Report
Valens Research

NXPI - Embedded Expectations Analysis - 2020 03 25

 NXP Semiconductors N.V. (NXPI:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 12.5x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about their revenue, portfolio of solutions and products, and strategy execution

 Specifically, management may have concerns about continued revenue weakness and the sustainability of revenue growth from the auto segment. Moreover, they may be overstating the potential of the Marvell acquisition, the traction with their solutions portfolio around mobile and auto, and their product portfolio. Furthermore, they may be exaggerating their success at the Consumer Electronics Show, and they may lack confidence in their ability to invest and execute their strategy within their target markets. Finally, they may have concerns about the inventory issues on their mobile segment, and they may lack confidence in their ability to achieve their target OpEx
Underlying
NXP Semiconductors NV

NXP Semiconductors is a holding company. Through its subsidiaries, Co. is engaged as a global semiconductor company and a long-standing supplier in the industry. Co. provides High-Performance Mixed-Signal and Standard Product solutions. Co.'s product solutions are used in automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. Co. engages with original equipment manufacturers (OEM) and sell products in all major geographic regions.

Provider
Valens Research
Valens Research

In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:

  • GAAP and IFRS have failed to provide rules for reliable financial statement reporting
  • Stock analyst recommendations are not grounded in disciplined financial analysis
  • Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
  • Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available

We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.

  • Corporate credit ratings remain years behind the fundamental underpinnings of company performance
  • Stock analysts continue to make recommendations with deeply inherent biases
  • Research firms have failed to break down the walls between credit, equity, and macroeconomic research
  • The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming

The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.

Analysts
Valens Research

Other Reports on these Companies
Other Reports from Valens Research

ResearchPool Subscriptions

Get the most out of your insights

Get in touch