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NXP Semiconductors (NXPI)
NASDAQ:NXPI
Top Page
NXP Semiconductors
(NASDAQ:NXPI)
76Outperform
Positive Factors
Capital Returns
Capital allocation remains favorable with significant dividends paid and share repurchases made.
Demand Recovery
There are signs of improving demand with an increasing backlog, stabilization in orders, and spot product shortages.
Geopolitical Flexibility
NXP's diversified supply-chain and European headquarters offer greater geopolitical flexibility.
Negative Factors
CEO Retirement
The surprising announcement that CEO Kurt Sievers will retire at the end of 2025 likely weighed on shares given he was well regarded by investors.
Tariff Impact
Tariff uncertainty creates limited visibility for the second half of 2025, impacting investor confidence.
Uncertain Demand
Lingering inventory digestion plus a highly uncertain demand backdrop make 2H visibility extremely cloudy.
NXP Semiconductors (NXPI) vs. S&P 500 (SPY)
Market Cap
$47.53B
Dividend Yield2.19%
Average Volume (3M)3.98M
Price to Earnings (P/E)20.3
Beta (1Y)1.50
Revenue Growth-7.21%
EPS Growth-15.29%
CountryUS
Employees33,100
SectorTechnology
Sector Strength67
IndustrySemiconductors
Share Statistics
EPS (TTM)2.64
Shares Outstanding252,628,700
10 Day Avg. Volume3,713,992
30 Day Avg. Volume3,979,839
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.19
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit7.93
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$225.26Price Target Upside20.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
NXP Semiconductors Business Overview & Revenue Model
Company DescriptionNXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. The company's product solutions are used in a range of applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Malaysia, and internationally. The company was formerly known as KASLION Acquisition B.V and changed its name to NXP Semiconductors N.V. in May 2010. NXP Semiconductors N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.
How the Company Makes MoneyNXP Semiconductors generates revenue primarily through the sale of its semiconductor products to a diverse range of industries, with a significant portion of its earnings coming from the automotive sector, where it provides components for applications such as advanced driver assistance systems (ADAS) and vehicle networking. Additionally, NXP earns revenue from its industrial and IoT segments, offering solutions for smart home, smart city, and industrial automation. The company also benefits from strategic partnerships and collaborations with major technology firms, which enhance its market reach and integration capabilities. These partnerships, along with a focus on innovation and R&D, are key contributors to NXP's revenue growth and competitiveness in the semiconductor market.
NXP Semiconductors Key Performance Indicators (KPIs)
Any
Revenue by Sales Channel
Examines revenue generated through various sales channels, offering insight into distribution strategy effectiveness and market reach.
Examines revenue generated through various sales channels, offering insight into distribution strategy effectiveness and market reach.
Data provided by:
Main Street Data
Main Street DataNXP Semiconductors Financial Statement Overview
Summary
NXP Semiconductors demonstrates solid financial health across its income statement, balance sheet, and cash flow metrics. The company maintains strong profitability margins and a balanced capital structure. While there is a slight decline in revenue, the company's efficient cost management and strong cash flow generation provide a stable foundation for future growth. However, attention should be paid to the management of debt levels to mitigate potential risks.Income Statement
The income statement reflects a strong financial performance with a consistent revenue stream. The TTM (Trailing-Twelve-Months) gross profit margin stands at 55.46%, indicating efficient cost management. However, there is a slight decrease in revenue, with a 2.30% drop compared to the previous year. The EBIT margin is solid at 26.63%, and the EBITDA margin is healthy at 30.75%, suggesting good operational efficiency. Despite the small decline in revenue, the company maintains strong profitability metrics.85
Very Positive
Balance Sheet
The balance sheet shows a stable financial position with a debt-to-equity ratio of 1.21, indicating a moderate level of leverage. The equity ratio is 38.42%, reflecting a balanced capital structure. Return on equity (ROE) is robust at 24.4%, demonstrating effective management of shareholder funds. However, the total debt level is significant at $11.725 billion, which could pose a risk if not managed carefully.78
Positive
Cash Flow
Cash flow analysis reveals a strong free cash flow generation with a TTM free cash flow of approximately $2.04 billion. The operating cash flow to net income ratio is 1.05, indicating efficient conversion of income to cash. The free cash flow to net income ratio stands at 0.86, showcasing strong cash flow management. Despite a decrease in operating cash flow compared to the previous year, the company's cash position remains healthy.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 12.61B | 13.28B | 13.21B | 11.06B | 8.61B |
| Gross Profit | ||||
| 7.12B | 7.55B | 7.52B | 6.07B | 4.24B |
| EBIT | ||||
| 3.42B | 3.66B | 3.80B | 2.58B | 418.00M |
| EBITDA | ||||
| 4.42B | 4.90B | 5.04B | 3.81B | 2.35B |
| Net Income Common Stockholders | ||||
| 2.51B | 2.80B | 2.79B | 1.87B | 84.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.29B | 4.27B | 3.85B | 2.83B | 2.27B |
| Total Assets | ||||
| 24.39B | 24.35B | 23.24B | 20.86B | 19.85B |
| Total Debt | ||||
| 10.85B | 11.18B | 11.16B | 10.57B | 7.61B |
| Net Debt | ||||
| 7.56B | 7.53B | 7.32B | 7.74B | 5.33B |
| Total Liabilities | ||||
| 14.85B | 15.39B | 15.50B | 14.09B | 10.70B |
| Stockholders Equity | ||||
| 9.18B | 8.64B | 7.45B | 6.53B | 8.94B |
| Cash Flow | Free Cash Flow | |||
| 1.91B | 2.51B | 2.67B | 2.15B | 1.96B |
| Operating Cash Flow | ||||
| 2.78B | 3.51B | 3.90B | 3.08B | 2.48B |
| Investing Cash Flow | ||||
| -686.00M | -1.51B | -1.25B | -934.00M | -418.00M |
| Financing Cash Flow | ||||
| -2.66B | -1.99B | -1.62B | -1.58B | -835.00M |
NXP Semiconductors Technical Analysis
Neutral
186.87
Price Trends
192.53
Negative
203.60
Negative
219.20
Negative
Market Momentum
-0.77
Negative
51.30
Neutral
38.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXPI, the sentiment is Neutral. The current price of 186.87 is above the 20-day moving average (MA) of 180.16, below the 50-day MA of 192.53, and below the 200-day MA of 219.20, indicating a neutral trend. The MACD of -0.77 indicates Negative momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 38.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NXPI.
