NXP Semiconductors N.V. - NASDAQ:NXPI - Comprehensive analysis
NXP Semiconductors, which boasts a wide economic moat, is among our top selections in the analog and mixed-signal chip sector. The stock is currently trading at an appealing discount to our fair value estimate of $280, offering long-term investors a solid margin of safety. While we recognize that tariff issues and sluggish manufacturing activity—particularly in Europe—pose risks for chipmakers with exposure to the automotive and industrial sectors, we expect NXP and its peers to benefit from a cyclical recovery as conditions improve. Early signs of optimism regarding this recovery are beginning to emerge. We do not foresee any structural decline in demand within NXP's core markets. We are particularly impressed by NXP’s significant exposure to the automotive sector, which accounts for nearly 50% of its revenue. The company is well-diversified within automotive, featuring a robust product portfolio that includes processors, microcontrollers, and analog components. We believe NXP will capture its fair share of the growing demand for electrification and safety-related automotive products, such as radar and battery management systems. Overall, NXP’s automotive business is well-positioned to benefit from the ongoing trend of increasing chip content per vehicle.
Free evaluation through quantitative algorithms NXP Semiconductors N.V. - NASDAQ:NXPI
Growth-Scoring Model Detail
Total Revenue Growth Over Prior Year | -4.99 | Market 9 Sector 27 |
Gross Profit Growth Over Prior Year | -5.51 | Market 11 Sector 25 |
EBITDA Growth Over Prior Year | -8.51 | Market 12 Sector 26 |
EBITA Growth Over Prior Year | -9.31 | Market 14 Sector 28 |
EBIT Growth Over Prior Year | -5.87 | Market 19 Sector 31 |
Earnings from Cont. Ops. Growth Over Prior Year | -9.92 | Market 24 Sector 35 |
Net Income Growth Over Prior Year | -10.26 | Market 26 Sector 35 |
Normalized Net Income Growth Over Prior Year | -7.18 | Market 21 Sector 31 |
Diluted EPS before Extra Growth Over Prior Year | -9.07 | Market 27 Sector 35 |
A/R Growth Over Prior Year | 15.44 | Market 85 Sector 71 |
Inventory Growth Over Prior Year | 10.4 | Market 88 Sector 89 |
PPE Net Growth Over Prior Year | -0.57 | Market 31 Sector 50 |
Total Assets Growth Over Prior Year | 0.13 | Market 36 Sector 42 |
Tangible Book Value Growth Over Prior Year | 0 | Market 0 Sector 0 |
Common Equity Growth Over Prior Year | 6.24 | Market 56 Sector 56 |
Cash from Ops. Growth Over Prior Year | -20.81 | Market 15 Sector 17 |
CAPEX Growth Over Prior Year | -12.09 | Market 20 Sector 35 |
Dividend per Share Growth Over Prior Year | 0 | Market 36 Sector 45 |
Levered Free Cash Flow Growth Over Prior Year | -19.8 | Market 19 Sector 19 |
Unlevered Free Cash Flow Growth Over Prior Year | -18.56 | Market 20 Sector 18 |
Profitability-Scoring Model Detail
Gross Margin % | 57 | Market 70 Sector 61 |
SG&A Margin % | 9.01 | Market 36 Sector 9 |
EBITDA Margin % | 35 | Market 71 Sector 93 |
EBITA Margin % | 30.1 | Market 80 Sector 92 |
EBIT Margin % | 28 | Market 79 Sector 93 |
Earnings from Cont. Ops Margin % | 20.2 | Market 74 Sector 87 |
Net Income Margin % | 19.9 | Market 74 Sector 85 |
Net Income Avail. for Common Margin % | 19.9 | Market 75 Sector 87 |
Normalized Net Income Margin % | 15.65 | Market 75 Sector 90 |
Levered Free Cash Flow Margin % | 12.25 | Market 59 Sector 58 |
Unlevered Free Cash Flow Margin % | 14.14 | Market 59 Sector 62 |
Return on Assets % | 9.04 | Market 78 Sector 90 |
Return on Capital % | 10.73 | Market 66 Sector 85 |
Return on Equity % | 27.5 | Market 73 Sector 89 |
Return on Common Equity % | 28.2 | Market 74 Sector 89 |
Total Asset Turnover | 0.52 | Market 52 Sector 41 |
