Nexchip Semiconductor Corporation

A top-tier grower that's speeding up. Top-tier growth across the board with the forward pace exceeding the past. A textbook fit for aggressive growth and quality-growth strategies. The strongest point: revenue is set to grow 21%/yr over the next 3 years, ahead of most of the market.

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the one-year trend is weak.

A premium price for a fast-growing business. Multiples screen expensive, but growth (85/100) ranks near the top of the market. This is a pay-up-for-the-business profile, not a broken one — better suited to growth or quality mandates than pure value. The strongest point: its forward P/E of 80x is 13% below that median, and its three-year P/E of 21x is 77% below. The one thing to watch: the valuation leaves little margin of safety, so it leans on growth and quality to deliver.

Business quality is a weak point here. Debt is high relative to earnings and overall quality is below the market. Balance-sheet risk is the main watch-item. The strongest point: best on EBITDA margin at 43%, better than 80% of companies worldwide. The one thing to watch: free cash flow is negative.