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

By Mill Chart

Last update: Jun 13, 2024

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.

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Why NASDAQ:NXPI may be interesting for quality investors.

  • 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.
  • NXP SEMICONDUCTORS NV demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 50.69% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • NXP SEMICONDUCTORS NV demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.69, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • 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.
  • With a robust 5-year EBIT growth of 32.92%, 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.
  • The EBIT 5-year growth of NXP SEMICONDUCTORS NV has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

NXPI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 108 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 correct valuation and a medium growth rate.

Our latest full fundamental report of NXPI contains the most current fundamental analsysis.

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


Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.