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NXP Semiconductors (NXPI)
NASDAQ:NXPI
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NXP Semiconductors
(NASDAQ:NXPI)
67Neutral
Positive Factors
Growth Potential
NXP offers perhaps the best combination of secular growth and capital returns in broad-based semis.
Market Position
NXPI is considered a leading automotive semiconductor supplier, well positioned for a recovery in the auto and industrial sectors.
Strategic Partnerships
NXP gave details on its current JVs with TSMC and Vanguard, which will help support the necessary capacity as NXP's product roadmap shifts toward more advanced geometries with lower capital intensity.
Negative Factors
Margin Pressure
Near-term headwinds are pressuring margins with continued weakness in EU autos and US/EU industrials.
Short-Term Challenges
The recovery in the Industrial end market should partially offset the downside from the Automotive end market.
NXP Semiconductors (NXPI) vs. S&P 500 (SPY)
Market Cap
$43.59B
Dividend Yield2.52%
Average Volume (3M)3.18M
Price to Earnings (P/E)17.5
Beta (1Y)1.54
Revenue Growth-4.99%
EPS Growth-9.18%
CountryUS
Employees33,100
SectorTechnology
Sector Strength40
IndustrySemiconductors
Share Statistics
EPS (TTM)9.83
Shares Outstanding253,620,120
10 Day Avg. Volume3,350,611
30 Day Avg. Volume3,184,264
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.03
Price to Cash Flow (P/CF)32.50
P/FCF Ratio19.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$250.49Price Target Upside55.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
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 Financial Statement Overview
Summary
NXP Semiconductors demonstrates solid financial health with strong profitability and efficient cash flow management. The income statement shows strong margins, but revenue has decreased by 5%. The balance sheet indicates moderate leverage with a debt-to-equity ratio of 1.14. The cash flow is managed well, although free cash flow growth is negative.Income Statement
NXP Semiconductors shows strong profitability with a gross profit margin of 55.5% and a net profit margin of 19.9% in TTM. However, revenue has decreased by 5% from the previous year, which may indicate market challenges. EBIT and EBITDA margins remain robust at 27.1% and 33.4% respectively, showcasing efficient operations.78
Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 1.14, reflecting balanced leverage. Return on equity is strong at 26.3%, indicating effective use of shareholder funds. However, the equity ratio of 39.1% suggests a higher reliance on liabilities compared to equity, which could pose risks in economic downturns.72
Positive
Cash Flow
NXP's cash flow management is positive, with an operating cash flow to net income ratio of 1.11, indicating strong cash generation. Free cash flow growth is negative at -17.5%, but the free cash flow to net income ratio is healthy at 0.82, showing efficient capital expenditure management.81
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 | |||
| 2.78B | 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
Negative
160.81
Price Trends
210.21
Negative
213.40
Negative
229.28
Negative
Market Momentum
-5.80
Positive
35.17
Neutral
14.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXPI, the sentiment is Negative. The current price of 160.81 is below the 20-day moving average (MA) of 198.57, below the 50-day MA of 210.21, and below the 200-day MA of 229.28, indicating a bearish trend. The MACD of -5.80 indicates Positive momentum. The RSI at 35.17 is Neutral, neither overbought nor oversold. The STOCH value of 14.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $16.73B | 11.16 | 9.12% | 1.65% | -23.24% | -62.93% | |
68 Neutral | $21.89B | 71.79 | 4.71% | 4.46% | -44.31% | -86.74% | |
67 Neutral | $43.59B | 17.48 | 28.16% | 2.52% | -4.99% | -9.18% | |
67 Neutral | $14.99B | 9.28 | 18.97% | ― | -14.19% | -27.42% | |
63 Neutral | $8.72B | 17.39 | 8.34% | 4.90% | -12.91% | -42.12% | |
62 Neutral | $48.19B | ― | -6.26% | 0.43% | 4.71% | 5.57% | |
57 Neutral | $18.57B | 9.42 | -13.42% | 2.72% | 5.01% | -23.43% |
* Technology Sector Average
Performance Comparison
NXPI
NXP Semiconductors
160.81
-79.87
-33.19%
MRVL
Marvell
49.43
-22.27
-31.06%
MCHP
Microchip
36.22
-50.77
-58.36%
ON
ON Semiconductor
33.70
-35.05
-50.98%
SWKS
Skyworks Solutions
52.78
-48.06
-47.66%
STM
STMicroelectronics
18.49
-23.32
-55.78%
NXP Semiconductors Earnings Call Summary
Earnings Call Date: Feb 3, 2025 | % Change Since: -21.07% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with notable achievements in strategic acquisitions and cash returns. However, there are significant challenges such as revenue decline across major segments and poor market visibility. The positive aspects, such as better-than-expected Q4 revenue and strategic moves in the automotive sector, are balanced by the challenges in key segments and an overall uncertain demand environment.Highlights
Better-than-Expected Q4 Revenue
Q4 revenue was $11 million above the midpoint of guidance, totaling $3.11 billion.
Mobile Segment Growth
Full year revenue for the Mobile segment was up 13% year-on-year.
Strategic Acquisitions
Announced two strategic acquisitions: Aviva Links for $243 million and TT Tech Auto for $625 million to enhance NXP's CoreRide vision for next-generation automotive platforms.
Stable Inventory Management
Distribution channel inventory was maintained at eight weeks, below the long-term target of 11 weeks.
Positive Cash Returns
Returned $2.41 billion to shareholders, equating to 115% of total non-GAAP free cash flow.
Lowlights
Revenue Decline
Q4 revenue decreased by 9% year-on-year. Full year revenue for 2024 was $12.61 billion, a decrease of 5% compared to the previous year.
Automotive Segment Challenges
Automotive revenue for the full year was down 4% year-on-year, impacted by declining production in Europe and Japan.
Industrial & IoT Weakness
Industrial & IoT revenue for Q4 was down 22% year-on-year and slightly below guidance.
Communication Infrastructure Decline
Full year revenue for communication infrastructure and other was down 20% year-on-year.
Uncertain Visibility
Poor forward visibility continues, with high levels of turns business and uncertain demand forecasts.
Company Guidance
In the NXP fourth quarter earnings call, the company provided guidance for the first quarter of 2025, projecting revenue to be $2.825 billion, down 10% year-on-year and 9% sequentially. The non-GAAP gross margin is expected to be approximately 56.3%, with operating expenses estimated at $700 million. The anticipated non-GAAP operating margin is 31.5%, with non-GAAP earnings per share forecasted at $2.59. Inventory levels are expected to remain between eight to nine weeks, reflecting under-shipment against true end demand, particularly in the Automotive sector, which is projected to be down mid-single digits. Communication infrastructure and other segments are expected to see declines in the mid-20% range compared to the first quarter of 2024. Amidst a challenging macroeconomic environment, NXP has highlighted poor forward visibility and plans to continue managing costs while executing strategic acquisitions to bolster long-term growth, particularly in the automotive sector.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.