Conclusion
NXP Semiconductors’ liquidity was very good.
The profitability was high, but the company’s growth potential was not high.
We reckon that the company return about $2 billion to shareholders a year.
We think that NXP Semiconductors’ reasonable valuation is about $40 billion, which is equivalent to 5% in cash returns.
Disclaimer: the content is for reference only and dose not constitute investment advice.
Balance sheet analysis
NXP Semiconductors’ total assets were $24.35 billion and $23.24 billion as of December 31, 2023 and December 31, 2022, respectively.
Goodwill was about $10 billion as of December 31, 2023, accounting for 41% of total assets.
Total current assets were $7.86 billion as of December 31, 2023, consisting of 32.3% of total assets.
Total current liabilities were $4.1 billion as of December 31, 2023.
Total liabilities were $15.4 billion as of December 31, 2023.
The current ratio was 1.9 times for 2023.
The debt ratio was 63% for 2023.
Profitability analysis
NXP Semiconductors’ revenue was $13.3 billion, $13.2 billion and $11 billion in 2023, 2022 and 2021, respectively.
The revenue in 2023 was almost flat year-on-year.
The revenue in 2022 was up 20% year-on-year.
Operating income was $3.66 billion, $3.8 billion and $2.6 billion in 2023, 2022 and 2021, respectively.
The operating profit margin was 27.5%, 28.8% and 23.6% for 2023, 2022 and 2021, respectively.
The net income was $2.8 billion, $2.8 billion and $1.9 billion in 2023, 2022 and 2021, respectively.
The net profit margin was 21%, 21.2% and 17.3% for 2023, 2022 and 2021, respectively.
Cash flow analysis
Net cash provided by operating activities was $3.5 billion, $3.9 billion and $3.08 billion in 2023, 2022 and 2021, respectively.
Capital expenditure was $827 million, $1 billion and $767 million for 2023, 2022 and 2021, respectively.
The company ‘s free cash flow was $2.67 billion, $2.9 billion and $2.31 billion for 2023, 2022 and 2021, respectively.
Dividends paid to common stockholders were $1 billion, $815 million and $562 million in 2023, 2022 and 2021, respectively.
Purchase of treasury shares was $1.05 billion, $1.42 billion and $4 billion in 2023, 2022 and 2021, respectively.
NXP Semiconductors’ operating results for Q1 2024.
The revenue was $3.12 billion and $3.12 billion for the three months ended March 31, 2024 and the three months ended April 2, 2023.
Net income was $644 million and $623 million for the three months ended March 31, 2024 and the three months ended April 2, 2023.
Net cash provide by operating activities was $851 million and $632 million for the three months ended March 31, 2024 and the three months ended April 2, 2023.
Introduction
NXP Semiconductors N.V. is a global semiconductor company and a long-standing supplier in the industry, with over 70 years of innovation and operating history. For the year ended December 31, 2023, we generated revenue of $13,276 million, compared to $13,205 million for the year ended December 31, 2022.
We provide leading solutions that leverage our combined portfolio of intellectual property, deep application knowledge, process technology and manufacturing expertise in the domains of cryptography-security, high-speed interface, radio frequency (RF), mixed-signal analog-digital (mixed A/D), power management, digital signal processing and embedded system design. Our product solutions are used in a wide range of end market applications including: automotive, industrial & Internet of Things (IoT), mobile, and communication infrastructure. We engage with leading global original equipment manufacturers (OEMs) and sell products in all major geographic regions.
Our legal name is NXP Semiconductors N.V. and our commercial name is “NXP” or “NXP Semiconductors.” We were incorporated in the Netherlands in 2006 and are a Dutch public company with limited liability (naamloze vennootschap).
Our corporate seat is in Eindhoven, the Netherlands. Our principal executive office is at High Tech Campus 60, 5656 AG Eindhoven, the Netherlands, and our telephone number is +31 40 2729999. Our registered agent in the United States is NXP USA, Inc., 6501 William Cannon Dr. West, Austin, Texas 78735, United States of America, phone number +1 512 9338214.
