Exploring NASDAQ:NXPI's quality characteristics.

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 demonstrated significant revenue growth over the past 5 years, with a 7.37% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 63.36%, 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.
• NXP SEMICONDUCTORS NV maintains a healthy Debt/Free Cash Flow Ratio of 4.66, 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.
• 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.
• With a robust 5-year EBIT growth of 40.91%, NXP SEMICONDUCTORS NV showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• 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?

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.

Overall NXPI gets a fundamental rating of 6 out of 10. We evaluated NXPI against 105 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 quality stocks can be found 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.