NASDAQ:KLAC
$29.11
(3/18 3:56PM)
-1.1%
| Open | $29.32 |
Mkt Cap | $5.1 Billion |
| High | $29.79 |
52Wk High | $37.71 |
| Low | $28.87 |
52Wk Low | $19.45 |
| Volume | 3.3 Million |
Avg Vol 10D | 3.5 Million |
Ockham's Rating/Recommendation Summary
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KLAC Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at KLAC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 5.97x and 3.41x respectively.
Utilizing this range we can see that KLAC’s current Price to Sales per share ratio of 2.25x is significantly below its average levels historically. In fact, with a current price of $29.45, KLAC is a full 52% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for KLAC.
KLAC Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently KLAC is significantly above its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from KLAC. For example, KLAC's Cash Earnings ratio per share has fluctuated between 17.82 and 30.03 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where KLAC is with respect to prior business periods.
So what does this tell us about KLAC in particular? Basically, we would value the current level of Cash Earnings per share (which is at 133.86) as significantly overvalued. Just by looking at the last closing price of KLAC, which was $29.45, we can see that compared to the historical high Price to Cash Earnings levels we calculated, the market has already rewarded KLAC with a higher stock price. So basically, we don't view this level of Cash Earnings or stock price as compatible with a long term value at this point. Just remember, that does not mean that KLAC may not have other merits with which to find a good investment opportunity, it just means that we would prefer to see either an increase in Cash Earnings or a decrease in stock price before we would become bullish on this metric.
KLAC Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for KLAC, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. KLAC’s estimated annual dividend is $0.60 resulting in a current dividend yield of 2.04%. The highest dividend yield from KLAC over recent history was 3.93% while the lowest dividend yield was 0.00%. Therefore, the current dividend yield of KLAC is above the historical median by 3.82%. This is definitely a positive in our view.
News on KLAC From the Pundits on Squawk On The Street
As always, the latest news on KLAC is available to Ockham clients through RazorWire, and it was mentioned recently on Squawk On The Street.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk On The Street said about KLA-TENCOR CORP.
Learn About RazorWire?Emerging Markets and KLAC Covered on Tech Trader Daily-Barron's
KLA-Tencor Corporation and an emerging market growth strategy were discussed recently on KLAC.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; KLAC has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.
“… Oppenheimer analyst Gary Hsueh this morning downgraded his ratings on both KLA-TENCOR (KLAC) and Lam Reserarch (LRCX), citing signs of weakness observed on a recent trip through ... …”
KLA-Tencor Corporation EPS: A Hot Topic on Tech Trader Daily-Barron's
Tech Trader Daily-Barron's discussed earnings per share, which is one of the metrics we look at most closely. At Ockham, anytime earnings are discussed we must pay attention.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, KLA-Tencor Corporation has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on KLAC because the price has gotten too high to be justified by the fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards KLAC and think that it will generally perform in-line with the S&P 500.
“… For KLAC, his June 0211 estimate drops to $2. 02, from $2. 80. His target is now $25, down from $37. He also trims estimates for Applied Materials (AMAT): for the October 2010 ... …”
Notice a Discussion Covering KLAC Appeared Recently in the Financial News
The latest news on Zero Hedge in regards to KLAC came through on RazorWire recently.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, KLAC has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe KLA-Tencor Corporation will perform just about the same as the index. At Ockham, we are not advising buying KLA-Tencor Corporation at the current price level because according to our methodology it is not supported by the fundamentals.
“… But some of the dogs in the NDX like AMAT, MSFT, FLIR, KLAC could be prone to some epic squeezes, which could keep the QQQQ's flat on the week. …”
KLAC's Back in the News After More than a Month on Closing Bell
There has not been much to report from KLAC in the last few weeks at least, but Closing Bell talked about the stock recently.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe KLA-Tencor Corporation will perform just about the same as the index. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, KLAC has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying KLA-Tencor Corporation at the current price level because according to our methodology it is not supported by the fundamentals.
“… Some chip equipment stocks like KLA-TENCOR, and tivo strong throughout session today, it diddet get an upgrade over at jpmorgan. Nasdaq is good for about 1. …”
News Developing on Bulls & Bears for KLAC
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to KLA-Tencor Corporation.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe KLA-Tencor Corporation will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on KLAC. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, KLAC has been less covered in the news compared to the rest of our universe of stocks.
“… even though a lot of semicap stocks, KLA-TENCOR, up huge off the lows. We think spending cycle is just getting started. Want to own KLA-TENCOR. Niche player in process ... …”
KLA-Tencor Corporation (KLAC) Discussed on CNBC's Power Lunch
KLA-Tencor Corporation is in the news. Find out how this impacts KLAC trading on Ockham Research.
Al tara on the list down 2%. Xilinx down. And KLA-TENCOR down. Research in motion getting a little back today. Got hammered yesterday on a as you will see here, it's up along with google, apple, and cisco which reports earnings tomorrow are to the downside. >> thanks very much, scott. We've got gold here now topping $10.85 an1085$1,085 an ounce.
