KLA Corp
Exchange: NASDAQSector: TechnologyIndustry: Semiconductor Equipment & Materials
KLA develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging, printed circuit boards and flat panel displays. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward.
Did you know?
Profit margin of 35.8% — that's well above average.
Current Price
$1935.00
+6.59%GoodMoat Value
$1297.98
32.9% overvaluedProfile
Valuation (TTM)
Market Cap$254.24B
P/E55.78
EV$199.27B
P/B54.18
Shares Out131.39M
P/Sales19.95
Revenue$12.74B
EV/EBITDA43.14
KLA Corp (KLAC) Stock Analysis
GoodMoat Analysis
KLA Corp is a high-quality, moat-protected leader in semiconductor process control, but its current valuation appears to be at a premium. The business demonstrates exceptional profitability and a strong competitive position, yet the stock price exceeds our fair value estimate, indicating a narrow margin of safety.
Read full analysis
KLA Corp is a critical player in the semiconductor ecosystem, specializing in process control and yield management equipment. Its machines are essential for chipmakers to inspect and measure wafers during production, ensuring manufacturing precision and high output. This role as a mission-critical supplier in a complex, capital-intensive industry forms the foundation of its competitive moat. Applying the GoodMoat framework, KLA likely scores highly on criteria like switching costs (its tools are deeply integrated into fab lines), technology leadership, and niche dominance in process control, suggesting a durable competitive advantage. The company's financial quality is outstanding, with an operating margin of 40.7%, an ROE of 97.1%, and a profit margin of 35.8%, far exceeding typical high-quality thresholds. However, the valuation assessment presents a challenge. With a P/E of 44.5x and a GoodMoat Target price of $1,297.98, the current price of ~$1,489 implies a negative margin of safety. While the business easily passes the Moat & Quality Gate (Step 1 of the Decision Framework), it likely falls into the 'With Caution' category at the Valuation & Risk Gate (Step 2). The stock is priced for near-perfect execution, and the modest 7.2% YoY revenue growth may not justify such a high multiple for a value-oriented investor. Further investigation would require a deep conviction in sustained, accelerated growth to bridge the valuation gap. Analysis based on data as of 2024-05-15.
Market Cap$254.24B
Current Price$1935.00
P/E Ratio55.78
Forward P/E—
PEG Ratio1.35
EPS$30.37
Book Value$35.71
P/B Ratio54.18
KLAC Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 24.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 3.8B
Revenue
4.6B
FY19
5.8B
FY20
6.9B
FY21
9.2B
FY22
10.5B
FY23
9.8B
FY24
12.2B
FY25
Net Income
1.2B
FY19
1.2B
FY20
2.1B
FY21
3.3B
FY22
3.4B
FY23
2.8B
FY24
4.1B
FY25
KLAC 52-Week Range
$671.24
$1935.00
50-Day MA: $1557.13200-Day MA: $1236.72
Did you know?
Currently trading near its 52-week high — in the top 0% of its range.
KLA Corp (KLAC) Financial Summary
KLA Corp (KLAC) is a Technology company in the Semiconductor Equipment & Materials industry, listed on NASDAQ. The stock currently trades at $1935.00 with a market capitalization of $254.24B.
Key valuation metrics include a P/E ratio of 55.78, price-to-book ratio of 54.18, and EPS of $30.37. The company reports a profit margin of 35.8% and return on equity of 97.1%.
KLAC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $254.24B |
| P/E Ratio | 55.78 |
| EPS | $30.37 |
| P/B Ratio | 54.18 |
| P/S Ratio | 19.95 |
| EV/EBITDA | 43.14 |
| Dividend Yield | 0.36% |
| Profit Margin | 35.8% |
| Return on Equity | 97.1% |
| Debt/Equity | 1.25 |
KLAC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.57B | $1.18B |
| FY20 | $5.81B | $1.22B |
| FY21 | $6.92B | $2.08B |
| FY22 | $9.21B | $3.32B |
| FY23 | $10.50B | $3.39B |
| FY24 | $9.81B | $2.76B |
| FY25 | $12.16B | $4.06B |
KLA Corp (KLAC) Valuation
Based on GoodMoat's DCF model, KLA Corp has a fair value estimate of $1297.98. At the current price of $1935.00, the stock appears 49.1% overvalued relative to our intrinsic value estimate.
KLAC Quality Indicators
KLA Corp maintains a profit margin of 35.8% and an operating margin of 40.7%. Return on equity stands at 97.1%. The current ratio is 2.62. Debt-to-equity ratio is 1.25.
About KLA Corp
KLA develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging, printed circuit boards and flat panel displays. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward.
KLAC Free Cash Flow
KLA Corp generated $3.74B in trailing twelve-month free cash flow, representing an FCF yield of 1.47%. This low FCF yield may reflect heavy reinvestment or growth spending.
KLAC Shares Outstanding
KLA Corp has 0.13 billion shares outstanding at a share price of $1935.00, giving it a market capitalization of $254.24B.
KLAC Recent Insider Trades
Recent insider transactions at KLA Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Higgins Bren D. (EVP & Chief Financial Officer) | SELL | 2,254 | $2.79M |