NXPI – Market expectations are for Uniform ROA to recover, but management may have concerns about growth, EBITDA, and inventory

December 27, 2021

  • NXP Semiconductors (NXPI) currently trades below corporate but near historical averages relative to Uniform earnings, with a 14.3x Uniform P/E (Fwd. V/E’).
  • At these levels, markets are pricing in expectations for Uniform ROA to recover to 24%, accompanied by 3% Uniform asset growth.
  • Meanwhile, analysts expect Uniform ROA to expand to new highs of 35% by 2022, accompanied by 8% Uniform asset growth.
  • These levels would imply a stock price closer to $396, representing significant potential equity upside for the firm. That said, peak profitability is unlikely to be sustained going forward, given the highly cyclical nature of semiconductors.
  • However, the firm’s most recent earnings call suggests management may have concerns about growth, EBITDA, and inventory.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683