KLA-Tencor Corp

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KLAC : NASDAQ : Technology
$69.85 -0.15 | -0.21%
Today's Range: 69.50 - 70.24
Avg. Daily Volume: 1,317,900
09/28/16 - 4:00 PM ET

Financial Analysis


KLA-TENCOR CORP's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. KLA-TENCOR CORP is extremely liquid. Currently, the Quick Ratio is 3.12 which clearly shows the ability to cover any short-term cash needs. KLAC managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 63.51% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)919.17756.33
EBITDA ($mil)371.04244.87
EBIT ($mil)356.15224.9
Net Income ($mil)271.54142.02


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2491.292387.11
Total Assets ($mil)4962.434826.01
Total Debt ($mil)3057.943190.42
Equity ($mil)689.11421.44


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin64.9360.88
EBITDA Margin40.3632.37
Operating Margin38.7529.74
Sales Turnover0.60.58
Return on Assets14.197.58
Return on Equity102.2286.88
Debt Q4 FY16 Q4 FY15
Current Ratio3.863.9
Debt/Capital0.820.88
Interest Expense30.8930.68
Interest Coverage11.537.33


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)156.0157.85
Div / share0.520.5
EPS1.730.89
Book value / share4.422.67
Institutional Own % n/a n/a
Avg Daily Volume1355696.0901032.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 27.99 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 15.74 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 4.16. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KLAC 15.48 Peers 27.99   KLAC 14.27 Peers 16.13

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KLAC is trading at a significant discount to its peers.

 

Discount. 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 discount 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 13.08 Peers 18.94   KLAC 1.58 Peers 2.65

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

KLAC is trading at a significant discount to its peers.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KLAC 15.74 Peers 4.16   KLAC 99.55 Peers -0.00

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

KLAC is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KLAC 3.63 Peers 4.64   KLAC 6.05 Peers 4.90

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

KLAC has a sales growth rate that exceeds its peers.

 

 

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