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Xilinx

Nasdaq:XLNX
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
XLNX
Nasdaq
$15B
Market Cap
Semiconductors
Company description

Xilinx, Inc. designs and develops programmable devices and associated technologies worldwide. More info.


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3 Month History
XLNX
Industry
5yr Volatility vs Market

Value

 Is Xilinx undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Xilinx to its discounted cash flow value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

How is this discounted cash flow calculated?

  • The current share price of Xilinx is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avacados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Xilinx's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Xilinx's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Good value based on earnings compared to the Semiconductors industry average.
  • Good value based on earnings compared to the overall market.
Price based on expected Growth
Does Xilinx's expected growth come at a high price?
  • No forecast or negative expected growth next year.
Price based on value of assets
What value do investors place on Xilinx's assets?
  • Overvalued based on assets compared to the Semiconductors industry average.
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Value checks
We assess Xilinx's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) (Click here or on bar chart for details of DCF calculation.)
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductors industry average (and greater than 0)? (1 check)
  5. Xilinx has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (-0.62%).

    Full details on the Value part of the Simply Wall St company analysis model.
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Discounted cash flow (Free cash flow to Equity)

The calculations below outline how an intrinsic value for Xilinx is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years.

See our documentation to learn about this calculation.

5 year cash flow forecast

Present value of next 5 years cash flows:
$3,075

Terminal Value

Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)

Terminal Value = $899 × (1 + 2.5%) ÷ (9.13% – 2.5%)

Terminal value based on the Perpetuity Method where growth (g) = 2.5%:
$13,828

Present value of terminal value:
$8,932

Equity Value

Equity Value (Total value) = Present value of next 5 years cash flows + terminal value

Value = Total value / Shares Outstanding ($12,007 / 249)

Value per share:
$48.23

Current discount (share price of $60.06): -25%



Estimate of Discount Rate

The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.

Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)

Discount rate = 9.13% = 2.47% + (0.885 * 7.53%)



Estimate of Bottom Up Beta

The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm).

Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))

0.885 = 0.824 (1 + (1- 30%) (10.63%))

Levered Beta used in calculation = 0.885



Assumptions
  1. The risk free rate of 2.47% is from the 10 year government bond rate in United States.
  2. The bottom-up beta is estimated by analysing other companies in the same industry.
  3. The Equity Risk Premium is calculated by subtracting the risk free rate from the market return premium (10%) (source: Buffet).
  4. The dividend discount model is automatically used for companies in the following industries: Banks, Insurance, Real Estate Investment Trusts (REITs), Diversified Financial Services and Capital Markets.

Future Performance

 How is Xilinx expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

    The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

    Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
    3 year growth
    15%
    Expected earnings growth over 3 years.
    Future Earnings growth analysis
    Is Xilinx expected to grow at an attractive rate? We look at the 1 year and 3 year growth below.

    Are Xilinx's annual earnings growth expected to exceed 3.6% over the next 3 years?

    • Earnings are expected to decrease over the next year.
    • After 3 years
    1 & 3 year estimated growth in earnings
    Past and Future Earnings per Share
    The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occured. We also show the highest and lowest estimates looking forward to see if there is a wide range.
    Analysts growth expectations
    2 year growth check
    Super high growth metrics x1.5?

    Which of the these is expected to increase by over 50% in 2 year's time?

    • Revenue
    • Cash flow
    • Profit
    Performance in 3 years
    In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
    • Xilinx is expected to perform strongly, Return on Equity (ROE) in 3 years is estimated to be above 20%.

    Improvement & Relative to industry
    • Expected to be above the Semiconductors industry average.
    • An improvement in Xilinx's performance (ROE) is expected over the next 3 years.
    X
    Future performance checks
    We assess Xilinx's future performance by looking at:
    1. Is the growth in earnings expected to beat the low risk savings rate, plus a premium to keep pace with inflation, in 1 year and 3 years? (2 checks)
    2. Does the average analyst expect Revenue to increase by 50% or more in 2 years? (1 check)
    3. Does the average analyst expect Operating Cash Flow to increase by 50% or more in 2 years? (1 check)
    4. Does the average analyst expect Net Income (Profit) to increase by 50% or more in 2 years? (1 check)
    5. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
    Some of the above checks will fail if the company is expected to be loss making in the relevant year.
    Xilinx has a total score of 2/6, see the detailed checks below.

    Note: If no +3 year data is available, +2.5 year data may be used.

    Note 2: We use GAAP per Share in all our calculations.

    Full details on the Future part of the Simply Wall St company analysis model.

    Past Performance

     How has Xilinx performed over the past 5 years?

