KLA Corp
NASDAQ:KLAC

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KLA Corp
NASDAQ:KLAC
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Price: 767.51 USD -1.47% Market Closed
Market Cap: 102B USD

Operating Margin
KLA Corp

41.7%
Current
40%
Average
4%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
41.7%
=
Operating Profit
4.8B
/
Revenue
11.6B

Operating Margin Across Competitors

KLA Corp
Glance View

Economic Moat
Narrow
Market Cap
101.5B USD
Industry
Semiconductors

KLA Corporation, headquartered in Milpitas, California, is a critical player in the semiconductor industry, often flying under the radar compared to some of its more illustrious peers. The company's story begins with its pioneering role in process control, inspection, and metrology, vital components in the semiconductor manufacturing process. KLA’s innovative technologies enable semiconductor manufacturers to produce flawless chips by identifying defects and optimizing production yields. By providing sophisticated equipment and software, KLA ensures that every chip, whether powering a smartphone or a supercomputer, meets the highest standards of quality and performance. Through this, the company has carved out a niche, creating a steady flow of revenue from the ever-growing demand for more powerful and efficient semiconductor devices. The financial symphony of KLA is orchestrated through its blend of product sales and lucrative service agreements. Its product sales are primarily driven by the delivery of its high-precision tools that are indispensable to chip manufacturers keen on maintaining competitive parity. Meanwhile, its service arm sustains long-term relationships with these manufacturers. By offering ongoing maintenance and optimization services, KLA not only ensures the longevity and peak performance of its equipment but also secures a predictable stream of recurring revenue. This dual-source revenue model allows KLA to thrive even amidst the highly cyclical nature of the semiconductor industry, reinforcing its position as an indispensable cog in the high-tech manufacturing machine.

KLAC Intrinsic Value
512.89 USD
Overvaluation 33%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
41.7%
=
Operating Profit
4.8B
/
Revenue
11.6B
What is the Operating Margin of KLA Corp?

Based on KLA Corp's most recent financial statements, the company has Operating Margin of 41.7%.

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