What Should Investors Know About KLA (KLAC) Stock?

By Susan Ramirez • Thursday, April 20 10:39 • Permanent Link

With gains of 3.9%, KLA was one of the winners on Wall Street today. Its shares are now trading at $375.42 and have logged a -0.0% daily outperformance of the S&P 500. Don't join the feeding frenzy before checking some basic facts about this stock:

KLA has moved 7.5% over the last year, and the S&P 500 logged a change of -5.4%
KLAC has an average analyst rating of buy and is -12.14% away from its mean target price of $427.3 per share
Its trailing earnings per share (EPS) is $24.31
KLA has a trailing 12 month Price to Earnings (P/E) ratio of 15.4 while the S&P 500 average is 15.97
Its forward earnings per share (EPS) is $19.0 and its forward P/E ratio is 19.8
The company has a Price to Book (P/B) ratio of 20.0 in contrast to the S&P 500's average ratio of 2.95
KLA is part of the Technology sector, which has an average P/E ratio of 27.16 and an average P/B of 6.23
KLAC has reported YOY quarterly earnings growth of 46.3% and gross profit margins of 0.6%
The company has a free cash flow of $2,011,274,496.00, which refers to the total sum of all its inflows and outflows of cash over the last quarter
KLA 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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.