Latest news with #NXPSemiconductors'
Yahoo
8 hours ago
- Business
- Yahoo
5 Must-Read Analyst Questions From NXP Semiconductors's Q1 Earnings Call
NXP Semiconductors' first quarter results drew a negative market reaction, as investors focused on the ongoing year-over-year revenue decline and rising inventory levels. Management attributed performance to weaker demand in automotive and industrial segments, partially offset by stronger-than-expected trends in the mobile and communications infrastructure businesses. CEO Kurt Sievers noted, 'Revenue trends in the mobile and communication infrastructure markets were slightly above expectations, while performance in the automotive and industrial and IoT markets were slightly below.' The company also cited elevated operating expenses and an uncertain demand environment as weighing on margins. Is now the time to buy NXPI? Find out in our full research report (it's free). Revenue: $2.84 billion vs analyst estimates of $2.83 billion (9.3% year-on-year decline, in line) Adjusted EPS: $2.64 vs analyst estimates of $2.60 (1.4% beat) Adjusted EBITDA: $1.07 billion vs analyst estimates of $1.05 billion (37.8% margin, 2.6% beat) Revenue Guidance for Q2 CY2025 is $2.9 billion at the midpoint, above analyst estimates of $2.87 billion Adjusted EPS guidance for Q2 CY2025 is $2.66 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 25.5%, down from 27.4% in the same quarter last year Inventory Days Outstanding: 168, up from 152 in the previous quarter Market Capitalization: $52.8 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Christopher Muse (Cantor Fitzgerald) asked if NXP's recent acquisitions were defensive responses to Chinese competition or intended for product differentiation. CEO Kurt Sievers replied they are primarily offensive, augmenting NXP's compute and software capabilities for global markets. Ross Seymore (Deutsche Bank) questioned the company's manufacturing flexibility and customer perception amid tariff uncertainty. Sievers emphasized NXP's European positioning in China and its progress in localizing manufacturing to serve the 'China for China' strategy. Chris Caso (Wolfe Research) explored how much of NXP's China revenue could eventually be sourced domestically. Sievers indicated about 30% is currently China-sourced, with ongoing efforts to increase this share for supply chain independence. Francois Bouvignies (UBS) inquired about the company's approach to customer inventory pull-ins amid uncertainty. Sievers confirmed NXP prefers to limit inventory build-ups, maintaining strict controls unless justified by specific customer needs. Stacy Rasgon (Bernstein Research) pressed for color on second-half gross margin trends given high inventory levels. CFO Bill Betz said margins hinge on revenue levels and internal utilization, expressing confidence in their long-term gross margin range but acknowledging near-term variability. In the coming quarters, the StockStory team will monitor (1) the pace at which automotive and industrial customers digest excess inventory and return to normalized ordering, (2) the initial integration and market impact of the Kinara acquisition for edge AI applications, and (3) the effects of global tariff changes on both supply chain operations and customer demand. Additional attention will be given to evolving regional demand patterns, particularly in China and Japan. NXP Semiconductors currently trades at $209.03, up from $196.56 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
14-06-2025
- Business
- Yahoo
Estimating The Intrinsic Value Of NXP Semiconductors N.V. (NASDAQ:NXPI)
Using the 2 Stage Free Cash Flow to Equity, NXP Semiconductors fair value estimate is US$208 With US$211 share price, NXP Semiconductors appears to be trading close to its estimated fair value Our fair value estimate is 11% lower than NXP Semiconductors' analyst price target of US$235 Does the June share price for NXP Semiconductors N.V. (NASDAQ:NXPI) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$2.49b US$3.07b US$3.46b US$4.52b US$4.59b US$4.67b US$4.77b US$4.89b US$5.01b US$5.15b Growth Rate Estimate Source Analyst x12 Analyst x13 Analyst x8 Analyst x2 Analyst x1 Est @ 1.84% Est @ 2.17% Est @ 2.40% Est @ 2.56% Est @ 2.68% Present Value ($, Millions) Discounted @ 10% US$2.3k US$2.5k US$2.6k US$3.1k US$2.8k US$2.6k US$2.4k US$2.3k US$2.1k US$2.0k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$25b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 10%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$5.1b× (1 + 2.9%) ÷ (10%– 2.9%) = US$74b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$74b÷ ( 1 + 10%)10= US$28b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$53b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of US$211, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at NXP Semiconductors as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 10%, which is based on a levered beta of 1.664. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for NXP Semiconductors Strength Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Semiconductor market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Annual earnings are forecast to grow slower than the American market. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For NXP Semiconductors, we've compiled three fundamental elements you should look at: Risks: We feel that you should assess the 1 warning sign for NXP Semiconductors we've flagged before making an investment in the company. Future Earnings: How does NXPI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-05-2025
- Business
- Yahoo
NXP Semiconductors (NASDAQ:NXPI) shareholders have earned a 14% CAGR over the last five years
The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the NXP Semiconductors N.V. (NASDAQ:NXPI) share price is up 79% in the last five years, that's less than the market return. The last year has been disappointing, with the stock price down 27% in that time. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over half a decade, NXP Semiconductors managed to grow its earnings per share at 61% a year. This EPS growth is higher than the 12% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). Dive deeper into NXP Semiconductors' key metrics by checking this interactive graph of NXP Semiconductors's earnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of NXP Semiconductors, it has a TSR of 95% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! While the broader market gained around 12% in the last year, NXP Semiconductors shareholders lost 26% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 14% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand NXP Semiconductors better, we need to consider many other factors. Even so, be aware that NXP Semiconductors is showing 1 warning sign in our investment analysis , you should know about... If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
NXP Semiconductors Flags Tariff Uncertainty Despite First-Quarter Beat; CEO to Retire at End of 2025
NXP Semiconductors' (NXPI) US-listed shares dropped early Tuesday as the Dutch chipmaker warned that Sign in to access your portfolio
Yahoo
12-04-2025
- Business
- Yahoo
We Like These Underlying Return On Capital Trends At NXP Semiconductors (NASDAQ:NXPI)
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at NXP Semiconductors (NASDAQ:NXPI) and its trend of ROCE, we really liked what we saw. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for NXP Semiconductors, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.17 = US$3.5b ÷ (US$24b - US$3.1b) (Based on the trailing twelve months to December 2024). Therefore, NXP Semiconductors has an ROCE of 17%. In absolute terms, that's a satisfactory return, but compared to the Semiconductor industry average of 7.2% it's much better. See our latest analysis for NXP Semiconductors In the above chart we have measured NXP Semiconductors' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for NXP Semiconductors . NXP Semiconductors' ROCE growth is quite impressive. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 369% in that same time. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects. In summary, we're delighted to see that NXP Semiconductors has been able to increase efficiencies and earn higher rates of return on the same amount of capital. Since the stock has returned a staggering 103% to shareholders over the last five years, it looks like investors are recognizing these changes. Therefore, we think it would be worth your time to check if these trends are going to continue. Like most companies, NXP Semiconductors does come with some risks, and we've found 1 warning sign that you should be aware of. While NXP Semiconductors isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
