WBAG:NXPI

Stock Analysis Report

Executive Summary

NXP Semiconductors N.V., a semiconductor company, provides high performance mixed signal solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide.

Rewards

Trading at 6.7% below its fair value

Earnings are forecast to grow 58.19% per year

Risk Analysis

Interest payments are not well covered by earnings

Profit margins (4.5%) are lower than last year (28.2%)



Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has NXP Semiconductors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NXPI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

NXPI

2.3%

AT Semiconductor

-0.3%

AT Market


1 Year Return

54.7%

NXPI

63.8%

AT Semiconductor

7.3%

AT Market

Return vs Industry: NXPI underperformed the Austrian Semiconductor industry which returned 63.8% over the past year.

Return vs Market: NXPI exceeded the Austrian Market which returned 7.3% over the past year.


Shareholder returns

NXPIIndustryMarket
7 Day2.5%2.3%-0.3%
30 Day2.4%4.0%-1.7%
90 Day10.5%16.1%3.3%
1 Year56.5%54.7%66.4%63.8%11.2%7.3%
3 Yearn/a112.4%104.3%38.7%26.1%
5 Yearn/a167.2%148.4%72.8%48.7%

Price Volatility Vs. Market

How volatile is NXP Semiconductors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NXP Semiconductors undervalued compared to its fair value and its price relative to the market?

6.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NXPI (€108.26) is trading below our estimate of fair value (€115.99)

Significantly Below Fair Value: NXPI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NXPI is poor value based on its PE Ratio (83.5x) compared to the Semiconductor industry average (27.9x).

PE vs Market: NXPI is poor value based on its PE Ratio (83.5x) compared to the Austrian market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: NXPI is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: NXPI is overvalued based on its PB Ratio (3.5x) compared to the XE Semiconductor industry average (2.4x).


Next Steps

Future Growth

How is NXP Semiconductors forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

58.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXPI's forecast earnings growth (58.2% per year) is above the savings rate (-0.1%).

Earnings vs Market: NXPI's earnings (58.2% per year) are forecast to grow faster than the Austrian market (9.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NXPI's revenue (5.6% per year) is forecast to grow faster than the Austrian market (2.8% per year).

High Growth Revenue: NXPI's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NXPI's Return on Equity is forecast to be high in 3 years time (33.3%)


Next Steps

Past Performance

How has NXP Semiconductors performed over the past 5 years?

23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXPI has high quality earnings.

Growing Profit Margin: NXPI's current net profit margins (4.5%) are lower than last year (28.2%).


Past Earnings Growth Analysis

Earnings Trend: NXPI's earnings have grown significantly by 23.2% per year over the past 5 years.

Accelerating Growth: NXPI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NXPI had negative earnings growth (-84.8%) over the past year, making it difficult to compare to the Semiconductor industry average (-18.4%).


Return on Equity

High ROE: NXPI's Return on Equity (4.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NXP Semiconductors's financial position?


Financial Position Analysis

Short Term Liabilities: NXPI's short term assets ($5.9B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: NXPI's short term assets ($5.9B) do not cover its long term liabilities ($8.5B).


Debt to Equity History and Analysis

Debt Level: NXPI's debt to equity ratio (88.6%) is considered high.

Reducing Debt: NXPI's debt to equity ratio has reduced from 458.4% to 88.6% over the past 5 years.

Debt Coverage: NXPI's debt is well covered by operating cash flow (26.9%).

Interest Coverage: NXPI's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: NXPI has a low level of unsold assets or inventory.

Debt Coverage by Assets: NXPI's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

1.26%

Current Dividend Yield


Upcoming Dividend Payment

Purchase NXP Semiconductors before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.3%marketbottom25%1.7%markettop25%4.3%industryaverage1.1%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: NXPI's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.71%).

High Dividend: NXPI's dividend (1.26%) is low compared to the top 25% of dividend payers in the Austrian market (4.3%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether NXPI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if NXPI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.2%), NXPI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NXPI's dividends in 3 years are forecast to be well covered by earnings (21.3% payout ratio).


