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KLA-Tencor

Nasdaq:KLAC
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KLAC
Nasdaq
$20B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries worldwide. The last earnings update was 79 days ago. More info.


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  • KLA-Tencor has significant price volatility in the past 3 months.
KLAC Share Price and Events
7 Day Returns
1.1%
NasdaqGS:KLAC
3.9%
US Semiconductor
0.8%
US Market
1 Year Returns
21.4%
NasdaqGS:KLAC
5.8%
US Semiconductor
5.9%
US Market
KLAC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
KLA-Tencor (KLAC) 1.1% 3.4% 29.7% 21.4% 72.5% 83.3%
US Semiconductor 3.9% 8.6% 25.9% 5.8% 102% 119.5%
US Market 0.8% 2.6% 10.6% 5.9% 37.7% 45.5%
1 Year Return vs Industry and Market
  • KLAC outperformed the Semiconductor industry which returned 5.8% over the past year.
  • KLAC outperformed the Market in United States of America which returned 5.9% over the past year.
Price Volatility
KLAC
Industry
5yr Volatility vs Market

Value

 Is KLA-Tencor undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of KLA-Tencor to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for KLA-Tencor.

NasdaqGS:KLAC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:KLAC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.141 (1 + (1- 21%) (11.01%))
1.161
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.161 * 5.96%)
9.65%

Discounted Cash Flow Calculation for NasdaqGS:KLAC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for KLA-Tencor is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:KLAC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.65%)
2019 939.43 Analyst x3 856.76
2020 1,280.03 Analyst x3 1,064.65
2021 1,308.50 Est @ 2.22% 992.55
2022 1,339.58 Est @ 2.38% 926.71
2023 1,372.83 Est @ 2.48% 866.13
2024 1,407.92 Est @ 2.56% 810.10
2025 1,444.64 Est @ 2.61% 758.08
2026 1,482.85 Est @ 2.64% 709.65
2027 1,522.45 Est @ 2.67% 664.49
2028 1,563.38 Est @ 2.69% 622.30
Present value of next 10 years cash flows $8,271.43
NasdaqGS:KLAC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,563.38 × (1 + 2.73%) ÷ (9.65% – 2.73%)
$23,210.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $23,210.86 ÷ (1 + 9.65%)10
$9,239.05
NasdaqGS:KLAC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,271.43 + $9,239.05
$17,510.48
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $17,510.48 / 163.66
$106.99
NasdaqGS:KLAC Discount to Share Price
Calculation Result
Value per share (USD) From above. $106.99
Current discount Discount to share price of $124.20
= -1 x ($124.20 - $106.99) / $106.99
-16.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of KLA-Tencor is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for KLA-Tencor's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are KLA-Tencor's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:KLAC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $9.18
NasdaqGS:KLAC Share Price ** NasdaqGS (2019-04-18) in USD $124.2
United States of America Semiconductor Industry PE Ratio Median Figure of 69 Publicly-Listed Semiconductor Companies 20.39x
United States of America Market PE Ratio Median Figure of 3,078 Publicly-Listed Companies 18.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of KLA-Tencor.

NasdaqGS:KLAC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:KLAC Share Price ÷ EPS (both in USD)

= 124.2 ÷ 9.18

13.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KLA-Tencor is good value based on earnings compared to the US Semiconductor industry average.
  • KLA-Tencor is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does KLA-Tencor's expected growth come at a high price?
Raw Data
NasdaqGS:KLAC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
5%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 64 Publicly-Listed Semiconductor Companies 1.2x
United States of America Market PEG Ratio Median Figure of 2,108 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:KLAC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.54x ÷ 5%

2.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KLA-Tencor is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on KLA-Tencor's assets?
Raw Data
NasdaqGS:KLAC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $10.55
NasdaqGS:KLAC Share Price * NasdaqGS (2019-04-18) in USD $124.2
United States of America Semiconductor Industry PB Ratio Median Figure of 107 Publicly-Listed Semiconductor Companies 2.81x
United States of America Market PB Ratio Median Figure of 5,172 Publicly-Listed Companies 1.93x
NasdaqGS:KLAC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:KLAC Share Price ÷ Book Value per Share (both in USD)

