NXP Semiconductors N.V. (NXPI) Fundamental Checkup
NXP Semiconductors N.V. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of September 1, 2026.
By TGMCharts Research · Data as of · Updated
NXP Semiconductors N.V. gets a balanced fundamental read when revenue growth of 7.21%, EPS growth of 111.31%, free-cash-flow growth of 5.97%, net margin of 22.56%, and ROIC of 12.71% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 2.04x and debt-to-equity is 0.96x, so the balance-sheet read is part of the final view rather than a footnote.
- NXP Semiconductors N.V. has market cap of $57.62B and closed at $222 on September 1, 2026.
- Five-year revenue CAGR is 7.21% and five-year EPS CAGR is 111.31%.
- Five-year free-cash-flow CAGR is 5.97%.
- Net margin is 22.56% and ROIC is 12.71%.
- Current ratio is 2.04x and debt-to-equity is 0.96x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
A Multi-Dimensional Assessment of Semiconductor Performance
Analyzing NXP Semiconductors N.V. requires a systematic evaluation of its core operating metrics to determine whether its expansion, cash generation, capital efficiency, and capital structure align into a cohesive investment thesis. The market recently valued the equity at $222 per share on September 1, 2026. However, a true fundamental assessment must look past short-term market pricing to inspect the underlying business engine.
This analysis begins by evaluating the historical top-line expansion, represented by a five-year revenue CAGR of 7.21%, and comparing it directly to the five-year EPS CAGR of 111.31%. We then cross-reference these growth vectors against the five-year free-cash-flow CAGR of 5.97%. A robust fundamental thesis cannot rely on a single positive metric; it demands structural harmony across the entire financial statement.
Current compounder snapshot · NXPI
Live supporting context; not part of the article's frozen 2026-09-01 evidence snapshot.
- Score
- 25/100
- 10Y CAGR
- 7.2%
- Median YoY
- 0.1%
- YoY volatility
- σ 17.3pp· uneven
- Quarters ≥ 20%
- 9 of 40
- Negative quarters
- 19
- Valuation vs own 10Y history
- P/S 4.3x · 10Y median 4.2x · 58th percentile · as of Sep 1, 2026
How this score is computed
- Quarters at or above 20%: 9 of 40 → 9 of 40 pts
- Steadiness (typical swing 17.3pp) → 12.6 of 25 pts
- Pace (median 0.1% YoY) → 0 of 20 pts
- Latest quarter (19.5% YoY) → 3.4 of 15 pts
- Score: 25 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
An Integrated View of Operating and Market Metrics
As a prominent player in the Technology sector, the company must be evaluated as an operating entity with distinct capital requirements and margin profiles. This snapshot integrates the firm's market capitalization, valuation multiples, historical expansion rates, and balance sheet leverage into a unified perspective. This quantitative foundation serves as the analytical baseline before we dissect individual financial trends in the subsequent exhibits.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
NXPI revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 7.21%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 7.21% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
How Top-Line Expansion Translates to Diluted Earnings
Evaluating growth conversion reveals whether top-line progress is filtering down to bottom-line results. The company's five-year revenue CAGR of 7.21% establishes the baseline for demand expansion. Meanwhile, the five-year EPS CAGR of 111.31% highlights the rate of net income growth per share. When per-share earnings outpace top-line growth, it suggests structural improvements, but we must verify if this is backed by genuine cash generation and operating efficiency.
NXPI EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 111.31%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 111.31% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Testing Net Income Against Actual Cash Generation
Free cash flow is the ultimate reality check for any GAAP-based earnings trajectory. With a five-year free-cash-flow CAGR of 5.97%, we can assess the underlying quality of the company's reported earnings. If cash generation trails behind GAAP net income expansion, it may signal working capital pressures or heavy capital expenditure requirements, which would warrant a more conservative outlook on the sustainability of earnings.
NXPI free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 5.97%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 5.97% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Assessing Operating Efficiency and Capital Allocation
The durability of the company's growth depends heavily on its underlying profitability and capital efficiency. A net margin of 22.56% demonstrates the business's ability to extract profit from its revenue stream. Simultaneously, a return on invested capital (ROIC) of 12.71% measures the effectiveness of its capital deployment. Strong returns on capital indicate that reinvestments are generating genuine economic value, supporting the long-term expansion model.
NXPI net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 22.56%. The bars below are annual fiscal years.
Net margin of 22.56% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
NXPI ROIC
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 12.71%.
ROIC of 12.71% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity and Leverage as Operational Guardrails
Balance sheet health defines the operational boundaries and safety margins of the business. The company maintains a current ratio of 2.04x alongside a debt-to-equity ratio of 0.96x. These liquidity and leverage metrics are vital, as even highly profitable firms can face severe operational constraints if their debt burden escalates or short-term liquidity dries up during industry downturns.
NXPI debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.96x.
Debt-to-equity of 0.96x and current ratio of 2.04x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Expectations and Current Multiples
Valuation metrics represent the hurdle rate that the market expects the business to clear. The equity currently commands a trailing price-to-earnings ratio of 18.98x, which corresponds to an earnings yield of 5.27%. These figures reflect the premium or discount investors are placing on the company's future growth, showing how much operational success is already priced into the stock.
NXPI Price Chart
Latest close: $222 as of September 1, 2026.
The close at $222 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing the Core Growth Drivers Against Structural Risks
The optimistic outlook relies on sustained revenue growth, rising per-share earnings, robust free cash flow, and healthy returns on invested capital. Conversely, the primary risk is that free cash flow growth fails to keep pace with accounting earnings, or that balance sheet leverage begins to restrict operational flexibility. This balance between cash conversion and capital structure is where fundamental analysis must focus.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 7.21% and five-year EPS CAGR of 111.31% support the business case.
- Net margin of 22.56% and ROIC of 12.71% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 5.97% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.96x and current ratio of 2.04x are the balance-sheet checks that can change the view.
Key Drivers for Future Analytical Revisions
This fundamental assessment should be updated if upcoming quarterly reports show a material deviation in revenue growth, cash flow conversion, ROIC, or leverage ratios from the historical trends detailed above. The current price is above the third-party analyst DCF reference, suggesting a compressed margin of safety. This note serves as objective analytical context and does not constitute personalized financial advice.
FAQ
What is the fundamental read on NXPI?
NXP Semiconductors N.V. is judged through revenue growth of 7.21%, EPS growth of 111.31%, free-cash-flow growth of 5.97%, net margin of 22.56%, and ROIC of 12.71%.
Which NXPI fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this NXPI checkup refresh?
Its figures are as of September 1, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 7.21%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 111.31%.
- ROIC or balance-sheet flexibility weakening from ROIC of 12.71% and debt-to-equity of 0.96x.
The bottom line
NXP Semiconductors N.V. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: NXPI fundamentalsContinue with NXP Semiconductors N.V.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-07-28 · period 2026-06-28 · SEC EDGAR source
- “From a geographic perspective, revenue increased quarter-on-quarter in the China region by 31.5%, in the Asia Pacific region by 11.2%, in the EMEA region by 4.0%, and in the Americas region by 3.2%.”
- “From a geographic perspective, revenue increased year-on-year in the Americas region by 34.0%, in the China region by 25.5%, in the Asia Pacific region by 13.6%, and in the EMEA region by 8.9%.”
- “From a geographic perspective, revenue increased year-on-year in the Americas region by 30.9%, in the China region by 14.6%, in the Asia Pacific region by 10.3%, and in the EMEA region by 8.7%.”
- “Interest income decreased by $14 million due to lower cash levels and lower interest rates.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.