NXP Semiconductors Return On Equity

NXPI
 Stock
  

USD 171.06  2.38  1.37%   

NXP Semiconductors NV fundamentals help investors to digest information that contributes to NXP Semiconductors' financial success or failures. It also enables traders to predict the movement of NXP Semiconductors Stock. The fundamental analysis module provides a way to measure NXP Semiconductors' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to NXP Semiconductors stock.
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The current Average Equity is estimated to decrease to about 9.3 B.

NXP Semiconductors Return On Equity Analysis

NXP Semiconductors' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
 2018 2019 2021 2022 (projected)
Interest Expense309 M339 M305.1 M315.36 M
Gross Profit4.85 B4.62 B5.31 B4.62 B
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
More About Return On Equity | All Equity Analysis

Current NXP Semiconductors Return On Equity

    
  0.38 %  
Most of NXP Semiconductors' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, NXP Semiconductors NV is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

NXP Semiconductors Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for NXP Semiconductors is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Return On Equity. Since NXP Semiconductors' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of NXP Semiconductors' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of NXP Semiconductors' interrelated accounts and indicators.

NXP Semiconductors Return On Equity Historical Pattern

Today, most investors in NXP Semiconductors Stock are looking for potential investment opportunities by analyzing not only static indicators but also various NXP Semiconductors' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of NXP Semiconductors return on equity as a starting point in their analysis.
   NXP Semiconductors Return On Equity   
Share
       Timeline  
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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NXP Semiconductors Shareholders Equity

Shareholders Equity

9.24 Billion

NXP Semiconductors Shareholders Equity is most likely to increase significantly in the upcoming years. The last year's value of Shareholders Equity was reported at 10.86 Billion
Based on the latest financial disclosure, NXP Semiconductors NV has a Return On Equity of 0.3774%. This is 103.14% lower than that of the Semiconductors & Semiconductor Equipment sector and 78.8% lower than that of the Information Technology industry. The return on equity for all United States stocks is notably lower than that of the firm.

NXP Semiconductors Current Valuation Drivers

We derive many important indicators used in calculating different scores of NXP Semiconductors from analyzing NXP Semiconductors' financial statements. These drivers represent accounts that assess NXP Semiconductors' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of NXP Semiconductors' important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Average Assets25.63 B24.47 B22.79 B20.77 B23.89 B20.97 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA1.98 B4.23 B4.68 B2.65 B3.05 B2.84 B
Earnings Before Interest Taxes and Depreciation Amortization USD1.98 B4.23 B4.68 B2.65 B3.05 B2.84 B
Earnings before Tax(651 M)1.73 B2.38 B263 M302.45 M310.41 M
Average Equity11.22 B12.23 B12.02 B9.97 B11.47 B9.32 B
Enterprise Value41.51 B47.81 B28.37 B40.54 B46.62 B38.73 B
Free Cash Flow1.92 B1.9 B3.76 B1.87 B2.15 B1.88 B
Invested Capital13.57 B9.62 B9.39 B10.98 B12.62 B11.53 B
Invested Capital Average13.48 B11.6 B9.5 B10.18 B11.71 B10.97 B
Market Capitalization33.91 B40.51 B25.36 B35.57 B40.91 B33.29 B
Tangible Asset Value8.71 B9.32 B8.21 B6.45 B7.41 B7.39 B
Working Capital2.96 B3.33 B1.84 B1.48 B1.7 B1.81 B

NXP Semiconductors ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, NXP Semiconductors' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to NXP Semiconductors' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

NXP Semiconductors Fundamentals

About NXP Semiconductors Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze NXP Semiconductors NV's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of NXP Semiconductors using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of NXP Semiconductors NV based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Average Equity11.5 B9.3 B

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Our tools can tell you how much better you can do entering a position in NXP Semiconductors without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Additionally, see NXP Semiconductors Piotroski F Score and NXP Semiconductors Altman Z Score analysis. You can also try Transaction History module to view history of all your transactions and understand their impact on performance.

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Is NXP Semiconductors' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NXP Semiconductors. If investors know NXP Semiconductors will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NXP Semiconductors listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.46
Market Capitalization
44.3 B
Quarterly Revenue Growth YOY
0.2
Return On Assets
0.11
Return On Equity
0.38
The market value of NXP Semiconductors is measured differently than its book value, which is the value of NXP Semiconductors that is recorded on the company's balance sheet. Investors also form their own opinion of NXP Semiconductors' value that differs from its market value or its book value, called intrinsic value, which is NXP Semiconductors' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NXP Semiconductors' market value can be influenced by many factors that don't directly affect NXP Semiconductors' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NXP Semiconductors' value and its price as these two are different measures arrived at by different means. Investors typically determine NXP Semiconductors value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NXP Semiconductors' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.