NXP Semiconductors NVNXPI +2.07%91 ROE % is 42.78% as of Mar. 2026, which is 117% above its 10-year median of 19.70. GuruFocus rates NXPI with a GF Score™ of 91/100 and a GF Value™ of $231.15 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,004 Semiconductors companies, NXP Semiconductors NV ranks better than 91.04% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductors subindustry, NXP Semiconductors NV's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NXP Semiconductors NV ROE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, NXP Semiconductors NV's ROE % distribution charts can be found below:
* The bar in red indicates where NXP Semiconductors NV's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
NXP Semiconductors NV (NXPI) has a ROE % of 42.78% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NXP Semiconductors NV and its competitors. This is 117% above median its historical median of 19.70. Over the past decade, NXP Semiconductors NV's ROE % has ranged from 0.57 to 39.88. According to the industry distribution chart, NXP Semiconductors NV ranks #90 out of 1004 companies in the Semiconductors industry, placing it in the top 9%.
Is NXP Semiconductors NV's ROE % too high?
NXP Semiconductors NV's current ROE % of 42.78% is 117% above median its 10-year median of 19.70. Over the past 10 years, this metric has ranged from a low of 0.57 to a high of 39.88. The Semiconductors industry median ROE % is 4.55. NXP Semiconductors NV's value of 42.78% is 840.2% above this industry median. Based on the distribution chart, NXP Semiconductors NV ranks #90 out of 1004 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, NXP Semiconductors NV has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NXP Semiconductors NV's ROE % compare to MPWR and ALAB?
According to the Semiconductors industry distribution chart, NXP Semiconductors NV ranks #90 out of 1004 companies for ROE %. This places NXP Semiconductors NV in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 4.55. NXP Semiconductors NV's value of 42.78% is 840.2% above this benchmark. Historically, NXP Semiconductors NV's own ROE % has ranged from 0.57 to 39.88 over the past decade. While the company's 10-year median is 19.70 vs. the industry median of 4.55, NXP Semiconductors NV has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Semiconductors company?
The median ROE % among Semiconductors companies is 4.55, based on 1,004 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NXP Semiconductors NV's current ROE % of 42.78% is 840.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NXP Semiconductors NV and its competitors. For the Semiconductors industry, the median ROE % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NXP Semiconductors NV's current ROE % is 42.78%, which is 117% above median its own 10-year median of 19.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NXP Semiconductors NV stock overvalued right now?
Based on GuruFocus' analysis, NXP Semiconductors NV (NXPI) is currently considered Significantly Overvalued. The stock's GF Value™ is $231.15, compared to a current price of $300.16 — trading 29.9% above its estimated fair value. The current ROE % is 42.78%, which is 117% above median its 10-year median of 19.70 and 840.2% above the Semiconductors industry median of 4.55. NXP Semiconductors NV's overall GF Score™ is 91/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For NXP Semiconductors NV (NXPI), the current ROE % is 42.78% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NXP Semiconductors NV (NXPI) Overvalued in 2026?
Based on GuruFocus' analysis, NXP Semiconductors NV stock appears to be overvalued.
The current stock price of $300.16 is trading 29.9% above its estimated GF Value™ of $231.15.
GuruFocus considers NXP Semiconductors NV to be Significantly Overvalued.
Key valuation signals for NXPI:
ROE %: 42.78% (117% above median its 10-year median of 19.70)
GF Value™: $231.15 vs. price of $300.16 (29.9% above fair value)
Industry Position: 840.2% above the Semiconductors median (#90 of 1004)
No single metric tells the full story. See the NXPI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NXP Semiconductors is a leading supplier of high-performance mixed-signal products. The firm acquired Freescale Semiconductor in 2015 and now has significant market share in the automotive market, where it supplies microcontrollers and analog chips into automotive clusters, powertrains, infotainment systems, and radars. NXP Semiconductors also serves industrial and Internet of Things, mobile, and communications infrastructure.
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