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Exploring NASDAQ:KLAC's quality characteristics.

By Mill Chart

Last update: Jul 10, 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.

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Some of the quality metrics of NASDAQ:KLAC highlighted

  • 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 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 demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.15, 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 exhibits impressive Profit Quality (5-year) with a 101.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • The 5-year EBIT growth of KLA CORP has been remarkable, with 22.1% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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 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.

Taking everything into account, KLAC scores 6 out of 10 in our fundamental rating. KLAC was compared to 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. While showing a medium growth rate, KLAC is valued expensive at the moment.

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. 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.