Is KLA Tencor Stock a Good Investment?
KLA Tencor Investment Advice | KLAC |
- Examine KLA Tencor's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research KLA Tencor's leadership team and their track record. Good management can help KLA Tencor navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact KLA Tencor's business and its evolving consumer preferences.
- Compare KLA Tencor's performance and market position to its competitors. Analyze how KLA Tencor is positioned in terms of product offerings, innovation, and market share.
- Check if KLA Tencor pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about KLA Tencor's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in KLA Tencor stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if KLA Tencor is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine KLA Tencor Stock
Researching KLA Tencor's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 91.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.49. KLA Tencor recorded earning per share (EPS) of 21.87. The entity last dividend was issued on the 18th of November 2024. The firm had 2:1 split on the 19th of January 2000.
To determine if KLA Tencor is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding KLA Tencor's research are outlined below:
| KLA Tencor generated a negative expected return over the last 90 days | |
| KLA Tencor has high historical volatility and very poor performance | |
| KLA Tencor is unlikely to experience financial distress in the next 2 years | |
| Over 91.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Investors in KLA have seen massive returns of 307 percent over the past five years |
KLA Tencor Quarterly Liabilities And Stockholders Equity |
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KLA Tencor uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in KLA Tencor. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to KLA Tencor's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 24th of April 2024 Upcoming Quarterly Report | View | |
| 25th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 25th of July 2024 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 30th of June 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact KLA Tencor's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises KLA Tencor's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1999-01-19 | 1998-12-31 | 0.05 | 0.06 | 0.01 | 20 | ||
1998-10-15 | 1998-09-30 | 0.07 | 0.06 | -0.01 | 14 | ||
2003-04-23 | 2003-03-31 | 0.12 | 0.14 | 0.02 | 16 | ||
2002-04-18 | 2002-03-31 | 0.15 | 0.17 | 0.02 | 13 | ||
2004-01-22 | 2003-12-31 | 0.19 | 0.22 | 0.03 | 15 | ||
2002-07-30 | 2002-06-30 | 0.2 | 0.23 | 0.03 | 15 | ||
2001-07-31 | 2001-06-30 | 0.26 | 0.29 | 0.03 | 11 | ||
1999-10-14 | 1999-09-30 | 0.16 | 0.19 | 0.03 | 18 |
Know KLA Tencor's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as KLA Tencor is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading KLA Tencor backward and forwards among themselves. KLA Tencor's institutional investor refers to the entity that pools money to purchase KLA Tencor's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Fmr Inc | 2024-09-30 | 2.4 M | Goldman Sachs Group Inc | 2024-06-30 | 2.3 M | Norges Bank | 2024-06-30 | 2 M | Bank Of America Corp | 2024-06-30 | 1.9 M | Hhg Plc | 2024-06-30 | 1.8 M | Northern Trust Corp | 2024-09-30 | 1.5 M | Ameriprise Financial Inc | 2024-06-30 | 1.4 M | State Farm Mutual Automobile Ins Co | 2024-09-30 | 1.4 M | Amvescap Plc. | 2024-06-30 | 1.3 M | Vanguard Group Inc | 2024-09-30 | 13.4 M | Blackrock Inc | 2024-06-30 | 11.6 M |
KLA Tencor's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 85.55 B.Market Cap |
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KLA Tencor's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.22 | 0.23 | |
| Return On Capital Employed | 0.34 | 0.35 | |
| Return On Assets | 0.18 | 0.19 | |
| Return On Equity | 0.82 | 0.86 |
Determining KLA Tencor's profitability involves analyzing its financial statements and using various financial metrics to determine if KLA Tencor is a good buy. For example, gross profit margin measures KLA Tencor's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of KLA Tencor's profitability and make more informed investment decisions.
KLA Tencor's Earnings Breakdown by Geography
Please note, the presentation of KLA Tencor's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, KLA Tencor's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of KLA Tencor's management manipulating its earnings.
