NXPI

NXP Semiconductors N.V.

TMT


Presented:09/24/2018
Price:$91.09
Cap:$31.30B
Current Price:$232.85
Cap:$59.31B

Presented

Date09/24/2018
Price$91.09
Market Cap$31.30B
Ent Value$40.44B
P/E Ratio31.96x
Book Value$39.87
Div Yield1.1%
Shares O/S343.65M
Ave Daily Vol7,998,065
Short Int3.57%

Current

Price$232.85
Market Cap$59.31B
NXP Semiconductors NV is a holding company, which engages in the development, manufacture, and provision of mixed-signal semiconductor solutions. It operates through the following segments: High Performance Mixed Signal, Standard Products, and Corporate and Other. The High Performance Mixed Signal segment designs and markets analog, power management, interface, security technologies, and digital processing systems. The Standard Products segment develops and supplies small signal and power discretes. The Corporate and Other segment manages and operates manufacturing facilities. The company was founded on August 2, 2006 and is headquartered in Eindhovezn, the Netherlands.

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

Highlights

The presenter is long shares of NXP Semiconductors (NXPI) following its failed merger with Qualcomm, as the share price decline (to ~$90 from over $120) has provided a potentially attractive entry point. In his opinion, NXPI’s business mix should allow for annual revenue growth in the 5% - 7% range, and given the combination of an aggressive buyback plan and the ability to expand margins there appears to be a path to grow EPS at a 20% CAGR near term. At ~10x his forecasted 2020 EPS of $9 (inclusive of stock-based comp), there could be 50% upside over 12 - 15 months if the multiple expands toward 15x (closer to the low end of the P/E multiple range NXPI’s peers trade at).

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Idea Discussion

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