NXP Semiconductors N.V. Fundamental Analysis (NASDAQ: NXPI)
NXP Semiconductors N.V. (NASDAQ: NXPI) shows moderate financial fundamentals with a PE ratio of 19.03, profit margin of 22.56%, and ROE of 28.05%. The company generates $13.2B in annual revenue with weak year-over-year growth of -2.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NXPI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNXPI demonstrates superior asset utilization.
Valuation Score
ExcellentNXPI trades at attractive valuation levels.
Growth Score
WeakNXPI faces weak or negative growth trends.
Financial Health Score
ExcellentNXPI maintains a strong and stable balance sheet.
Profitability Score
ExcellentNXPI achieves industry-leading margins.
Key Financial Metrics
Is NXPI Expensive or Cheap?
P/E Ratio
NXPI trades at 19.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NXPI's PEG of 0.48 indicates potential undervaluation.
Price to Book
The market values NXP Semiconductors N.V. at 4.96 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.96 times EBITDA. This is generally considered low.
How Well Does NXPI Make Money?
Net Profit Margin
For every $100 in sales, NXP Semiconductors N.V. keeps $22.56 as profit after all expenses.
Operating Margin
Core operations generate 28.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.05 in profit for every $100 of shareholder equity.
ROA
NXP Semiconductors N.V. generates $11.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NXP Semiconductors N.V. produces operating cash flow of $3.12B, showing steady but balanced cash generation.
Free Cash Flow
NXP Semiconductors N.V. generates strong free cash flow of $2.95B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.70 in free cash annually.
FCF Yield
NXPI converts 5.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How NXPI Stacks Against Its Sector Peers
| Metric | NXPI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.03 | 35.65 | Better (Cheaper) |
| ROE | 28.05% | 651.00% | Weak |
| Net Margin | 22.56% | -138740.00% (disorted) | Strong |
| Debt/Equity | 0.96 | 0.26 | Weak (High Leverage) |
| Current Ratio | 2.04 | 5.96 | Strong Liquidity |
| ROA | 11.16% | 227.00% | Weak |
NXPI outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NXP Semiconductors N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.72%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
4202.72%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
25.78%
Industry Style: Growth, Innovation, High Beta
High Growth