KLA-Tencor Corp

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KLAC : NASDAQ : Technology
$91.88 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1244200.0
08/16/17 - 4:00 PM ET

Financial Analysis


KLA-TENCOR CORP's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. KLA-TENCOR CORP is extremely liquid. Currently, the Quick Ratio is 2.79 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 92.48% 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 FY17 Q4 FY16
Net Sales ($mil)938.65919.17
EBITDA ($mil)366.39371.04
EBIT ($mil)352.07356.15
Net Income ($mil)256.16271.54


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)3016.742491.29
Total Assets ($mil)5532.174962.43
Total Debt ($mil)2930.463057.94
Equity ($mil)1326.42689.11


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin64.4664.93
EBITDA Margin39.0340.36
Operating Margin37.5138.75
Sales Turnover0.630.6
Return on Assets16.7314.19
Return on Equity69.81102.22
Debt Q4 FY17 Q4 FY16
Current Ratio3.43.86
Debt/Capital0.690.82
Interest Expense30.6530.89
Interest Coverage11.4911.53


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)156.84156.0
Div / share0.540.52
EPS1.621.73
Book value / share8.464.42
Institutional Own % n/a n/a
Avg Daily Volume1245368.01096437.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 32.34 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 24.31. For additional comparison, its price-to-book ratio of 10.42 indicates a significant premium versus the S&P 500 average of 3.03 and a significant premium versus the industry average of 5.26. 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 14.99 Peers 32.34   KLAC 12.80 Peers 18.74

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 significant 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 12.26 Peers 21.20   KLAC 1.22 Peers 1.19

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KLAC 10.42 Peers 5.26   KLAC 30.95 Peers 51.58

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KLAC 3.97 Peers 5.04   KLAC 16.60 Peers 26.68

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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