KLAKLAC -1.64%86 ROA % is 28.60% as of Mar. 2026, which is 57% above its 10-year median of 18.19. 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 1,028 Semiconductors companies, KLA ranks better than 97.76% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. KLA's annualizedNet Income for the quarter that ended in Mar. 2026 was $4,804 Mil.
KLA's average Total Assets over the quarter that ended in Mar. 2026 was $16,797 Mil. Therefore, KLA's annualized ROA % for the quarter that ended in Mar. 2026 was 28.60%.
The historical rank and industry rank for KLA's ROA % or its related term are showing as below:
KLAC'
s ROA % Range Over the Past 10 Years
Min: 13.31 Med: 18.19 Max: 29.05
Current: 28.77
During the past 13 years, KLA's highest ROA % was 29.05%. The lowest was 13.31%. And the median was 18.19%.
KLAC's ROA % is ranked better than 97.76% of 1028
companies
in the Semiconductors industry
Industry Median: 2.43
vs KLAC: 28.77
KLA (NAS:KLAC) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
KLA ROA % Related Terms
KLA ROA % Historical Data
* Premium members only.
The historical data trend for KLA's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, KLA's ROA % distribution charts can be found below:
* The bar in red indicates where KLA's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
KLA (KLAC) has a ROA % of 28.60% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on KLA and its competitors. This is 57% above median its historical median of 18.19. Over the past decade, KLA's ROA % has ranged from 13.31 to 29.05. According to the industry distribution chart, KLA ranks #23 out of 1028 companies in the Semiconductors industry, placing it in the top 2.2%.
Is KLA's ROA % too high?
KLA's current ROA % of 28.60% is 57% above median its 10-year median of 18.19. Over the past 10 years, this metric has ranged from a low of 13.31 to a high of 29.05. The Semiconductors industry median ROA % is 2.43. KLA's value of 28.60% is 1077% above this industry median. Based on the distribution chart, KLA ranks #23 out of 1028 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 ROA % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, KLA ranks #23 out of 1028 companies for ROA %. This places KLA in the top 2% of its industry — outperforming the majority of peers. The industry median ROA % is 2.43. KLA's value of 28.60% is 1077% above this benchmark. Historically, KLA's own ROA % has ranged from 13.31 to 29.05 over the past decade. While the company's 10-year median is 18.19 vs. the industry median of 2.43, 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 ROA % for a Semiconductors company?
The median ROA % among Semiconductors companies is 2.43, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KLA's current ROA % of 28.60% is 1077% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on KLA and its competitors. For the Semiconductors industry, the median ROA % is 2.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLA's current ROA % is 28.60%, which is 57% above median its own 10-year median of 18.19. 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 ROA % is 28.60%, which is 57% above median its 10-year median of 18.19 and 1077% above the Semiconductors industry median of 2.43. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For KLA (KLAC), the current ROA % is 28.60% 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:
ROA %: 28.60% (57% above median its 10-year median of 18.19)
GF Value™: $99.87 vs. price of $240.48 (140.8% above fair value)
Industry Position: 1077% above the Semiconductors median (#23 of 1028)
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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