    The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
    Past earnings growth
    Below we compare Xilinx's growth in the last year to its industry (Semiconductors).
    Past Earnings growth analysis
    We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
    • Xilinx's earnings growth has not matched the industry average in the past year.
    • Xilinx's 1 year earnings growth exceeds its 5 year annual average (15.8% vs 2.9%).
    • Xilinx has improved earnings in the past 5 years.
    Profit History
    Xilinx's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
    Performance last year
    We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
    • Strong return on shareholders funds (ROE) last year.
    • Xilinx performed worse than the Semiconductors industry average based on return on assets (ROA) last year.
    • Performance based on revenue producing assets (ROCE) is broadly the same over 3 years.
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    Past performance checks
    We assess Xilinx's performance over the past 5 years by checking for:
    1. Has earnings per share (EPS) increased in past 5 years? (1 check)
    2. Has the EPS growth in the last year exceeded that of the Semiconductors industry? (1 check)
    3. Is the current EPS growth higher than the average annual growth over the past 5 years? (1 check)
    4. Is the Return on Equity (ROE) higher than 20%? (1 check)
    5. Is the Return on Assets (ROA) above industry average? (1 check)
    6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
    The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
    Xilinx has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations.

    Full details on the Past part of the Simply Wall St company analysis model.

    Health

     How is Xilinx's financial health and their level of debt?

    A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

    The boxes below represent the relative size of what makes up Xilinx's finances.

    The net worth of a company is the difference between its assets and liabilities.
    Net Worth
    • Xilinx is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Xilinx's cash and other short term assets cover its long term commitments.
    Balance sheet
    This treemap shows a more detailed breakdown of Xilinx's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
    Assets
    Liabilities and shares
    The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
    • Low level of unsold assets
    • Total debt is covered by short term assets.
    Historical Debt
    Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

    The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

    If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
    • The level of debt (64%) compared to net worth is high (greater 40%).
    • The level of debt compared to net worth has increased over the past 5 years (35% vs 64% today).
    • Total debt is well covered by annual operating cash flow (greater than 20% of total debt).
    • Interest on debt is well covered by earnings (101.9x coverage).
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    Financial health checks
    We assess Xilinx's financial health by checking for:
    1. Are short term assets greater than short term liabilities? (1 check)
    2. Are short term assets greater than long term liabilities? (1 check)
    3. Has the debt to equity ratio increased in the past 5 years? (1 check)
    4. Is the debt to equity ratio over 40%? (1 check)
    5. Is the debt covered by short term assets? (1 check)
    6. Are earnings greater than 5x the interest on debt (if comapany pays interest at all)? (1 check)
    7. Xilinx has a total score of 4/6, see the detailed checks below.


    Full details on the Health part of the Simply Wall St company analysis model.

    Dividends

     What is Xilinx's current dividend yield, its reliability and sustainability?

    Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
    Annual Dividend Income
    Dividend payments
    2.25%
    Current annual income from Xilinx dividends. Estimated to be 2.25% next year.
    If you bought $2,000 of Xilinx shares you are expected to receive $45 in your first year as a dividend.
    Dividend Amount
    Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
    • Paying above low risk savings rate. (1.75%)
    • Paying below the markets top dividend payers. (3.18%)
    Historical dividend yield
    It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

    We also check to see if the dividend has increased in the past 10 years.
    • Dividends per share have been stable in the past 10 years.
    • Dividends per share have increased over the past 10 years.
    Current Payout to shareholders
    What portion of Xilinx's earnings are paid to the shareholders as a dividend.
    • Dividends paid are covered by net profit (1.9x coverage).
    Future Payout to shareholders
    • Dividends after 3 years are expected to be covered by net profit (2x coverage).
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    Income/ dividend checks
    We assess Xilinx's dividend by checking for:
    1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
    2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
    3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
    4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
    5. How sustainable is the dividend, can Xilinx afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    6. Xilinx has a total score of 5/6, see the detailed checks below.


    Full details on the Dividends part of the Simply Wall St company analysis model.

    Management

     What is the CEO of Xilinx's salary, the management and board of directors tenure and is there insider trading?

    Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
    CEO
    Moshe Gavrielov, image provided by Google.
    Moshe Gavrielov
    COMPENSATION$5,897,110
    AGE63
    CEO Bio

    Mr. Moshe N. Gavrielov has been the Chief Executive Officer and President of Xilinx Inc. since January 2008. Mr. Gavrielov has nearly 30 years of executive management and engineering experience with semiconductor and software companies to Xilinx. He served as an Executive Vice President and General Manager of Verification Division at Cadence Design Systems Inc. from April 2005 to November 30, 2007 and also serves as its Consultant. From March 1998 to April 7, 2005, Mr. Gavrielov served as Chief Executive Officer of Verisity Ltd., an EDA company, until the acquisition of Verisity by Cadence. He has over 25 years of experience in the semiconductor and electronic design automation ("EDA") industry. He served various positions at LSI Logic Corporation for nearly ten years, including as an Executive Vice President of LSI's Logic Products Group and as a Senior Vice President of International Markets and also served as a Senior Vice President and General Manager of LSI Logic Europe and General Manager of the Application-Specific Integrated Circuit (ASIC ) Division. prior to LSI, Mr. Gavrielov started his career in the various Engineering and Management positions at Digital Equipment Corporation and at National Semiconductor Corporation. He served as Consultant of Cadence Design Systems Inc. He has been a Director of Xilinx Inc. since February 14, 2008. He served as a Director of Reshape Inc. He served as a Director of Vitesse Semiconductor Corp. from April 25, 2005 to June 26, 2007. He served as a Director of Electronic Design Automation Consortium. He served as a Director of Verisity Ltd. since May 1998. He served as a Director of Xpedion Design Systems, Inc. Mr. Gavrielov holds a Bachelor of Science degree in Electrical Engineering and a Masters of Science degree in Computer Science from the Technion Israel Institute of Technology (IIT) in Haifa, Israel.

