| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
KLAC Overview
KLA Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries worldwide.
KLA Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$369.81 |
| 52 Week High | US$175.61 |
| 52 Week Low | US$374.60 |
| Beta | 1.21 |
| 1 Month Change | 16.46% |
| 3 Month Change | 21.46% |
| 1 Year Change | 106.64% |
| 3 Year Change | 253.82% |
| 5 Year Change | 433.48% |
| Change since IPO | 16,336.00% |
Recent News & Updates
Why KLA Corporation (NASDAQ:KLAC) Could Be Worth Watching
Today we're going to take a look at the well-established KLA Corporation ( NASDAQ:KLAC ). The company's stock received...
KLA Corporation: A Company I'd Love To Recommend, But I Can't
We're in a semiconductor bull market and will remain in it for the next 3 years as countries expand their manufacturing capacities. KLA is the leader in inspection and metrology equipment and shows stellar management. We look at KLA's growth potential and argue for more growth against what most analysts predict. Our DCF analysis shows that most of the growth is already priced into the stock even with our positive growth outlook, leaving little potential return for new investors.
KLA's (NASDAQ:KLAC) Upcoming Dividend Will Be Larger Than Last Year's
KLA Corporation's ( NASDAQ:KLAC ) dividend will be increasing to US$1.05 on 1st of September. The announced payment...
KLA: My Top Equipment Stock But Underappreciated By Investors
KLA's 55% exposure to foundry coupled with TSMC's 67% capex growth in 2021 is a strong tailwind for record-breaking performance by KLA. The move to 5nm and 3nm nodes with smaller dimensions will be another tailwind for KLA's metrology/inspection market. KLA outperformed major competitors in top and bottom line financial metrics yet its stock underperformed the three competitors analyzed in this article. A semiconductor "shortage" and plan for geographic self-sufficiency are catalysts for an oversupply of chips in 2023 and a meltdown of the equipment market.
Shareholder Returns
| KLAC | US Semiconductor | US Market | |
|---|---|---|---|
| 7D | 5.5% | -0.04% | -0.6% |
| 1Y | 106.6% | 55.0% | 33.8% |
Return vs Industry: KLAC exceeded the US Semiconductor industry which returned 54.7% over the past year.
Return vs Market: KLAC exceeded the US Market which returned 33.6% over the past year.
Price Volatility
| KLAC volatility | |
|---|---|
| KLAC Beta | 1.21 |
| Industry Beta | 1.23 |
| Market Beta | 1 |
Stable Share Price: KLAC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: KLAC's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1975 | 11,425 | Rick Wallace | https://www.kla.com |
KLA Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries worldwide. The company offers chip and wafer manufacturing products, including defect inspection and review systems, metrology solutions, in situ process monitoring products, computational lithography software, and data analytics systems for chip manufacturers to manage yield throughout the semiconductor fabrication process. It also provides reticle manufacturing products, such as reticle inspection, metrology, and data analytics systems for mask shops; and packaging manufacturing products comprising wafer inspection and metrology, die sorting and inspection, IC component inspection and metrology, data analytics, wafer processing systems, and IC substrate production processes.
Valuation
Is KLA undervalued compared to its fair value and its price relative to the market?
7.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KLAC ($369.81) is trading below our estimate of fair value ($398.3)
Significantly Below Fair Value: KLAC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: KLAC is good value based on its PE Ratio (27.2x) compared to the US Semiconductor industry average (28.7x).
PE vs Market: KLAC is poor value based on its PE Ratio (27.2x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: KLAC is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: KLAC is overvalued based on its PB Ratio (16.7x) compared to the US Semiconductor industry average (4.6x).
Future Growth
How is KLA forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
12.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KLAC's forecast earnings growth (12% per year) is above the savings rate (2%).
Earnings vs Market: KLAC's earnings (12% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: KLAC's earnings are forecast to grow, but not significantly.
Revenue vs Market: KLAC's revenue (9% per year) is forecast to grow slower than the US market (9.7% per year).
High Growth Revenue: KLAC's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KLAC's Return on Equity is forecast to be very high in 3 years time (47.2%).
Past Performance
How has KLA performed over the past 5 years?
16.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KLAC has high quality earnings.
Growing Profit Margin: KLAC's current net profit margins (30%) are higher than last year (21%).
Past Earnings Growth Analysis
Earnings Trend: KLAC's earnings have grown by 16.8% per year over the past 5 years.
Accelerating Growth: KLAC's earnings growth over the past year (70.8%) exceeds its 5-year average (16.8% per year).
Earnings vs Industry: KLAC earnings growth over the past year (70.8%) exceeded the Semiconductor industry 70.6%.
Return on Equity
High ROE: Whilst KLAC's Return on Equity (61.54%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is KLA's financial position?
Financial Position Analysis
Short Term Liabilities: KLAC's short term assets ($5.7B) exceed its short term liabilities ($2.1B).
Long Term Liabilities: KLAC's short term assets ($5.7B) exceed its long term liabilities ($4.8B).
Debt to Equity History and Analysis
Debt Level: KLAC's debt to equity ratio (102%) is considered high.
Reducing Debt: KLAC's debt to equity ratio has reduced from 443% to 102% over the past 5 years.
Debt Coverage: KLAC's debt is well covered by operating cash flow (63.5%).
Interest Coverage: KLAC's interest payments on its debt are well covered by EBIT (16.8x coverage).
Balance Sheet
Dividend
What is KLA current dividend yield, its reliability and sustainability?
1.14%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KLAC's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: KLAC's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: KLAC's dividends per share have been stable in the past 10 years.
Growing Dividend: KLAC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.7%), KLAC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: KLAC's dividends in 3 years are forecast to be well covered by earnings (22.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.1yrs
Average management tenure
CEO
Rick Wallace (61 yo)
15.67yrs
Tenure
US$13,324,375
Compensation
Mr. Richard P. Wallace, also known as Rick, served as Independent Director for Proofpoint, Inc., a security and compliance company until August 31, 2021. Mr. Richard P. Wallace, also known as Rick, has bee...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD13.32M) is about average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: KLAC's management team is seasoned and experienced (6.1 years average tenure).
Board Members
Experienced Board: KLAC's board of directors are seasoned and experienced ( 12.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
KLA Corporation's employee growth, exchange listings and data sources
Key Information
- Name: KLA Corporation
- Ticker: KLAC
- Exchange: NasdaqGS
- Founded: 1975
- Industry: Semiconductor Equipment
- Sector: Semiconductors
- Market Cap: US$56.484b
- Shares outstanding: 152.74m
- Website: https://www.kla.com
Number of Employees
Location
- KLA Corporation
- One Technology Drive
- Milpitas
- California
- 95035
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 00:47 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.