Why the quality investor may take a look at NXP SEMICONDUCTORS NV (NASDAQ:NXPI).

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.

A Deep Dive into NXP SEMICONDUCTORS NV's Quality Metrics.

• NXP SEMICONDUCTORS NV has demonstrated significant revenue growth over the past 5 years, with a 7.13% 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 61.77%, 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.
• The Debt/Free Cash Flow Ratio of NXP SEMICONDUCTORS NV stands at 4.46, 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.
• 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.
• 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.
• 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.

What else is there to say on the fundamentals of NASDAQ:NXPI?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall NXPI gets a fundamental rating of 6 out of 10. We evaluated NXPI 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.

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.

Disclaimer

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.