    CEO Compensation
    • CEO's compensation has been consistent with company performance over the past year.
    • CEO's compensation appears reasonable.
    Management Team Tenure

    Average tenure of the Xilinx management team:

    Management tenure
    5.8 years
    • The average tenure for the Xilinx management team is over 5 years, this suggests they are a seasoned and experienced team.
    Management Team

    Moshe Gavrielov

    TITLE
    Chief Executive Officer
    COMPENSATION
    $5,897,110
    AGE
    63

    Vincent Tong

    TITLE
    Executive Vice President of Global Operations & Quality and Executive Leader of Asia Pacific
    COMPENSATION
    $1,719,660
    AGE
    55

    Krishna Rangasayee

    TITLE
    Senior Vice President and General Manager of Global Sales & Markets
    COMPENSATION
    $1,513,738
    AGE
    48

    Victor Peng

    TITLE
    Executive Vice President and General Manager of Programmable Products Group
    COMPENSATION
    $2,091,397
    AGE
    57

    Lorenzo Flores

    TITLE
    Chief Financial Officer and Senior Vice President
    AGE
    52

    Ivo Bolsens

    TITLE
    Chief Technology Officer and Senior Vice President
    Board of Directors Tenure

    Average tenure of the Xilinx board of directors:

    Board tenure
    8.3 years
    • The tenure for the Xilinx board of directors is about average.
    Board of Directors

    Dennis Segers

    TITLE
    Chairman of the Board
    COMPENSATION
    $202,359
    AGE
    64

    Moshe Gavrielov

    TITLE
    Chief Executive Officer
    COMPENSATION
    $5,897,110
    AGE
    63

    Elizabeth Vanderslice

    TITLE
    Independent Director
    COMPENSATION
    $264,733
    AGE
    53

    J. Patterson

    TITLE
    Independent Director
    COMPENSATION
    $272,733
    AGE
    71

    Rocky Pimentel

    TITLE
    Independent Director
    COMPENSATION
    $260,114
    AGE
    62

    Marshall Turner

    TITLE
    Independent Director
    COMPENSATION
    $262,233
    AGE
    75
    Recent Insider Trading
    • Xilinx insiders have sold more shares than they have bought in the past 3 months.
    Who owns this company?
    X
    Management checks
    We assess Xilinx's management by checking for:
    1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
    2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
    3. Is the average tenure of the management team less than 2 years? (1 check)
    4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Xilinx has a total score of 6/6, this is not included on the snowflake, see the detailed checks below.


    Note: We use the top 6 management executives and board members in our calculations.

    Note 2: Insider trading include any internal stakeholders and these transactions.

    Full details on the Management part of the Simply Wall St company analysis model.

    Company News

    Articles
    Announcements

    Company Info

    Description

    Xilinx, Inc. designs and develops programmable devices and associated technologies worldwide. Its programmable devices comprise integrated circuits (ICs) in the form of programmable logic devices (PLDs), such as programmable system on chips, and three dimensional ICs; software design tools to program the PLDs; targeted reference designs; printed circuit boards; and intellectual property (IP). The company also offers development boards; development kits, including hardware, design tools, IP, and reference designs that are designed to streamline and accelerate the development of domain-specific and market-specific applications; and configuration products, such as one-time programmable and in-system programmable storage devices to configure field programmable gate arrays. In addition, it provides design services, customer training, field engineering, and technical support. The company offers its products to electronic equipment manufacturers in end markets, such as wired and wireless communications, industrial, scientific and medical, aerospace and defense, audio, video and broadcast, consumer, automotive, and test and measurement. Xilinx, Inc. sells its products through a network of independent distributors; and through direct sales to original equipment manufacturers and electronic manufacturing service providers by a network of independent sales representative firms and by a direct sales management organization. The company was founded in 1984 and is headquartered in San Jose, California.

    Details
    Name:Xilinx, Inc.
    Ticker:XLNX
    Exchange:NasdaqGS
    Founded:1984
    Market Cap:$14,951 million
    Website:http://www.xilinx.com
    Listings
    Map

    2100 Logic Drive, San Jose, 95124, United States

    Number of employees
    Street

    Current staff
    Staff numbers
    3,458
    Xilinx employees.
    Industry
    Industry:Semiconductors
    Sector:Semiconductors and Semiconductor Equipment