January 7, 2019

NXPI – Market expectations are for material declines in Uniform ROA, but management is confident about OpEx, utilization, and debt positioning

  • NXP Semiconductors N.V. (NXPI:USA) currently trades well below corporates averages relative to UAFRS-based (Uniform) Earnings, with an 11.2x Uniform P/E, implying bearish expectations for the firm. However, management is confident about revenues, utilization, and their debt ratios
  • Specifically, management is confident that revenues are going to improve, and that they will get back to expected OpEx levels. Moreover, they are confident about their utilization plans and debt to EBITDA positioning
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