Market Cap
US$24.1b
Last Updated
2019/09/16 23:37 UTC
Data Sources
Company Financials +
Executive Summary
KLA Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries worldwide.
Snowflake
Fundamentals
Established dividend payer with proven track record.
Risks
- KLA has significant price volatility in the past 3 months.
Similar Companies
Share Price & News
How has KLA's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
0.5%
NasdaqGS:KLAC
0.8%
US Semiconductor
1.1%
US Market
1 Year Return
46.4%
NasdaqGS:KLAC
11.3%
US Semiconductor
2.1%
US Market
KLAC outperformed the Semiconductor industry which returned 11.1% over the past year.
KLAC outperformed the Market in United States of America which returned 2% over the past year.
Share holder returns
| KLAC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 0.8% | 1.1% |
| 30 Day | 11.1% | 7.7% | 3.7% |
| 90 Day | 35.5% | 12.3% | 2.3% |
| 1 Year | 50.5%46.4% | 13.3%11.3% | 4.4%2.1% |
| 3 Year | 134.5%116.9% | 83.6%72.9% | 47.0%37.4% |
| 5 Year | 170.4%88.8% | 123.2%100.4% | 61.6%43.8% |
Price Volatility Vs. Market
How volatile is KLA's share price compared to the market and industry in the last 5 years?
Simply Wall St News
20 hours ago | Simply Wall St
Was KLA Corporation's (NASDAQ:KLAC) Earnings Growth Better Than The Industry's?1 week ago | Simply Wall St
Calculating The Intrinsic Value Of KLA Corporation (NASDAQ:KLAC)2 weeks ago | Simply Wall St
KLA Corporation (NASDAQ:KLAC): What's The Analyst Consensus Outlook?Valuation
Is KLA undervalued based on future cash flows and its price relative to the stock market?
9%
Discount to future cash flow value
Intrinsic Value Based on Future Cash Flows
KLA's share price is below the future cash flow value, but not at a moderate discount (< 20%).
KLA's share price is below the future cash flow value, but not at a substantial discount (< 40%).
Price Based on Earnings
KLA is good value based on earnings compared to the US Semiconductor industry average.
KLA is overvalued based on earnings compared to the United States of America market.
Price Based on Expected Growth
KLA is poor value based on expected growth next year.
Price Based on Value of Assets
KLA is overvalued based on assets compared to the US Semiconductor industry average.
Next Steps
Future Growth
How is KLA expected to perform in the next 1 to 3 years based on estimates from 15 analysts?
11.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Estimates
Future Annual Growth Analysis
KLA's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
KLA's earnings are expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).
KLA's revenue growth is expected to exceed the United States of America market average.
KLA's earnings growth is positive but not above the United States of America market average.
KLA's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Earnings per Share Growth Estimates
Future Return on Equity
KLA is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
Next Steps
Past Performance
How has KLA performed over the past 5 years?
21.4%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
KLA has delivered over 20% year on year earnings growth in the past 5 years.
KLA's 1-year earnings growth exceeds its 5-year average (46.5% vs 21.4%)
KLA's earnings growth has exceeded the US Semiconductor industry average in the past year (46.5% vs -6.2%).
Return on Equity
Whilst KLA made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
Return on Assets
KLA used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
Return on Capital Employed
KLA's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Next Steps
Financial Health
How is KLA's financial position?
Financial Position Analysis
KLA is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
KLA's long term commitments exceed its cash and other short term assets.
Debt to Equity History and Analysis
KLA's level of debt (127.8%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has increased over the past 5 years (20.3% vs 127.8% today).
Debt is well covered by operating cash flow (33.7%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 16.5x coverage).
Balance Sheet
Low level of unsold assets.
Debt is covered by short term assets, assets are 1.3x debt.
Next Steps
Dividend
What is KLA's current dividend yield, its reliability and sustainability?
2.33%
Expected Dividend Yield
Dividend Yield and Payments Analysis
KLA's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
KLA's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).
Dividends per share have been stable in the past 10 years.
Dividends per share have increased over the past 10 years.
