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KLA-Tencor Corp
KLAC : NASDAQ : Technology
$67.34 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 1,963,000
11/26/14 - 3:59 PM ET

Financial Analysis


KLA-TENCOR CORP's gross profit margin for the first 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 4.24 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.10% 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 Q1 FY15 Q1 FY14
Net Sales ($mil)642.9658.34
EBITDA ($mil)134.37171.79
EBIT ($mil)113.21151.15
Net Income ($mil)72.23111.2


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)2942.492951.88
Total Assets ($mil)5301.575283.55
Total Debt ($mil)748.05747.51
Equity ($mil)3529.723491.16


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin58.4861.06
EBITDA Margin20.926.09
Operating Margin17.6122.96
Sales Turnover0.550.53
Return on Assets10.259.82
Return on Equity15.414.86
Debt Q1 FY15 Q1 FY14
Current Ratio5.435.21
Debt/Capital0.170.18
Interest Expense13.5213.66
Interest Coverage8.3711.06


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)164.48166.65
Div / share0.50.45
EPS0.430.66
Book value / share21.4620.95
Institutional Own % n/a n/a
Avg Daily Volume1826384.01455759.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 28.97 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 19.91. To use another comparison, its price-to-book ratio of 3.76 indicates a premium versus the S&P 500 average of 2.75 and a discount versus the industry average of 4.34. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, KLA-TENCOR CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KLAC 24.90 Peers 28.97   KLAC 20.92 Peers 14.04

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.

 

Premium. 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 significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KLAC 17.93 Peers 18.75   KLAC NM Peers 0.71

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 significant 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KLAC 3.76 Peers 4.34   KLAC 5.53 Peers 51.38

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KLAC is trading at a discount 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KLAC 4.55 Peers 4.10   KLAC 4.80 Peers 15.25

Premium. 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 premium 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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