Reasonable Growth, Debt Levels, and a High ROIC Make NXP SEMICONDUCTORS NV (NASDAQ:NXPI) Appealing to Quality Investors.

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.

Exploring Why NASDAQ:NXPI Holds Appeal for Quality Investors.

• Over the past 5 years, NXP SEMICONDUCTORS NV has experienced impressive revenue growth, with 7.37% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of NXP SEMICONDUCTORS NV stands at 55.3%, 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.
• The Debt/Free Cash Flow Ratio of NXP SEMICONDUCTORS NV stands at 4.54, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• NXP SEMICONDUCTORS NV demonstrates consistent Profit Quality over the past 5 years, with a strong 973.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• 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.
• 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 assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating 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 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 ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.