Is NXP SEMICONDUCTORS NV (NASDAQ:NXPI) suited for quality investing?

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.

What matters for quality investors.

• 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.
• With a notable ROIC excluding cash and goodwill at 50.69%, 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.
• With a favorable Debt/Free Cash Flow Ratio of 3.69, NXP SEMICONDUCTORS NV showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• NXP SEMICONDUCTORS NV demonstrates consistent Profit Quality over the past 5 years, with a strong 957.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• NXP SEMICONDUCTORS NV has demonstrated consistent growth in EBIT over the past 5 years, with a strong 32.92%. 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.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall NXPI gets a fundamental rating of 6 out of 10. We evaluated NXPI against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. While NXPI has a great profitability rating, 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.

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

Keep in mind

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