NXP Semiconductors N.V. NXPI
NXP Semiconductors N.V. scores average on business quality (4.7 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What NXP Semiconductors N.V. does
NXP Semiconductors sells microcontrollers, analog chips, and sensors primarily to automotive and industrial manufacturers. Customers rely on these chips for vehicle networking, secure identification, and power management.
- What it does best
NXP excels at automotive processing and safety systems, embedding itself deeply into vehicle electrical architectures. High switching costs and complex software integration protect its market share. Its operating margin sits in the top quartile of its sector at 30%, showing strong pricing power despite flat volume.
- The main risk
Revenue is shrinking with annual sales dropping from $13.3B in 2023 to $12.3B in 2025, reflecting a persistent cyclical downturn. If demand fails to recover, fixed manufacturing costs will compress margins and hurt cash flow generation.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin is 56.8% and operating margin is 29.7%, with free cash flow margin at 43%. Profitability remains strong and stable despite the revenue contraction, showing efficient cost management.
Deep automotive design wins create high switching costs that lock in Tier-1 manufacturers for the life of a vehicle platform. Its operating margin ranks in the 79th percentile of the technology sector, proving durable pricing power.
Revenue growth is negative at -2.7% over the latest period, continuing a multi-year cooling trend from past peaks above $13.2B. The core engine is shrinking rather than accelerating.
Total debt sits at $12.2B with net debt at $9.0B, backed by $3.3B in cash. Interest coverage is 8x, making debt service manageable. Free cash flow reached $2.6B, keeping the balance sheet stable.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on NXPI
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
NXP Semiconductors N.V. scores average on the Cluenex quality check (4.7 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 27, 2026, after the close.
See NXPI today
- Today's verdict on NXPI, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “NXP Semiconductors N.V. (NXPI)”, https://cluenex.com/stocks/nxpi/, data as of Oct 10, 2026.