NXPI

NXP Semiconductors N.V.

TMT


Presented:03/18/2020
Price:$64.56
Cap:$18.06B
Current Price:$232.85
Cap:$59.31B

Presented

Date03/18/2020
Price$64.56
Market Cap$18.06B
Ent Value$42.87B
P/E Ratio74.27x
Book Value$33.55
Div Yield2.13%
Shares O/S279.75M
Ave Daily Vol3,328,620
Short IntN/A

Current

Price$232.85
Market Cap$59.31B
NXP Semiconductors NV is a holding company, which engages in the provision of semiconductor solutions. It focuses on high performance mixed signal (HMPS), which delivers high performance mixed signal solutions to its customers to satisfy their system and sub-systems needs across the application areas such as automotive, identification, mobile, consumer, computing, wireless infrastructure, lighting and industrial, and software solutions for mobile phones. Its products include Arm Processors, Arm MCUs, and Power Architecture. The company was founded on August 2, 2006 and is headquartered in Eindhoven, the Netherlands.

Publicly traded companies mentioned herein: NXP Semiconductors NV (NXPI)

Highlights

The presenter remains short shares of NXP Semiconductors NV (NXPI). On the day of the presentation, the stock traded down from ~80, to ~60. Given current volatility, she thinks there will be a better near term entry after a rebound toward $80, but is modeling for further downside afterward. While the stock performs well in an upcycle, it can be the opposite in a recession due to its heavy reliance on the automotive industry and correlation to the global SAAR. She also believes the company’s leverage issues could pose a problem during a recession. In 2020, she believes that the company will generate $1.2B in FCF, and places a 15x multiple on that estimate to get a price target of $44/share, another 30% downside from the stock's current price of ~$64.50. 

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Idea Discussion

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