(KLAC) KLA - Overview
Sector: Technology | Industry: Semiconductor Equipment & Materials | Exchange: NASDAQ (USA) | Market Cap: 247.270m USD | Total Return: 130.5% in 12m
Industry Rotation: -7.6
Avg Turnover: 1.92B
EPS Trend: 74.4%
Qual. Beats: 0
Rev. Trend: 74.1%
Qual. Beats: 7
Warnings
No concerns identified
Tailwinds
Confidence
KLA Corporation (KLAC) provides process control and yield management solutions for the semiconductor and electronics industries. The company operates through three primary segments: Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection. Its portfolio includes advanced inspection tools, metrology systems, and software designed to identify wafer defects and ensure chemical process stability during manufacturing.
The business model relies on the increasing complexity of semiconductor nodes; as transistors shrink, the margin for error decreases, making KLA’s high-precision monitoring essential for fabrication plants to maintain profitable yields. The semiconductor equipment sector is characterized by high barriers to entry due to the extreme research and development costs required to keep pace with Moore’s Law.
Investors may find additional data points and valuation metrics on ValueRay to further their analysis of the company. KLA Corporation is headquartered in Milpitas, California, and serves a global customer base of integrated circuit manufacturers and wafer foundries.
- Advanced node transitions drive demand for high-precision wafer inspection and metrology
- Geopolitical trade restrictions on China limit long-term revenue growth in key markets
- Increased semiconductor manufacturing complexity boosts demand for process control and yield management
- Transition to GAA and EUV lithography accelerates adoption of high-end diagnostic tools
- Fab equipment spending cycles dictate short-term fluctuations in semiconductor process control revenue
| Net Income: 4.67b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.24 > 0.02 and ΔFCF/TA 0.68 > 1.0 |
| NWC/Revenue: 58.03% < 20% (prev 52.26%; Δ 5.76% < -1%) |
| CFO/TA 0.26 > 3% & CFO 4.40b > Net Income 4.67b |
| Net Debt (1.19b) to EBITDA (5.90b): 0.20 < 3 |
| Current Ratio: 3.03 > 1.5 & < 3 |
| Outstanding Shares: last quarter (131.8m) vs 12m ago -1.17% < -2% |
| Gross Margin: 61.75% > 18% (prev 0.61%; Δ 6.11k% > 0.5%) |
| Asset Turnover: 81.70% > 50% (prev 76.03%; Δ 5.67% > 0%) |
| Interest Coverage Ratio: 19.38 > 6 (EBITDA TTM 5.90b / Interest Expense TTM 284.3m) |
| A: 0.45 (Total Current Assets 11.35b - Total Current Liabilities 3.75b) / Total Assets 16.87b |
| B: 0.19 (Retained Earnings 3.19b / Total Assets 16.87b) |
| C: 0.34 (EBIT TTM 5.51b / Avg Total Assets 16.03b) |
| D: 0.53 (Book Value of Equity 5.83b / Total Liabilities 11.04b) |
| Altman-Z'' Score: 6.43 = AAA |
| DSRI: 0.88 (Receivables 2.30b/2.31b, Revenue 13.10b/11.55b) |
| GMI: 0.99 (GM 61.75% / 60.87%) |
| AQI: 0.99 (AQ_t 0.25 / AQ_t-1 0.25) |
| SGI: 1.13 (Revenue 13.10b / 11.55b) |
| TATA: 0.02 (NI 4.67b - CFO 4.40b) / TA 16.87b) |
| Beneish M-Score: -3.03 (Cap -4..+1) = AA |
Over the past week, the price has changed by -3.47%, over one month by +0.72%, over three months by +22.73% and over the past year by +130.45%.
- StrongBuy: 11
- Buy: 6
- Hold: 10
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 1851.7 | 2.6% |
P/E Forward = 37.1747
P/S = 18.8804
P/B = 41.8777
P/EG = 1.9837
Revenue TTM = 13.10b USD
EBIT TTM = 5.51b USD
EBITDA TTM = 5.90b USD
Long Term Debt = 5.89b USD (from longTermDebt, last quarter)
Short Term Debt = 51.1m USD (from shortTermDebt, last quarter)
Debt = 6.15b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.19b USD (recalculated: Debt 6.15b - CCE 4.96b)
Enterprise Value = 248.46b USD (247.27b + Debt 6.15b - CCE 4.96b)
Interest Coverage Ratio = 19.38 (Ebit TTM 5.51b / Interest Expense TTM 284.3m)
EV/FCF = 61.89x (Enterprise Value 248.46b / FCF TTM 4.01b)
FCF Yield = 1.62% (FCF TTM 4.01b / Enterprise Value 248.46b)
FCF Margin = 30.65% (FCF TTM 4.01b / Revenue TTM 13.10b)
Net Margin = 35.66% (Net Income TTM 4.67b / Revenue TTM 13.10b)
Gross Margin = 61.75% ((Revenue TTM 13.10b - Cost of Revenue TTM 5.01b) / Revenue TTM)
Gross Margin QoQ = 61.12% (prev 61.45%)
Tobins Q-Ratio = 14.72 (Enterprise Value 248.46b / Total Assets 16.87b)
Interest Expense / Debt = 1.15% (Interest Expense 70.4m / Debt 6.15b)
Taxrate = 15.23% (215.8m / 1.42b)
NOPAT = 4.67b (EBIT 5.51b * (1 - 15.23%))
Current Ratio = 3.03 (Total Current Assets 11.35b / Total Current Liabilities 3.75b)
Debt / Equity = 1.05 (Debt 6.15b / totalStockholderEquity, last quarter 5.83b)
Debt / EBITDA = 0.20 (Net Debt 1.19b / EBITDA 5.90b)
Debt / FCF = 0.30 (Net Debt 1.19b / FCF TTM 4.01b)
Total Stockholder Equity = 5.24b (last 4 quarters mean from totalStockholderEquity)
RoA = 29.13% (Net Income 4.67b / Total Assets 16.87b)
RoE = 89.07% (Net Income TTM 4.67b / Total Stockholder Equity 5.24b)
RoCE = 49.51% (EBIT 5.51b / Capital Employed (Equity 5.24b + L.T.Debt 5.89b))
RoIC = 41.97% (NOPAT 4.67b / Invested Capital 11.13b)
WACC = 12.95% (E(247.27b)/V(253.42b) * Re(13.25%) + D(6.15b)/V(253.42b) * Rd(1.15%) * (1-Tc(0.15)))
Discount Rate = 13.25% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -1.48%
[DCF] Terminal Value 66.85% ; FCFF base≈3.81b ; Y1≈4.64b ; Y5≈7.68b
[DCF] Fair Price = 486.3 (EV 64.71b - Net Debt 1.19b = Equity 63.52b / Shares 130.6m; r=12.95% [WACC]; 5y FCF grow 23.25% → 3.0% )
EPS Correlation: 74.44 | EPS CAGR: 13.69% | SUE: 0.95 | # QB: 0
Revenue Correlation: 74.13 | Revenue CAGR: 8.83% | SUE: 1.11 | # QB: 7
EPS next Quarter (2026-09-30): EPS=11.21 | Chg30d=+2.21% | Revisions=+52% | Analysts=23
EPS current Year (2026-06-30): EPS=37.07 | Chg30d=+1.03% | Revisions=+67% | GrowthEPS=+11.4% | GrowthRev=+11.1%
EPS next Year (2027-06-30): EPS=49.71 | Chg30d=+3.98% | Revisions=+79% | GrowthEPS=+34.1% | GrowthRev=+25.4%
[Analyst] Revisions Ratio: +79%