NXP Semiconductors NV

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NXPI : NASDAQ : Technology
$88.49 | %
Today's Range: 87.35 - 89.29
Avg. Daily Volume: 4,445,500
08/26/16 - 4:00 PM ET

Financial Analysis


NXP SEMICONDUCTORS NV's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. NXP SEMICONDUCTORS NV has weak liquidity. Currently, the Quick Ratio is 0.93 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 1,571.42% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2365.01506.0
EBITDA ($mil)624.0438.0
EBIT ($mil)81.0340.0
Net Income ($mil)-13.0300.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1335.02435.0
Total Assets ($mil)24581.08193.0
Total Debt ($mil)8894.05047.0
Equity ($mil)10881.0651.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin54.6754.58
EBITDA Margin26.3829.08
Operating Margin3.4222.58
Sales Turnover0.310.74
Return on Assets3.755.65
Return on Equity8.4771.12
Debt Q2 FY16 Q2 FY15
Current Ratio1.913.23
Debt/Capital0.450.89
Interest Expense101.047.0
Interest Coverage0.87.23


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)339.21232.32
Div / share0.00.0
EPS-0.041.23
Book value / share32.082.8
Institutional Own % n/a n/a
Avg Daily Volume4419264.03494982.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 42.11 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 25.13. To use another comparison, its price-to-book ratio of 2.73 indicates valuation on par with the S&P 500 average of 2.82 and a significant discount versus the industry average of 4.25. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, NXP SEMICONDUCTORS NV proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NXPI 22.76 Peers 42.11   NXPI 26.60 Peers 17.36

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

NXPI is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

NXPI is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NXPI 11.78 Peers 19.40   NXPI NM Peers 2.66

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

NXPI is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

NXPI's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NXPI 2.73 Peers 4.25   NXPI 105.88 Peers -2.21

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

NXPI is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

NXPI is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NXPI 3.85 Peers 5.14   NXPI 28.08 Peers 3.97

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

NXPI is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

NXPI has a sales growth rate that significantly exceeds its peers.

 

 

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