Market Cap
US$54.4b
Last Updated
2021/04/09 22:57 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with proven track record and pays a dividend.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: KLAC's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
1.6%
KLAC
2.0%
US Semiconductor
1.6%
US Market
1 Year Return
135.0%
KLAC
91.7%
US Semiconductor
55.3%
US Market
Return vs Industry: KLAC exceeded the US Semiconductor industry which returned 91.7% over the past year.
Return vs Market: KLAC exceeded the US Market which returned 55.3% over the past year.
Shareholder returns
| KLAC | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | 2.0% | 1.6% |
| 30 Day | 24.5% | 11.5% | 4.1% |
| 90 Day | 24.6% | 10.7% | 5.5% |
| 1 Year | 138.8%135.0% | 94.8%91.7% | 58.1%55.3% |
| 3 Year | 250.4%228.0% | 123.1%111.7% | 63.8%53.3% |
| 5 Year | 447.6%386.5% | 341.2%298.5% | 120.2%95.7% |
Long-Term 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
1 week ago | Simply Wall St
Is KLA (NASDAQ:KLAC) Using Too Much Debt?3 weeks ago | Simply Wall St
Shareholders of KLA (NASDAQ:KLAC) Must Be Delighted With Their 366% Total Return1 month ago | Simply Wall St
Is It Time To Consider Buying KLA Corporation (NASDAQ:KLAC)?Valuation
Is KLA undervalued compared to its fair value and its price relative to the market?
40.04x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: KLAC ($354.04) is trading above our estimate of fair value ($237.37)
Significantly Below Fair Value: KLAC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: KLAC's PE Ratio (40.2x) is in line with the US Semiconductor industry average.
PE vs Market: KLAC is poor value based on its PE Ratio (40.2x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: KLAC is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: KLAC is overvalued based on its PB Ratio (18.6x) compared to the US Semiconductor industry average (5.3x).
Future Growth
How is KLA forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
12.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KLAC's forecast earnings growth (12.5% per year) is above the savings rate (2%).
Earnings vs Market: KLAC's earnings (12.5% per year) are forecast to grow slower than the US market (18.7% per year).
High Growth Earnings: KLAC's earnings are forecast to grow, but not significantly.
Revenue vs Market: KLAC's revenue (5.9% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: KLAC's revenue (5.9% 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 (54.3%).
Past Performance
How has KLA performed over the past 5 years?
14.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KLAC has high quality earnings.
Growing Profit Margin: KLAC's current net profit margins (22.5%) are higher than last year (21.5%).
Past Earnings Growth Analysis
Earnings Trend: KLAC's earnings have grown by 14.2% per year over the past 5 years.
Accelerating Growth: KLAC's earnings growth over the past year (20.3%) exceeds its 5-year average (14.2% per year).
Earnings vs Industry: KLAC earnings growth over the past year (20.3%) underperformed the Semiconductor industry 33.2%.
Return on Equity
High ROE: Whilst KLAC's Return on Equity (46.28%) 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 ($5.2B) exceed its short term liabilities ($2.0B).
Long Term Liabilities: KLAC's short term assets ($5.2B) exceed its long term liabilities ($4.8B).
Debt to Equity History and Analysis
Debt Level: KLAC's debt to equity ratio (117.3%) is considered high.
Reducing Debt: KLAC's debt to equity ratio has reduced from 850.6% to 117.3% over the past 5 years.
Debt Coverage: KLAC's debt is well covered by operating cash flow (56.9%).
Interest Coverage: KLAC's interest payments on its debt are well covered by EBIT (14.6x coverage).
Balance Sheet
Dividend
What is KLA current dividend yield, its reliability and sustainability?
1.02%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KLAC's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: KLAC's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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 (39.7%), 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 (27.1% 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 (60 yo)
15.25yrs
Tenure
US$13,324,375
Compensation
Mr. Richard P. Wallace, also known as Rick, serves as Independent Director for Proofpoint, Inc., a security and compliance company. Mr. Richard P. Wallace, also known as Rick, has been the Chief Executive ...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD13.32M) is about average for companies of similar size in the US market ($USD10.94M).
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 (5.7 years average tenure).
Board Members
Experienced Board: KLAC's board of directors are seasoned and experienced ( 11.7 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 not been meaningfully diluted in the past year.
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$54.365b
- Shares outstanding: 154.07m
- Website: https://www.kla.com
Number of Employees
Location
- KLA Corporation
- One Technology Drive
- Milpitas
- California
- 95035
- United States
Listings
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 | 2021/04/09 22:57 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.