Latest news with #NXPSemiconductors
Channel Post MEA
5 days ago
- Automotive
- Channel Post MEA
NXP Completes TTTech Auto Acquisition
NXP Semiconductors has announced the completion of the acquisition of TTTech Auto, a leader in innovating unique safety-critical systems and middleware for software-defined vehicles (SDVs), pursuant to the terms of the previously announced agreement from January 2025. The open and modular offering of the NXP CoreRide platform and TTTech Auto's MotionWise safety middleware helps automakers overcome software and hardware integration barriers, while reducing complexity and development efforts and increasing scalability and cost-efficiency required for next-generation vehicles. To continue operating within an open industry ecosystem, TTTech Auto's services will remain with neutral position, supporting various System-on-Chips manufacturers, OEMs and 3rd party software partners. This will advance SDV capabilities while maintaining stringent safety and performance standards and ensuring data protection.
Yahoo
16-06-2025
- Business
- Yahoo
NXP Semiconductors' (NASDAQ:NXPI) Dividend Will Be $1.01
NXP Semiconductors N.V. (NASDAQ:NXPI) will pay a dividend of $1.01 on the 9th of July. The dividend yield will be 1.9% based on this payment which is still above the industry average. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If the payments aren't sustainable, a high yield for a few years won't matter that much. Based on the last payment, NXP Semiconductors was quite comfortably earning enough to cover the dividend. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth. The next year is set to see EPS grow by 53.2%. If the dividend continues on this path, the payout ratio could be 36% by next year, which we think can be pretty sustainable going forward. Check out our latest analysis for NXP Semiconductors It is great to see that NXP Semiconductors has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. The dividend has gone from an annual total of $1.00 in 2018 to the most recent total annual payment of $4.06. This means that it has been growing its distributions at 22% per annum over that time. NXP Semiconductors has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle. The company's investors will be pleased to have been receiving dividend income for some time. NXP Semiconductors has seen EPS rising for the last five years, at 61% per annum. The company's earnings per share has grown rapidly in recent years, and it has a good balance between reinvesting and paying dividends to shareholders, so we think that NXP Semiconductors could prove to be a strong dividend payer. Overall, we like to see the dividend staying consistent, and we think NXP Semiconductors might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've picked out 1 warning sign for NXP Semiconductors that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
14-06-2025
- Business
- Yahoo
Estimating The Intrinsic Value Of NXP Semiconductors N.V. (NASDAQ:NXPI)
Using the 2 Stage Free Cash Flow to Equity, NXP Semiconductors fair value estimate is US$208 With US$211 share price, NXP Semiconductors appears to be trading close to its estimated fair value Our fair value estimate is 11% lower than NXP Semiconductors' analyst price target of US$235 Does the June share price for NXP Semiconductors N.V. (NASDAQ:NXPI) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$2.49b US$3.07b US$3.46b US$4.52b US$4.59b US$4.67b US$4.77b US$4.89b US$5.01b US$5.15b Growth Rate Estimate Source Analyst x12 Analyst x13 Analyst x8 Analyst x2 Analyst x1 Est @ 1.84% Est @ 2.17% Est @ 2.40% Est @ 2.56% Est @ 2.68% Present Value ($, Millions) Discounted @ 10% US$2.3k US$2.5k US$2.6k US$3.1k US$2.8k US$2.6k US$2.4k US$2.3k US$2.1k US$2.0k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$25b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 10%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$5.1b× (1 + 2.9%) ÷ (10%– 2.9%) = US$74b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$74b÷ ( 1 + 10%)10= US$28b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$53b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of US$211, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at NXP Semiconductors as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 10%, which is based on a levered beta of 1.664. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for NXP Semiconductors Strength Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Semiconductor market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Annual earnings are forecast to grow slower than the American market. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For NXP Semiconductors, we've compiled three fundamental elements you should look at: Risks: We feel that you should assess the 1 warning sign for NXP Semiconductors we've flagged before making an investment in the company. Future Earnings: How does NXPI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-06-2025
- Business
- Yahoo
NXP Semiconductors (NXPI) Suffers a Larger Drop Than the General Market: Key Insights
In the latest close session, NXP Semiconductors (NXPI) was down 2.99% at $210.90. This change lagged the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 1.79%, and the tech-heavy Nasdaq lost 1.3%. The chipmaker's shares have seen an increase of 3.17% over the last month, not keeping up with the Computer and Technology sector's gain of 7.36% and the S&P 500's gain of 3.55%. Market participants will be closely following the financial results of NXP Semiconductors in its upcoming release. The company plans to announce its earnings on July 21, 2025. In that report, analysts expect NXP Semiconductors to post earnings of $2.66 per share. This would mark a year-over-year decline of 16.88%. In the meantime, our current consensus estimate forecasts the revenue to be $2.9 billion, indicating a 7.26% decline compared to the corresponding quarter of the prior year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.51 per share and a revenue of $11.97 billion, signifying shifts of -12.07% and -5.09%, respectively, from the last year. Investors should also note any recent changes to analyst estimates for NXP Semiconductors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.26% lower. NXP Semiconductors is currently sporting a Zacks Rank of #3 (Hold). With respect to valuation, NXP Semiconductors is currently being traded at a Forward P/E ratio of 18.89. This expresses a discount compared to the average Forward P/E of 38.2 of its industry. It's also important to note that NXPI currently trades at a PEG ratio of 2.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 2.16 at the close of the market yesterday. The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 41% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
29-05-2025
- Business
- Yahoo
1 Cash-Producing Stock to Keep an Eye On and 2 to Steer Clear Of
While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Luckily for you, we built StockStory to help you separate the good from the bad. That said, here is one cash-producing company that leverages its financial strength to beat its competitors and two that may struggle to keep up. Trailing 12-Month Free Cash Flow Margin: 15.1% Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure. Why Are We Hesitant About NXPI? Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.3% annually over the last two years Sales are projected to tank by 1.6% over the next 12 months as its demand continues evaporating Free cash flow margin dropped by 10.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up NXP Semiconductors is trading at $199 per share, or 16x forward P/E. Check out our free in-depth research report to learn more about why NXPI doesn't pass our bar. Trailing 12-Month Free Cash Flow Margin: 18.2% Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ:ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments. Why Does ALGN Give Us Pause? Underwhelming clear aligner shipments over the past two years indicate demand is soft and that the company may need to revise its strategy Free cash flow margin shrank by 7.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Shrinking returns on capital suggest that increasing competition is eating into the company's profitability At $183.34 per share, Align Technology trades at 17.6x forward P/E. Read our free research report to see why you should think twice about including ALGN in your portfolio, it's free. Trailing 12-Month Free Cash Flow Margin: 26.1% With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald's (NYSE:MCD) is a fast-food behemoth known for its convenience and broken ice cream machines. Why Does MCD Stand Out? Same-store sales growth averaged 2.8% over the past two years, showing it's bringing new and repeat diners into its restaurants Highly-profitable franchise model results in strong unit economics and a best-in-class gross margin of 56.9% MCD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders McDonald's stock price of $314.80 implies a valuation ratio of 25x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