NXP Semiconductors Risk Analysis
NXP Semiconductors disclosed 41 risk factors in its most recent earnings report. NXP Semiconductors reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NXP Semiconductors Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $47.53B | 20.29 | 26.02% | 2.19% | -7.21% | -15.29% | |
71 Outperform | $20.38B | 19.57 | 6.33% | 1.36% | -25.35% | -70.00% | |
69 Neutral | $10.14B | 20.26 | 8.34% | 4.20% | -12.91% | -42.12% | |
68 Neutral | $16.09B | 26.71 | 7.85% | ― | -18.28% | -70.98% | |
66 Neutral | $25.41B | 84.25 | 4.71% | 3.80% | -44.31% | -86.74% | |
65 Neutral | $52.88B | ― | -6.26% | 0.39% | 4.71% | 5.57% | |
60 Neutral | $10.78B | 10.47 | -6.71% | 2.99% | 7.58% | -12.08% |
* Technology Sector Average
Performance Comparison
NXPI
NXP Semiconductors
186.87
-68.84
-26.92%
MRVL
Marvell
56.31
-11.57
-17.04%
MCHP
Microchip
48.08
-41.68
-46.43%
ON
ON Semiconductor
38.80
-31.87
-45.10%
SWKS
Skyworks Solutions
66.88
-23.40
-25.92%
STM
STMicroelectronics
23.06
-16.87
-42.25%
NXP Semiconductors Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: -4.77%|
Next Earnings Date:Jul 21, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted some positive developments, such as better-than-expected revenue and a strategic acquisition, but these were tempered by significant challenges including a year-on-year revenue decline and macroeconomic uncertainties. The guidance for Q2 indicates a slight sequential improvement, yet the macro environment remains volatile.Q1-2025 Updates
Positive Updates
Revenue Exceeds Midpoint of Guidance
NXP's Q1 revenue was $10 million better than the midpoint of guidance, totaling $2.84 billion.
Guidance for Q2 Shows Sequential Growth
Q2 revenue is guided to $2.9 billion, up 2% sequentially, despite a 7% year-on-year decline.
Strategic Acquisition of Kinara
NXP announced the acquisition of Kinara for $307 million to enhance its AI-powered edge-based systems, expected to be accretive by 2028.
Non-GAAP Earnings Beat
Non-GAAP earnings per share for Q1 was $2.64, $0.05 better than midpoint guidance.
CEO Transition Plan
CEO Kurt Sievers announced his retirement plan, with Rafael promoted to President and taking over as CEO in October 2025.
Negative Updates
Year-on-Year Revenue Decline
Q1 revenue decreased by 9% year-on-year, with automotive and industrial and IoT markets performing below expectations.
Non-GAAP Operating Margin Decline
Non-GAAP operating margin decreased by 260 basis points year-on-year to 31.9%.
Inventory Levels Above Target
Distribution inventory stood at 9 weeks, below the long-term target of 11 weeks, but overall inventory days increased to 169.
Macroeconomic Uncertainty
NXP faces uncertainty due to tariffs and their indirect impact, with no clear trends in customer order pull-ins or push-outs.
Company Guidance
During NXP Semiconductor's Q1 2025 earnings call, the company provided guidance for Q2 2025, projecting revenue at $2.9 billion, which represents a 7% year-over-year decline but a 2% sequential increase. Specific expectations include automotive revenue to remain flat compared to Q2 2024 and grow in the low single-digits versus Q1 2025. Industrial and IoT revenue is anticipated to drop in the mid-teens year-over-year and rise in the mid-single-digits sequentially. Meanwhile, mobile revenue is expected to decline in the mid-single-digits both year-over-year and sequentially, and communication infrastructure and other revenues are projected to decrease in the high 20% range year-over-year and remain flat sequentially. Operating expenses for Q2 are forecasted to be around $710 million, and the non-GAAP operating margin is expected at 31.8%. Despite uncertainties, including potential indirect effects of tariffs, NXP sees early signs of cycle recovery with improving customer backlog levels and stabilized order signals.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.