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Should you consider KLA CORP (NASDAQ:KLAC) for quality investing?

By Mill Chart

Last update: Mar 8, 2024

In this article we will dive into KLA CORP (NASDAQ:KLAC) as a possible candidate for quality investing. Investors should always do their own research, but we noticed KLA CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

  • Over the past 5 years, KLA CORP has experienced impressive revenue growth, with 21.06% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 84.21%, KLA CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a favorable Debt/Free Cash Flow Ratio of 1.86, KLA CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a favorable Profit Quality (5-year) ratio of 101.0%, KLA CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • KLA CORP has experienced impressive EBIT growth over the past 5 years, with 22.1% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • 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 Observations

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.

We assign a fundamental rating of 6 out of 10 to KLAC. KLAC was compared to 106 industry peers in the Semiconductors & Semiconductor Equipment industry. While KLAC has a great profitability rating, there are some minor concerns on its financial health. KLAC has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of KLAC for a complete fundamental analysis.

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

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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KLA CORP

NASDAQ:KLAC (5/24/2024, 7:00:02 PM)

After market: 779.06 0 (0%)

779.06

+13.96 (+1.82%)

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