KLAKLAC -1.64%86 OCF Margin % is 20.72% as of Mar. 2026, which is 34% below its 10-year median of 31.30. GuruFocus rates KLAC with a GF Score™ of 86/100 and a GF Value™ of $99.87 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,022 Semiconductors companies, KLA ranks better than 91.29% on this metric.
OCF Margin % is calculated as Cash Flow from Operations divided by its Revenue. KLA's Cash Flow from Operations for the
three
months ended in Mar. 2026 was $707 Mil. KLA's Revenue for the
three
months ended in Mar. 2026 was $3,415 Mil. Therefore, KLA's OCF Margin % for the quarter that ended in Mar. 2026 was 20.72%.
The historical rank and industry rank for KLA's OCF Margin % or its related term are showing as below:
KLAC'
s OCF Margin % Range Over the Past 10 Years
Min: 25.23 Med: 31.3 Max: 35.96
Current: 33.61
During the past 13 years, the highest OCF Margin % of KLA was 35.96%. The lowest was 25.23%. And the median was 31.30%.
KLAC's OCF Margin % is ranked better than 91.29% of 1022
companies
in the Semiconductors industry
Industry Median: 9.39
vs KLAC: 33.61
KLA OCF Margin % Related Terms
KLA OCF Margin % Historical Data
* Premium members only.
The historical data trend for KLA's OCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductor Equipment & Materials subindustry, KLA's OCF Margin %, along with its competitors' market caps and OCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
KLA OCF Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, KLA's OCF Margin % distribution charts can be found below:
* The bar in red indicates where KLA's OCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
KLA (KLAC) has a OCF Margin % of 20.72% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on KLA and its competitors. This is 34% below median its historical median of 31.30. Over the past decade, KLA's OCF Margin % has ranged from 25.23 to 35.96. According to the industry distribution chart, KLA ranks #89 out of 1022 companies in the Semiconductors industry, placing it in the top 8.7%.
Is KLA's OCF Margin % too high?
KLA's current OCF Margin % of 20.72% is 34% below median its 10-year median of 31.30. Over the past 10 years, this metric has ranged from a low of 25.23 to a high of 35.96. The Semiconductors industry median OCF Margin % is 9.39. KLA's value of 20.72% is 120.7% above this industry median. Based on the distribution chart, KLA ranks #89 out of 1022 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, KLA has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does KLA's OCF Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, KLA ranks #89 out of 1022 companies for OCF Margin %. This places KLA in the top 9% of its industry — outperforming the majority of peers. The industry median OCF Margin % is 9.39. KLA's value of 20.72% is 120.7% above this benchmark. Historically, KLA's own OCF Margin % has ranged from 25.23 to 35.96 over the past decade. While the company's 10-year median is 31.30 vs. the industry median of 9.39, KLA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good OCF Margin % for a Semiconductors company?
The median OCF Margin % among Semiconductors companies is 9.39, based on 1,022 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KLA's current OCF Margin % of 20.72% is 120.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on KLA and its competitors. For the Semiconductors industry, the median OCF Margin % is 9.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLA's current OCF Margin % is 20.72%, which is 34% below median its own 10-year median of 31.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLA stock overvalued right now?
Based on GuruFocus' analysis, KLA (KLAC) is currently considered Significantly Overvalued. The stock's GF Value™ is $99.87, compared to a current price of $240.48 — trading 140.8% above its estimated fair value. The current OCF Margin % is 20.72%, which is 34% below median its 10-year median of 31.30 and 120.7% above the Semiconductors industry median of 9.39. KLA's overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For KLA (KLAC), the current OCF Margin % is 20.72% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is KLA (KLAC) Overvalued in 2026?
Based on GuruFocus' analysis, KLA stock appears to be overvalued.
The current stock price of $240.48 is trading 140.8% above its estimated GF Value™ of $99.87.
GuruFocus considers KLA to be Significantly Overvalued.
Key valuation signals for KLAC:
OCF Margin %: 20.72% (34% below median its 10-year median of 31.30)
GF Value™: $99.87 vs. price of $240.48 (140.8% above fair value)
Industry Position: 120.7% above the Semiconductors median (#89 of 1022)
No single metric tells the full story. See the KLAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KLA is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segment of semiconductor process control, wherein machines inspect semiconductor wafers during research and development and manufacturing for defects and verify precise measurements. In this section of the market, KLA holds a majority share. It also has a small exposure to the etch and deposition segments of the WFE market. It counts as top customers the largest chipmakers in the world, including TSMC and Samsung.
86GF Score
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