KLA Tencor Story

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KLAC -- USA Stock  

USD 181.02  0.08  0.0442%

As many millenniums are trying to avoid technology space, it makes sense to go over KLA Tencor a little further and try to understand its current market patterns. We will evaluate if KLA Tencor shares are reasonably priced going into September. Is the entity valuation justified? Here we go over the stock perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Should I rely on KLA Tencor management in September 2020?
KLA Tencor currently holds 3.54 B in liabilities with Debt to Equity (D/E) ratio of 1.52, which is about average as compared to similar companies. The entity has a current ratio of 2.56, suggesting that it is liquid enough and is able to pay its financial obligations when due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. KLA Tencor has an asset utilization ratio of 113.05 percent. This suggests that the company is making $1.13 for each dollar of assets. An increasing asset utilization means that KLA Tencor is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of KLA Tencor using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of KLA Tencor based exclusively on its fundamental and basic technical indicators. By analyzing KLA Tencor's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of KLA Tencor's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of KLA Tencor. We calculate exposure to KLA Tencor's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to KLA Tencor's related companies.

KLA Tencor Investment Alerts

KLA Tencor investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring KLA Tencor performance across your portfolios.Please check all investment alerts for KLA Tencor

KLA Tencor Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare KLA Tencor value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across KLA Tencor competition to find correlations between indicators driving the intrinsic value of KLA Tencor.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for KLA Tencor, but it might be worth checking our own buy vs. sell analysis

Sale by Donzella Oreste of 1129 shares of KLA Tencor

Legal trades by KLA Tencor insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
KLA Tencor insider trading alert for sale of common stock by Donzella Oreste, Executive Vice President, on 9th of September 2020. This event was filed by Kla Corp with SEC on 2020-09-09. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On KLA Tencor

The current price build-up of KLA Tencor may raise some interest from investors. The stock closed today at a share price of 195.04 on very low momentum in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.55. The current volatility is consistent with the ongoing market swings in July 2020 as well as with KLA Tencor unsystematic, company-specific events.

Margins Breakdown

KLA Tencor profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or KLA Tencor itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of KLA Tencor profit margins.
Operating Margin26.78
EBITDA Margin0.41
Gross Margin0.7
Profit Margin0.28

KLA Tencor Revenue Per Employee is increasing over the last 8 years. The current value of KLA Tencor Revenue Per Employee is 432,095. Moreover, KLA Tencor Earnings Before Interest Taxes and Depreciation Amortization EBITDA is somewhat stable at the moment.

Will price continue to build-up in September 2020?

Current Sortino Ratio is up to 0.02. Price may slip again. KLA Tencor shows above-average downside volatility for the selected time horizon. We advise investors to inspect KLA Tencor further and ensure that all market timing and asset allocation strategies are consistent with the estimation of KLA Tencor future alpha.

The Current Takeaway on KLA Tencor Investment

Whereas some companies under the semiconductor equipment & materials industry are still a bit expensive, KLA Tencor may offer a potential longer-term growth to investors. All things considered, as of the 2nd of August 2020, we believe that KLA Tencor is currently overvalued with low chance of bankruptcy in the next two years. Our actual 30 days Buy-Hold-Sell recommendation on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of KLA Tencor. Please refer to our Terms of Use for any information regarding our disclosure principles.

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