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KLA Corporation (KLAC)

POSITIVE
TechnologySemiconductor Equipment & MaterialsUnited States

Price

$254.54

Market Cap

$332.50B

Fundamental

70

Technical

75

Composite

72

AI Analysis

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Overview

KLA Corporation, together with its subsidiaries, designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. The company operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. It offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems to measure pattern dimensions, film thickness, film stress, layer-to-layer alignment, pattern placement, surface topography, and electro-optical properties for wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; wafer inspection and metrology systems; and semiconductor software solutions that provide run-time process control, defect excursion identification, process corrections, and defect classification to accelerate yield learning rates and reduce production risk. The company also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, it offers direct imaging, inspection, optical shaping, inkjet and additive printing, and computer-aided manufacturing and engineering solutions for the PCB market and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

Balance Sheet & Liquidity

Revenue

$3.30B

Net Income

$1.15B

Free Cash Flow

$1.25B

Total Equity

$5.47B

Total Liabilities

$11.25B

Current Ratio

2.83

Interest Coverage

-

Debt/EBITDA

8.46

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Overvalued

Fair Value

$169.77

Current Price

$254.54

Margin of Safety

-49.9%

Fair Value Range

$111.56 - $227.98

Estimation Methods

Analyst Target:$192.62
DCF:$76.09
PE-based:$137.59
Graham Growth:$182.24
EPV:$264.98
Analyst Consensus:Buy (25B / 11H / 0S)
Last Earnings Surprise:+0.81%

Valuation Metrics

P/E Ratio

29.16

ROE

21.0%

P/B Ratio

60.83

P/FCF

264.96

Gross Margin

61.4%

ROIC

8.3%

Value Creation (Economic Moat)

ROIC

8.3%

WACC

9.1%

ROIC − WACC

-0.9 pp

ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • EPS CAGR 9.02%
  • Price CAGR 41.58%
  • ROIC 8.3%
  • Gross Margin 61.4%
  • Debt/Equity ratio
  • Operating Margin 40.3%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 89.1%
  • Revenue Growth 5Y 15.9%
  • Analyst Consensus 69% Buy
  • PEG Ratio 0.21
  • Earnings Quality (OCF/NI) 1.19
  • Share Dilution -0.4%
  • Piotroski F-Score 8/9

Failed (7)

  • P/FCF 264.96
  • P/B Ratio 60.83
  • Debt/EBITDA
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg 1.8%
  • Net Margin Trend 34.7% vs 34.9%

Unavailable (2)

  • Dividend Payout NaN%
  • Interest Coverage

Price Chart

Technical Indicators

RSI (14)

75.63

SMA 50

$186.44

SMA 200

$141.20

MACD

4.69

Volatility

3.1%

Momentum (12m)

190.9%

RSI 75.6, SMA trend bullish, momentum 190.9%.

Piotroski F-Score

8/9

Strong financial health

score
criteria

Earnings Quality

1.19

High quality: earnings backed by cash

Share Dilution

-40.0%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Richard P. WallacePresident, CEO & Executive Director65
Mr. Bren D. HigginsExecutive VP & CFO55
Ms. Mary Beth WilkinsonExecutive VP, Chief Legal Officer & Corporate Secretary52
Mr. Ahmad A. KhanPresident of Semiconductor Products & Customers51
Mr. Brian W. LorigExecutive Vice President of KLA Global Services51
Mr. Virendra A. KirloskarSenior VP & Chief Accounting Officer62
Dr. Ben Bin-Ming TsaiCTO & Executive VP of Corporate Alliances66
Mr. Kevin M. Kessel C.F.A.Vice President of Investor Relations-
Ms. Randi PolanichSenior VP & Chief Communications Officer-
Mr. John Van CampExecutive VP & Chief Human Resources Officer-

Audit Risk

3

Board Risk

3

Compensation Risk

4

Shareholder Rights Risk

8

Latest News

Recent headlines for KLAC, sourced from Markets Gazette.

