Fundamental analysis · SEC EDGAR · TTM through 30/09/2026

Fundamental analysis of Kla Corp

KLAC · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

89

out of 100

Kla Corp fits the profile of a quality compounder: it pairs high return on capital (ROE 80.6%) with wide margins (net margin 36.2%) and a business that keeps growing (15.1% a year). On fundamental quality it scores 89 out of 100, profiling it as a company with solid fundamentals. 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
78

EPS growth: 19.3% · Revenue growth: 15.1%

II.Profitability
95

Net margin: 36.2% · ROE: 80.6% · ROIC: 50.6%

III.Financial health
94

Net debt/EBITDA: 0.64x · FCF: 27.8%

Source: SEC EDGAR · TTM through 30/09/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 99 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 89%
ROEbeats 90%
Growthbeats 53%
Cash generationbeats 66%
Less debtbeats 51%

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 80.6%): it puts shareholder capital to good use.
  • Excellent free-cash-flow generation (FCF margin of 27.8%): profit turns into real cash.
  • Exceptional net margin (36.2%), high even for its sector: the business is clearly profitable.
  • Growing earnings per share (19.3% 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

Versus the same period a year earlier

Figures for the quarter ended September 30, 2026, versus the quarter ended September 30, 2025 (SEC filings):

  • Revenue+28.9%
  • Net income+38.1%

What changed with the September 30, 2026 results

Compared with the previous close (June 30, 2026), this is what moved in its accounts:

  • Quality score88→89
  • Net margin35.6%→36.2%
  • ROE76.1%→80.6%

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 →

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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).

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Frequently asked questions

Is Kla Corp a good company to invest in?

In terms of business quality, Kla Corp scores 89 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 36.2% and an ROE of 80.6%, typical of a highly profitable business.

Does Kla Corp have a lot of debt?

Not particularly. Its net debt is 0.64 times its EBITDA, a low level.

Is Kla Corp growing?

Its revenue has grown 15.1% annualized in recent years and its earnings per share 19.3%.

Does Kla Corp generate cash?

Yes. It converts about 27.8% 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.

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