About KLA Corporation
KLA Corporation, together with its subsidiaries, provides process control and process-enabling solutions for manufacturing wafers, reticles/masks, chemicals/materials, integrated circuits (ICs), packaged ICs, and printed circuit boards. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. The company offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned 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; semiconductor software solutions; KLA Pro systems; and specialty semiconductor manufacturing, benchtop metrology, surface characterization, material strength characterization, and electrical property measurement products. It also provides etch, plasma dicing, deposition and other wafer processing technologies and solutions; direct imaging, inspection, optical shaping, inkjet, and additive printing, as well as computer-aided manufacturing and engineering solutions; and components. In addition, the company offers service programs. It serves semiconductor, and semiconductor-related and electronic device manufacturers. The company operates in China, Taiwan, Korea, North America, Japan, Europe, Israel, and rest of Asia. 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.
KLA Corporation (KLAC) is a Technology company in the Semiconductor Equipment & Materials industry with a market capitalisation of $231.2B. The stock trades at 48.36x trailing earnings and yields 0.52%.
- Sector
- Technology
- Industry
- Semiconductor Equipment & Materials
- Market cap
- $231.2B
- P/E ratio
- 48.36
- Forward P/E
- 26.40
- EPS (TTM)
- $3.66
- Revenue (TTM)
- $13.6B
- Free cash flow
- $2.6B
- Profit margin
- 35.6%
- Dividend yield
- 0.52%
- Beta
- 1.44
- Shares outstanding
- 1.3B
Financial health: Strong9.1/10
9 strengths, 0 concerns. No red flags against these benchmarks.
- Debt to equity: 0.93 (Watch, benchmark < 0.5) — Debt of 0.93x equity is moderate against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 1.1y (Strong, benchmark < 4 years) — Net debt of $4.2B is 1.1x annual free cash flow — about a year of cash flow to repay.
- Current ratio: 2.88 (Strong, benchmark > 1.5) — Short-term assets cover 2.88x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 87.5% (Strong, benchmark > 15%) — Earns 87.5% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 61.3% (Strong, benchmark > 40%) — Keeps 61.3% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 35.6% (Strong, benchmark > 10%) — Turns 35.6% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $3.8B (Strong, benchmark positive) — Generated $3.8B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 15.2% (Strong, benchmark > 10%) — Revenue changed 15.2% year on year, comfortably past the > 10% mark.
- Earnings growth: 13.8% (Strong, benchmark > 10%) — Earnings changed 13.8% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.69 (Watch, benchmark < 1) — At 1.69, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 21.9% (Strong, benchmark < 60%) — Pays out 21.9% of earnings as dividends, leaving room to keep paying.