NXP Semiconductors N.V. (NXPI) Stock Analysis
NXP Semiconductors N.V. (NXPI) Stock Analysis
Analysis from 10-Q filed 2025-10-28. Data as of Q4 2025.
Overall Grade: F (Concerning)
NXP Semiconductors N.V. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 11.4% | Near cost of capital |
| FCF Margin | 18.6% | Strong cash generation |
| Debt/Equity | 1.2x | Moderate leverage |
Investment Thesis: Healthy free cash flow margin of 18.6% provides financial flexibility for growth and shareholder returns.
Explore NXP Semiconductors N.V.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: NXP Semiconductors N.V. earns 11.4% ROIC, Top 50% in Technology
NXP Semiconductors N.V.'s trailing-twelve-month ROIC of 11.4% ranks Top 50% in Technology companies (sector median: 5.2%), driven by NOPAT margin of 19.9% combined with asset turnover of 0.5x. Source: 10-Q filed 2025-10-28. Gross margin of 54.7% with operating margin at 24.8% reflects strong pricing power.
| Metric | NXPI | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.4% | Adequate | Above sector median of 5.2% |
| Return on Equity (ROE) | 21.0% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 54.7% | Excellent | Strong pricing power |
| Operating Margin | 24.8% | Excellent | Efficient operations |
Cash Flow: NXP Semiconductors N.V. generates $2.3B FCF at 18.6% margin, positive NaN/8 quarters
NXP Semiconductors N.V. generated $2.3B in free cash flow (TTM), a 18.6% FCF margin, a margin that ranks Top 50% in Technology. Operating cash flow exceeds net income by 1.4x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-28.
| Metric | NXPI | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 18.6% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.3B | Good | Positive cash generation |
| OCF/Net Income | 1.4x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: NXP Semiconductors N.V. at 1.2x leverage
NXP Semiconductors N.V.'s debt-to-equity ratio of 1.2x reflects elevated leverage. Total debt of $12.2B offset by $3.3B in cash. Source: 10-Q filed 2025-10-28.
| Metric | NXPI | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.2x | Adequate | Moderate leverage |
| Net Cash Position | $-9.0B | Warning | Net debt position |
Valuation: NXP Semiconductors N.V. trades at 27.2x earnings
NXP Semiconductors N.V. trades at a P/E of 27.2x. Free cash flow yield of 4.2% reflects market expectations for growth.
| Metric | NXPI | Rating | Context |
|---|---|---|---|
| P/E Ratio | 27.2x | Adequate | Premium valuation |
| EV/Sales | 5.1x | Adequate | Growth premium priced in |
| FCF Yield | 4.2% | Good | Lower cash yield |
| Dividend Yield | 1.9% | Adequate | Growth focus over income |
Capital Allocation: NXP Semiconductors N.V. returns 3.5% shareholder yield
NXP Semiconductors N.V.'s total shareholder yield is 3.5% (dividends 1.9% + buybacks 1.6%). Source: 10-Q filed 2025-10-28.
| Metric | NXPI | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.5% | Good | Dividend + buyback yield combined |
| Buyback Yield | 1.6% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $1.9B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.4% | Top 50% | 2.2x above |
| Free Cash Flow Margin | 18.6% | Top 50% | 2.0x above |
| Gross Margin | 54.7% | Top 50% | 1.1x above |
| Operating Margin | 24.8% | Top 25% | 5.1x above |
| Return on Equity (ROE) | 21.0% | Top 25% | 4.3x above |
| P/E Ratio | 27.2x | N/A | - |
Financial Scorecard
| Metric | NXPI | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.4% | Adequate | Top 50% of sector (median: 5.2%) |
| Free Cash Flow Margin | 18.6% | Good | Top 50% of sector (median: 9.1%) |
| Gross Margin | 54.7% | Excellent | Top 50% of sector (median: 51.8%) |
| Debt to Equity Ratio | 121.5% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 27.2x | Adequate | Growth premium |
| Free Cash Flow Yield | 4.2% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is NXP Semiconductors N.V.'s Return on Invested Capital (ROIC)?
NXP Semiconductors N.V. (NXPI) has a trailing twelve-month Return on Invested Capital (ROIC) of 11.4%. This compares above the sector median of 5.2%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is NXP Semiconductors N.V.'s Free Cash Flow Margin?
NXP Semiconductors N.V. (NXPI) has a free cash flow margin of 18.6%, generating $2.3 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is NXP Semiconductors N.V. stock overvalued or undervalued?
NXP Semiconductors N.V. (NXPI) trades at a P/E ratio of 27.2x, which is above the sector median of N/A. The EV/Sales multiple is 5.1x. Free cash flow yield is 4.2%, which is in line with market averages.
Q: Does NXP Semiconductors N.V. pay a dividend?
NXP Semiconductors N.V. (NXPI) currently pays a dividend yield of 1.9%. Including share buybacks, the total shareholder yield is 3.5%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: How much debt does NXP Semiconductors N.V. have?
NXP Semiconductors N.V. (NXPI) has a debt-to-equity ratio of 1.2x with total debt of $12.2 billion. Net debt position is $9.0 billion.
Q: What is NXP Semiconductors N.V.'s revenue and earnings growth?
NXP Semiconductors N.V. (NXPI) declined revenue by 2.7% year-over-year. Earnings per share decreased by 18.4% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: Is NXP Semiconductors N.V. buying back stock?
NXP Semiconductors N.V. (NXPI) repurchased $899.0 million of stock over the trailing twelve months. This represents a buyback yield of 1.6%.
Q: How does NXP Semiconductors N.V. compare to competitors in Technology?
Compared to other companies in Technology, NXP Semiconductors N.V. (NXPI) shows: ROIC of 11.4% is above the sector median of 5.2% (Top 34%). FCF margin of 18.6% exceeds the sector median of 9.1% (Top 28% of sector). Gross margin at 54.7% is 2.9 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with NXP Semiconductors N.V.?
Investors in NXP Semiconductors N.V. (NXPI) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.