= 124.2 ÷ 10.55

11.77x

* Primary Listing of KLA-Tencor.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KLA-Tencor is overvalued based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess KLA-Tencor's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. KLA-Tencor has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is KLA-Tencor expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is KLA-Tencor expected to grow at an attractive rate?
  • KLA-Tencor's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • KLA-Tencor's earnings growth is positive but not above the United States of America market average.
  • KLA-Tencor's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:KLAC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:KLAC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 5%
NasdaqGS:KLAC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 10.8%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 11.1%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:KLAC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:KLAC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 5,457 1,446 4
2020-06-30 5,240 1,368 1,305 10
2019-06-30 4,516 1,040 1,242 11
NasdaqGS:KLAC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 4,304 1,390 1,421
2018-09-30 4,160 1,237 917
2018-06-30 4,037 1,229 802
2018-03-31 3,905 1,318 710
2017-12-31 3,798 1,190 656
2017-09-30 3,699 1,284 1,029
2017-06-30 3,480 1,080 926
2017-03-31 3,461 971 941
2016-12-31 3,259 858 864
2016-09-30 3,093 736 778
2016-06-30 2,984 760 704
2016-03-31 2,822 723 575

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • KLA-Tencor's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
  • KLA-Tencor's revenue is expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:KLAC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from KLA-Tencor Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:KLAC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 9.50 10.29 8.72 2.00
2020-06-30 8.33 9.65 6.77 5.00
2019-06-30 7.79 8.45 7.42 5.00
NasdaqGS:KLAC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 9.18
2018-09-30 5.88
2018-06-30 5.13
2018-03-31 4.53
2017-12-31 4.19
2017-09-30 6.57
2017-06-30 5.92
2017-03-31 6.03
2016-12-31 5.54
2016-09-30 4.99
2016-06-30 4.52
2016-03-31 3.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • KLA-Tencor is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess KLA-Tencor's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
KLA-Tencor has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has KLA-Tencor performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare KLA-Tencor's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • KLA-Tencor's year on year earnings growth rate has been positive over the past 5 years.
  • KLA-Tencor's 1-year earnings growth exceeds its 5-year average (116.5% vs 17.9%)
  • KLA-Tencor's earnings growth has exceeded the US Semiconductor industry average in the past year (116.5% vs 37.3%).
Earnings and Revenue History
KLA-Tencor's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from KLA-Tencor Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:KLAC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 4,304.46 1,420.69 457.63 624.76
2018-09-30 4,160.38 917.27 450.43 615.56
2018-06-30 4,036.70 802.27 443.43 608.71
2018-03-31 3,905.34 709.66 431.38 593.23
2017-12-31 3,797.86 656.34 414.11 570.11
2017-09-30 3,698.92 1,028.91 402.38 544.32
2017-06-30 3,480.01 926.08 389.34 526.87
2017-03-31 3,460.54 941.46 387.97 517.67
2016-12-31 3,259.16 863.67 379.12 503.09
2016-09-30 3,092.52 777.63 381.72 489.95
2016-06-30 2,984.49 704.42 375.70 479.66
2016-03-31 2,821.65 574.90 356.94 470.04
2015-12-31 2,847.68 530.76 370.64 479.04
2015-09-30 2,813.79 398.82 376.88 494.82
2015-06-30 2,814.05 366.16 394.36 519.52
2015-03-31 2,792.06 352.87 404.94 540.23
2014-12-31 2,885.20 424.81 393.68 549.80
2014-09-30 2,913.97 543.79 389.16 550.83
2014-06-30 2,929.41 582.76 386.01 539.47
2014-03-31 2,915.10 588.79 384.09 528.72
2013-12-31 2,812.53 551.60 392.73 513.34
2013-09-30 2,780.41 518.98 389.12 500.36
2013-06-30 2,842.78 543.15 387.81 487.83
2013-03-31 3,015.21 656.26 383.71 478.85
2012-12-31 3,126.71 695.22 376.22 470.16
2012-09-30 3,096.18 699.39 375.78 464.92
2012-06-30 3,171.94 756.02 372.67 452.94

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst KLA-Tencor 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.
  • KLA-Tencor used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • KLA-Tencor has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess KLA-Tencor's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
KLA-Tencor has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is KLA-Tencor's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up KLA-Tencor's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • KLA-Tencor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • KLA-Tencor's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of KLA-Tencor's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from KLA-Tencor Company Filings, last reported 3 months ago.

