![KLAC Logo](data:image/svg+xml,<svg xmlns='http://www.w3.org/2000/svg' width='18' height='18'><defs><linearGradient id="a" x1="3.349" x2="21.904" y1="3.122" y2="24.434" gradientUnits="userSpaceOnUse"><stop stop-color="%231A1E21"/><stop offset="1" stop-color="%2306060A"/></linearGradient></defs><path fill="url(%23a)" d="M0 0h18v18H0z"/><text x='50%' y='52%' dominant-baseline='middle' text-anchor='middle' font-size='5' font-family='sans-serif' fill='gray'>KLAC</text></svg>)
Kla Corp
KLAC
Optical Instruments & Lenses
Mkt Cap
$74.7BPE
24.08Debt
$5.892BCash
$1.712BEV
$78.88BFCF
$3.217BP/E Ratio
24.08Debt
$5.892BCash
$1.712BEV
$78.88BFCF
$3.217BKLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through four segments: Semiconductor Process Control; Specialty Semiconductor Process; PCB, Display and Component Inspection; and Other. The company offers integrated circuit (IC) manufacturing products that comprises wafer inspection and review, and metrology; wafer and substrate defect inspection and metrology; reticle defect inspection and metrology; chemical/materials quality analysis; in situ process management and wafer handling diagnostics for IC and original equipment manufacturer (OEM) manufacturing; software products to provide run-time process control, defect excursion identification, process corrections, and defect classification; and refurbished and remanufactured products. It also provides specialty semiconductor manufacturing, benchtop metrology, surface characterization, and electrical property measurement services for general purpose/ lab applications; etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, the company offers direct imaging, inspection, optical shaping, additive printing, and computer-aided manufacturing and engineering solutions for the PCB market; inspection and electrical testing systems to identify and classify defects, as well as systems to repair defects for the display 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.
Sector
DCF
Discounted Cash Flow Valuation of Kla Corp
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $3.217B | $3.97B | $4.819B | $5.751B | $6.746B | $7.774B | $8.799B | $9.78B | $10.67B | $11.42B | $11.99B | $119.9B |
| DCF | $3.453B | $3.644B | $3.782B | $3.857B | $3.865B | $3.804B | $3.676B | $3.488B | $3.247B | $2.964B | $29.64B | |
| Value | $65.42B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 29%
Earnings Stability 91%
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 13% | 24% | 27% | 20% | 26% | 21% | 30% | 36% | 32% | 31% |
| ROA | 11% | 20% | 23% | 28% | 16% | 16% | 25% | 28% | 27% | 25% |
| ROE | 87% | 100% | 70% | 50% | 44% | 45% | 62% | 240% | 120% | 100% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +27.48%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +2.92%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +23.13%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.12%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +92.21%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +26.52%.
Safety & Stabiliy
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 5.76 | 4.23 | 3.07 | 1.94 | 3.62 | 2.15 | 1.76 | 2.22 | 1.77 | 1.83 |
| Debt Equity | 7.66 | 4.46 | 2.41 | 1.39 | 1.38 | 1.31 | 1.02 | 4.75 | 2.02 | 1.97 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.83.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.16.
What is the Graham’s Stability?
Graham’s Stability measure stands at 1.00.
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 | 06-2016 | 06-2018 | 06-2020 | 06-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 20% | 21% | 22% | 14% | 2.8% |
| Net Income | 25% | 33% | 41% | 2% | 2.6% |
| Stockholders Equity | 23% | 12% | 2.9% | 110% | 4.4% |
| FCF | 24% | 23% | 27% | 11% | 3.4% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +21.06%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +2.82%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +33.38%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +2.58%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +12.5%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +4.44%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +23.42%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +3.36%.