On the stock market since 1980, it operates in the world of technology. It has 15,000 employees. Now — the numbers.
This is an established company with proven profits.
The biggest line carries real weight, but it doesn’t decide everything on its own.
Average growth of 10% a year over the last 4 years. Every year shown ended in profit.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
A solid grade overall — yet the debt outweighs the cash. The strength here comes from earnings power.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Clearly above the class average — a step short of the very top.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades 38% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 36% — still a thick cushion, though costs have been eating into it lately.
Over the last 3 years, sales grew about 9% a year on average.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
The company’s market value is 59 times its annual profit. Even a small disappointment could hit the price hard.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 37/100.
On our five-subject report card, KLAC sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: KLAC is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.
Analysts’ average target sits above today’s price, yet the valuation grade (37/100) says the stock isn’t cheap.