NasdaqGS: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.


Snowflake Analysis

Reasonable 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

-1.7%

NXPI

0.7%

US Semiconductor

0.06%

US Market


1 Year Return

42.6%

NXPI

40.4%

US Semiconductor

19.3%

US Market

Return vs Industry: NXPI exceeded the US Semiconductor industry which returned 40.4% over the past year.

Return vs Market: NXPI exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

NXPIIndustryMarket
7 Day-1.7%0.7%0.06%
30 Day0.1%3.2%1.7%
90 Day17.0%16.7%9.0%
1 Year44.3%42.6%43.1%40.4%21.8%19.3%
3 Year33.4%31.1%96.2%85.6%49.5%39.9%
5 Year61.6%58.8%157.0%132.4%73.1%54.1%

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

Valuation

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

14.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NXPI ($134.8) is trading below our estimate of fair value ($156.69)

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 (156.5x) compared to the Semiconductor industry average (38.2x).

PE vs Market: NXPI is poor value based on its PE Ratio (156.5x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: NXPI is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: NXPI is overvalued based on its PB Ratio (4x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is NXP Semiconductors forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

45.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXPI's forecast earnings growth (45.4% per year) is above the savings rate (1.7%).

Earnings vs Market: NXPI's earnings (45.4% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: NXPI's revenue (6.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: NXPI's revenue (6.6% 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 (31.4%)


Next Steps

Past Performance

How has NXP Semiconductors performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXPI has a large one-off loss of $88.0M impacting its December 31 2019 financial results.

Growing Profit Margin: NXPI's current net profit margins (2.7%) are lower than last year (23.5%).


Past Earnings Growth Analysis

Earnings Trend: NXPI's earnings have grown by 15.6% 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 (-89%) over the past year, making it difficult to compare to the Semiconductor industry average (-28%).


Return on Equity

High ROE: NXPI's Return on Equity (2.8%) 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 ($3.3B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: NXPI's short term assets ($3.3B) do not cover its long term liabilities ($8.6B).


Debt to Equity History and Analysis

Debt Level: NXPI's debt to equity ratio (73.7%) is considered high.

Reducing Debt: NXPI's debt to equity ratio has reduced from 493.8% to 73.7% over the past 5 years.

Debt Coverage: NXPI's debt is well covered by operating cash flow (33.3%).

Interest Coverage: NXPI's interest payments on its debt are not well covered by EBIT (2.2x 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 0.5x debt).


Next Steps

Dividend

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

1.11%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: NXPI's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: NXPI's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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: With its high payout ratio (145.1%), NXPI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NXPI's dividends in 3 years are forecast to be well covered by earnings (23.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.6yrs

Average management tenure


CEO

Rick Clemmer (68yo)

11.1yrs

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 ($USD77.38M) is above average for companies of similar size in the US market ($USD10.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Clemmer
CEO & Executive Director11.1yrsUS$77.38m0.30% $114.4m
Kurt Sievers
President1.4yrsno data0.015% $5.6m
Peter Kelly
CFO, Executive VP of Strategy7.6yrsno data0.039% $14.6m
David Reed
Executive Vice President of Technology & Operations0yrsno data0.0065% $2.5m
Jeff Palmer
Vice President of Investor Relations9.1yrsno datano data
Jennifer Wuamett
Executive VP & General Counsel1.4yrsno data0.0014% $508.7k
Stephen Owen
Executive Vice President of Sales & Marketing0yrsno data0.00067% $252.5k
Keith Shull
Chief Human Resources Officer & Executive VP4.2yrsno data0.0017% $629.3k
Jean A. Schreurs
Senior VP & Chief Corporate Counsel0yrsno datano data
Luc De Dobbeleer
Senior Vice President and Treasurer8.3yrsno datano data

7.6yrs

Average Tenure

61yo

Average Age

Experienced Management: NXPI's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Clemmer
CEO & Executive Director11.1yrsUS$77.38m0.30% $114.4m
Peter Smitham
Non-Executive Director4.2yrsUS$296.89k0.0014% $523.8k
Kenneth Goldman
Non-Executive Director9.5yrsUS$305.55k0.0082% $3.1m
Gregory Summe
Non-Executive Director4.2yrsUS$299.55k0.0042% $1.6m
Karl-Henrik Sundström
Non-Executive Director0.7yrsno datano data
Peter Bonfield
Chairman of the Board9.5yrsUS$531.90k0.0091% $3.4m
Lena Olving
Non-Executive Director0.7yrsno datano data
Josef Kaeser
Non-Executive Director9.4yrsUS$295.55k0.014% $5.1m
Jasmin Staiblin
Non-Executive Director0.7yrsno datano data
Julie Southern
Non-Executive Director6.3yrsUS$300.55k0.0039% $1.5m

5.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NXPI's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: NasdaqGS
  • Founded: 2006
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$37.680b
  • 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
N1XP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 2 COMBRBRLDec 2019

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 worldwide. The company offers products for audio and visual head-end unit applications, such as single-chip radio solutions, multi-standard radios, audio amplifiers and power analog products, and i.MX applications processors; in-vehicle networking products; two-way secure entry products; various sensors and microcontrollers; power management solutions; battery cell controllers; and solutions for radar, vision, vehicle-to-vehicle, and vehicle-to-infrastructure systems. It also provides secure identification solutions, such as passive RF connectivity devices; microcontroller devices; and secure real-time operating system software products to facilitate the encryption-decryption of data, and the interaction with the reader infrastructure systems. In addition, the company delivers semiconductor-based technologies for connected devices comprising microcontrollers, secure mobile transaction solutions, and various connectivity solutions; and offers digital networking processors, secure interface and system management products, high-performance RF power-amplifiers, and smart antennae solutions. Its product solutions are used in a range of application areas, including automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer, computing, and software solutions for mobile phones. The company markets its products to various original equipment manufacturers, original design manufacturers, contract manufacturers, and distributors. NXP Semiconductors N.V. has collaboration with Sivers IMA Holding AB. The company was formerly known as KASLION Acquisition B.V and changed its name to NXP Semiconductors N.V. in May 2010. NXP Semiconductors N.V. was founded in 2006 and is headquartered in Eindhoven, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:01
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.