  • 5d agoPOSITIVE
    Billionaire Investor Doubles Down On AI Trade, Adds Chip-Equipment Names

    Billionaire investor Daniel Loeb, through his hedge fund Third Point Management, significantly increased exposure to the semiconductor sector in the first quarter. The fund added new positions in KLA Corporation, ASML Holding, and Lam Research, reaffirming its bullish stance on chip-related equities. This strategic move signals strong conviction in the growth prospects of AI-driven demand for advanced chip manufacturing equipment. Investors are watching these additions closely as a potential indicator of future sector performance and a validation of the AI trade.

  • 8d agoPOSITIVE
    Here's How Much $1000 Invested In KLA 15 Years Ago Would Be Worth Today

    An investment of $1000 in KLA Corporation (KLAC) 15 years ago would have grown to approximately $10,400 today, representing a substantial 940% return. This performance significantly outpaced the broader market, highlighting KLA's robust growth trajectory and strong shareholder value creation over the past decade and a half. The company's consistent performance suggests effective management, innovation in its semiconductor equipment sector, and resilience through various market cycles, making it an attractive prospect for long-term investors seeking capital appreciation.

  • 5/13/2026NEUTRAL
    Here's How Much You Would Have Made Owning KLA Stock In The Last 10 Years

    An analysis of KLA Corporation (KLAC) stock reveals its performance over the past decade. While specific returns are not detailed in this snippet, the article suggests a review of historical ownership gains. Investors considering KLAC should evaluate its long-term track record, including revenue growth, profitability, and market share trends within the semiconductor equipment industry. Past performance, while not indicative of future results, provides a baseline for assessing the company's resilience and growth potential.

  • 4/27/2026POSITIVE
    Here's How Much $1000 Invested In KLA 10 Years Ago Would Be Worth Today

    An investment of $1000 in KLA Corporation (KLAC) ten years ago would have grown to approximately $10,500 today, representing a substantial 950% return. This performance significantly outpaced the broader market during the same period. KLA's consistent growth trajectory is attributed to its dominant position in the semiconductor equipment manufacturing sector, particularly in process control and yield management solutions. The company has benefited from the ongoing demand for advanced chip technologies and the cyclical upturns in the semiconductor industry. Investors considering KLA should note its strong historical performance, driven by innovation and strategic market positioning.

  • 4/10/2026POSITIVE
    $1000 Invested In KLA 10 Years Ago Would Be Worth This Much Today

    An investment of $1000 in KLA Corporation (KLAC) a decade ago would have yielded a substantial return, demonstrating the company's robust long-term growth trajectory. While specific figures are not provided in this snippet, the implication is that KLAC has significantly outperformed the broader market over the past ten years. This historical performance suggests strong operational execution, strategic market positioning, and effective capital allocation by the company's management. Investors looking for companies with a proven track record of wealth creation may find KLA's performance compelling, warranting further investigation into its current fundamentals and future prospects.

  • 3/24/2026NEUTRAL
    Here's How Much You Would Have Made Owning KLA Stock In The Last 5 Years

    An analysis of KLA Corporation (KLAC) stock performance over the past five years reveals a significant return for investors. While specific figures are not detailed in the provided snippet, the title suggests a strong historical performance. This type of retrospective analysis is often used by investors to gauge a company's long-term growth trajectory and its ability to generate shareholder value, providing context for future investment decisions. The exact returns would depend on the purchase date and current market value, but the framing implies a positive historical trend.

  • 3/11/2026POSITIVE
    $100 Invested In KLA 20 Years Ago Would Be Worth This Much Today

    An investment of $100 in KLA Corporation (KLAC) made 20 years ago would have grown substantially, highlighting the company's long-term value creation. While specific figures are not provided in the title, this narrative implies significant capital appreciation for shareholders over two decades. KLA, a key supplier to the semiconductor industry, has likely benefited from the secular growth trends in technology, including advancements in chip manufacturing processes. Investors looking at historical performance metrics for KLAC can infer a strong track record of growth and resilience, potentially signaling continued positive outlook.

via Markets Gazette

Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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