Kla Corp

Technology
Electronic Components
www.kla.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $86.96B
PE 29
Debt $6.63B
Cash $1.98B
EV $91.62B
FCF $3.15B

Earnings

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Sales & Net Margins

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Earnings	$2.97B
EBIT	$3.42B
ROE	83%
ROA	22%
FCF	$3.15B
Equity	$3.56B
Growth Stability	94%
PE	29.32
PEG	1.14
PB	24.43
P/FCF	27.6
P/S	8.48
Price/Cash	0.02
Debt/Equity	1.86
Debt/FCF	2.1
Net Margins	33%
Gross Margins	60%
Op. Margins	33%
Earnings CAGR	24%
Sales Growth YoY	19%
Sales Growth QoQ	11%
Sales CAGR	18%
FCF CAGR	21%
Equity CAGR	24%
Earnings Stability	0.86
Earnings Growth YoY	28%
Earnings Growth QoQ	13%
Earnings CAGR 5Y	26%

Sales CAGR 5Y	17%
FCF CAGR 5Y	22%
Equity CAGR 5Y	2%
Earnings CAGR 3Y	5%
Sales CAGR 3Y	5%
FCF CAGR 3Y	6%
Equity CAGR 3Y	7%
Market Cap	$86.96B
Revenue	$10.26B
Dividend Yield	1%
Payout Ratio	27%
Assets	$15.68B
Total Debt	$6.63B
Cash	$1.98B
Shares Outstanding	134.13M
EV	91.62B
Earnings Score	94%
Moat Score	98%
Safety Score	88%
Final Score	93%
Working Capital	5.43B
Current Ratio	2.13
Gross Profit	$6.13B
Shares Growth 3y	-4%
Equity Growth QoQ	6%
Equity Growth YoY	19%

Assets & ROA

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Stockholders Equity & ROE

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KLA designs and manufactures yield-management and process-monitoring diagnostic and control systems for the semiconductor industry. The systems are used to analyze the manufacturing process at various steps in a semiconductor's development. The firm's laser-scanning products are used for wafer qualification, process monitoring, and equipment monitoring. KLA also provides inspection tools and systems for optical metrology and e-beam metrology.

SEC Filings

Direct access to Kla Corp (KLAC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31

Sector Comparison

How does Kla Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Kla Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 24%

Stability 86%

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Kla Corp Discounted Cash Flow

Fully customizable DCF calculator online for Kla Corp.

Years

Calculation mode

= $138B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$3.2B	$3.8B	$4.6B	$5.6B	$6.8B	$8.2B	$10B	$12B	$15B	$18B	$21B	$214B
DCF		$3.5B	$3.8B	$4.2B	$4.6B	$5.1B	$5.6B	$6.2B	$6.8B	$7.5B	$8.3B	$83B
Value	$138B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	13%	24%	27%	20%	26%	21%	30%	36%	32%	28%	33%
ROA	-	20%	23%	28%	16%	16%	25%	28%	27%	21%	22%
ROE	-	102%	70%	50%	44%	45%	62%	237%	116%	82%	83%

Good Net Margins (33.29%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	4.23	3.07	1.94	3.62	2.15	1.76	2.22	1.77	2.19	2.1
Debt over Equity	7.66	4.46	2.41	1.39	1.38	1.31	1.02	4.75	2.02	1.97	1.86
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	94%	94%

Neutral Debt/FCF ratio (2.1)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Bad Debt/Equity ratio (1.86)

The company is overleveraged and has a bad balance between equity and debt.

Good Graham’s Stability (94%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	6%	17%	16%	13%	27%	19%	33%	14%	-7%	17%
Earnings YoY growth	-	92%	31%	-13%	46%	3%	71%	60%	2%	-18%	26%
Equity YoY growth	-	64%	92%	22%	65%	0%	26%	-59%	108%	15%	2%
FCF YoY growth	-	30%	43%	12%	-12%	59%	20%	54%	11%	-9%	22%