Fundamental analysis · SEC EDGAR · as of 30/06/2026

Fundamental analysis of Kla Corp

KLAC · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

88

out of 100

Kla Corp fits the profile of a quality compounder: it pairs high return on capital (ROE 76.1%) with wide margins (net margin 35.6%) and a business that keeps growing (14.4% a year). On fundamental quality it scores 88 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +14.4%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

KLA makes the equipment that inspects and measures chips during manufacturing: it detects nanometer-scale defects so fabs don't waste wafers. The more advanced the chips, the more quality control is needed — and there KLA is the undisputed leader.

What will shape its future

  • The chip-fab investment cycle: its business tracks spending on new plants and technologies.
  • Rising chip complexity (AI, advanced packaging), which increases inspection's share of every fab.
  • Export restrictions on China and a customer base concentrated in a few giants.

Breakdown by area

I.Growth
76

EPS growth: 18.4% · Revenue growth: 14.4%

II.Profitability
95

Net margin: 35.6% · ROE: 76.1% · ROIC: 47.9%

III.Financial health
94

Net debt/EBITDA: 0.67x · FCF: 27.7%

Source: SEC EDGAR · as of 30/06/2026

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 100 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 89%
ROEbeats 90%
Growthbeats 52%
Cash generationbeats 68%
Less debtbeats 47%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Kla Corp strengths

  • Outstanding return on equity (ROE of 76.1%): it puts shareholder capital to good use.
  • Excellent free-cash-flow generation (FCF margin of 27.7%): profit turns into real cash.
  • Exceptional net margin (35.6%), high even for its sector: the business is clearly profitable.
  • Growing earnings per share (18.4% annualized).

Kla Corp risks and weaknesses

  • Its net debt has grown over the period.

Kla Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
20216,9192,0781,9532,008
20229,2123,3223,0055,076
202310,4963,3873,3283,963
20249,8122,7623,0314,653
202512,1564,0623,7473,805
202613,5794,8313,7674,238

Between 2021 and 2026, revenue went from $6,919M to $13,579M (+96%) and net income went from $2,078M to $4,831M (+132%). Meanwhile, its margins have widened (from 30% to 36%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score9388
  • ROE80.1%76.1%
  • FCF margin30.7%27.7%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.8

per share, yearly

21.9% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

Advertising

Want to invest in Kla Corp?

Open your account in minutes with regulated brokers and buy U.S. and European stocks from small amounts. No paperwork.

Interactive BrokersGlobal markets

The serious investor's standard

Open free account →
WebullCommission-free

Popular in the U.S.

Open free account →

Investing carries risk of loss.

Is Kla Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Kla Corp a good company to invest in?

In terms of business quality, Kla Corp scores 88 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Kla Corp a profitable company?

Very. Kla Corp shows a net margin of 35.6% and an ROE of 76.1%, typical of a highly profitable business.

Does Kla Corp have a lot of debt?

Not particularly. Its net debt is 0.67 times its EBITDA, a low level.

Is Kla Corp growing?

Its revenue has grown 14.4% annualized in recent years and its earnings per share 18.4%.

Does Kla Corp generate cash?

Yes. It converts about 27.7% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

Was this page helpful?