NXP SEMICONDUCTORS NV (NXPI) Stock Fundamental Analysis
NASDAQ:NXPI - Nasdaq - NL0009538784 - Common Stock - Currency: USD
NXPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While NXPI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NXPI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
NXPI had positive earnings in the past year.
In the past year NXPI had a positive cash flow from operations.
Each year in the past 5 years NXPI has been profitable.
In the past 5 years NXPI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.38%, NXPI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With an excellent Return On Equity value of 25.33%, NXPI belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.98%, NXPI belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NXPI is above the industry average of 10.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.38% | ||
| ROE | 25.33% | ||
| ROIC | 13.98% |
ROA(3y)11.26%
ROA(5y)8.6%
ROE(3y)32.37%
ROE(5y)25.27%
ROIC(3y)15.3%
ROIC(5y)11.89%
1.3 Margins
With an excellent Profit Margin value of 19.16%, NXPI belongs to the best of the industry, outperforming 80.91% of the companies in the same industry.
In the last couple of years the Profit Margin of NXPI has grown nicely.
Looking at the Operating Margin, with a value of 29.01%, NXPI belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
NXPI's Operating Margin has improved in the last couple of years.
NXPI's Gross Margin of 56.82% is fine compared to the rest of the industry. NXPI outperforms 77.27% of its industry peers.
In the last couple of years the Gross Margin of NXPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.01% | ||
| PM (TTM) | 19.16% | ||
| GM | 56.82% |
OM growth 3Y8.01%
OM growth 5Y30.06%
PM growth 3Y5.57%
PM growth 5Y48.69%
GM growth 3Y1.46%
GM growth 5Y1.92%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NXPI is creating some value.
NXPI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NXPI has been reduced compared to 5 years ago.
The debt/assets ratio for NXPI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.30 indicates that NXPI is not in any danger for bankruptcy at the moment.
NXPI has a Altman-Z score (3.30) which is in line with its industry peers.
The Debt to FCF ratio of NXPI is 6.84, which is on the high side as it means it would take NXPI, 6.84 years of fcf income to pay off all of its debts.
NXPI has a Debt to FCF ratio (6.84) which is in line with its industry peers.
NXPI has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
NXPI has a Debt to Equity ratio of 1.10. This is amonst the worse of the industry: NXPI underperforms 88.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 6.84 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.34
WACC10.4%
2.3 Liquidity
NXPI has a Current Ratio of 2.08. This indicates that NXPI is financially healthy and has no problem in meeting its short term obligations.
NXPI has a Current ratio of 2.08. This is in the lower half of the industry: NXPI underperforms 71.82% of its industry peers.
NXPI has a Quick Ratio of 1.47. This is a normal value and indicates that NXPI is financially healthy and should not expect problems in meeting its short term obligations.
NXPI's Quick ratio of 1.47 is on the low side compared to the rest of the industry. NXPI is outperformed by 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
NXPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.43%.
Measured over the past years, NXPI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.51% on average per year.
NXPI shows a decrease in Revenue. In the last year, the revenue decreased by -7.21%.
NXPI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.28% yearly.
EPS 1Y (TTM)-11.43%
EPS 3Y6.96%
EPS 5Y11.51%
EPS Q2Q%-18.52%
Revenue 1Y (TTM)-7.21%
Revenue growth 3Y4.47%
Revenue growth 5Y7.28%
Sales Q2Q%-9.31%
3.2 Future
The Earnings Per Share is expected to grow by 10.35% on average over the next years. This is quite good.
NXPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y-10.66%
EPS Next 2Y3.11%
EPS Next 3Y8.37%
EPS Next 5Y10.35%
Revenue Next Year-5.6%
Revenue Next 2Y1.44%
Revenue Next 3Y4.44%
Revenue Next 5Y5.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.36, which indicates a rather expensive current valuation of NXPI.
81.82% of the companies in the same industry are more expensive than NXPI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. NXPI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.48, NXPI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NXPI indicates a rather cheap valuation: NXPI is cheaper than 80.91% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. NXPI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 16.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NXPI is valued a bit cheaper than 77.27% of the companies in the same industry.
71.82% of the companies in the same industry are more expensive than NXPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.74 | ||
| EV/EBITDA | 14.9 |
4.3 Compensation for Growth
The excellent profitability rating of NXPI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y3.11%
EPS Next 3Y8.37%
5. Dividend
5.1 Amount
NXPI has a Yearly Dividend Yield of 1.75%.
Compared to an average industry Dividend Yield of 2.18, NXPI pays a better dividend. On top of this NXPI pays more dividend than 88.18% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, NXPI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
On average, the dividend of NXPI grows each year by 29.57%, which is quite nice.
