KLA-Tencor Corp

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KLAC : NASDAQ : Technology
$90.45 up 1.99 | 2.25%
Today's Range: 88.3 - 90.5
Avg. Daily Volume: 1536200.0
02/21/17 - 4:14 PM ET

Financial Analysis


KLA-TENCOR CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged 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 2.78 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 163.95% 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 FY17 Q2 FY16
Net Sales ($mil)876.89710.25
EBITDA ($mil)352.9241.55
EBIT ($mil)338.0225.02
Net Income ($mil)238.25152.21


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)2592.982241.43
Total Assets ($mil)5094.464572.52
Total Debt ($mil)2979.23131.68
Equity ($mil)965.1365.63


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin65.4262.84
EBITDA Margin40.2434.0
Operating Margin38.5531.68
Sales Turnover0.640.62
Return on Assets16.9511.6
Return on Equity89.49145.16
Debt Q2 FY17 Q2 FY16
Current Ratio3.394.29
Debt/Capital0.760.9
Interest Expense30.6230.54
Interest Coverage11.047.37


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)156.73155.67
Div / share0.540.52
EPS1.520.98
Book value / share6.162.35
Institutional Own % n/a n/a
Avg Daily Volume1535664.02171399.0

Valuation


BUY. KLA-TENCOR CORP's P/E ratio indicates a significant discount compared to an average of 27.92 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 14.38 indicates a significant premium versus the S&P 500 average of 2.94 and a significant premium versus the industry average of 4.36. The current price-to-sales ratio is well above the S&P 500 average, but 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 16.10 Peers 27.92   KLAC 16.15 Peers 16.24

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.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KLAC 14.98 Peers 20.11   KLAC 0.58 Peers 1.64

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 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 14.38 Peers 4.36   KLAC 64.67 Peers 0.99

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 4.26 Peers 4.74   KLAC 14.44 Peers 18.87

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 trails its peers on the basis of sales growth

 

 

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