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Is KLA CORP (NASDAQ:KLAC) suited for quality investing?

By Mill Chart

Last update: Sep 1, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if KLA CORP (NASDAQ:KLAC) is suited for quality investing. Investors should of couse do their own research, but we spotted KLA CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NASDAQ:KLAC may be interesting for quality investors.

  • KLA CORP has demonstrated significant revenue growth over the past 5 years, with a 21.06% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 85.23%, KLA CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a Debt/Free Cash Flow Ratio of 1.77, KLA CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • The Profit Quality (5-year) of KLA CORP stands at 101.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • KLA CORP has consistently achieved strong EBIT growth over the past 5 years, with a 22.1% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • KLA CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What else is there to say on the fundamentals of NASDAQ:KLAC?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

KLAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 105 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KLAC has a decent growth rate and is not valued too expensively. With these ratings, KLAC could be worth investigating further for quality investing!.

Our latest full fundamental report of KLAC contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.



NASDAQ:KLAC (12/8/2023, 7:00:40 PM)

After market: 534.43 0 (0%)


-6.8 (-1.26%)


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