One-glance verdict
Overvalued
$109.87 our estimate vs market $227.84
Wall Street consensus: $311.10 (183.1% higher than our fair-value estimate)
107% above our estimate, beyond the bull case
Fundamentals snapshot
NXP Semiconductors N.V.
NXPI · NMS · Technology · Semiconductors
Current price
$227.84
52-week range
$183.00 - $339.95
Market cap
$57.45B
Balance sheet
Watch
6.51x Adequate
Net debt $7.75B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.8% last year.
- Reward Returns 27.9% on equity, ahead of 83% of its peers.
- Risk Net debt grew 23.4% over 3 years.
- Risk Insider ownership is only 0.1% (peer median: 0.2%).
What this company does
NXP Semiconductors N.V.
NXP Semiconductors designs and sells the tiny electronic components, or "chips," that power modern cars, industrial equipment, and mobile devices. The company makes a significant portion of its money from the automotive sector, which is important because new vehicles require more and more chips for safety systems, dashboard controls, and electric power. This means as cars become more advanced, the demand for NXP's products can grow.
How the company got here
NXP Semiconductors started in 2006, but its roots go back to the 1950s as a part of the Dutch electronics giant Philips. It became its own company when a group of investors bought the semiconductor division from Philips. A major turning point was in 2015 when NXP merged with Freescale Semiconductor, a move that made it a much bigger player, especially in the market for chips used in cars. Over the years, it has focused on creating chips for applications where security and reliability are very important.
What it actually does
NXP makes tiny electronic components called semiconductors, or chips, which are the brains inside many of the devices we use every day. You wouldn't buy these chips directly in a store, but they are essential parts of other companies' products, from the key fob for your car to factory equipment and mobile payment systems. NXP specializes in chips that allow devices to connect securely to each other and to the internet. Think of them as the crucial building blocks that enable features like tapping your phone to pay, advanced safety systems in cars, and smart home gadgets.
Automotive
This is NXP's largest business, making up more than half of its sales. The company creates chips that control many functions in modern cars, such as the infotainment system on your dashboard, radar for safety features like automatic braking, and the systems that manage an electric vehicle's battery. Carmakers and their suppliers pay NXP for these specialized chips to build safer, more connected, and increasingly electric cars.
Industrial & IoT
This segment, which brings in the second-largest share of revenue, focuses on chips for smart devices and factory equipment. IoT, or the "Internet of Things," refers to connecting everyday objects to the internet, and NXP's chips provide the secure connections and processing power for this. This includes everything from smart home devices and automated systems in factories to healthcare equipment. Companies building these connected products buy NXP's chips to make their equipment smarter and more efficient.
Mobile
This part of the business provides the technology for many features in your smartphone. NXP was a co-inventor of Near Field Communication (NFC), the technology that lets you make secure payments by tapping your phone at a store. It sells these secure and convenient chips to mobile phone manufacturers. While not as large as its automotive business, it's a key part of enabling the secure transactions and connections we use on our phones daily.
Communication Infrastructure & Other
This is the smallest of NXP's main business areas. It provides high-performance chips that are used in the equipment that powers communication networks, like the cellular towers that connect your phone calls and provide 5G internet service. Companies that build this behind-the-scenes infrastructure of the internet and mobile networks are the main customers for this segment.
What management is betting on now
NXP is heavily focused on the major trends in the automotive industry, particularly the shift to electric and software-defined vehicles (cars that can be updated with new features through software). They are also investing in what's called "edge AI," which means putting more artificial intelligence processing directly onto their chips in devices, rather than relying on the cloud. This makes smart devices faster and more secure. The company sees big opportunities in making cars and industrial equipment more intelligent and connected.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$576.00M
FY2024 Q3
$593.00M
FY2024 Q4
$261.00M
FY2025 Q1
$426.00M
FY2025 Q2
$696.00M
FY2025 Q3
$508.00M
FY2025 Q4
$793.00M
FY2026 Q1
$714.00M
Revenue
$3.18B
Net income
$1.12B
Diluted EPS
4.43
Operating cash flow
$793.00M
Free cash flow
$714.00M
Fetching…
Sources
Revenue
$3.33B
Net income
$455.00M
Diluted EPS
1.80
Operating cash flow
$891.00M
Free cash flow
$793.00M
Fetching…
Sources
Revenue
$3.17B
Net income
$631.00M
Diluted EPS
2.48
Operating cash flow
$585.00M
Free cash flow
$508.00M
Fetching…
Sources
Revenue
$2.93B
Net income
$445.00M
Diluted EPS
1.75
Operating cash flow
$779.00M
Free cash flow
$696.00M
Fetching…
Sources
Revenue
$2.83B
Net income
$490.00M
Diluted EPS
1.92
Operating cash flow
$565.00M
Free cash flow
$426.00M
Fetching…
Sources
Revenue
$3.11B
Net income
$495.00M
Diluted EPS
1.93
Operating cash flow
$391.00M
Free cash flow
$261.00M
Fetching…
Sources
Revenue
$3.25B
Net income
$718.00M
Diluted EPS
2.79
Operating cash flow
$779.00M
Free cash flow
$593.00M
Fetching…
Sources
Revenue
$3.13B
Net income
$658.00M
Diluted EPS
2.54
Operating cash flow
$761.00M
Free cash flow
$576.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $109.87 vs current price $227.84
Wall Street consensus is the average analyst price target: $311.10 (183.1% higher than our fair-value estimate).
Our most-likely fair value is $109.87 a share — about 51.8% below today's price of $227.84, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $7.8B. Interest coverage 6.5x.
Net debt
$7.75B
Interest coverage
6.51x
NXP Semiconductors N.V.'s profit covers its interest bill about 6.5 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
NXPI
BASELINE
NXP Semiconductors N.V.
Total debt $10.98B Interest coverage 6.51x This is the baseline the peer rows are being compared against.
Total debt $5.40B Interest coverage 2.46x -62% vs NXPI Carries about 2.6x less debt cushion than NXPI.
Total debt $4.71B Interest coverage 10.59x +63% vs NXPI Carries about 1.6x more debt cushion than NXPI.
Total debt $8.41B Interest coverage 8.80x +35% vs NXPI Carries about 1.4x more debt cushion than NXPI.
Total debt $9.16B Interest coverage 9.45x +45% vs NXPI Carries about 1.5x more debt cushion than NXPI.
Total debt $4.23B Interest coverage 5.87x -10% vs NXPI Has roughly the same debt cushion as NXPI.
What you should know
The case for and against NXPI
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.8% last year.
-
Returns 27.9% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 23.4% over 3 years.
-
Insider ownership is only 0.1% (peer median: 0.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.46x
Forward P/E
12.59x
P/B
5.04x
P/S
4.36x
EV/EBITDA
12.94x
PEG ratio
0.45x
Profitability
How much profit each dollar creates
Gross margin
56.1%
Operating margin
30.4%
Net margin
22.6%
ROE
27.9%
ROA
10.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.93x
Current ratio
2.04x
Quick ratio
1.19x
Total debt
$10.98B
Total cash
$3.22B
Growth
How the business has been compounding
Revenue TTM
$12.62B
Revenue 5Y CAGR
2.6%
EPS TTM
11.71
EPS 5Y CAGR
-9.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.05B
Free CF TTM
$2.42B
FCF margin
19.2%
Dividend
Shareholder payout
Yield
1.8%
Payout ratio
34.6%
Last ex-div date
2026-09-16