KLA-Tencor Corp.

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KLAC : NASDAQ : Electronic Technology
$110.47 | %
Today's Range: 108.72 - 110.66
Avg. Daily Volume: 1507200.0
02/23/18 - 4:00 PM ET

Financial Analysis


KLA-TENCOR CORP's gross profit margin for the second quarter of its fiscal year 2018 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 3.01 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 greatly increased by 26.99% 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 FY18 Q2 FY17
Net Sales ($mil)975.82876.89
EBITDA ($mil)382.33352.9
EBIT ($mil)366.2338.0
Net Income ($mil)-134.32238.25


Balance Sheet Q2 FY18 Q2 FY17
Cash & Equiv. ($mil)2758.192592.98
Total Assets ($mil)5407.275094.46
Total Debt ($mil)2486.432979.2
Equity ($mil)1225.63965.1


Profitability Q2 FY18 Q2 FY17
Gross Profit Margin66.0665.42
EBITDA Margin39.1740.24
Operating Margin37.5338.55
Sales Turnover0.70.64
Return on Assets12.1316.95
Return on Equity53.5589.49
Debt Q2 FY18 Q2 FY17
Current Ratio3.733.39
Debt/Capital0.670.76
Interest Expense27.3730.62
Interest Coverage13.3811.04


Share Data Q2 FY18 Q2 FY17
Shares outstanding (mil)156.62156.73
Div / share0.590.54
EPS-0.861.52
Book value / share7.836.16
Institutional Own % n/a n/a
Avg Daily Volume1555348.01328113.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 37.56 for the Semiconductors & Semiconductor Equipment industry and a value on par with the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 13.91 indicates a significant premium versus the S&P 500 average of 3.26 and a significant premium versus the industry average of 6.88. 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 26.23 Peers 37.56   KLAC 14.34 Peers 23.82

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 12.68 Peers 20.48   KLAC 0.82 Peers 0.82

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 13.91 Peers 6.88   KLAC -24.55 Peers 103.74

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 4.49 Peers 5.96   KLAC 16.52 Peers 22.16

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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