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Why Quality-Oriented Investors Should Consider NASDAQ:KLAC.

By Mill Chart

Last update: Aug 21, 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.


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Why NASDAQ:KLAC may be interesting for quality investors.

  • The 5-year revenue growth of KLA CORP has been remarkable, with 16.52% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • KLA CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 93.84% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • The Debt/Free Cash Flow Ratio of KLA CORP stands at 2.19, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a favorable Profit Quality (5-year) ratio of 105.0%, KLA CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • The 5-year EBIT growth of KLA CORP has been remarkable, with 22.46% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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.

What else is there to say on the fundamentals of NASDAQ:KLAC?

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.

KLAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. While KLAC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KLAC has a correct valuation and a medium growth rate.

Our latest full fundamental report of KLAC contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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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