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

By Mill Chart

Last update: Mar 4, 2024

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

  • 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.
  • The ROIC excluding cash and goodwill of NXP SEMICONDUCTORS NV stands at 61.77%, 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 4.46, 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.
  • 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.
  • 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.
  • 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.

What is the full fundamental picture of NASDAQ:NXPI telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous 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. NXPI scores excellent on profitability, but there are some minor concerns on its financial health. NXPI has a decent growth rate and is not valued too expensively.

For an up to date full fundamental analysis you can check the fundamental report of NXPI

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

Disclaimer

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.

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NXP SEMICONDUCTORS NV

NASDAQ:NXPI (5/30/2024, 8:34:03 AM)

274.29

+0.46 (+0.17%)

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