Is the business good?
How good a business is NXPI?
NXP Semiconductors earns 14% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
14%
Return on invested capital · cost of capital 9.0% · 5.4 points above what the capital costs: growth creates value
- Operating margin
- 30%
Operating margin · Semiconductors median 8.5% · 12 months to Q1 2026
- Cash conversion
- 1.02×
Cash conversion · 0.79× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −0.59%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 4.9% |
| FY2021 | 23% |
| FY2022 | 29% |
| FY2023 | 28% |
| FY2024 | 27% |
| FY2025 | 25% |
Details›
- Gross margin12 months to Q1 2026
- 55%
- Operating margin12 months to Q1 2026
- 30%
- Net margin12 months to Q1 2026
- 21%
- Free cash flow margin
- 21%
- R&D as % of revenue
- 19%
- Revenue, trailing twelve months
- $12.6B
- Free cash flow, trailing twelve months
- $2.71B
- Net income, trailing twelve months
- $2.65B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 14%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.