Why KLA CORP (NASDAQ:KLAC) qualifies as a quality stock.

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.

A Deep Dive into KLA CORP's Quality Metrics.

• KLA CORP has achieved substantial revenue growth over the past 5 years, with a 16.52% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• KLA CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 93.84% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a favorable Debt/Free Cash Flow Ratio of 2.19, 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 105.0%, 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.
• KLA CORP has consistently achieved strong EBIT growth over the past 5 years, with a 22.46% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• KLA CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

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.

Taking everything into account, KLAC scores 7 out of 10 in our fundamental rating. KLAC was compared to 109 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 has a correct valuation and a medium growth rate.

Check the latest full fundamental report of KLAC for a complete fundamental analysis.

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

Disclaimer

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.