Now trading at a price of $160.08, NXP Semiconductors has moved -0.7% so far today.
NXP Semiconductors shares moved -5.7% over the last 52 weeks, with a high of $198.28 and a low of $132.08. During this time, the stock lagged the S&P 500 index by -6.0%. As of January 2022, the company's 50-day average price is $176.85. NXP Semiconductors N.V. offers various semiconductor products. The large-cap Technology company has 34,500 full time employees and is based in Eindhoven, Netherlands. NXP Semiconductors has returned a 2.1% dividend yield over the last 12 months.
The Company Has a Steady Stream of Strong Cash Flows:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $8,877 | $8,612 | $11,063 | $13,205 |
| Revenue Growth | n/a | -2.99% | 28.46% | 19.36% |
| Gross Margins | 52.0% | 49.2% | 54.8% | 56.9% |
| Gross Margins Growth | n/a | -5.38% | 11.38% | 3.83% |
| Operating Margins | 6.9% | 3.5% | 23.4% | 28.7% |
| Operating Margins Growth | n/a | -49.28% | 568.57% | 22.65% |
| Net Margins | 2.74% | 0.6% | 16.91% | 21.11% |
| Net Margins Growth | n/a | -78.1% | 2718.33% | 24.84% |
| Earnings Per Share | $0.85 | $0.18 | $6.79 | $10.55 |
| EPS Growth | n/a | -78.82% | 3672.22% | 55.38% |
| Diluted Shares (MM) | 286 | 284 | 276 | 260 |
| Free Cash Flow (MM) | $1,745 | $1,960 | $2,145 | $2,668 |
| FCF Growth | n/a | 12.32% | 9.44% | 24.38% |
| Capital Expenditures (MM) | -$628 | -$522 | -$932 | -$1,227 |
| Net Debt / EBITDA | 2.48 | 2.31 | 2.04 | 1.47 |
NXP Semiconductors Shares Are Inexpensive:
Compared to the Technology sector's average of 27.16, NXP Semiconductors has a trailing twelve month P/E ratio of 15.2 and, according to its EPS guidance of 13.85, an expected P/E ratio of 11.6. NXP Semiconductors's PEG ratio is 0.22 based on its 74.7% compound average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 11.5%, because the growth rate implied by NXP Semiconductors's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 1.46, which implies that the company's shares might in fact be fairly valued.
Furthermore, NXP Semiconductors is likely undervalued in terms of its equity because its P/B ratio is 5.6 compared to its sector average of 6.23. The company's shares are currently trading 194.0% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 4.59 * 28.709) = $54.45
NXP Semiconductors Is the Subject of Mixed Market Indicators:
25 analysts are following NXP Semiconductors and have set target prices ranging from $155.0 to $240.0 per share. On average, they have given the company a rating of buy. At the current price of $160.08, NXPI is trading -18.14% away from its average analyst target price of $195.56 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 2.4% of the company's shares are tied to short positions. Institutions own 94.6% of NXP Semiconductors's shares, while the insider ownership rate stands at 0.15%. The biggest shareholder is JP Morgan Chase & Company with a 10% stake in the company worth approximately $4,162,747,741.
