Today NXP Semiconductors (NXPI) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified NXP Semiconductors ( NXPI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified NXP Semiconductors as such a stock due to the following factors:

  • NXPI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $265.1 million.
  • NXPI has traded 51,721 shares today.
  • NXPI is trading at a new lifetime high.

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More details on NXPI:

NXP Semiconductors N.V. provides high performance mixed signal and standard product solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide. NXPI has a PE ratio of 41.2. Currently there are 11 analysts that rate NXP Semiconductors a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for NXP Semiconductors has been 4.2 million shares per day over the past 30 days. NXP Semiconductors has a market cap of $17.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.01 and a short float of 2.3% with 1.71 days to cover. Shares are up 65.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates NXP Semiconductors as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk.

Highlights from the ratings report include:
  • NXPI's revenue growth has slightly outpaced the industry average of 18.6%. Since the same quarter one year prior, revenues rose by 21.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, NXP SEMICONDUCTORS NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, NXPI's share price has jumped by 83.28%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The debt-to-equity ratio is very high at 6.50 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, NXPI's quick ratio is somewhat strong at 1.05, demonstrating the ability to handle short-term liquidity needs.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has decreased by 21.9% when compared to the same quarter one year ago, dropping from $155.00 million to $121.00 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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