NXP SEMICONDUCTORS NV (NXPI) Stock Fundamental Analysis
NASDAQ:NXPI - Nasdaq - NL0009538784 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NXPI. NXPI was compared to 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.
In the past 5 years NXPI has always been profitable.
NXPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.38%, NXPI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.33%, NXPI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
NXPI has a better Return On Invested Capital (13.98%) than 85.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
NXPI has a Profit Margin of 19.16%. This is amongst the best in the industry. NXPI outperforms 80.91% of its industry peers.
In the last couple of years the Profit Margin of NXPI has grown nicely.
NXPI has a Operating Margin of 29.01%. This is amongst the best in the industry. NXPI outperforms 89.09% of its industry peers.
NXPI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 56.82%, NXPI is doing good in the industry, outperforming 77.27% of the companies in the same industry.
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.
Compared to 1 year ago, NXPI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.26 indicates that NXPI is not in any danger for bankruptcy at the moment.
NXPI has a Altman-Z score (3.26) which is comparable to the rest of the industry.
NXPI has a debt to FCF ratio of 6.84. This is a slightly negative value and a sign of low solvency as NXPI would need 6.84 years to pay back of all of its debts.
The Debt to FCF ratio of NXPI (6.84) is comparable to the rest of the industry.
NXPI has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NXPI (1.10) is worse than 88.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 6.84 | ||
| Altman-Z | 3.26 |
ROIC/WACC1.35
WACC10.37%
2.3 Liquidity
A Current Ratio of 2.08 indicates that NXPI has no problem at all paying 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.
With a Quick ratio value of 1.47, NXPI is not doing good in the industry: 74.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for NXPI have decreased strongly by -11.43% in the last year.
The Earnings Per Share has been growing by 11.51% on average over the past years. This is quite good.
Looking at the last year, NXPI shows a decrease in Revenue. The Revenue has decreased by -7.21% in the last year.
Measured over the past years, NXPI shows a small growth in Revenue. The Revenue has been growing by 7.28% on average per year.
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
NXPI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.35% yearly.
The Revenue is expected to grow by 5.44% on average over the next years.
EPS Next Y-10.41%
EPS Next 2Y3.28%
EPS Next 3Y8.64%
EPS Next 5Y10.35%
Revenue Next Year-5.15%
Revenue Next 2Y1.78%
Revenue Next 3Y4.79%
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.
Based on the Price/Earnings ratio, NXPI is valued cheaply inside the industry as 82.73% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.41. NXPI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.42, NXPI is valued correctly.
Based on the Price/Forward Earnings ratio, NXPI is valued cheaply inside the industry as 80.91% of the companies are valued more expensively.
NXPI is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 16.42 |
4.2 Price Multiples
NXPI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NXPI is cheaper than 77.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NXPI is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.74 | ||
| EV/EBITDA | 14.66 |
4.3 Compensation for Growth
NXPI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y3.28%
EPS Next 3Y8.64%
5. Dividend
5.1 Amount
NXPI has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
NXPI's Dividend Yield is rather good when compared to the industry average which is at 2.17. NXPI pays more dividend than 88.18% of the companies in the same industry.
NXPI's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of NXPI is nicely growing with an annual growth rate of 29.57%!
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
NXPI pays out 43.84% of its income as dividend. This is a bit on the high side, but may be sustainable.
NXPI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.84%
EPS Next 2Y3.28%
EPS Next 3Y8.64%
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 | 1.74% |
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)0.16%
PT rev (3m)-7.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)0.6%
EPS NY rev (3m)-2.44%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 16.42 | ||
| P/S | 4.69 | ||
| P/FCF | 33.74 | ||
| P/OCF | 23.17 | ||
| P/B | 6.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.66 |
EPS(TTM)12.47
EY5.45%
EPS(NY)13.94
Fwd EY6.09%
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 | 3.26 |
F-Score5
WACC10.37%
ROIC/WACC1.35
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-10.41%
EPS Next 2Y3.28%
EPS Next 3Y8.64%
EPS Next 5Y10.35%
Revenue 1Y (TTM)-7.21%
Revenue growth 3Y4.47%
Revenue growth 5Y7.28%
Sales Q2Q%-9.31%
Revenue Next Year-5.15%
Revenue Next 2Y1.78%
Revenue Next 3Y4.79%
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%