KLA Corporation (KLAC)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I start with the business. KLA sells process-control and process-enabling tools that help chipmakers find defects. That is a specialized, mission-critical niche, and the installed base and customer qualification likely create switching costs, a real moat. The numbers support quality. In fiscal 2026, the year ended 2026-06-30, revenue was $13.6B, net income was $4.8B, and diluted EPS was $3.66. In fiscal 2025, the year ended 2025-06-30, revenue was $12.2B and net income was $4.1B; in fiscal 2024, the year ended 2024-06-30, revenue was $9.8B and net income was $2.8B. Profit growth has outpaced revenue growth. FairStock calculations show an 87.5% ROE, 20.8% ROCE, 7/9 Piotroski F-Score, and 13.75 Altman Z-Score, plus $3.8B trailing free cash flow. That is a financially strong enterprise. The trouble is price. At the 2026-10-13 close of $184, FairStock calculates a P/E of 50.27, P/B of 37.86, EV/EBITDA of 38.97, FCF yield of 1.6%, and PEG of 1.29. The Graham Number is $20.01, leaving a margin of safety of -819.54%. I would call that no margin of safety at all. The Lynch category is CYCLICAL, Semiconductor Equipment & Materials, because earnings follow the economic cycle. Beta is 1.44 and D/E is 0.97. Growth is solid, but not enough to make this a Graham bargain. A wonderful business can still be a poor investment if paid for too dearly.

In plain English: KLA makes inspection and measurement tools used to check semiconductor wafers, chips, and circuit boards for defects. The business looks strong: sales and profits have grown, profit margins are high, and it generates a lot of cash. But the stock price looks expensive compared with the company's yearly profit and accounting value, so there is little room for disappointment.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer