Market Cap
US$26.2b
Last Updated
2020/02/22 00:25 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.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
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
Stable Share Price: KLAC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-8.6%
KLAC
0.7%
US Semiconductor
0.06%
US Market
1 Year Return
40.7%
KLAC
40.4%
US Semiconductor
19.3%
US Market
Return vs Industry: KLAC exceeded the US Semiconductor industry which returned 40.4% over the past year.
Return vs Market: KLAC exceeded the US Market which returned 19.3% over the past year.
Shareholder returns
| KLAC | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.6% | 0.7% | 0.06% |
| 30 Day | -11.7% | 3.2% | 1.7% |
| 90 Day | 1.7% | 16.7% | 9.0% |
| 1 Year | 43.9%40.7% | 43.1%40.4% | 21.8%19.3% |
| 3 Year | 92.2%78.4% | 96.2%85.6% | 49.5%39.9% |
| 5 Year | 184.4%148.0% | 157.0%132.4% | 73.1%54.1% |
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
5 days ago | Simply Wall St
Should You Buy KLA Corporation (NASDAQ:KLAC) For Its Upcoming Dividend In 3 Days?1 week ago | Simply Wall St
Have KLA Corporation (NASDAQ:KLAC) Insiders Been Selling Their Stock?2 weeks ago | Simply Wall St
KLA Corporation Just Recorded A 5.5% EPS Beat: Here's What Analysts Are Forecasting NextValuation
Is KLA undervalued compared to its fair value and its price relative to the market?
23.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KLAC ($167.3) is trading below our estimate of fair value ($210.21)
Significantly Below Fair Value: KLAC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KLAC is good value based on its PE Ratio (23.3x) compared to the Semiconductor industry average (38.2x).
PE vs Market: KLAC is poor value based on its PE Ratio (23.3x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: KLAC is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: KLAC is overvalued based on its PB Ratio (9.8x) compared to the US Semiconductor industry average (3.2x).
Next Steps
Future Growth
How is KLA forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
15.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KLAC's forecast earnings growth (15.4% per year) is above the savings rate (1.7%).
Earnings vs Market: KLAC's earnings (15.4% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: KLAC's earnings are forecast to grow, but not significantly.
Revenue vs Market: KLAC's revenue (5.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: KLAC's revenue (5.6% 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 (62.3%).
Next Steps
Past Performance
How has KLA performed over the past 5 years?
21.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KLAC has high quality earnings.
Growing Profit Margin: KLAC's current net profit margins (21.6%) are lower than last year (33%).
Past Earnings Growth Analysis
Earnings Trend: KLAC's earnings have grown significantly by 21.5% per year over the past 5 years.
Accelerating Growth: KLAC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: KLAC had negative earnings growth (-19.9%) over the past year, making it difficult to compare to the Semiconductor industry average (-28%).
Return on Equity
High ROE: Whilst KLAC's Return on Equity (42.29%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is KLA's financial position?
Financial Position Analysis
Short Term Liabilities: KLAC's short term assets ($4.4B) exceed its short term liabilities ($1.7B).
Long Term Liabilities: KLAC's short term assets ($4.4B) do not cover its long term liabilities ($4.8B).
Debt to Equity History and Analysis
Debt Level: KLAC's debt to equity ratio (126.5%) is considered high.
Reducing Debt: KLAC's debt to equity ratio has reduced from 540.2% to 126.5% over the past 5 years.
Debt Coverage: KLAC's debt is well covered by operating cash flow (40.4%).
Interest Coverage: KLAC's interest payments on its debt are well covered by EBIT (13.1x coverage).
Balance Sheet
Inventory Level: KLAC has a low level of unsold assets or inventory.
Debt Coverage by Assets: KLAC's 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?
2.11%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: KLAC's dividend (2.03%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: KLAC's dividend (2.03%) is low compared to the top 25% of dividend payers in the US market (3.71%).
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 (43.1%), 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 (31.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.7yrs
Average management tenure
CEO
Rick Wallace (59yo)
14.1yrs
Tenure
US$20,512,367
Compensation
Mr. Richard P. Wallace, also known as Rick, serves as Independent Director for Proofpoint, Inc., a security and compliance company. Mr. Richard P. Wallace, also known as Rick, has been the Chief Executive ...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD20.51M) is above average for companies of similar size in the US market ($USD10.79M).
Compensation vs Earnings: Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 14.1yrs | US$20.51m | 0.079% $20.6m | |
| Executive VP & CFO | 6.5yrs | US$6.91m | 0.0011% $283.3k | |
| Senior Advisor | 4.8yrs | US$5.60m | 0.00072% $188.8k | |
| President of Semiconductor Process Control | 4.5yrs | US$7.45m | 0.0045% $1.2m | |
| Chief Executive Officer of Orbotech Ltd. | 0.9yrs | US$8.07m | 0.012% $3.2m | |
| Senior VP & Chief Accounting Officer | 11.9yrs | US$1.31m | 0.00019% $49.8k | |
| CTO & Executive VP of Corporate Alliances | 26.1yrs | US$1.88m | no data | |
| Senior Director of Investor Relations | 0yrs | no data | no data | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Executive VP | 2.5yrs | US$1.84m | 0.0037% $967.8k |
5.7yrs
Average Tenure
56yo
Average Age
Experienced Management: KLAC's management team is seasoned and experienced (5.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 14.1yrs | US$20.51m | 0.079% $20.6m | |
| Non-Executive Chairman | 13.3yrs | US$436.82k | 0.026% $6.9m | |
| Founder & Chairman Emeritus | 13.3yrs | US$356.35k | no data | |
| Independent Director | 12.9yrs | US$347.57k | 0.0066% $1.7m | |
| Independent Director | 9.3yrs | US$310.07k | 0.0069% $1.8m | |
| Independent Director | 12.8yrs | US$327.57k | 0.010% $2.7m | |
| Independent Director | 1yrs | US$204.60k | 0.00092% $241.3k | |
| Independent Director | 11.8yrs | US$317.57k | 0.012% $3.1m | |
| Independent Director | 6.1yrs | US$307.57k | 0.0069% $1.8m | |
| Independent Director | 6.1yrs | US$307.57k | 0.0067% $1.8m |
12.3yrs
Average Tenure
62.5yo
Average Age
Experienced Board: KLAC's board of directors are seasoned and experienced ( 12.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: KLAC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.
Top Shareholders
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$26.228b
- Shares outstanding: 156.77m
- 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 |
| 0JPO | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Oct 1980 |
| KLAC | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Oct 1980 |
| KLA | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Oct 1980 |
| KLAC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Oct 1980 |
| K1LA34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
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 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 standalone and cluster inspection and metrology systems for various applications in the field of semiconductor packaging. In addition, the company offers compound semiconductor, power device, light emitting diode, and microelectromechanical system manufacturing products for the display market; data storage media/head manufacturing products; general purpose/lab applications; and previous-generation KLA systems. Further, it provides wafer processing solutions; printed circuit boards, and display and inspection components; products for the deposition of thin film coating of materials on crystalline silicon photovoltaic wafers; and other services. The company offers its products and services for use by various bare wafer, integrated circuit, reticle, and hard disk drive manufacturers. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was founded in 1975 and is headquartered in Milpitas, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 00:25 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| 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.