NXPI - Embedded Expectations Analysis - 2020 07 20
NXP Semiconductors N.V. (NXPI:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 25.4x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management may be concerned about their balance sheet, customer relationships, and automotive revenuesSpecifically, management may be exaggerating balance sheet and liquidity strength, their focus on cost during challenging times, and the resilience of their customer relationships. Furthermore, management may have concerns about the reliability of traditional demand indicators, rising days of inventory, and further supply chain disruptions. Also, they may be downplaying concerns about declining automotive revenues from premium cars, and they may be concerned about the potential of cash for clunker programs in Europe and the sustainability of electric vehicle sales growth in China. Finally, management may be overstating their focus on enabling their customer's success and employee safety, and they may have concerns about their employees' ability to continue working in China and South Korea
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.
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