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Rick Clemmer (68yo)

10.9yrs

Tenure

US$77,378,651

Compensation

Mr. Richard L. Clemmer, also known as Rick, is an Advisor at True Wind Capital. He has been Chief Executive Officer and Executive Director of NXP Semiconductors N.V. since January 1, 2009. Mr. Clemmer was  ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD77.38M) is above average for companies of similar size in the Austrian market ($USD3.60M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

7.4yrs

Average Tenure

61yo

Average Age

Experienced Management: NXPI's management team is seasoned and experienced (7.4 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NXPI's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: NXPI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$175,68627 Nov 19
Stephen Owen
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Marketing
Shares1,639
Max PriceUS$107.19
SellUS$2,264,85427 Nov 19
David Reed
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Technology & Operations
Shares21,137
Max PriceUS$107.15
SellUS$1,038,91112 Nov 19
Keith Shull
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer & Executive VP
Shares9,587
Max PriceUS$108.37
SellUS$410,68811 Sep 19
Keith Shull
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer & Executive VP
Shares4,196
Max PriceUS$97.88
SellUS$436,41206 Sep 19
Keith Shull
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer & Executive VP
Shares4,569
Max PriceUS$95.52
SellUS$878,56607 Aug 19
Peter Bonfield
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$87.86

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rick Clemmer (68yo)

    CEO & Executive Director

    • Tenure: 10.9yrs
    • Compensation: US$77.38m
  • Peter Kelly (62yo)

    CFO, Executive VP of Strategy

    • Tenure: 7.4yrs
  • Jeff Palmer

    Vice President of Investor Relations

    • Tenure: 8.9yrs
  • Steve Owen (59yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 0yrs
  • Kurt Sievers (50yo)

    President

    • Tenure: 1.3yrs
  • Keith Shull (68yo)

    Chief Human Resources Officer & Executive VP

    • Tenure: 4yrs
  • David Reed (61yo)

    Executive Vice President of Technology & Operations

    • Tenure: 0yrs
  • Jean A. Schreurs

    Senior VP & Chief Corporate Counsel

    • Tenure: 0yrs
  • Luc De Dobbeleer

    Senior Vice President and Treasurer

    • Tenure: 8.1yrs
  • Jennifer Wuamett (53yo)

    Executive VP & General Counsel

    • Tenure: 1.3yrs

Board Members

  • Peter Smitham (76yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: US$296.89k
  • Ken Goldman (70yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: US$305.55k
  • Greg Summe (62yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: US$299.55k
  • Rick Clemmer (68yo)

    CEO & Executive Director

    • Tenure: 10.9yrs
    • Compensation: US$77.38m
  • Karl-Henrik Sundström (59yo)

    Non-Executive Director

    • Tenure: 0.5yrs
  • Peter Bonfield (75yo)

    Chairman of the Board

    • Tenure: 9.3yrs
    • Compensation: US$531.90k
  • Lena Olving (63yo)

    Non-Executive Director

    • Tenure: 0.5yrs
  • Joe Kaeser (62yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: US$295.55k
  • Jasmin Staiblin (49yo)

    Non-Executive Director

    • Tenure: 0.5yrs
  • Julie Southern (60yo)

    Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: US$300.55k

Company Information

NXP Semiconductors N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NXP Semiconductors N.V.
  • Ticker: NXPI
  • Exchange: WBAG
  • Founded: 2006
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$32.037b
  • Listing Market Cap: US$28.891b
  • Shares outstanding: 279.53m
  • Website: https://www.nxp.com

Number of Employees


Location

  • NXP Semiconductors N.V.
  • High Tech Campus 60
  • Eindhoven
  • Noord-Brabant
  • 5656 AG
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXPINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2010
VNXDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2010
VNXXTRA (XETRA Trading Platform)YesCommon StockDEEURAug 2010
NXPI NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 2010
0EDELSE (London Stock Exchange)YesCommon StockGBUSDAug 2010
NXPIWBAG (Wiener Boerse AG)YesCommon StockATEURAug 2010
VNXETLX (Eurotlx)YesCommon StockITEURAug 2010

Biography

NXP Semiconductors N.V., a semiconductor company, provides high performance mixed signal solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products w ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 22:17
End of Day Share Price2019/12/06 00:00
Earnings2019/09/29
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.