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KLAC
KLA Corporation
Summary
Business
Earnings Call
Valuation
Profitability
Financial Health
Intel
Yearly Return 10Y annualized return is excellent at 30.5% per year
Earnings Expectations KLAC has met or exceeded earnings expectations in all recent quarters (10/10)
Positive Strong Price-to-Earnings Ratio
Positive High Gross Profit Margin
Negative High Price-to-Sales Ratio
Negative Elevated EV/EBITDA Ratio

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KLA Corporation demonstrates strong business quality through robust revenue growth, profitability, and market leadership, despite facing challenges from export controls. Future prospects appear positive, driven by demand in AI and advanced technologies, although service growth may face short-term pressures.

Analysis Date: January 30, 2025
Last Updated: May 29, 2025

+1337%
+30.5% per year

Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.

Country US
Exchange NASDAQ
Industry Semiconductors
Sector Technology
Market Cap $92.33B
CEO Mr. Richard P. Wallace

KLA Corporation is a company that helps make the tiny computer chips found in many electronic devices. They create tools and software that check and improve the quality of these chips during the manufacturing process. This ensures that the chips work well and meet high standards. Think of KLA as a quality control expert for the tech industry, making sure devices like smartphones and computers function properly.

Streams of revenue

Defect Inspection: 48%
Service: 23%
Patterning: 20%
Specialty Semiconductor Process: 4%
PCB And Component Inspection: 3%
Other Revenue: 2%

Geographic Distribution

CHINA: 42%
North America: 18%
TAIWAN, PROVINCE OF CHINA: 16%
KOREA, REPUBLIC OF: 8%
JAPAN: 7%
Europe and Israel: 5%
Rest of Asia: 4%

Core Products

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Data Analytics Manufacturing insights
📏
Metrology Systems Precision measurement
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Process Control Systems Wafer inspection
💻
Yield Management Software Optimize production

Business Type

B2B Business to Business

Competitive Advantages

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Key Business Risks

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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

Graham Value Metrics

Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.

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ROE: 101.81596753673023

ROA: None

Gross Profit Margin: 60.869658968796514

Net Profit Margin: 31.999922408475555

Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

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About Profitability Metrics

Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.

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About Financial Health Metrics

Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.

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Meeting Expectations

10 /10

Higher values indicate better execution and credibility

Recent Results

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EPS

8.09
Estimated
8.41
Actual
+3.96%
Difference

Revenue

$3009538705
Estimated
$3063029000
Actual
+1.78%
Difference
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Insider trading data shows purchase and sale activities by company executives and board members.

Insider Sentiment Analysis

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KLAC Stock Analysis: KLA Corporation Investment Guide

KLAC (KLA Corporation) is a Technology company listed on NASDAQ Global Select. The stock has generated 30.5% annual returns with an overall investment score of None/100.

KLA Corporation demonstrates strong business quality through robust revenue growth, profitability, and market leadership, despite facing challenges from export controls. Future prospects appear positive, driven by demand in AI and advanced technologies, although service growth may face short-term pressures.

KLAC Key Financial Metrics

KLAC financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 2.6268264407258446/100 and profitability score of 8.75/100 with financial health rated 7.3/100.

About KLA Corporation

KLA Corporation is a company that helps make the tiny computer chips found in many electronic devices. They create tools and software that check and improve the quality of these chips during the manufacturing process. This ensures that the chips work well and meet high standards. Think of KLA as a quality control expert for the tech industry, making sure devices like smartphones and computers function properly.

KLAC Investment Recommendation

Based on our comprehensive analysis of KLAC, investors should consider the company's strong performance track record, earnings consistency (10/10 quarters beat expectations), and current valuation metrics when making investment decisions.

Technology Sector Analysis

KLAC operates in the Semiconductors industry within the Technology sector. This analysis compares KLA Corporation performance against industry and sector benchmarks to provide context for investment decisions.

Frequently Asked Questions about KLAC Stock

Is KLAC a good investment?

KLAC (KLA Corporation) has generated 30.5% annual returns with an overall score of None/100. KLA Corporation demonstrates strong business quality through robust revenue growth, profitability, and market leadership, despite facing challenges from export controls. Future prospects appear positive, driven by demand in AI and … Investors should consider their risk tolerance and investment goals when evaluating KLAC.

What is KLAC P/E ratio and valuation?

KLAC valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Semiconductors industry and Technology sector benchmarks. The company currently has a valuation score of 2.6268264407258446/100.

Should I buy KLAC stock now?

The decision to buy KLAC stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 8.75/100, financial health score of 7.3/100, and detailed performance metrics to help inform your investment decision.

What are KLAC financial health indicators?

KLAC financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 7.3/100 based on comprehensive analysis of balance sheet strength and operational efficiency.

How does KLAC compare to competitors?

KLAC performance is benchmarked against Semiconductors industry peers and Technology sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for KLA Corporation's market position.

What are KLAC historical returns?

KLAC has generated 30.5% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.

KLAC Key Investment Metrics Summary

  • Annual Return: 30.5%
  • Valuation Score: 2.6268264407258446/100
  • Profitability Score: 8.75/100
  • Financial Health Score: 7.3/100
  • Growth Score: 3.7664504831808236/100
  • Earnings Beat Rate: 10/10 quarters
  • Sector: Technology
  • Industry: Semiconductors
  • Exchange: NASDAQ Global Select
  • Market Cap: 92334527310

KLAC Investment Thesis

KLA Corporation (KLAC) represents an excellent investment opportunity in the Technology sector. With an overall score of None/100, the company demonstrates areas for financial improvement.

Investment Strengths

  • Strong Price-to-Earnings Ratio
  • High Gross Profit Margin
  • Robust Net Profit Margin
  • High Return on Equity
  • Strong Liquidity Ratios
  • High Interest Coverage
  • Strong Revenue Growth and Profitability
  • Market Leadership and Competitive Position
  • Consistent Capital Return to Shareholders
  • Strong Demand Driven by AI and Advanced Technologies
  • Positive Industry Outlook

Investment Risks

  • High Price-to-Sales Ratio
  • Elevated EV/EBITDA Ratio
  • Operating Profit Margin Variation
  • High Debt Levels
  • Exposure to Export Controls
  • Potential Weakness in Service Growth
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