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Why quality investors should have a look at KLA CORP (NASDAQ:KLAC).

By Mill Chart

Last update: Dec 21, 2023

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.

Some of the quality metrics of NASDAQ:KLAC highlighted

  • 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 maintains a healthy Debt/Free Cash Flow Ratio of 1.83, 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.
  • 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.
  • 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.

How does the complete fundamental picture look for NASDAQ:KLAC?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to KLAC. KLAC was compared to 105 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KLAC has a decent growth rate and is not valued too expensively. These ratings could make KLAC a good candidate for quality investing.

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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