NXPI - Embedded Expectations Analysis - 2021 03 19
NXP Semiconductors N.V. (NXPI:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.9x Uniform P/E. Even at these levels, the market has bullish expectations for the firm, but management may have concerns about their margin improvement plan, inventory levels, and their M&A portfolioSpecifically, management may have concerns about the sustainability of order rate acceleration, customer inventory building, and continued declines in SAAR units. Furthermore, they may lack confidence in their ability to meet their growth guidance, execute their margin improvement plan, and attain long-term days of inventory targets across their distribution channels. In addition, they may be overstating the potential of their new gallium nitride solution, the opportunities to assist with digital car keys, and the strength of their portfolio following their successful M&A transactions. Finally, they may lack confidence in their ability to execute their capital allocation policy, manage operating expenses, and integrate their recent acquisitions
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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