KLA CORP (KLAC) Stock Analysis

Analysis from 10-Q filed 2025-10-31. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 43.4%. FCF margin 30.7%. D/E 1.0x. Source: 10-Q filed 2025-10-31.

Metric	Value	Context
ROIC	43.4%	Above industry average
FCF Margin	30.7%	Strong cash generation
Debt/Equity	1.0x	Moderate leverage

ROIC 43.4% — Top 5% of sector peers. FCF margin 30.7% — Top 5%.

Explore KLA CORP: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for KLAC: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: KLA CORP earns 43.4% ROIC, Top 5% in Other

ROIC TTM 43.4%, sector median 2.9%, Top 5%. DuPont: NOPAT margin 36.1% × asset turnover 0.8x. Gross margin 61.4%. Operating margin 41.7%. Source: 10-Q filed 2025-10-31.

Metric	KLAC	Rating	Context
Return on Invested Capital (ROIC)	43.4%	Excellent	Above sector median of 2.9%
Return on Equity (ROE)	93.1%	Excellent	Efficient use of shareholder equity
Gross Margin	61.4%	Excellent	Strong pricing power
Operating Margin	41.7%	Excellent	Efficient operations

---

Cash Flow: KLA CORP generates $4.0B FCF at 30.7% margin, positive NaN/8 quarters

FCF TTM $4.0B. FCF margin 30.7%, Top 5%. OCF/Net income 0.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-31.

Metric	KLAC	Rating	Context
Free Cash Flow Margin	30.7%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$4.0B	Good	Positive cash generation
OCF/Net Income	0.9x	Good	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: KLA CORP at 1.0x leverage

Debt/Equity 1.0x. Total debt $5.9B, cash & investments $1.8B. Source: 10-Q filed 2025-10-31.

Metric	KLAC	Rating	Context
Debt to Equity	1.0x	Adequate	Moderate leverage
Net Cash Position	$-4.1B	Warning	Net debt position

---

Valuation: KLA CORP trades at 4.3x earnings

P/E 4.3x. EV/Sales 1.8x. FCF yield 19.9%. Dividend yield 5.0%. Source: 10-Q filed 2025-10-31.

Metric	KLAC	Rating	Context
P/E Ratio	4.3x	Adequate	Reasonable valuation
EV/Sales	1.8x	Excellent	Attractive revenue multiple
FCF Yield	19.9%	Excellent	Attractive cash return
Dividend Yield	5.0%	Good	Meaningful income

---

Capital Allocation: KLA CORP returns 15.6% shareholder yield

Total shareholder yield 15.6% (div 5.0% + buyback 10.6%). Capital returned $3.2B TTM. Source: 10-Q filed 2025-10-31.

Metric	KLAC	Rating	Context
Total Shareholder Yield	15.6%	Excellent	Dividend + buyback yield combined
Buyback Yield	10.6%	Good	Active share repurchases
Total Capital Returned (TTM)	$3.2B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	43.4%	Top 5%	14.9x above
Free Cash Flow Margin	30.7%	Top 5%	-
Gross Margin	61.4%	Top 25%	2.0x above
Operating Margin	41.7%	Top 5%	8.8x above
Return on Equity (ROE)	93.1%	Top 5%	14.5x above
P/E Ratio	4.3x	N/A	-

---

Financial Scorecard

Metric	KLAC	Rating	Sector Context
Return on Invested Capital (ROIC)	43.4%	Excellent	Top 5% of sector (median: 2.9%)
Free Cash Flow Margin	30.7%	Excellent	Top 5% of sector (median: 0.0%)
Gross Margin	61.4%	Excellent	Top 25% of sector (median: 30.4%)
Debt to Equity Ratio	101.0%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	432.5%	Adequate	Attractively valued
Free Cash Flow Yield	19.9%	Excellent	High cash return

---

Frequently Asked Questions

Q: What is KLA CORP's Return on Invested Capital (ROIC)?

KLA CORP (KLAC) has a trailing twelve-month Return on Invested Capital (ROIC) of 43.4%. Sector median 2.9%. Source: 10-Q filed 2025-10-31.

Q: What is KLA CORP's Free Cash Flow Margin?

KLA CORP (KLAC) has a free cash flow margin of 30.7%, generating $4.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-31.

Q: What is KLA CORP's P/E ratio and how does it compare to peers?

KLA CORP (KLAC) trades at a P/E ratio of 4.3x, which is above the sector median of N/A. EV/Sales 1.8x. FCF yield 19.9%. Source: 10-Q filed 2025-10-31.

Q: Does KLA CORP pay a dividend?

KLA CORP (KLAC) currently pays a dividend yield of 5.0%. Total shareholder yield (dividend + buybacks) 15.6%. Source: 10-Q filed 2025-10-31.

Q: How much debt does KLA CORP have?

KLA CORP (KLAC) has a debt-to-equity ratio of 1.0x with total debt of $5.9 billion. Net debt $4.1 billion. Source: 10-Q filed 2025-10-31.

Q: What is KLA CORP's revenue and earnings growth?

KLA CORP (KLAC) grew revenue by 13.4% year-over-year. EPS +28.5% YoY. Source: 10-Q filed 2025-10-31.

Q: Is KLA CORP buying back stock?

KLA CORP (KLAC) repurchased $2.1 billion of stock over the trailing twelve months. This represents a buyback yield of 10.6%. Source: 10-Q filed 2025-10-31.

Q: How does KLA CORP compare to competitors in Other?

Compared to other companies in Other, KLA CORP (KLAC) shows: ROIC 43.4%, sector median 2.9% (Top 5%). FCF margin 30.7%, sector median 0.0% (Top 5%). Gross margin 61.4%, 31.1pp above sector median. These rankings are based on MetricDuck's analysis of all Other companies with available SEC filings.

Q: What warning signs should I watch for with KLA CORP?

No quantitative warning flags fired for KLA CORP (KLAC) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-31.

---

Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.