KLAC

KLANasdaqGS:KLAC Stock Report

Market Cap

US$55.8b

7D

-0.5%

1Y

102.2%

Updated

22 Sep, 2021

Data

Company Financials +
KLAC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends4/6

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

Summary of all time highs, changes and price drops for KLA
Historical stock prices
Current Share PriceUS$365.51
52 Week HighUS$178.08
52 Week LowUS$374.60
Beta1.21
1 Month Change11.25%
3 Month Change15.71%
1 Year Change102.17%
3 Year Change263.40%
5 Year Change423.28%
Change since IPO16,144.89%

Recent News & Updates

Sep 16
Why KLA Corporation (NASDAQ:KLAC) Could Be Worth Watching

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...

Aug 27

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.

Aug 11
KLA's (NASDAQ:KLAC) Upcoming Dividend Will Be Larger Than Last Year's

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...

Aug 02

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

KLACUS SemiconductorUS Market
7D-0.5%-1.5%-1.7%
1Y102.2%56.5%36.2%

Return vs Industry: KLAC exceeded the US Semiconductor industry which returned 49.2% over the past year.

Return vs Market: KLAC exceeded the US Market which returned 31.5% over the past year.

Price Volatility

Is KLAC's price volatile compared to industry and market?
KLAC volatility
KLAC Beta1.21
Industry Beta1.23
Market Beta1

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

FoundedEmployeesCEOWebsite
197511,425Rick Wallacehttps://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.

KLA Fundamentals Summary

How do KLA's earnings and revenue compare to its market cap?
KLAC fundamental statistics
Market CapUS$55.83b
Earnings (TTM)US$2.08b
Revenue (TTM)US$6.92b

26.9x

P/E Ratio

8.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KLAC income statement (TTM)
RevenueUS$6.92b
Cost of RevenueUS$2.77b
Gross ProfitUS$4.15b
ExpensesUS$2.07b
EarningsUS$2.08b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)13.49
Gross Margin59.93%
Net Profit Margin30.04%
Debt/Equity Ratio102.0%

How did KLAC perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

27%

Payout Ratio

Valuation

Is KLA undervalued compared to its fair value and its price relative to the market?

8.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KLAC ($365.51) is trading below our estimate of fair value ($398.88)

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 (26.9x) compared to the US Semiconductor industry average (29.3x).

PE vs Market: KLAC is poor value based on its PE Ratio (26.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: KLAC is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: KLAC is overvalued based on its PB Ratio (16.5x) compared to the US Semiconductor industry average (4.5x).


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 (14.9% 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 (9.8% 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?

1.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KLAC's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: KLAC's dividend (1.15%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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 ($USD13.32M) is about average for companies of similar size in the US market ($USD11.42M).

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$55.827b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 22:33
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.