KLA-TENCOR CORP's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. KLA-TENCOR CORP is extremely liquid. Currently, the Quick Ratio is 3.25 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 83.03% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||676.36||705.13|
|Net Income ($mil)||20.27||139.25|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||2366.83||2950.66|
|Total Assets ($mil)||4987.37||5440.73|
|Total Debt ($mil)||3246.07||747.65|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||60.92||62.34|
|Return on Assets||8.51||10.13|
|Return on Equity||70.55||15.53|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||162.67||166.58|
|Div / share||17.0||0.45|
|Book value / share||3.7||21.31|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1427832.0||1972042.0|
HOLD. The current P/E ratio indicates a discount compared to an average of 27.33 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 19.41. For additional comparison, its price-to-book ratio of 15.78 indicates a significant premium versus the S&P 500 average of 2.74 and a significant premium versus the industry average of 5.66. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, KLA-TENCOR CORP seems to be trading at a discount to investment alternatives within the industry.
|KLAC 23.09||Peers 27.33||KLAC 18.06||Peers 19.65|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
KLAC is trading at a discount to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
KLAC is trading at a valuation on par to its peers.
|KLAC 13.70||Peers 18.06||KLAC NM||Peers 0.87|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
KLAC is trading at a premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
KLAC's negative PEG ratio makes this valuation measure meaningless.
|KLAC 15.78||Peers 5.66||KLAC -22.63||Peers 127.16|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
KLAC is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, KLAC is expected to significantly trail its peers on the basis of its earnings growth rate.
|KLAC 3.29||Peers 4.19||KLAC 2.58||Peers 16.13|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
KLAC is trading at a discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
KLAC significantly trails its peers on the basis of sales growth
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