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NXPI NXP Semiconductors N.V. - Fundamental Analysis

BULLISH
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NXPI Stock | Fundamental Analysis & Investment Insights
NASDAQ Technology Semiconductors
Current Price Live
$197.1
Analyst Target
$258.43
+31.1% Upside
52W High
$255.45
52W Low
$148.09

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 16, 2025
Market cap
$50.64B
P/E
24.39
ROE
20.9%
Profit margin
17.1%
Debt/Equity
1.17
Dividend yield
2.06%

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

Multi-dimensional analysis across 5 key categories

Overall
81
Excellent
Value
90
Future
76
Past
88
Health
72
Dividend
80
AI Verdict
NXPI presents a compelling value opportunity within the semiconductor sector, trading at a steep discount to its forward earnings and analyst target of $258.43, while maintaining elite profitability and a stable dividend. Despite short-term cyclical headwinds reflected in negative revenue growth and recent insider selling, the company’s long-term earnings consistency, margin strength, and favorable forward P/E of 15.08 versus a sector average of 138.37 support a bullish thesis. The stock’s underperformance over the past year (-10.3%) appears overdone relative to fundamentals.
Key drivers: Forward P/E discount to sector, Superior historical profitability and ROE, Analyst target implying 31% upside
Confidence
88%
Value
90/100

NXPI is dramatically cheaper on forward earnings than the technology sector average, which is skewed by hyper-growth software names, but even versus hardware peers like SNPS (P/E 52.61) and MCHP (no P/E), NXPI’s valuation appears disciplined and attractive

Positives
  • Forward P/E of 15.08 is significantly below sector average of 138.37
  • Price/Sales of 4.20 is reasonable for a high-margin semiconductor player
Watchpoints
  • Current P/E of 24.39 is above forward P/E, suggesting earnings compression expectations
  • Lack of EV/EBITDA and EV/Revenue data limits full valuation triangulation
Future
76/100

While the 1-year price return of -10.3% and 6-month decline of -6.4% reflect weak momentum, the +14.3% Q/Q EPS growth and forward P/E compression suggest the market is pricing in a recovery that could be catalyzed by automotive and industrial demand rebound

Positives
  • Forward P/E of 15.08 implies strong earnings recovery expectations
  • Most recent Q/Q EPS growth of +14.3% signals potential inflection in earnings momentum
Watchpoints
  • Revenue growth is negative YoY (-2.4%), indicating ongoing demand softness
  • Mixed recent earnings surprises (2/4 beats in last four quarters) raise near-term execution concerns
Past
88/100

NXPI has demonstrated exceptional earnings quality over the past five years, with only two misses in 25 quarters and a 5Y total return of +43.1%, outperforming peers like FI (-69.9%) and TEAM (-39.3%), though recent deceleration in growth has weighed on 1Y performance (-10.3%)

Positives
  • Consistent earnings outperformance: 22 out of 25 quarters beat estimates, with average surprise of +4.0% over five years
  • Profitability stability: Gross, operating, and net margins have remained robust even during downturns
Watchpoints
  • Recent earnings surprises have moderated to ~1–2%, down from double-digit beats in 2020–2021
  • Year-over-year EPS growth is negative (-9.9%), breaking a long streak of expansion
Health
72/100

While NXPI maintains adequate liquidity, its leverage ratio exceeds sector norms and peers like SNPS (0.55) and MCHP (0.81), suggesting higher fixed costs and refinancing exposure, particularly if interest rates remain elevated

Positives
  • Healthy liquidity: Current ratio of 2.38 and quick ratio of 1.41 indicate solid short-term financial flexibility
  • Debt appears manageable given stable cash flow profile and investment-grade credit assumptions
Watchpoints
  • Debt/Equity of 1.17 is high relative to sector average of 0.74, increasing financial risk
  • Missing total debt, cash, and FCF figures limit full solvency and runway assessment
Dividend
80/100

NXPI offers one of the few sustainable dividends in the semiconductor space, with a balanced 50% payout ratio and yield above the sector average, enhancing total return potential even during periods of price stagnation

Positives
  • Attractive 2.06% dividend yield in a low-yield environment and rare among semiconductor peers
  • Payout ratio of 50.14% indicates strong earnings coverage and room for future increases
Watchpoints
  • Lack of 5-year average yield data limits visibility into dividend growth trajectory
  • No disclosed ex-dividend date may reduce appeal to income-focused investors

