NXP Semiconductors N.V. (NXPI) stock analysis

P/E below its 5-year median

NXP Semiconductors's P/E of 20.8 is below its own 5-year median of 21.9.

P/E below the industry

NXP Semiconductors's P/E of 20.8 is below the Electronic Components and Accessories median of 34.1.

EV/EBITDA below its 5-year median

NXP Semiconductors's EV/EBITDA of 14.0 is below its 5-year median of 14.3.

P/B above the industry

NXP Semiconductors's price-to-book of 5.53 is above the Electronic Components and Accessories median of 3.21.

Trading below fair value

The share price of $265.09 is below our fair value estimate of $348.87.

Margin of safety over 20%

The price is 24.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -2.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -9.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 56.6% over the last twelve months, against a 5-year average of 108% a year.

Growing slower than the industry

Revenue grew 14.6% over the last twelve months; the Electronic Components and Accessories median is 17.6%.

Guidance issued

The latest outlook (Fourth Quarter 2026 Total Revenue, Oct 27, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 56.4% over the last twelve months, against 54.7% a year earlier.

Return on equity over 15%

Return on equity was 29.2% over the last twelve months and averaged 29.6% over five years.

Return on capital over 10%

Return on invested capital was 19.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

NXP Semiconductors's return on equity of 29.2% is above the Electronic Components and Accessories median of 5.0%.

Earnings grew over 5 years

Net income grew 108% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 23.4% over the last twelve months, against a 5-year average of 19.1%.

Net margin above the industry

NXP Semiconductors's net margin of 23.4% is above the Electronic Components and Accessories median of 3.0%.

High debt

Debt is 90.8% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 85.1% five years ago to 90.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 34.6% of total debt.

Interest well covered

Operating income covers interest expense 9.9 times.

Short-term assets cover short-term debts

Current assets are 2.12 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.92; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

NXP Semiconductors paid dividends worth 1.5% of the share price over the last twelve months.

Yield below Treasuries

The 1.5% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; NXP Semiconductors yields 1.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 31.7% of net income.

Covered by free cash flow

Dividends take 29.2% of free cash flow.