Current Payout to Shareholders
Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to Shareholders
Dividends after 3 years are expected to be well covered by earnings (3x coverage).
Next Steps
Management
What is the CEO of KLA's salary, the management and board of directors tenure and is there insider trading?
6.1yrs
Average management tenure
CEO
Rick Wallace (59yo)
13.7yrs
Tenure
US$12,391,300
Compensation
Mr. Richard P. Wallace, also known as Rick, has been the Chief Executive Officer of KLA-Tencor Corporation since January 01, 2006 and its President since December 31, 2008. Mr. Wallace serves on the board ...
CEO Compensation Analysis
Rick's remuneration is about average for companies of similar size in United States of America.
Rick's compensation has been consistent with company performance over the past year, both up more than 20%.
Management Age and Tenure
6.1yrs
Average Tenure
56yo
Average Age
The average tenure for the KLA management team is over 5 years, this suggests they are a seasoned and experienced team.
Board Age and Tenure
12.3yrs
Average Tenure
67yo
Average Age
The average tenure for the KLA board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Insider Trading
KLA individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,500 |
| Max Price | US$150.00 |
| Entity | Individual |
| Shares | 8,962 |
| Max Price | US$140.00 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 1,500 |
| Max Price | US$110.38 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 2,141 |
| Max Price | US$117.43 |
Ownership Breakdown
Management Team
Rick Wallace (59yo)
President
- Tenure: 13.7yrs
- Compensation: US$12.39m
Virendra Kirloskar (56yo)
Senior VP & Chief Accounting Officer
- Tenure: 11.5yrs
- Compensation: US$1.31m
Benjamin Tsai (60yo)
CTO & Executive VP of Corporate Alliances
- Tenure: 25.7yrs
- Compensation: US$1.88m
Brian Trafas (56yo)
Executive Vice President of Global Customer Organization
- Tenure: 4.4yrs
- Compensation: US$3.16m
Ted Lockwood
Senior Director of Investor Relations
- Tenure: 0yrs
Bren Higgins (49yo)
Executive VP & CFO
- Tenure: 6.1yrs
- Compensation: US$4.02m
Ahmad Khan (45yo)
Executive Vice President of Global Products Group
- Tenure: 4.1yrs
- Compensation: US$4.17m
Teri Little (55yo)
Executive VP
- Tenure: 2.1yrs
- Compensation: US$1.84m
Oreste Donzella
Senior VP of Global Customer Solution & Chief Marketing Officer
- Tenure: 0yrs
Becky Howland
Senior Director of Corporate Communications
- Tenure: 0yrs
Board Members
John Dickson (73yo)
Director
- Tenure: 12.3yrs
- Compensation: US$317.23k
Ned Barnholt (75yo)
Non-Executive Chairman
- Tenure: 12.9yrs
- Compensation: US$435.83k
Ken Levy (75yo)
Founder & Chairman Emeritus
- Tenure: 12.9yrs
- Compensation: US$356.35k
Rick Wallace (59yo)
President
- Tenure: 13.7yrs
- Compensation: US$12.39m
Bob Calderoni (59yo)
Director
- Tenure: 12.5yrs
- Compensation: US$347.23k
Emiko Higashi (61yo)
Director
- Tenure: 8.8yrs
- Compensation: US$309.73k
Kevin Kennedy (64yo)
Director
- Tenure: 12.3yrs
- Compensation: US$327.23k
Kiran Patel (71yo)
Director
- Tenure: 11.3yrs
- Compensation: US$317.23k
Bob Rango (61yo)
Director
- Tenure: 5.7yrs
- Compensation: US$307.23k
Gary Moore (70yo)
Director
- Tenure: 5.7yrs
- Compensation: US$307.23k
Company Information
KLA Corporation's company bio, 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$24.078b
- Shares outstanding: 159.26m
- Website: https://www.kla.com
Number of Employees
Location
- KLA Corporation
- One Technology Drive
- Milpitas
- California
- 95035
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KLAC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Oct 1980 |
| KLA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 1980 |
| KLAC | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Oct 1980 |
Biography
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 m ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/09/16 23:37 |
| End of Day Share Price | 2019/09/16 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.