In this article we will dive into NXP SEMICONDUCTORS NV (NASDAQ:NXPI) as a possible candidate for quality investing. Investors should always do their own research, but we noticed NXP SEMICONDUCTORS NV showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
What matters for quality investors.
NXP SEMICONDUCTORS NV has achieved substantial revenue growth over the past 5 years, with a 7.37% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
NXP SEMICONDUCTORS NV demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 63.36% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
NXP SEMICONDUCTORS NV demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.66, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
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.
NXP SEMICONDUCTORS NV has demonstrated consistent growth in EBIT over the past 5 years, with a strong 40.91%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
With EBIT 5-year growth outpacing its Revenue 5-year growth, NXP SEMICONDUCTORS NV showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
A complete fundamental analysis of NASDAQ:NXPI
As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.
Taking everything into account, NXPI scores 6 out of 10 in our fundamental rating. NXPI was compared to 105 industry peers in the Semiconductors & Semiconductor Equipment industry. NXPI scores excellent on profitability, but there are some minor concerns on its financial health. NXPI is not valued too expensively and it also shows a decent growth rate.
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.