“… e. >> thanks very much, scott. We've got gold here now topping $10.85 an1085$1,085 an ounce. …”
KLA-Tencor Corporation (KLAC) Discussed on CNBC's Power Lunch
KLA-Tencor Corporation is in the news. Find out how this impacts KLAC trading on Ockham Research.
Do you hedge it against the dollar? Buy dividend-paying stocks. We have some ideas for you. >>> check out these stocks which are hitting new 52-week highs. We go out for a good week here for the dow jones industrial. KLA-TENCOR. Office depot, schering-plough, and owens illinois. What's on the minds let's ask. When you're trading a stock, every penny counts. I hate when the and you find out you paid more than the quote price. I want it at the or better. Td ameritrade's unique uses multiple market centers the best possible price. I like those odds. I know they can't flat out but they're always looking for it. They know what matters to me. Every online stock trade is always $9.99. Not a penny more. And no maintenance fees. Who else does that? Are you ready to declare your independence? Td ameritrade. Independence america's most successful investors. Announcer: trade commission plus get 100 dollars cash, when you open an account.
“… ugh, and owens illinois. What's on the minds let's ask. When you're trading a stock, every penny counts. I hate when the and you find out you paid more than the quote price. I want it at the or better. Td ameritrade's unique uses multiple market centers the best possible price. I like those odds. I know they can't flat out but they're always looking for it. They know what matters to me. Every online stock trade is always $9.99. Not a penny more. And no maintenance fees. Who else does that? Are you ready to declare your independence? Td ameritrade. Independence america's most successful investors. Announcer: trade commission plus get 100 dollars cash, when you open an account. …”
KLA-Tencor Corporation (KLAC) Discussed on CNBC's Closing Bell
KLA-Tencor Corporation is in the news. Find out how this impacts KLAC trading on Ockham Research.
Interested in semiconductors. The broader technology sector, 2/3 of it is working. Standouts over the month. Advanced micro, amd up 33% for september. Micron, KLA-TENCOR and teradyne all up more than 10% for the semis collectively, the place to avoid for september. >> you remember the french >> I did. We have italian, bring it all. Let's go to the nasdaq market site with melissa lee. >> got a lot of after-hour movers. Nike, darden. We've got your trade. Also with a push to move medical records to electronic format, we've got a first-time cbs with the allscripts ceo. Today is tuesday after big merger monday. We'll have the name on every options traders finger when it comes to the takeout target. >> just ahead, what could move markets tomorrow. What will happen when that opening bell sounds?
“… september. >> you remember the french >> I did. We have italian, bring it all. Let's go to the nasdaq market site with melissa lee. >> got a lot of after-hour movers. Nike, darden. We've got your trade. Also with a push to move medical records to electronic format, we've got a first-time cbs with the allscripts ceo. Today is tuesday after big merger monday. We'll have the name on every options traders finger when it comes to the takeout target. >> just ahead, what could move markets tomorrow. What will happen when that opening bell sounds? …”
KLA-Tencor Corporation (KLAC) Discussed on Fox Business's The Opening Bell on Fox Business
KLA-Tencor Corporation is in the news. Find out how this impacts KLAC trading on Ockham Research.
On this stock this year and it's up 75 percent from the march and atp, down huge yesterday after they announced 5.3 million offeringment looked like it was going to rebound a little bit, but it's still down under some pressure. KLA-TENCOR is another stock, this is interesting, talk about euphoria. Upgraded to a perform from underperform. Yet, how could you call a stock that's up 127% in five months underperforming. Anyway, target 37 at and goldman sachs upgrades the u.S. Home builders, they like them. There's a short on this, and explains some rally overall in the market. Red hat, wow, talk about the good old days, 20 cents, beat the street by a nickel. Linux software and also upgraded today at a buy at merrill and finally, 3com, beat the street, posted earnings by 8 cents and the company says they continue to win contracts and trying to take on cisco around the world. Good luck to them. Mr. Payne, thank you very much for the several early movers, will commercial real estate fears, they're looming and we'll talk about somebody specifically on the front lines, a fox business exclusive coming up next with barry gossen, the ceo of real estate services firm.
“… , this is interesting, talk about euphoria. Upgraded to a perform from underperform. Yet, how could you call a stock that's up 127% in five months underperforming. Anyway, target 37 at and goldman sachs upgrades the u.S. Home builders, they like them. There's a short on this, and explains some rally overall in the market. Red hat, wow, talk about the good old days, 20 cents, beat the street by a nickel. Linux software and also upgraded today at a buy at merrill and finally, 3com, beat the street, posted earnings by 8 cents and the company says they continue to win contracts and trying to take on cisco around the world. Good luck to them. Mr. Payne, thank you very much for the several early movers, will commercial real estate fears, they're looming and we'll talk about somebody specifically on the front lines, a fox business exclusive coming up next with barry gossen, the ceo of real estate services firm. …”