NXP Semiconductors (NXPI) AI Stock Analysis

• Market Cap: $55.88B
• Dividend Yield: 1.83%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.54
• Revenue Growth: -7.21%
• EPS Growth: -15.29%
• Country: US
• Employees: 33,100
• Sector: Technology
• Sector Strength: 84
• Industry: Semiconductors
• EPS (TTM): 2.64
• Shares Outstanding: 252,628,700
• 10 Day Avg. Volume: 2,403,349
• 30 Day Avg. Volume: 2,527,075
• PEG Ratio: -3.95
• Price to Book (P/B): 5.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.15
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 8.86
• Enterprise Value/Ebitda: 3.42
• 1Y Price Target: $230.82
• Price Target Upside: -0.14% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 75 Outperform
• Price Target: $261.00 ▲(12.91%Upside)

NXP Semiconductors' strong financial performance and technical momentum are key strengths, providing a stable foundation despite valuation concerns and macroeconomic challenges. The earnings call highlights strategic initiatives and potential recovery signs, but significant risks remain due to high debt levels and market volatility.

Positive Factors

Business Model

NXP offers a highly favorable combination of a resilient business model, growing capital returns, and long-term auto/industrial secular growth.

Cyclical Recovery

Signs of a cyclical recovery and improving backlog position NXP at an attractive entry point for investors.

Valuation

NXP is considered attractive due to its discounted valuation compared to peers, presenting a compelling investment opportunity.

Negative Factors

Leadership Change

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.

Market Visibility

Lingering inventory digestion and a highly uncertain demand backdrop create limited visibility, impacting investor confidence.

Tariff Uncertainty

Tariff uncertainty creates limited visibility for the second half of 2025, impacting investor confidence.

NXP Semiconductors Business Overview & Revenue Model

Company Description

NXP 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 Money

NXP Semiconductors generates revenue primarily through the sale of semiconductor products and solutions across various industries. The company's revenue model is based on the design, manufacturing, and marketing of its semiconductor products. Key revenue streams include automotive applications, where NXP provides products for advanced driver assistance systems (ADAS), vehicle networking, and secure car access. In the industrial & IoT sector, NXP offers solutions for smart home devices, industrial automation, and connected devices. The mobile sector contributes to revenue through products for smartphones, wearables, and mobile payment solutions. Additionally, NXP partners with major technology companies and automotive manufacturers, which enhances its product offerings and market reach. The company's ability to innovate and adapt to emerging technologies like 5G and automated driving further supports its revenue generation.

NXP Semiconductors Financial Statement Overview

Summary

NXP Semiconductors shows strong financial health with solid profitability margins and a balanced capital structure. While there's a slight revenue decline, efficient cost management and healthy cash flow generation provide stability. However, significant debt levels require careful management.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.32B	12.61B	13.28B	13.21B	11.06B	8.61B
Gross Profit	6.83B	7.12B	7.55B	7.52B	6.07B	4.24B
EBITDA	4.01B	4.42B	4.90B	5.04B	3.81B	2.35B
Net Income	2.36B	2.51B	2.80B	2.79B	1.87B	84.00M
Balance Sheet
Total Assets	25.18B	24.39B	24.35B	23.24B	20.86B	19.85B
Cash, Cash Equivalents and Short-Term Investments	3.99B	3.29B	4.27B	3.85B	2.83B	2.27B
Total Debt	11.72B	10.85B	11.18B	11.16B	10.57B	7.61B
Total Liabilities	15.50B	14.85B	15.39B	15.50B	14.09B	10.70B
Stockholders Equity	9.32B	9.18B	8.64B	7.45B	6.53B	8.94B
Cash Flow
Free Cash Flow	1.88B	1.91B	2.51B	2.67B	2.15B	1.96B
Operating Cash Flow	2.49B	2.78B	3.51B	3.90B	3.08B	2.48B
Investing Cash Flow	-625.95M	-686.00M	-1.51B	-1.25B	-934.00M	-418.00M
Financing Cash Flow	-780.63M	-2.66B	-1.99B	-1.62B	-1.58B	-835.00M

NXP Semiconductors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 231.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXPI, the sentiment is Positive. The current price of 231.15 is above the 20-day moving average (MA) of 214.55, above the 50-day MA of 202.33, and above the 200-day MA of 211.76, indicating a bullish trend. The MACD of 5.89 indicates Negative momentum. The RSI at 69.53 is Neutral, neither overbought nor oversold. The STOCH value of 85.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NXPI.

NXP Semiconductors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STM	76 Outperform	$26.98B	25.62	6.33%	1.02%	-25.35%	-70.00%
NXPI	75 Outperform	$55.88B	23.85	26.02%	1.83%	-7.21%	-15.29%
SWKS	74 Outperform	$11.58B	30.14	6.70%	3.63%	-12.90%	-51.90%
ON	72 Outperform	$22.40B	38.81	7.85%	―	-18.28%	-70.98%
MRVL	71 Outperform	$65.73B	―	-3.54%	0.31%	21.60%	50.00%
Sector *	69 Neutral	¥229.55B	14.48	7.64%	2.71%	9.13%	8.50%
MCHP	64 Neutral	$38.66B	84.25	>-0.01%	2.54%	-42.35%	-100.12%

NXP Semiconductors Corporate Events

NXP Semiconductors Approves Interim Dividend Announcement

On June 11, 2025, NXP Semiconductors held its annual general meeting where shareholders voted on several resolutions, including the adoption of the 2024 statutory annual accounts and the re-appointment of various board members. The board was also authorized to issue and repurchase shares, and E&Y Accountants B.V. was re-appointed as the independent auditor for 2025. Additionally, on June 12, 2025, the board approved an interim dividend of $1.014 per share, to be paid on July 9, 2025, to shareholders of record as of June 25, 2025.

The most recent analyst rating on (NXPI) stock is a Buy with a $285.00 price target. To see the full list of analyst forecasts on NXP Semiconductors stock, see the NXPI Stock Forecast page.