NXP Semiconductors N.V. (NASDAQ: NXPI)

Sector: Technology Industry: Semiconductors CIK: 0001413447
Market Cap 61.06 Bn
P/B 6.08
P/E 29.63
P/S 5.07
ROIC (Qtr) 11.22
Div Yield % 2.10
Rev 1y % (Qtr) -2.37
Total Debt (Qtr) 12.24 Bn
Debt/Equity (Qtr) 1.22

About

NXP Semiconductors N.V., often recognized by its stock symbol NXPI, operates within the semiconductor industry. Headquartered in the Netherlands, this global technology company specializes in the design, development, and manufacturing of a wide array of semiconductor products. NXP's operations span across various markets, including automotive, industrial, mobile, and communication infrastructure. Their products are integral to numerous applications, such as automotive infotainment systems, industrial automation, mobile devices, and communication...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 3.45B provide 2.73x coverage of short-term debt 1.26B, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 2.32B provides exceptional 52.73x coverage of minority interest expenses 44M, showing strong core operations.
  • Strong operating cash flow of 2.32B provides 1.99x coverage of SG&A expenses 1.17B, showing efficient operational cost management.
  • Robust free cash flow of 1.92B exceeds capital expenditure of 396M by 4.86x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 15.09B provides 3.06x coverage of working capital 4.93B, indicating strong operational backing.

Bear case

  • Operating cash flow of 2.32B barely covers its investment activities of (1.69B), with a coverage ratio of -1.37, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 2.32B provides thin coverage of dividend payments of (1.03B) with a -2.25 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (1.69B) provide weak support for R&D spending of 2.31B, which is -0.73x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 3.45B provide limited coverage of acquisition spending of (690M), which is -5.01x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 2.32B shows concerning coverage of stock compensation expenses of 479M, with a 4.84 ratio indicating potential earnings quality issues.

Geographical Breakdown of Revenue (2024)

Contract with Customer, Sales Channel Breakdown of Revenue (2024)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,516.69 Bn 45.53 24.14 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,678.13 Bn 32.54 14.09 31.18 Bn
3 AVGO Broadcom Inc. 1,624.80 Bn 70.26 25.43 65.14 Bn
4 MU Micron Technology Inc 386.61 Bn 32.46 9.14 12.43 Bn
5 AMD Advanced Micro Devices Inc 330.88 Bn 100.08 10.33 3.87 Bn
6 INTC Intel Corp 300.63 Bn 1,518.33 5.63 46.55 Bn
7 QCOM Qualcomm Inc/De 195.07 Bn 35.20 4.40 14.81 Bn
8 TXN Texas Instruments Inc 173.86 Bn 34.48 10.07 14.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.63 4.22
EV to Cash from Ops. EV/CFO 29.90 -369.72
EV to Debt EV to Debt 5.67 90.98
EV to EBIT EV/EBIT 23.93 -66.75
EV to EBITDA EV/EBITDA 17.89 23.41
EV to Free Cash Flow [EV/FCF] EV/FCF 36.05 -8.88
EV to Market Cap EV to Market Cap 1.14 0.80
EV to Revenue EV/Rev 5.76 20.68
Price to Book Value [P/B] P/B 6.08 5.21
Price to Earnings [P/E] P/E 29.63 11.55
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.00 2.39
Dividend Payout Ratio % Div Payout % (Qtr) 49.80 8.25
Dividend per Basic Share Div per Share (Qtr) 4.06 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 53.16 9.91
Interest Coverage Int. cover (Qtr) 7.90 8.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 48.50 -155.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 25.69 45.60
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.64
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -20.34 26.23
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.79 47.12
EBIT Growth (1y) % EBIT 1y % (Qtr) -19.67 25.83
EBT Growth (1y) % EBT 1y % (Qtr) -23.37 39.93
EPS Growth (1y) % EPS 1y % (Qtr) -23.21 24.64
FCF Growth (1y) % FCF 1y % (Qtr) -30.26 244.42
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -10.72 43.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.38 0.09
Cash Ratio Cash Ratio (Qtr) 0.96 2.23
Current Ratio Curr Ratio (Qtr) 2.38 5.43
Debt to Equity Ratio Debt/Equity (Qtr) 1.22 0.34
Interest Cover Ratio Int Coverage (Qtr) 7.90 8.38
Times Interest Earned Times Interest Earned (Qtr) 7.90 8.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 31.30 -112.38
EBIT Margin % EBIT Margin % (Qtr) 24.07 -91.98
EBT Margin % EBT Margin % (Qtr) 21.02 -132.25
Gross Margin % Gross Margin % (Qtr) 54.70 47.73
Net Profit Margin % Net Margin % (Qtr) 17.10 -133.26