Should Quality Investors Include NASDAQ:NXPI in Their Portfolio?

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 course 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.

Some of the quality metrics of NASDAQ:NXPI highlighted

• The 5-year revenue growth of NXP SEMICONDUCTORS NV has been remarkable, with 7.13% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of NXP SEMICONDUCTORS NV stands at 50.69%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• NXP SEMICONDUCTORS NV maintains a healthy Debt/Free Cash Flow Ratio of 3.69, 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.
• 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 32.92% 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.

How does the complete fundamental picture look for NASDAQ:NXPI?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

NXPI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 107 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.

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

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

Keep in mind

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.