NXP Semiconductors N.V. (NXPI) Stock Analysis and Metrics

Sector: Technology Industry: Semiconductors CIK: 0001413447

P/B 5.75

P/E 28.03

P/S 4.80

Market Cap 57.77 Bn

ROIC (Qtr) 11.22

Div Yield % 2.22

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...

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 infrastructure equipment.

The company's revenue is primarily generated through its diverse product portfolio, which includes microcontrollers, application processors, communication processors, wireless connectivity devices, analog and interface products, radio frequency devices, security controllers, and sensors. These products are meticulously designed to ensure high performance, security, and reliability, making them suitable for a wide range of applications.

NXP maintains a strong competitive position within the industry, bolstered by its robust brand reputation, extensive product portfolio, and global presence. This competitive edge enables NXP to cater to a broad customer base, which includes many of the world's leading companies in the automotive, industrial, mobile, and communication infrastructure sectors.

Among the notable brands and trade names under NXP's umbrella are its automotive products, which include microcontrollers, application processors, and communication processors used in automotive infotainment systems, engine control units, and other applications. These products are designed to provide high levels of performance, security, and reliability, making them a trusted choice for many leading automotive manufacturers.

In the industrial and Internet of Things (IoT) sector, NXP offers microcontrollers, application processors, and wireless connectivity devices used in industrial automation, smart home, and other applications. These products are designed to provide high levels of performance, security, and reliability, making them a popular choice among industrial equipment manufacturers.

NXP's mobile segment includes microcontrollers, application processors, and wireless connectivity devices used in mobile devices, such as smartphones and tablets. These products are designed to provide high levels of performance, security, and reliability, making them a staple in mobile devices manufactured by leading global companies.

Lastly, in the communication infrastructure and other sector, NXP provides communication processors, wireless connectivity devices, and security controllers used in communication infrastructure equipment, such as base stations and routers. These products are designed to provide high levels of performance, security, and reliability, making them indispensable in communication infrastructure equipment manufactured by leading global companies.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

Peer Comparison

Companies in the Semiconductors

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	NVDA	Nvidia Corp	4,276.26 Bn	43.11	22.85	10.48 Bn
2	AVGO	Broadcom Inc.	1,690.87 Bn	89.31	28.22	64.23 Bn
3	TSM	Taiwan Semiconductor Manufacturing Co Ltd	1,514.32 Bn	29.36	12.71	31.18 Bn
4	AMD	Advanced Micro Devices Inc	343.27 Bn	103.83	10.72	3.87 Bn
5	MU	Micron Technology Inc	269.16 Bn	31.52	7.20	15.28 Bn
6	INTC	Intel Corp	249.55 Bn	1,260.33	4.67	46.55 Bn
7	QCOM	Qualcomm Inc/De	195.62 Bn	35.30	4.42	14.81 Bn
8	TXN	Texas Instruments Inc	163.92 Bn	32.50	9.49	14.05 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	2.51	3.95
EV to Cash from Ops.	28.48	-331.60
EV to Debt	5.40	86.14
EV to EBIT	22.79	-55.96
EV to EBITDA	17.04	20.88
EV to Free Cash Flow [EV/FCF]	34.34	-4.09
EV to Market Cap	1.14	0.80
EV to Revenue	5.49	18.79
Price to Book Value [P/B]	5.75	5.23
Price to Earnings [P/E]	28.03	12.47

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	2.00	2.29
Dividend Payout Ratio %	49.80	8.00
Dividend per Basic Share	4.06	0.62
FCF Dividend Payout Ratio %	53.16	10.38
Interest Coverage	7.90	8.19

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	48.50	-155.77
Cash and Equivalents Growth (1y) %	25.69	44.44
Dividend Growth (1y) %	0.00	5.30
EBIAT Growth (1y) %	-20.34	34.22
EBITDA Growth (1y) %	-15.79	47.50
EBIT Growth (1y) %	-19.67	30.14
EBT Growth (1y) %	-23.37	47.04
EPS Growth (1y) %	-23.21	36.18
FCF Growth (1y) %	-30.26	252.76
Gross Profit Growth (1y) %	-10.72	43.92

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.46	0.49
Cash Payout Ratio	0.38	0.09
Cash Ratio	0.96	2.23
Current Ratio	2.38	5.43
Debt to Equity Ratio	1.22	0.34
Interest Cover Ratio	7.90	8.19
Times Interest Earned	7.90	8.19

Profitability

Metric	Value	Industry
EBITDA Margin %	31.30	-112.44
EBIT Margin %	24.07	-92.10
EBT Margin %	21.02	-132.39
Gross Margin %	54.70	47.63
Net Profit Margin %	17.10	-133.41

NXP Semiconductors N.V. (NASDAQ: NXPI)