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KLA Corporation

KLAC
68
Semiconductors · Technology
Price
$212.75
-6.62 (-3.02%)
Market Cap
$277.91B
Exchange
NASDAQ
Winston Score
68
Winston is curious
A decent business — some strong pillars, some weaker.

Share count falling — buybacks

14.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.55B (2021) → 1.34B (2025)

KLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through four segments: Semiconductor Process Control; Specialty Semiconductor Process; PCB, Display and Component Inspection; and Other. The company offers integrated circuit (IC) manufacturing products that comprises wafer inspection and review, and metrology; wafer and substrate defect inspection and

Winston Score History

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10 Congressional buys and 5 sells on KLAC in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+23.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+46.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$1.4B/ year

Rising (+6% vs prior year)

11.2% of revenue

Below sector average (15%)

Investing heavily in future products and technology

Insider Activity

0.2%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$2.1B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

KLA Corporation is a rare growth stock that's already generating positive cash flow while growing at 24%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin
63.2%
Premium pricing power — 63.2% gross margin
Operating Margin
44.2%
Excellent — 44.2% operating margin
ROCE
13.3%
Good — 13.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+17.6%
Fast-growing sales (17.6% YoY)
EPS YoY
+44.5%
Earnings growing fast (44.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
105%
Turns 105% of profit into real cash
FCF Margin
34.4%
Converts sales into free cash efficiently (34.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
1.25
Elevated debt (1.25)
Interest Cover
18.91x
Comfortably covers interest (18.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
6.2x
Attractive valuation — P/E 6.2

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
-34.6
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
0.32%
Small dividend — 0.32% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+18.5%
Dividend growing fast (18.5% YoY)

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