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.
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.
The Profit Quality (5-year) of KLA CORP stands at 101.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
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.
KLA CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.
A complete fundamental analysis of NASDAQ:KLAC
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 7 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
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.