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Why KLA CORP (NASDAQ:KLAC) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: Apr 26, 2024

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.

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 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.
  • KLA CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.86, 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.
  • KLA CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 101.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • KLA CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 22.1%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • 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 is the full fundamental picture of NASDAQ:KLAC telling us.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall KLAC gets a fundamental rating of 6 out of 10. We evaluated KLAC against 107 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 is not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of KLAC

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.


This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.