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Exploring KLA CORP (NASDAQ:KLAC)s quality characteristics.

By Mill Chart

Last update: Nov 30, 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 course 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.

Highlighting Notable Quality Metrics of NASDAQ:KLAC.

  • 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.
  • KLA CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 82.05% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • KLA CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.83, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a robust Profit Quality (5-year) ratio of 101.0%, KLA CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • With a robust 5-year EBIT growth of 22.1%, KLA CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • 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.

Fundamental analysis 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.

Overall KLAC gets a fundamental rating of 7 out of 10. We evaluated KLAC against 105 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making KLAC a very profitable company, without any liquidiy or solvency issues. KLAC has a correct valuation and a medium growth rate. This makes KLAC very considerable for quality investing!

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

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

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.

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