NXPINEUTRAL

NXPI Return on Equity (ROE) Analysis

25.8%

Updated 48h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity—at 25.8%, NXPI is earning about $0.26 per dollar of equity.

Sector Performance

77th percentile

NXPI

25.8%

Sector Median

13.9%

Sector Avg

32.1%

Prior Period

20.1%(Apr 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity—at 25.8%, NXPI is earning about $0.26 per dollar of equity.

This outpaces the sector median of 13.8% and places the stock in the 77th percentile among its peers, meaning it performs better than three-quarters of the sector. The year-over-year change, quarter-over-quarter change, and eight-quarter trend are all not available, so no directional signal can be drawn from past movements. A high ROE with no trend data suggests less clarity on whether the strong profitability is sustainable, which introduces uncertainty for investors assessing future performance. The elevated level alone points to efficient capital use, but the lack of trend information limits the confidence in that efficiency persisting. This neutral tension—strong current returns without historical context—supports the overall NEUTRAL verdict, as the metric highlights a positive snapshot but provides no evidence of improvement or deterioration.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about NXPI?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are NXPI's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: WDC (85.9%), LVS (90.5%), IT (94.9%), KLAC (95.0%), ITW (96.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.