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70

KLAC

💻 Technology

KLA Corporation

Conservative #97Aggressive #13Low RiskML↑ 41pt
$1546.68+2.66%
Day High$1577.35
Day Low$1541.11
Volume0.9M
Mkt Cap$203.2B
52W Low $55152W High $1693
Market Cap
$192.4B
P/E Ratio
42.5
Sector avg: 87.8
Rev Growth
23.9%
Sector avg: 14.8%
Earnings Growth
47.1%
Profit Margin
33.4%
Sector avg: -110.0%
Debt/Equity
1.30

Why This Score

KLAC scores 70.3 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Strong profitability: ROE of 86.6% exceeds the 15% quality threshold.
  • High net margin of 33.4%, indicating pricing power and operational efficiency.
  • Large-cap ($192B) with deep liquidity and institutional ownership.
  • ML model assigns a high-conviction signal (92/100), indicating strong pattern recognition across 82 features.
Risk Factors
  • Signal divergence: Fundamental and ML signals disagree by a significant margin, reducing confidence.
  • Elevated valuation at 42.5x earnings — requires sustained growth to justify the premium.
  • Elevated leverage (D/E 1.30) increases financial risk in a rising-rate environment.

Minor adjustments (-2.2 points) applied. KLAC's rank of #97 primarily reflects its factor profile relative to the conservative weight vector.

Score Breakdown

Overall Score70.3
Fundamental Score62.5
ML Score92.0

Score by Horizon

3 Month
74.5
6 Month
83.3
Primary
1 Year
87.6

Quality Assessment

F
Earnings Grade
Weak fundamentals or significant quality concerns
Quality Flags
Negative ROIC (-0.1%) with high ROE (86.6%) — capital structure distortion (possibly negative equity or one-time gain)

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
100
Advancing
Sentiment (2.5%)
68
Positive
Analyst (6.4%)
64
Favorable
Tradability (post-hoc)
100
Grade A
Base
68.5
SHAP
+2.9
Factors
+1.1
Divergence
-2.2
Final
70.3
Positive adjustment
Negative adjustment
Base blend
Final score

Factor Breakdown

74AVG
Value55
Quality95
Growth90
Stability60
Investment70

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)62.0
Technical (Momentum, Weinstein, Volatility)95.0
External (Sentiment, Analyst, Macro)83.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage96%

Growth Estimates

Short-term
+4.6% to +9.6%
Medium-term
+7.8% to +15.5%
Long-term
+11.5% to +22.0%

ML Model Core Features100 trained inputs → ML Score: 92

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score64.0/100
Target Upside+13.4%
Coverage43 analysts
Market Sentiment
Sentiment Score68.1/100
News Volume1 articles
Technical Stage
Weinstein Stage2 — Advancing
12M Momentum+1.1%
6M Momentum+0.7%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+39.8%
Momentum ConsistencyModerate (0.63)
Relative Strength vs Sector+104.7%
Trend Strength (ADX Proxy)Strong (5.0)
Momentum Quality+1.053
Momentum BreadthBroad ✓
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
2%
Low risk
Sector RevGr Rank
P80
Revenue growth vs Technology peers
Sector PE Rank
P29
Valuation vs Technology peers
Sector FCF Rank
P33
Free cash flow vs Technology peers
Growth Deviation
+0.3σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 48 relative to sector peers48/100
Machine learning model ranks this stock at the 89th percentileP89
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +4.4pt (features align with model priorities)—
Blend: 91% fund (48.4) + 9% ML (89.1) + SHAP(+4.4) = 56.5—
Factor quality: +1.6pt (multi-factor composite)—
Risk assessment: low. Annualized volatility 8.9%Low
Momentum mean-reversion: -1.4pt (108% 12m momentum)—
Market cap adjustment: +3.5 points ($192.4B market cap)+3.5 pts
Conviction penalty: -4.8pt (conviction=0)—
Divergence penalty: -4.7pt (ML 41pt higher)—
Risk Factors
Earnings quality grade F: assessed. Score adjusted by -30 pointsGrade F
Quality concern: Non-operating gain: net margin (33.4%) exceeds operating margin (-0.0%) by 33pp — likely one-time item; Negative ROIC (-0.1%) with high ROE (86.6%) — capital structure distortion (possibly negative equity or one-time gain)Flag

Sector Peer Comparison(Technology — Rank #21 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
KLAC70.342.523.9%33.4%$192.4B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%—

Market Sentimentvia FMP

Analyst Consensus
Buy43 analysts
Buy: 26Hold: 15Sell: 2
Price Target
$1672consensus
Low $1400Median $1700High $1900
+8.1% to consensus target

Company Overviewvia FMP

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 metrology; reticle defect inspection and metrology; chemical/materials quality analysis; in situ process management and wafer handling diagnostics for IC and original equipment manufacturer (OEM) manufacturing; software products to provide run-time process control, defect excursion identification, process corrections, and defect classification; and refurbished and remanufactured products. It also provides specialty semiconductor manufacturing, benchtop metrology, surface characterization, and electrical property measurement services for general purpose/ lab applications; etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, the company offers direct imaging, inspection, optical shaping, additive printing, and computer-aided manufacturing and engineering solutions for the PCB market; inspection and electrical testing systems to identify and classify defects, as well as systems to repair defects for the display market; and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

CEO
Richard Wallace
Employees
15,000
Beta
1.46
Industry
Semiconductors
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
83.4
Overbought
Trend
Bullish
10-day vs 50-day MA
From 52W High
-8.7%
High: $1693.35
From 52W Low
+180.5%
Low: $551.33
Moving Averages
10-Day
$1485.20
Above
20-Day
$1465.50
Above
50-Day
$1402.10
Above
200-Day
$1087.40
Above
60-Day Support
$1151
60-Day Resistance
$1693.35
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 2 — AdvancingScore: 95/100

Stock is in an uptrend above the 200-day moving average. This is the stage where institutional accumulation typically occurs. The 50-day SMA provides support.

Favorable technical position; 50-day SMA acts as support
Price vs 200 SMA
+42.2%
200 SMA Slope (60d)
+22.95%
Rising
Volume Ratio
0.74x
10d avg vs 50d avg
Days in Stage
100
Confidence: 90%
Recent Gap Up

Financial Statementslast 4 quarters via FMP

MetricQ2 2025Q1 2025Q4 2025Q3 2025
Revenue$3.3B$3.2B$3.2B$3.1B
Gross Profit$2.0B$2.0B$2.0B$1.9B
Operating Income$1.4B$1.3B$1.4B$1.3B
Net Income$1.1B$1.1B$1.2B$1.1B
EPS (Diluted)$8.68$8.47$9.06$8.16
Gross Margin61.4%61.3%63.2%61.6%
Operating Margin41.3%41.7%44.2%42.5%
Net Margin34.7%34.9%37.9%35.5%

Why This Stock

TechnologyRevenue growth 23.9%Profit margin 33.4%

Tradability FilterGrade A — 100/100Score impact: -2.7pt

Volume
100
1.1M avg/day
Dollar Vol
100
$1.6B/day
Float
100
131M shares
Mkt Cap
100
$192.4B
Range
100
207% spread
Composite Liquidity Score100/100
FDCBA
Free Float
99.5%
Outstanding Shares
131M
Bid-Ask Spread
207.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.