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KLA Corporation

KLA.DE
78
Semiconductors · Technology
Exchange
Frankfurt Stock Exchange
Winston Score
78
Winston is happy
A high-quality business with solid fundamentals.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Exceptional
Growth
Exceptional
Cash Flow
Strong
Stability
Strong
Valuation
Weak
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Winston Score History

The full picture

KLA Corporation makes machines that inspect and measure semiconductor wafers during the chip-making process. Its tools help chipmakers like TSMC, Samsung, and Intel find tiny defects before they ruin finished chips. KLA is one of the largest companies in the world focused specifically on process control equipment for the semiconductor industry.

KLA earns revenue by selling expensive capital equipment to chip manufacturers and then charging for ongoing service contracts and spare parts. The company operates globally, with a large share of sales going to customers in Asia, particularly Taiwan and South Korea. KLA's moat comes from the highly specialized nature of its tools — switching to a competitor is costly and risky for chipmakers who depend on consistent, proven results. The main risk is that KLA's revenue is closely tied to how much chipmakers are spending on new factories, which can drop sharply during industry downturns.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+15.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+14.2% YoY

YoY Growth Rate

Steady EPS growth

Insider Activity

0.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€4.9B cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

KLA Corporation is a rare growth stock that's already generating positive cash flow while growing at 15%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
62.4%
Premium pricing power — 62.4% gross margin
Profit after running costs
Operating Margin
43.7%
Excellent — 43.7% operating margin
Return on the money invested
ROCE
47.3%
Exceptional — 47.3% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+11.6%
Steady sales growth (+11.6% YoY)
Profit growth
EPS YoY
+20.3%
Earnings growing fast (+20.3% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
86%
Modest — 86% of profit becomes cash
Spare cash per sale
FCF Margin
27.8%
Converts sales into free cash efficiently (27.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.93
Moderate — manageable debt (0.93)
Covers its interest
Interest Cover
20.40x
Comfortably covers interest (20.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
50.8x
no trend
Expensive — P/E 50.8

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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