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Why KLA CORP (NASDAQ:KLAC) should be investigated by quality investors.

By Mill Chart

Last update: May 22, 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.

What matters 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 83.7%, 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 maintains a healthy Debt/Free Cash Flow Ratio of 2.15, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • 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.
  • The EBIT 5-year growth of KLA CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

KLAC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC has an excellent profitability rating, but there are some minor concerns on its financial health. KLAC has a correct valuation and a medium growth rate.

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.


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.