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

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.

Looking into the quality metrics of NXP SEMICONDUCTORS NV

• NXP SEMICONDUCTORS NV has shown strong performance in revenue growth over the past 5 years, with a 7.13% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 50.47%, NXP SEMICONDUCTORS NV showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a Debt/Free Cash Flow Ratio of 4.46, NXP SEMICONDUCTORS NV exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 957.0%, NXP SEMICONDUCTORS NV 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 NXP SEMICONDUCTORS NV has been remarkable, with 32.22% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• NXP SEMICONDUCTORS NV has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

A complete fundamental analysis of NASDAQ:NXPI

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

NXPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 106 industry peers in the Semiconductors & Semiconductor Equipment industry. While NXPI belongs to the best of the industry regarding profitability, there are concerns on its financial health. NXPI is not valued too expensively and it also shows a decent growth rate.

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

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

Disclaimer

This article should in no way be interpreted as advice in any way. 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.