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NXPI

NXP Semiconductors NasdaqGS:NXPI Stock Report

Last Price

US$161.24

Market Cap

US$42.0b

7D

3.1%

1Y

-15.5%

Updated

05 Oct, 2022

Data

Company Financials +
NXPI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends3/6

NXPI Stock Overview

NXP Semiconductors N.V. offers various semiconductor products.

NXP Semiconductors N.V. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NXP Semiconductors
Historical stock prices
Current Share PriceUS$161.24
52 Week HighUS$239.91
52 Week LowUS$140.33
Beta1.5
1 Month Change-0.71%
3 Month Change6.07%
1 Year Change-15.54%
3 Year Change52.17%
5 Year Change39.65%
Change since IPO1,051.71%

Recent News & Updates

Oct 03
Here's Why NXP Semiconductors (NASDAQ:NXPI) Has Caught The Eye Of Investors

Here's Why NXP Semiconductors (NASDAQ:NXPI) Has Caught The Eye Of Investors

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Sep 30

NXP Semiconductors: Betting On The Automotive Industry's Digital Revolution

Summary I am bullish on NXP, as I believe the company is poised to capture market opportunities in the strong growing semiconductor market. Moreover, with 50% revenue exposure to the car industry, I view NXP as well positioned to take advantage of the automotive industry’s digital revolution. NXP’s management team has estimated 20% - 25% topline growth through 2024. Down about 35% YTD, the company's valuation has become highly attractive. I calculate a target price of $221.49/share. Thesis The market for semiconductors will arguably be one of the fastest growing markets until 2030, reaching an opportunity of $1 trillion in size. And the accelerated digitalization of the car (connected, autonomous and electric) will likely be one of the major drivers to push demand for semiconductors to new heights. NXP Semiconductor (NXPI) a leading European chip maker with 50% revenue exposure to the automotive industry is poised to be a major beneficiary of these structural demand trends. And accordingly, it should come as no surprise that I am bullish. I regard the current share price weakness for NXPI stock as a buying opportunity, being down about 35% YTD versus a loss of 25% for the S&P 500 (SPX). About NXP NXP NV is as a global semiconductor company. The firm researches, designs and manufactures semiconductors with a focus on automotive, wireless infrastructure, mobile, and computing applications. The company's portfolio of semiconductor technologies include products such as microcontrollers, communication processors, security chips, connectivity chipsets, interface, and digital processing technologies. NXP operates four major segments: Automotive, which accounts for about 50% of the company's sales, Internet of Things technologies with about 20%, and Communication Infrastructure and Mobile both accounting for about 15% each. NXP Investor Presentation Notably, NXP's customers include some of the biggest and most successful firms in the world, including Apple, LG, Bosch, Samsung, BMW, Volkswagen and Siemens. Geographically, China is NXP's most important end market, responsible for about 40% of total sales, followed by US (15%), Europe (15%), by Singapore (10%), and ROW (20%). Structural Tailwind As a leading semiconductor developer, NXP is poised to benefit from the global growing demand for chips, a market opportunity that is expected to grow at a CAGR of about 10% until 2030. NXP Investor Presentation Moreover, NXP generates approximately 50% of revenues from the automotive end market. Accordingly, I believe NXP is well positioned to take advantage of the automotive industry's digital revolution, meaning that cars are becoming increasingly a technology product that consume more semiconductors (CASE revolution: connected, autonomous, shared, and electric). NXP's management team has estimated 20% - 25% topline growth through 2024 and I believe the company could very well achieve sales expansion at the top of management guidance. NXP Investor Presentation Investors should also consider that together with Infineon and STMicroelectronics, NXP is one of the few major semiconductor companies in Europe. And as major economies are pushing to become 'technology sufficient', I believe it is not unreasonable to believe that the European union will increasingly start to support semiconductor research and manufacturing in Europe (like the CHIPS Act in the US). Notably, at the Citi tech conference in early September NXP has indicated to expect demand in 2023 to remain above supply, despite the macro-economic weakness. Management has also said that the company will likely be able to mee no more than 80% of the demand, leaving a 20% supply shortage. Strong Financials From 2018 to 2022 (TTM reference), NXP expanded revenues at a compounded annual rate of about 8%. However, over the same period gross profit increased at a 11% CAGR, and net income increased at a CAGR of 44% respectively, reaching $2.7 billion for the trailing twelve months. Notably, NXP manages to claim a greater than 20% net-income margin, despite strong R&D expensing. For the trailing twelve months, the company has invested $2.1 billion in research, which equates to 16.3% of revenues. NXP's balance sheet is slightly stretched, but nothing of concern in my opinion. As of June 2022, the company had $3.5 billion of cash and short term investments versus a total debt position of $11.2 billion. Cash provided from operations for the trailing twelve months was $3.4 billion. Thus assuming a continuation of business trends, NXP could amortize its $7.7 billion of net-debt within less than 2.5 years. According to the Bloomberg Terminal, analyst consensus estimates that NXP will grow revenues to $15.8 billion in 2025, and earnings to $4.4 billion or $16.6 per share. If consensus is correct, NXP stock would now effectively be trading at a forward 2025 P/E of about x9. Target Price Estimate To estimate a stock's fair implied share price, I am a great fan of applying the residual earnings model, which anchors on the idea that a valuation should equal a business' discounted future earnings after capital charge. As per the CFA Institute: Conceptually, residual income is net income less a charge (deduction) for common shareholders' opportunity cost in generating net income. It is the residual or remaining income after considering the costs of all of a company's capital.

Sep 06
At US$162, Is NXP Semiconductors N.V. (NASDAQ:NXPI) Worth Looking At Closely?

At US$162, Is NXP Semiconductors N.V. (NASDAQ:NXPI) Worth Looking At Closely?

NXP Semiconductors N.V. ( NASDAQ:NXPI ) saw a double-digit share price rise of over 10% in the past couple of months on...

Aug 25

NXP Semiconductors declares $0.845 dividend

NXP Semiconductors (NASDAQ:NXPI) declares $0.845/share quarterly dividend, in line with previous. Forward yield 1.95% Payable Oct. 6; for shareholders of record Sept. 15; ex-div Sept. 14. See NXPI Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

NXPIUS SemiconductorUS Market
7D3.1%4.3%4.4%
1Y-15.5%-22.4%-18.2%

Return vs Industry: NXPI exceeded the US Semiconductor industry which returned -22.4% over the past year.

Return vs Market: NXPI exceeded the US Market which returned -18.2% over the past year.

Price Volatility

Is NXPI's price volatile compared to industry and market?
NXPI volatility
NXPI Average Weekly Movement5.9%
Semiconductor Industry Average Movement7.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: NXPI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NXPI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200631,000Kurt Sievershttps://www.nxp.com

NXP Semiconductors N.V. offers various semiconductor products. The company’s product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. The company's product solutions are used in a range of applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure.

NXP Semiconductors N.V. Fundamentals Summary

How do NXP Semiconductors's earnings and revenue compare to its market cap?
NXPI fundamental statistics
Market CapUS$41.99b
Earnings (TTM)US$2.45b
Revenue (TTM)US$12.35b

17.3x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NXPI income statement (TTM)
RevenueUS$12.35b
Cost of RevenueUS$5.40b
Gross ProfitUS$6.95b
Other ExpensesUS$4.50b
EarningsUS$2.45b

Last Reported Earnings

Jul 03, 2022

Next Earnings Date

Oct 31, 2022

Earnings per share (EPS)9.32
Gross Margin56.25%
Net Profit Margin19.83%
Debt/Equity Ratio154.4%

How did NXPI perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

30%

Payout Ratio