KLA Tencor Profitability Analysis
| KLAC Stock | USD 632.14 0.67 0.11% |
Net Income | First Reported 1989-12-31 | Previous Quarter 836.4 M | Current Value 945.9 M | Quarterly Volatility 247.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.42 | 0.5997 |
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| Net Profit Margin | 0.3 | 0.2815 |
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| Operating Profit Margin | 0.39 | 0.3705 |
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| Pretax Profit Margin | 0.34 | 0.3251 |
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| Return On Assets | 0.19 | 0.179 |
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| Return On Equity | 0.86 | 0.82 |
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For KLA Tencor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KLA Tencor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KLA Tencor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KLA Tencor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KLA Tencor over time as well as its relative position and ranking within its peers.
KLA |
KLA Tencor's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
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.
Please note, there is a significant difference between KLA Tencor's value and its price as these two are different measures arrived at by different 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.
KLA Tencor Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining KLA Tencor's current stock value. Our valuation model uses many indicators to compare KLA Tencor value to that of its competitors to determine the firm's financial worth. KLA Tencor is currently regarded as number one stock in return on equity category among its peers. It also is currently regarded as number one stock in return on asset category among its peers reporting about 0.18 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for KLA Tencor is roughly 5.61 . At present, KLA Tencor's Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the KLA Tencor's earnings, one of the primary drivers of an investment's value.KLA Tencor's Earnings Breakdown by Geography
KLA Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
KLA Tencor |
| = | 0.91 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
KLA Tencor |
| = | 0.16 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
KLA Return On Asset Comparison
KLA Tencor is currently under evaluation in return on asset category among its peers.
KLA Tencor Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in KLA Tencor, profitability is also one of the essential criteria for including it into their portfolios because, without profit, KLA Tencor will eventually generate negative long term returns. The profitability progress is the general direction of KLA Tencor's change in net profit over the period of time. It can combine multiple indicators of KLA Tencor, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -49.1 M | -46.6 M | |
| Operating Income | 3.6 B | 3.8 B | |
| Income Before Tax | 3.2 B | 3.3 B | |
| Total Other Income Expense Net | -445.7 M | -423.4 M | |
| Net Income | 2.8 B | 2.9 B | |
| Income Tax Expense | 428.1 M | 449.5 M | |
| Net Income Applicable To Common Shares | 3.9 B | 4.1 B | |
| Net Income From Continuing Ops | 2.8 B | 1.5 B | |
| Interest Income | 160.7 M | 168.7 M | |
| Non Operating Income Net Other | 105.1 M | 110.4 M | |
| Net Interest Income | -150.6 M | -158.1 M | |
| Change To Netincome | -135.9 M | -129.1 M | |
| Net Income Per Share | 20.41 | 21.43 | |
| Income Quality | 1.20 | 1.60 | |
| Net Income Per E B T | 0.87 | 0.52 |
KLA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on KLA Tencor. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of KLA Tencor position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the KLA Tencor's important profitability drivers and their relationship over time.
KLA Tencor Profitability Trends
KLA Tencor profitability trend refers to the progression of profit or loss within a business. An upward trend means that KLA Tencor's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is KLA Tencor's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
KLA Tencor Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between KLA Tencor different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards KLA Tencor in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down KLA Tencor's future profitability.
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Use KLA Tencor in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if KLA Tencor position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KLA Tencor will appreciate offsetting losses from the drop in the long position's value.KLA Tencor Pair Trading
KLA Tencor Pair Trading Analysis
The ability to find closely correlated positions to KLA Tencor could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace KLA Tencor when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back KLA Tencor - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling KLA Tencor to buy it.
The correlation of KLA Tencor is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as KLA Tencor moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if KLA Tencor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for KLA Tencor can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your KLA Tencor position
In addition to having KLA Tencor in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Correlation Analysis. For information on how to trade KLA Stock refer to our How to Trade KLA Stock guide.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project KLA Tencor's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of KLA Tencor at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include KLA Tencor's income statement, its balance sheet, and the statement of cash flows.