NasdaqGS:KLAC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,597.62 2,238.38 2,694.09
2018-09-30 1,567.37 2,237.89 2,780.31
2018-06-30 1,620.51 2,237.40 2,880.32
2018-03-31 1,370.14 2,461.91 2,889.98
2017-12-31 1,225.63 2,486.43 2,758.19
2017-09-30 1,463.96 2,774.84 3,056.48
2017-06-30 1,326.42 2,930.46 3,016.74
2017-03-31 1,147.31 2,954.83 2,703.51
2016-12-31 965.10 2,979.20 2,592.98
2016-09-30 781.51 3,018.57 2,494.62
2016-06-30 689.11 3,057.94 2,491.29
2016-03-31 476.57 3,097.31 2,241.31
2015-12-31 365.63 3,131.68 2,241.43
2015-09-30 294.44 3,151.05 2,269.45
2015-06-30 421.44 3,190.42 2,387.11
2015-03-31 493.94 3,236.80 2,339.79
2014-12-31 602.14 3,246.07 2,366.83
2014-09-30 3,529.72 748.05 2,942.49
2014-06-30 3,669.35 745.10 3,152.64
2014-03-31 3,639.93 747.78 3,026.82
2013-12-31 3,550.21 747.65 2,950.66
2013-09-30 3,491.16 747.51 2,951.88
2013-06-30 3,482.15 747.38 2,918.88
2013-03-31 3,446.38 747.24 2,879.50
2012-12-31 3,361.14 747.10 2,578.25
2012-09-30 3,352.31 746.97 2,638.08
2012-06-30 3,315.60 746.83 2,534.44
  • KLA-Tencor's level of debt (140.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (21.1% vs 140.1% today).
  • Debt is well covered by operating cash flow (62.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 23.3x coverage).
X
Financial health checks
We assess KLA-Tencor's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. KLA-Tencor has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is KLA-Tencor's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.42%
Current annual income from KLA-Tencor dividends. Estimated to be 2.56% next year.
If you bought $2,000 of KLA-Tencor shares you are expected to receive $48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • KLA-Tencor's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • KLA-Tencor's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:KLAC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:KLAC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 3.48 1.00
2022-06-30 3.39 1.00
2021-06-30 3.23 6.00
2020-06-30 3.25 10.00
2019-06-30 3.02 10.00
NasdaqGS:KLAC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-31 3.000 2.590
2019-01-29 3.000 2.872
2018-08-02 3.000 3.054
2018-02-14 3.000 2.741
2018-02-01 2.360 2.268
2017-11-01 2.360 2.208
2017-06-01 2.360 2.401
2017-05-04 2.160 2.117
2017-02-02 2.160 2.311
2016-10-05 2.160 2.775
2016-08-04 2.080 2.967
2016-05-05 2.080 2.854
2016-02-04 2.080 2.997
2015-11-05 2.080 3.107
2015-07-14 2.080 3.943
2015-05-07 2.000 3.470
2015-02-05 2.000 3.277
2014-11-06 2.000 2.840
2014-07-08 2.000 2.670
2014-05-08 1.800 2.677
2014-02-06 1.800 2.726
2013-11-07 1.800 2.869
2013-07-09 1.800 2.994
2013-04-25 1.600 2.894
2013-02-07 1.600 2.975
2012-11-08 1.600 3.297
2012-07-10 1.600 3.256
2012-05-03 1.400 2.944
2012-02-09 1.400 2.732
2011-11-03 1.400 2.920
2011-07-12 1.400 3.559
2011-05-05 1.000 2.427
2011-02-11 1.000 2.180
2010-11-04 1.000 2.506
2010-08-05 1.000 3.105
2010-05-06 0.600 1.981
2010-02-04 0.600 1.938
2009-11-04 0.600 1.781
2009-08-06 0.600 1.797
2009-05-05 0.600 2.210
2009-04-20 0.600 2.286

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of KLA-Tencor's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess KLA-Tencor's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can KLA-Tencor afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. KLA-Tencor has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of KLA-Tencor's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rick Wallace
COMPENSATION $12,391,300
AGE 58
TENURE AS CEO 13.3 years
CEO Bio

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 of directors for Proofpoint, Inc., a security and compliance company. Mr. Wallace has been an Executive Director of KLA-Tencor Corporation since January 01, 2006. He has more than two decades of experience. He served as the President and Chief Operating Officer of KLA-Tencor Corporation from July 2005 to December 2005. He served as Executive Vice President of Customer Group of KLA-Tencor Corp. since May 2004 to July 2005, overseeing the Reticle and Photomask Inspection Division, Films and Surface Technology Division, CTO Software and Customer Group. He served as an Executive Vice President of the Wafer Inspection Review & Analysis Group division of KLA-Tencor Corp. since July 2000 to May 2004 and had P&L responsibility for seven product divisions, which collectively generate more than 50 percent of the Wafer Inspection Group's revenue and profit. He served as Group Vice President for the Lithography Control Group, as well as Vice President/General Manager and Vice President of marketing for the Wafer Inspection Division. He began his career at KLA Instruments in 1988 as an applications engineer and has held various general management positions throughout his 30-year tenure with it. He joined KLA-Tencor in 1988 as director of applications engineering and has held various general management positions throughout his 29-year tenure with it. Mr. Wallace held positions with Ultratech Stepper® and Cypress Semiconductor®. From April 1998 to June 1999, he served as Vice President and General Manager of the Mirage Group of KLA-Tencor Corp. and from 1995 to March 1998, he served as a Vice President and General Manager of the Wisard division. He served as Chairman of the board for Semiconductor Equipment and Materials International and is Chairman of the Board of Beckman Coulter. He served as a Vice Chairman of Semiconductor Equipment and Materials International since July 15, 2009. He has been a Director of Silicon Valley Leadership Group since March 11, 2011. He has been an Independent Director of NetApp, Inc. since March 17, 2011 and Proofpoint, Inc. since May 2017. He served as a Director of Mercury Systems, Inc. from 2002 to September 2003 and Beckman Coulter Inc. from October 20, 2009 to June 2011. He holds BS in electrical engineering from the University of Michigan and an MS in Engineering Management from Santa Clara University, where he also taught strategic marketing and global competitiveness courses upon his graduation.

CEO Compensation
  • Rick's compensation has been consistent with company performance over the past year.
  • Rick's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the KLA-Tencor management team in years:

5.7
Average Tenure
55
Average Age
  • The average tenure for the KLA-Tencor management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Rick Wallace

TITLE
President
COMPENSATION
$12M
AGE
58
TENURE
13.3 yrs

Bren Higgins

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
48
TENURE
5.7 yrs

Teri Little

TITLE
Executive VP
COMPENSATION
$2M
AGE
54
TENURE
1.7 yrs

Brian Trafas

TITLE
Executive Vice President of Global Customer Organization
COMPENSATION
$3M
AGE
55
TENURE
4 yrs

Ahmad Khan

TITLE
Executive Vice President of Global Products Group
COMPENSATION
$4M
AGE
44
TENURE
3.7 yrs

Virendra Kirloskar

TITLE
Senior VP & Chief Accounting Officer
COMPENSATION
$1M
AGE
55
TENURE
11.1 yrs

Benjamin Tsai

TITLE
CTO & Executive VP of Corporate Alliances
COMPENSATION
$2M
AGE
59
TENURE
25.3 yrs

Ed Lockwood

TITLE
Senior Director of Investor Relations

Becky Howland

TITLE
Senior Director of Communications

Oreste Donzella

TITLE
Senior VP of Global Customer Solution & Chief Marketing Officer
Board of Directors Tenure

Average tenure and age of the KLA-Tencor board of directors in years:

11.9
Average Tenure
66
Average Age
  • The average tenure for the KLA-Tencor board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Ned Barnholt

TITLE
Non-Executive Chairman
COMPENSATION
$436K
AGE
74
TENURE
12.5 yrs

Rick Wallace

TITLE
President
COMPENSATION
$12M
AGE
58
TENURE
13.3 yrs

Ken Levy

TITLE
Founder & Chairman Emeritus
COMPENSATION
$356K
AGE
74
TENURE
12.5 yrs

Bob Calderoni

TITLE
Director
COMPENSATION
$347K
AGE
58
TENURE
12.1 yrs

Kevin Kennedy

TITLE
Director
COMPENSATION
$327K
AGE
63
TENURE
11.9 yrs

John Dickson

TITLE
Director
COMPENSATION
$317K
AGE
72
TENURE
11.9 yrs

Kiran Patel

TITLE
Director
COMPENSATION
$317K
AGE
70
TENURE
10.9 yrs

Emiko Higashi

TITLE
Director
COMPENSATION
$310K
AGE
60
TENURE
8.4 yrs

Gary Moore

TITLE
Director
COMPENSATION
$307K
AGE
69
TENURE
5.3 yrs

Bob Rango

TITLE
Director
COMPENSATION
$307K
AGE
60
TENURE
5.3 yrs
Who owns this company?
Recent Insider Trading
  • KLA-Tencor insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Mar 19 Sell Emiko Higashi Individual 12. Mar 19 12. Mar 19 -2,141 $117.43 $-251,418
04. Jul 18 Buy Robert Rango Individual 14. Feb 18 27. Apr 18 311 $107.09 $32,714
X
Management checks
We assess KLA-Tencor's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. KLA-Tencor has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

With EPS Growth And More, KLA-Tencor (NASDAQ:KLAC) Is Interesting

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like KLA-Tencor (NASDAQ:KLAC). … Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. … I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats).

