39.86% | ||
| ROIC | 35.07% | ||
| ROICexc | 53.79% | ||
| ROICexgc | 80.22% | ||
| OM | 39.92% | ||
| PM (TTM) | 29.58% | ||
| GM | 61.37% | ||
| FCFM | 31% |
ROA(3y)22.78%
ROA(5y)20.34%
ROE(3y)145.04%
ROE(5y)108.46%
ROIC(3y)33.8%
ROIC(5y)29.72%
ROICexc(3y)51.15%
ROICexc(5y)43.94%
ROICexgc(3y)94.92%
ROICexgc(5y)88.94%
ROCE(3y)38.41%
ROCE(5y)33.78%
ROICexcg growth 3Y2%
ROICexcg growth 5Y5.85%
ROICexc growth 3Y11.6%
ROICexc growth 5Y19.31%
OM growth 3Y2.69%
OM growth 5Y5.1%
PM growth 3Y-2.14%
PM growth 5Y1.81%
GM growth 3Y1.07%
GM growth 5Y0.93%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 1.75 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 71.31% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 14.69 | ||
| Cash Conversion | 77.11% | ||
| Profit Quality | 104.79% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 7.68 |
F-Score7
WACC11.81%
ROIC/WACC2.97
Cap/Depr(3y)78.64%
Cap/Depr(5y)69.86%
Cap/Sales(3y)3.14%
Cap/Sales(5y)3.08%
Profit Quality(3y)99.49%
Profit Quality(5y)105.22%
High Growth Momentum
Growth
EPS 1Y (TTM)20.18%
EPS 3Y17.76%
EPS 5Y22.88%
EPS Q2Q%33.12%
EPS Next Y35.83%
EPS Next 2Y18.51%
EPS Next 3Y17.63%
EPS Next 5Y13.95%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y12.35%
Revenue growth 5Y16.52%
Sales Q2Q%23.73%
Revenue Next Year21.42%
Revenue Next 2Y12.45%
Revenue Next 3Y11.57%
Revenue Next 5Y9.68%
EBIT growth 1Y16.26%
EBIT growth 3Y15.38%
EBIT growth 5Y22.46%
EBIT Next Year39.77%
EBIT Next 3Y17.97%
EBIT Next 5Y12.95%
FCF growth 1Y12.58%
FCF growth 3Y15.77%
FCF growth 5Y24.29%
OCF growth 1Y9.27%
OCF growth 3Y14.83%
OCF growth 5Y23.48%