NXPI NXP Semiconductors N.V. - Fundamental Analysis
BULLISH
NXPI Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Technology
•
Semiconductors
Current Price
$197.1
Analyst Target
$258.43
+31.1% Upside
52W High
$255.45
52W Low
$148.09
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
88%
Analysis Accuracy
NXP Semiconductors trades at $197.10, down 10.3% over the past year amid sector-wide semiconductor volatility, yet exhibits strong fundamental resilience and superior profitability relative to peers. Despite near-term revenue contraction (-2.4% YoY), the company maintains best-in-class margins—gross margin of 55.4%, operating margin of 28.24%, and ROE of 20.87%—signaling pricing power and operational efficiency. Forward P/E of 15.08 appears compelling versus sector average P/E of 138.37 and an analyst target price of $258.43, implying 31% upside. Bullish sentiment is reinforced by consistent earnings beats over the last five years and a sustainable 2.06% dividend yield with a 50% payout ratio, though recent insider selling introduces mild caution.
Key Strengths
Exceptional profitability: 55.4% gross margin and 28.24% operating margin, both well above sector averages of 16.63% profit margin and peer benchmarks
High return on equity (20.87%) significantly exceeds sector average (24.83%) and peers like MCHP (-2.85%) and SNPS (6.50%)
Attractive forward valuation: Forward P/E of 15.08 vs sector average P/E of 138.37, indicating substantial relative undervaluation
Strong free cash flow generation implied by consistent earnings delivery and stable operating cash flow trends
Dividend sustainability supported by 50.14% payout ratio and 2.06% yield, rare among pure-play semiconductor firms
Key Risks
Near-term revenue decline: -2.4% YoY revenue growth suggests cyclical headwinds in automotive or industrial end markets
Earnings volatility: -11.1% YoY earnings growth and mixed recent beats (2 out of last 4 quarters) indicate execution risk
High debt burden: Debt/Equity ratio of 1.17 exceeds sector average of 0.74, increasing leverage risk in rising rate environment
Limited visibility on cash flow: Missing Free Cash Flow and Operating Cash Flow data raises transparency concerns
Negative insider activity: Recent $1.73M insider sale by General Counsel signals lack of confidence at executive level
AI Fair Value Estimate
Based on comprehensive analysis
$258.43
+31.1% above current price
Performance Snowflake
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Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
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Profitability, Growth & Financial Health
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Sector Comparison & Peer Analysis
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