Investing in KLA Corporation: A Look at the Last 5 Years
Long-term investing can be life changing when you buy and hold truly great businesses. The value creation that some companies can achieve is remarkable, as demonstrated by the success of KLA Corporation (KLAC). Over the last five years, their share price has soared by 336%. This impressive growth is a testament to the company’s ability to generate massive returns over extended periods.
Even more promising for shareholders is the recent 35% gain in the last three months. KLA recently reported its financial results, showcasing the company’s continued success. It’s important to stay updated with the latest numbers to get a comprehensive understanding of KLA’s performance.
One way to assess a company’s growth and sentiment is to compare the earnings per share (EPS) with the share price. KLA has shown consistent growth in both areas over the last five years. With a compound earnings per share growth rate of 37% per year, the EPS growth aligns closely with the annualized share price gain of 34% per year. This suggests that market sentiment around KLA has remained relatively stable, with the share price tracking its earnings growth.
Looking at the graphic below, you can see how KLA’s EPS has changed over time:
While KLA’s historical profit growth is certainly impressive, it’s essential to consider the company’s future prospects. Conducting a thorough assessment of KLA’s financial health is crucial for shareholders. You can access a free report that provides a more in-depth analysis.
When evaluating investment returns, it’s important to differentiate between total shareholder return (TSR) and share price return. TSR incorporates the value of spin-offs, discounted capital raisings, and dividends. For companies that pay dividends, TSR offers a more comprehensive picture. In the case of KLA, the TSR over the past 5 years was 376%, surpassing the mentioned share price return. This is primarily due to the company’s dividend payments.
Considering the last twelve months, KLA has rewarded shareholders with a total shareholder return of 32%, including dividends. However, the TSR over the past five years is even more impressive, averaging 37% per year. Tracking share price performance over the long term is always interesting, but it’s vital to consider various other factors when evaluating a company like KLA, such as the ones we’ve identified in our research.
If you’re looking to explore another company with potentially superior financials, we encourage you to check out this free report.
Please note that the market returns mentioned in this article reflect the average returns of stocks currently trading on American exchanges.
Ultimately, investing in KLA Corporation has its risks and opportunities. If you have any feedback or concerns about the content of this article, you can reach out to us directly or email our editorial team. We aim to provide unbiased analysis driven by fundamental data, taking into account long-term perspectives. Please note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
