Name: NXP Semiconductors N.V. (NASDAQ:NXPI) | Price to FCFE (P/FCFE)
Creator: Stock Analysis on Net

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

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NXP Semiconductors N.V., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income attributable to stockholders	1,871)	52)	243)	2,208)	2,215)
Net income attributable to non-controlling interests	35)	28)	29)	50)	57)
Net noncash charges	1,608)	1,964)	2,274)	2,140)	139)
Changes in operating assets and liabilities	(437)	438)	(173)	(29)	36)
Net cash provided by operating activities	3,077)	2,482)	2,373)	4,369)	2,447)
Purchase of identified intangible assets	(132)	(130)	(102)	(50)	(66)
Capital expenditures on property, plant and equipment	(767)	(392)	(526)	(611)	(552)
Purchase of equipment leased to others	(33)	—)	—)	—)	—)
Insurance recoveries received for equipment damage	10)	—)	—)	—)	—)
Proceeds from disposals of property, plant and equipment	1)	4)	23)	1)	2)
Payment of cash convertible note	—)	—)	(1,150)	—)	—)
Proceeds from settlement of cash convertible note hedge	—)	—)	144)	—)	—)
Payment of bond hedge derivatives, convertible option	—)	—)	(145)	—)	—)
Repayment of Bridge Loan	—)	—)	—)	(1,000)	—)
Proceeds from Bridge Loan	—)	—)	—)	1,000)	—)
Repurchase of long-term debt	(1,021)	(1,809)	(600)	(1,273)	(2,728)
Principal payments on long-term debt	—)	—)	—)	(1)	(16)
Proceeds from the issuance of long-term debt	4,000)	2,000)	1,750)	1,997)	—)
Cash paid for debt issuance costs	(47)	(15)	(24)	(23)	—)
Free cash flow to equity (FCFE)	5,088)	2,140)	1,743)	4,409)	(913)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).

The financial trajectory from 2017 to 2021 is characterized by significant volatility in both operating cash generation and the cash available to equity holders. While operating cash flows remained positive throughout the period, free cash flow to equity exhibited wider fluctuations, including a transition from a deficit to a substantial surplus.

Net Cash Provided by Operating Activities: A fluctuating trend is observed in operating cash flows, which peaked in 2018 at 4,369 million USD before experiencing a sharp contraction in 2019 to 2,373 million USD. A gradual recovery followed, with values rising to 2,482 million USD in 2020 and reaching 3,077 million USD by the end of 2021.
Free Cash Flow to Equity (FCFE): The FCFE displayed extreme variance, starting at a negative 913 million USD in 2017. A significant reversal occurred in 2018, where FCFE surged to 4,409 million USD. Following a decline to 1,743 million USD in 2019, the metric trended upward, culminating in a five-year peak of 5,088 million USD in 2021.
Operating Cash and FCFE Correlation: The relationship between operating cash and FCFE shifted markedly over the period. In 2017, the gap between positive operating cash and negative FCFE suggests heavy capital expenditures or significant debt repayments. Conversely, in 2021, FCFE exceeded operating cash flow by approximately 2,011 million USD, indicating a potential increase in net borrowing or the sale of assets during that fiscal year.

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Price to FCFE Ratio, Current

NXP Semiconductors N.V., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	262,598,471
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	5,088)
FCFE per share	19.38
Current share price (P)	174.46
Valuation Ratio
P/FCFE	9.00
Benchmarks
P/FCFE, Competitors¹
Advanced Micro Devices Inc.	94.18
Analog Devices Inc.	32.84
Applied Materials Inc.	42.30
Broadcom Inc.	57.74
Intel Corp.	—
KLA Corp.	44.91
Lam Research Corp.	55.94
Marvell Technology Inc.	64.09
Micron Technology Inc.	15.18
NVIDIA Corp.	45.27
Qualcomm Inc.	12.75
Texas Instruments Inc.	83.28
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	128.48
P/FCFE, Industry
Information Technology	69.38

Based on: 10-K (reporting date: 2021-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

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NXP Semiconductors N.V., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
No. shares of common stock outstanding¹	262,538,156	277,008,199	279,750,659	292,789,698	342,924,392
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	5,088)	2,140)	1,743)	4,409)	(913)
FCFE per share³	19.38	7.73	6.23	15.06	-2.66
Share price^1, 4	191.42	178.52	114.64	94.25	115.88
Valuation Ratio
P/FCFE⁵	9.88	23.11	18.40	6.26	—
Benchmarks
P/FCFE, Competitors⁶
Advanced Micro Devices Inc.	44.72	—	—	—	—
Analog Devices Inc.	34.67	33.98	—	—	—
Applied Materials Inc.	27.20	23.21	—	—	—
Broadcom Inc.	22.35	9.16	—	—	—
Intel Corp.	14.25	—	—	—	—
KLA Corp.	28.06	—	—	—	—
Lam Research Corp.	34.58	—	—	—	—
Marvell Technology Inc.	72.25	—	—	—	—
Micron Technology Inc.	37.24	—	—	—	—
NVIDIA Corp.	35.22	—	—	—	—
Qualcomm Inc.	17.93	34.91	—	—	—
Texas Instruments Inc.	21.87	—	—	—	—
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	25.18	—	—	—	—
P/FCFE, Industry
Information Technology	27.39	—	—	—	—

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 5,088,000,000 ÷ 262,538,156 = 19.38

⁴ Closing price as at the filing date of NXP Semiconductors N.V. Annual Report.

⁵ 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 191.42 ÷ 19.38 = 9.88

⁶ Click competitor name to see calculations.

The financial trajectory from 2017 to 2021 is characterized by a general appreciation in share price and a recovery in free cash flow to equity (FCFE) per share, resulting in a volatile Price to FCFE (P/FCFE) ratio.

Share Price and FCFE Trends: The share price experienced a decline in 2018 to 94.25 US$ before entering a period of sustained growth, reaching 191.42 US$ by 2021. Concurrently, FCFE per share recovered from a negative value of -2.66 US$ in 2017 to a peak of 19.38 US$ in 2021, despite a mid-period contraction in 2019.
P/FCFE Ratio Evolution: The P/FCFE ratio was not applicable in 2017 due to negative FCFE. In 2018, the ratio was recorded at 6.26, followed by a rapid expansion to 18.40 in 2019 and a peak of 23.11 in 2020. This expansion suggests that the market valuation increased at a significantly faster rate than the generation of free cash flow to equity during this period.
Valuation Compression in 2021: A significant contraction in the P/FCFE ratio to 9.88 occurred in 2021. This compression was driven by a substantial increase in FCFE per share, which rose from 7.73 US$ to 19.38 US$, effectively outpacing the growth in the share price and lowering the valuation multiple.

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