KLA-Tencor Corp

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KLAC : NASDAQ : Technology
$97.95 | %
Today's Range: 96.62 - 98.06
Avg. Daily Volume: 1222800.0
06/23/17 - 4:00 PM ET

Financial Analysis


KLA-TENCOR CORP's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. KLA-TENCOR CORP is extremely liquid. Currently, the Quick Ratio is 2.81 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 140.74% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)913.81712.43
EBITDA ($mil)361.53254.34
EBIT ($mil)347.33238.56
Net Income ($mil)253.56175.78


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)2703.512241.31
Total Assets ($mil)5324.454782.1
Total Debt ($mil)2954.833097.31
Equity ($mil)1147.31476.57


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin64.0363.72
EBITDA Margin39.5635.69
Operating Margin38.0133.48
Sales Turnover0.650.59
Return on Assets17.6812.02
Return on Equity82.05120.63
Debt Q3 FY17 Q3 FY16
Current Ratio3.43.92
Debt/Capital0.720.87
Interest Expense30.4730.9
Interest Coverage11.47.72


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)156.76155.71
Div / share0.540.52
EPS1.611.12
Book value / share7.323.06
Institutional Own % n/a n/a
Avg Daily Volume1210429.01140156.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 27.56 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 13.21 indicates a significant premium versus the S&P 500 average of 3.09 and a significant premium versus the industry average of 5.29. 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 16.14 Peers 27.56   KLAC 15.59 Peers 18.89

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 14.54 Peers 22.40   KLAC 0.52 Peers 1.23

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 13.21 Peers 5.29   KLAC 64.10 Peers 14.91

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 4.38 Peers 5.19   KLAC 22.64 Peers 24.62

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

KLAC is keeping pace with its peers on the basis of sales growth.

 

 

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