NXPI has been paying a dividend for over 5 years, so it has already some track record.
As NXPI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)29.57%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
43.84% of the earnings are spent on dividend by NXPI. This is a bit on the high side, but may be sustainable.
The dividend of NXPI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.84%
EPS Next 2Y3.11%
EPS Next 3Y8.37%
228.92
-4.27 (-1.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97.7%
Inst Owner Change-0.03%
Ins Owners0.13%
Ins Owner Change-0.53%
Market Cap57.83B
Analysts81.08
Price Target238.35 (4.12%)
Short Float %1.98%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend4.06
Dividend Growth(5Y)29.57%
DP43.84%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.14%
Min EPS beat(2)-0.63%
Max EPS beat(2)0.36%
EPS beat(4)1
Avg EPS beat(4)-0.94%
Min EPS beat(4)-2.15%
Max EPS beat(4)0.36%
EPS beat(8)5
Avg EPS beat(8)0.01%
EPS beat(12)8
Avg EPS beat(12)0.71%
EPS beat(16)12
Avg EPS beat(16)1.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)-1.74%
Revenue beat(8)1
Avg Revenue beat(8)-1.34%
Revenue beat(12)2
Avg Revenue beat(12)-1.02%
Revenue beat(16)2
Avg Revenue beat(16)-1.05%
PT rev (1m)0.35%
PT rev (3m)-7.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0.33%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 16.48 | ||
| P/S | 4.69 | ||
| P/FCF | 33.74 | ||
| P/OCF | 23.17 | ||
| P/B | 6.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.9 |
EPS(TTM)12.47
EY5.45%
EPS(NY)13.89
Fwd EY6.07%
FCF(TTM)6.78
FCFY2.96%
OCF(TTM)9.88
OCFY4.32%
SpS48.78
BVpS36.9
TBVpS-5.53
PEG (NY)N/A
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.38% | ||
| ROE | 25.33% | ||
| ROCE | 16.76% | ||
| ROIC | 13.98% | ||
| ROICexc | 17.19% | ||
| ROICexgc | 45.01% | ||
| OM | 29.01% | ||
| PM (TTM) | 19.16% | ||
| GM | 56.82% | ||
| FCFM | 13.91% |
ROA(3y)11.26%
ROA(5y)8.6%
ROE(3y)32.37%
ROE(5y)25.27%
ROIC(3y)15.3%
ROIC(5y)11.89%
ROICexc(3y)18.83%
ROICexc(5y)14.48%
ROICexgc(3y)56.5%
ROICexgc(5y)46.83%
ROCE(3y)18.35%
ROCE(5y)14.25%
ROICexcg growth 3Y-7.93%
ROICexcg growth 5Y21.44%
ROICexc growth 3Y7.55%
ROICexc growth 5Y38.24%
OM growth 3Y8.01%
OM growth 5Y30.06%
PM growth 3Y5.57%
PM growth 5Y48.69%
GM growth 3Y1.46%
GM growth 5Y1.92%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 6.84 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 86.99% | ||
| Cap/Sales | 6.35% | ||
| Interest Coverage | 14.53 | ||
| Cash Conversion | 55.79% | ||
| Profit Quality | 72.6% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 3.3 |
F-Score5
WACC10.4%
ROIC/WACC1.34
Cap/Depr(3y)94.61%
Cap/Depr(5y)76.79%
Cap/Sales(3y)7.94%
Cap/Sales(5y)7.66%
Profit Quality(3y)87.1%
Profit Quality(5y)829.04%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.43%
EPS 3Y6.96%
EPS 5Y11.51%
EPS Q2Q%-18.52%
EPS Next Y-10.66%
EPS Next 2Y3.11%
EPS Next 3Y8.37%
EPS Next 5Y10.35%
Revenue 1Y (TTM)-7.21%
Revenue growth 3Y4.47%
Revenue growth 5Y7.28%
Sales Q2Q%-9.31%
Revenue Next Year-5.6%
Revenue Next 2Y1.44%
Revenue Next 3Y4.44%
Revenue Next 5Y5.44%
EBIT growth 1Y-5.6%
EBIT growth 3Y12.83%
EBIT growth 5Y39.53%
EBIT Next Year6.81%
EBIT Next 3Y11.65%
EBIT Next 5Y9.61%
FCF growth 1Y-30.86%
FCF growth 3Y-3.86%
FCF growth 5Y1.78%
OCF growth 1Y-32.01%
OCF growth 3Y-3.3%
OCF growth 5Y3.23%