KLA Corp (KLAC) Stock Analysis
Verdict: WATCH (do not buy)
KLAC's 61.3% gross margin process-control moat defends long-term growth, but 11 insider sells and a 45.4x P/E cap near-term risk-reward.
Investment score: 55/100
Analysis as of
Is KLA Corp stock worth reviewing? AI model thesis
KLA Corp trades at 45.4x TTM P/E with unmatched 61.3% gross margins, but recent insider selling and a 14.4% monthly pull-back keep the AI model in a HOLD stance until support around $150 tests fair value.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 70/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 50/100 (weight 15%)
KLA Corp opportunities and risks
What speaks for KLAC
- Dominant market position in semiconductor process control yields industry-leading margins
What speaks against KLAC
- Cyclical pullbacks in foundry and logic capital expenditures
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| KLAC | 45.4x | 16.1x | 38.7x | 61.3% | 35.6% | 1.7% |
| LRCX | 46.5x | 14.5x | 38.5x | 50.5% | 31.3% | 1.5% |
| AMAT | 35.6x | 10.7x | 29.0x | 49.4% | 30.1% | 1.7% |
| TER | 46.5x | 11.9x | 36.5x | 59.3% | 25.8% | 1.5% |
| Q | 41.0x | 4.6x | 18.7x | 43.3% | 11.2% | 3.4% |
| ENTG | 65.1x | 6.0x | 26.8x | 45.5% | 9.2% | 2.9% |
| Peer median | 46.5x | 10.7x | 29.0x | 49.4% | 25.8% | 1.7% |
Frequently asked questions about KLA Corp (KLAC)
Is KLAC stock a good investment?
The cached TradeMates AI model rates KLA Corp as WATCH (do not buy) with an investment score of 55/100. KLA Corp trades at 45.4x TTM P/E with unmatched 61.3% gross margins, but recent insider selling and a 14.4% monthly pull-back keep the AI model in a HOLD stance until support around $150 tests fair value. This is algorithmic model output, not personal investment advice.
Is KLAC stock a buy?
The TradeMates model verdict for KLAC is WATCH (do not buy) with an investment score of 55/100. Treat this as a model signal to review, not a personal buy recommendation.