Simply Wall St -

Is KLA-Tencor Corporation's (NASDAQ:KLAC) CEO Salary Justified?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Rick Wallace's Compensation Compare With Similar Sized Companies. … Our data indicates that KLA-Tencor Corporation is worth US$20b, and total annual CEO compensation is US$12m.

Simply Wall St -

Are Insiders Selling KLA-Tencor Corporation (NASDAQ:KLAC) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in KLA-Tencor Corporation (NASDAQ:KLAC). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that even when the share price was slightly below the current price of US$120, an insider wanted to cash in some shares.

Simply Wall St -

The KLA-Tencor Share Price Is Up 70% And Shareholders Are Holding On

For example, long term KLA-Tencor Corporation (NASDAQ:KLAC) shareholders have enjoyed a 70% share price rise over the last half decade, well in excess of the market return of around 41% (not including dividends). … During five years of share price growth, KLA-Tencor achieved compound earnings per share (EPS) growth of 23% per year. … This EPS growth is higher than the 11% average annual increase in the share price.

Simply Wall St -

2 Days Left Before KLA-Tencor Corporation (NASDAQ:KLAC) Will Be Trading Ex-Dividend

To qualify for the dividend check of US$0.75 per share, investors must have owned the shares prior to 14 February 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine KLA-Tencor's latest financial data to analyse its dividend characteristics. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

Simply Wall St -

Is It Too Late To Consider Buying KLA-Tencor Corporation (NASDAQ:KLAC)?

led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

Why KLA-Tencor Corporation (NASDAQ:KLAC) Should Be In Your Portfolio

There is a lot to be liked about KLA-Tencor Corporation (NASDAQ:KLAC) as an income stock. … The company currently pays out a dividend yield of 3.1% to shareholders, making it a relatively attractive dividend stock. … Take the survey and be part of one of the most advanced studies of stock market investors to date

Simply Wall St -

KLA-Tencor Corporation (NASDAQ:KLAC): The Yield That Matters The Most

If you are currently a shareholder in KLA-Tencor Corporation (NASDAQ:KLAC), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of KLA-Tencor’s cash flow, which will help you understand the stock from a cash standpoint. … Free cash flow (FCF) is the amount of cash KLA-Tencor has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

Is KLA-Tencor Corporation's (NASDAQ:KLAC) P/E Ratio Really That Good?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … KLA-Tencor has a price to earnings ratio of 14.59, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Should We Expect From KLA-Tencor Corporation's (NASDAQ:KLAC) Earnings In The Year Ahead?

Since KLA-Tencor Corporation (NASDAQ:KLAC) released its earnings in September 2018,. … it seems that analyst forecasts are fairly optimistic, … the past 5-year average growth rate of 14%

Simply Wall St -

Company Info

Description

KLA-Tencor 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 that include wafer-level packaging inspection/metrology and component inspection/metrology products 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, which comprise process control equipment, test equipment and surface profilers, and metrology and defect inspection solutions; and optical and stylus profilers, and in situ process monitoring products for general purpose/lab applications. Further, it provides refurbished systems, remanufactured systems, and enhanced and upgraded systems under the K-T Pro name; and service engineering, technical support, and knowledge management system services. The company offers its products and services for use by various bare wafer, integrated circuit, reticle, and hard disk drive manufacturers. KLA-Tencor Corporation was founded in 1975 and is headquartered in Milpitas, California.

Details
Name: KLA-Tencor Corporation
KLAC
Exchange: NasdaqGS
Founded: 1975
$20,327,067,309
163,663,988
Website: http://www.kla-tencor.com
Address: KLA-Tencor Corporation
One Technology Drive,
Milpitas,
California, 95035,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS KLAC Common Stock Nasdaq Global Select US USD 08. Oct 1980
DB KLA Common Stock Deutsche Boerse AG DE EUR 08. Oct 1980
WBAG KLAC Common Stock Wiener Boerse AG AT EUR 08. Oct 1980
Number of employees
Current staff
Staff numbers
6,550
KLA-Tencor employees.
Industry
Semiconductor Equipment
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 23:37
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/01/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.