NXP Semiconductors NV (NXPI, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $237.58 per share, the company has experienced a daily gain of 2.62%, despite a three-month decline of -8.61%. A detailed analysis, supported by the GF Score, indicates that NXP Semiconductors NV is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently to calculate a total score, which ranges from 0 to 100, with 100 indicating the highest potential for outperformance. NXP Semiconductors NV boasts a GF Score of 92, signaling strong future performance potential.
Understanding NXP Semiconductors NV's Business
NXP Semiconductors NV, with a market cap of $60.52 billion and annual sales of $13.11 billion, is a leading supplier of high-performance mixed-signal products. Since acquiring Freescale Semiconductor in 2015, the company has secured a significant presence in the automotive market, supplying essential components like microcontrollers and analog chips for various automotive applications. NXP Semiconductors also caters to the industrial and Internet of Things, mobile, and communications infrastructure sectors.
Financial Strength Breakdown
NXP Semiconductors NV's financial robustness is reflected in its Financial Strength Rank of 6/10. The company's Interest Coverage ratio stands at an impressive 8.75, indicating a strong ability to cover interest expenses. Additionally, its Debt-to-Revenue ratio of 0.78 showcases prudent debt management, further solidifying its financial health.
Profitability Rank Breakdown
The Profitability Rank of NXP Semiconductors NV is an impressive 9/10. The company's Operating Margin has shown significant improvement over the past five years, demonstrating its increasing efficiency in generating profits from its revenues. This trend is supported by a consistent rise in Gross Margin over the same period, highlighting its enhanced profitability.
Growth Rank Breakdown
NXP Semiconductors NV is also recognized for its growth, with a Growth Rank of 9/10. The company's 3-Year Revenue Growth Rate of 18.7% outperforms 74.57% of its peers in the semiconductors industry. This is complemented by a robust increase in EBITDA over the past few years, emphasizing its capacity for sustained growth.
Conclusion
Considering NXP Semiconductors NV's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