Evaluate KLA Tencor's management efficiency
KLA Tencor has return on total asset (ROA) of 0.1616 % which means that it generated a profit of $0.1616 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.9058 %, meaning that it created $0.9058 on every $100 dollars invested by stockholders. KLA Tencor's management efficiency ratios could be used to measure how well KLA Tencor manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.23. The current year's Return On Capital Employed is expected to grow to 0.35. At present, KLA Tencor's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Total Current Assets is expected to grow to about 10.5 B, whereas Non Currrent Assets Other are forecasted to decline to about 307.7 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 24.89 | 26.13 | |
| Tangible Book Value Per Share | 5.05 | 4.92 | |
| Enterprise Value Over EBITDA | 28.97 | 17.58 | |
| Price Book Value Ratio | 33.26 | 34.93 | |
| Enterprise Value Multiple | 28.97 | 17.58 | |
| Price Fair Value | 33.26 | 34.93 | |
| Enterprise Value | 6.1 B | 4.6 B |
Evaluating the management effectiveness of KLA Tencor allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The KLA Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Dividend Yield 0.0106 | Forward Dividend Yield 0.0106 | Forward Dividend Rate 6.8 | Beta 1.29 |
Basic technical analysis of KLA Stock
As of the 24th of November, KLA Tencor owns the Market Risk Adjusted Performance of (0.17), standard deviation of 3.02, and Mean Deviation of 1.99. KLA Tencor technical analysis lets you operate past data patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices.KLA Tencor's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific KLA Tencor insiders, such as employees or executives, is commonly permitted as long as it does not rely on KLA Tencor's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases KLA Tencor insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
KLA Tencor's Outstanding Corporate Bonds
KLA Tencor issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. KLA Tencor uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most KLA bonds can be classified according to their maturity, which is the date when KLA Tencor has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| KBCBB 5796 19 JAN 29 Corp BondUS48241FAB04 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| US48249DAA90 Corp BondUS48249DAA90 | View | |
| KLA TENCOR P 465 Corp BondUS482480AE03 | View | |
| US482480AH34 Corp BondUS482480AH34 | View | |
| KLA TENCOR PORATION Corp BondUS482480AG50 | View | |
| KLA TENCOR P 565 Corp BondUS482480AF77 | View |
Understand KLA Tencor's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing KLA Tencor's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (0.17) | |||
| Mean Deviation | 1.99 | |||
| Coefficient Of Variation | (1,060) | |||
| Standard Deviation | 3.02 | |||
| Variance | 9.11 | |||
| Information Ratio | (0.14) | |||
| Jensen Alpha | (0.49) | |||
| Total Risk Alpha | (0.77) | |||
| Treynor Ratio | (0.18) | |||
| Maximum Drawdown | 20.36 | |||
| Value At Risk | (3.70) | |||
| Potential Upside | 3.24 | |||
| Skewness | (1.92) | |||
| Kurtosis | 7.98 |
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (0.17) | |||
| Mean Deviation | 1.99 | |||
| Coefficient Of Variation | (1,060) | |||
| Standard Deviation | 3.02 | |||
| Variance | 9.11 | |||
| Information Ratio | (0.14) | |||
| Jensen Alpha | (0.49) | |||
| Total Risk Alpha | (0.77) | |||
| Treynor Ratio | (0.18) | |||
| Maximum Drawdown | 20.36 | |||
| Value At Risk | (3.70) | |||
| Potential Upside | 3.24 | |||
| Skewness | (1.92) | |||
| Kurtosis | 7.98 |
Consider KLA Tencor's intraday indicators
KLA Tencor intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of KLA Tencor stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
KLA Tencor Corporate Filings
8K | 15th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 14th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 7th of November 2024 Other Reports | ViewVerify | |
10Q | 31st of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
KLA Stock media impact
Far too much social signal, news, headlines, and media speculation about KLA Tencor that are available to investors today. That information is available publicly through KLA media outlets and privately through word of mouth or via KLA internal channels. However, regardless of the origin, that massive amount of KLA data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of KLA Tencor news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of KLA Tencor relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to KLA Tencor's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive KLA Tencor alpha.
KLA Tencor Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards KLA Tencor can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
KLA Tencor Historical Investor Sentiment
Investor biases related to KLA Tencor's public news can be used to forecast risks associated with an investment in KLA. The trend in average sentiment can be used to explain how an investor holding KLA can time the market purely based on public headlines and social activities around KLA Tencor. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
KLA Tencor's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for KLA Tencor and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average KLA Tencor news discussions. The higher the estimate score, the more favorable the investor's outlook on KLA Tencor.
KLA Tencor Corporate Management
| Virendra Kirloskar | Chief Accounting Officer and Sr. VP | Profile | |
| Becky Howland | Sr Communications | Profile | |
| Oreste Donzella | Packaging Electronics | Profile | |
| Kevin CFA | Vice Relations | Profile | |
| Mary Wilkinson | Chief VP | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in KLA Tencor. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For information on how to trade KLA Stock refer to our How to Trade KLA Stock guide.You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of KLA Tencor. If investors know KLA will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about KLA Tencor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.296 | Dividend Share 5.8 | Earnings Share 21.87 | Revenue Per Share 76.103 | Quarterly Revenue Growth 0.185 |
The market value of KLA Tencor is measured differently than its book value, which is the value of KLA that is recorded on the company's balance sheet. Investors also form their own opinion of KLA Tencor's value that differs from its market value or its book value, called intrinsic value, which is KLA Tencor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because KLA Tencor's market value can be influenced by many factors that don't directly affect KLA Tencor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between KLA Tencor's value and its price, as these two are different measures arrived at by various means. Investors typically determine if KLA Tencor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KLA Tencor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.