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$197.1
Analyst Target
$258.43
Upside/Downside
+31.1%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for NXPI and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
NXPI
NXP Semiconductors N.V.
Primary
+43.1% +19.3% -10.3% -6.4% -9.3% -3.6%
WDAY
Workday, Inc.
Peer
-15.5% +12.1% -25.5% -19.8% -13.5% -9.8%
ROP
Roper Technologies, Inc.
Peer
+13.4% +4.9% -19.9% -22.6% -10.1% +0.6%
ADSK
Autodesk, Inc.
Peer
-8.0% +26.1% +1.7% -21.3% +8.0% -3.8%
FTNT
Fortinet, Inc.
Peer
+154.3% +50.5% -19.9% -28.5% -5.0% -4.8%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
24.39
Forward P/E
15.08
PEG Ratio
N/A
P/B Ratio
4.95
P/S Ratio
4.2
EV/Revenue
4.84
EV/EBITDA
14.58
Market Cap
$50.64B

Profitability

Profit margins and return metrics

Profit Margin 17.11%
Operating Margin 28.24%
Gross Margin 55.4%
ROE 20.87%
ROA 7.89%

Growth

Revenue and earnings growth rates

Revenue Growth -2.4%
Earnings Growth -11.1%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth -12.1%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
1.17
Moderate
Current Ratio
2.38
Strong
Quick Ratio
1.41
Good
Cash/Share
$15.71

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-02
$N/A
2025-10-27
$3.11
-0.3% surprise
2025-07-21
$2.72
+2.3% surprise
2025-04-28
$2.64
+1.4% surprise

Technology Sector Comparison

Comparing NXPI against 149 companies in the Technology sector (10 bullish, 66 neutral, 73 bearish)
P/E Ratio
24.39
This Stock
vs
90.97
Sector Avg
-73.2% (Discount)
Return on Equity (ROE)
20.87%
This Stock
vs
-8.13%
Sector Avg
-356.7% (Below Avg)
Profit Margin
17.11%
This Stock
vs
-7.75%
Sector Avg
-320.7% (Weaker)
Debt to Equity
1.17
This Stock
vs
0.76
Sector Avg
+53.5% (Higher)
Revenue Growth
-2.4%
This Stock
vs
56.87%
Sector Avg
-104.2% (Slower)
Current Ratio
2.38
This Stock
vs
3.33
Sector Avg
-28.8% (Weaker)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
NXPI
NXP Semiconductors N.V.
BULLISH $50.64B 24.39 20.9% 17.1% $197.1
WDAY
Workday, Inc.
NEUTRAL $49.89B 78.84 7.3% 7.0% $186.86
ROP
Roper Technologies, Inc.
BULLISH $48.38B 30.96 8.2% 20.3% $449.5
ADSK
Autodesk, Inc.
NEUTRAL $53.25B 48.12 39.7% 15.6% $251.17
FTNT
Fortinet, Inc.
NEUTRAL $57.76B 31.02 228.0% 28.6% $75.38

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-10 MICALLEF ANDREW JOSEPH Chief Operating Officer Stock Award 5,071 -
2025-11-10 WUAMETT JENNIFER B. General Counsel Stock Award 5,532 -
2025-11-10 JENSEN CHRISTOPHER L Officer Stock Award 5,532 -
2025-11-10 BETZ WILLIAM Chief Financial Officer Stock Award 6,339 -
2025-11-10 HARDY ANDREW Officer Stock Award 1,071 -
2025-11-10 SOTOMAYOR RAFAEL Chief Executive Officer Stock Award 5,532 -
2025-11-07 BETZ WILLIAM Chief Financial Officer Stock Award 1,614 -
2025-11-07 HARDY ANDREW Officer Stock Award 807 -
2025-11-07 SOTOMAYOR RAFAEL Chief Executive Officer Stock Award 1,614 -
2025-11-07 MICALLEF ANDREW JOSEPH Chief Operating Officer Stock Award 1,453 -
2025-11-07 WUAMETT JENNIFER B. General Counsel Stock Award 1,480 -
2025-11-07 JENSEN CHRISTOPHER L Officer Stock Award 1,480 -
2025-11-05 BETZ WILLIAM Chief Financial Officer Stock Award 1,558 -
2025-11-05 HARDY ANDREW Officer Stock Award 742 -
2025-11-05 SOTOMAYOR RAFAEL Chief Executive Officer Stock Award 1,558 -
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
32 analysts
Truist Securities
2025-10-29
Maintains
Buy Buy
JP Morgan
2025-10-29
Maintains
Neutral Neutral
JP Morgan
2025-07-23
Maintains
Neutral Neutral
Truist Securities
2025-07-23
Maintains
Buy Buy
Wells Fargo
2025-07-23
Maintains
Overweight Overweight
Susquehanna
2025-07-23
Maintains
Neutral Neutral
Barclays
2025-07-22
Maintains
Overweight Overweight
Needham
2025-07-22
Maintains
Buy Buy
Cantor Fitzgerald
2025-07-22
reit
Overweight Overweight
Stifel
2025-07-18
Maintains
Hold Hold

Past News Coverage

Recent headlines mentioning NXPI from our newsroom.

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