NXP SEMICONDUCTORS NV (NASDAQ:NXPI) can be considered a quality stock. Here's why.

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 NXP SEMICONDUCTORS NV (NASDAQ:NXPI) is suited for quality investing. Investors should of couse do their own research, but we spotted NXP SEMICONDUCTORS NV showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• NXP SEMICONDUCTORS NV has shown strong performance in revenue growth over the past 5 years, with a 7.37% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 55.3%, NXP SEMICONDUCTORS NV demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• NXP SEMICONDUCTORS NV maintains a healthy Debt/Free Cash Flow Ratio of 4.54, 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.
• The Profit Quality (5-year) of NXP SEMICONDUCTORS NV stands at 973.0%, 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.
• The 5-year EBIT growth of NXP SEMICONDUCTORS NV has been remarkable, with 40.91% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• The EBIT 5-year growth of NXP SEMICONDUCTORS NV 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:NXPI?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

NXPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 105 industry peers in the Semiconductors & Semiconductor Equipment industry. While NXPI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NXPI has a correct valuation and a medium growth rate.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.