Xilinx Inc Valuation – March 2019 #XLNX

Company Profile (excerpt from Reuters): Xilinx, Inc. (Xilinx), incorporated on February 5, 1990, is engaged in designing and developing programmable devices and associated technologies. The Company’s programmable devices and associated technologies include integrated circuits (ICs) in the form of programmable logic devices (PLDs), including programmable System on Chips (SoCs) and three-dimensional ICs (3D ICs); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx, and various third-party verification and IP cores. In addition to its programmable platforms, Xilinx provides design services, customer training, field engineering and technical support.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of XLNX – March 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $30,836,641,097 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 4.38 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 35.70% Pass
6. Moderate PEmg Ratio PEmg < 20 48.05 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 11.84 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 4.38 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.38 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $2.53
MG Growth Estimate 2.73%
MG Value $35.37
Opinion Overvalued
MG Grade C-
MG Value based on 3% Growth $36.75
MG Value based on 0% Growth $21.54
Market Implied Growth Rate 19.78%
Current Price $121.80
% of Intrinsic Value 344.34%

Xilinx, Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PEmg and PB ratios. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $2.14 in 2015 to an estimated $2.53 for 2019. This level of demonstrated earnings growth does not support the market’s implied estimate of 19.78% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Xilinx, Inc. revealed the company was trading above its Graham Number of $26.25. The company pays a dividend of $1.4 per share, for a yield of 1.1% Its PEmg (price over earnings per share – ModernGraham) was 48.05, which was above the industry average of 35.5. Finally, the company was trading above its Net Current Asset Value (NCAV) of $5.67.

Xilinx, Inc. receives an average overall rating in the ModernGraham grading system, scoring a C-.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) $5.67
Graham Number $26.25
PEmg 48.05
Current Ratio 4.38
PB Ratio 11.84
Current Dividend $1.40
Dividend Yield 1.15%
Number of Consecutive Years of Dividend Growth 14

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $4,172,352,000
Total Current Liabilities $952,869,000
Long-Term Debt $1,221,438,000
Total Assets $5,354,764,000
Intangible Assets $423,251,000
Total Liabilities $2,717,569,000
Shares Outstanding (Diluted Average) 256,374,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $3.33
Mar2018 $1.99
Mar2017 $2.32
Mar2016 $2.05
Mar2015 $2.35
Mar2014 $2.19
Mar2013 $1.79
Mar2012 $1.95
Mar2011 $2.39
Mar2010 $1.29
Mar2009 $1.31
Mar2008 $1.25
Mar2007 $1.02
Mar2006 $1.00
Mar2005 $0.87
Mar2004 $0.85
Mar2003 $0.36
Mar2002 -$0.34
Mar2001 $0.10
Mar2000 $1.90
Mar1999 $0.33

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $2.53
Mar2018 $2.15
Mar2017 $2.20
Mar2016 $2.12
Mar2015 $2.14
Mar2014 $2.00
Mar2013 $1.85
Mar2012 $1.80
Mar2011 $1.64
Mar2010 $1.23
Mar2009 $1.17
Mar2008 $1.06
Mar2007 $0.92
Mar2006 $0.76
Mar2005 $0.55
Mar2004 $0.45
Mar2003 $0.32

Recommended Reading:

Other ModernGraham posts about the company

Xilinx Inc Valuation – May 2018 $XLNX
Xilinx Inc Valuation – February 2017 $XLNX
Xilinx Inc Valuation – August 2016 $XLNX
Xilinx Inc Valuation – February 2016 $XLNX
Xilinx Inc. Valuation – November 2015 Update $XLNX

Other ModernGraham posts about related companies

Qualcomm Inc Valuation – March 2019 #QCOM
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Advanced Micro Devices Inc Valuation – February 2019 $AMD
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FLIR Systems Inc Valuation – February 2019 $FLIR
NetApp Inc Valuation – February 2019 $NTAP
Applied Materials Inc Valuation – February 2019 $AMAT
Microchip Technology Inc Valuation – February 2019 $MCHP
Broadcom Inc Valuation – February 2019 $AVGO
KLA-Tencor Corp Valuation – January 2019 $KLAC

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Xilinx Inc Valuation – May 2018 $XLNX

Company Profile (excerpt from Reuters): Xilinx, Inc. (Xilinx), incorporated on February 5, 1990, is engaged in designing and developing programmable devices and associated technologies. The Company’s programmable devices and associated technologies include integrated circuits (ICs) in the form of programmable logic devices (PLDs), including programmable System on Chips (SoCs) and three-dimensional ICs (3D ICs); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx, and various third-party verification and IP cores. In addition to its programmable platforms, Xilinx provides design services, customer training, field engineering and technical support.

XLNX Chart

XLNX data by YCharts

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of XLNX – May 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $18,415,491,264 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 4.42 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 26.47% Fail
6. Moderate PEmg Ratio PEmg < 20 30.61 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 7.90 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 4.42 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.38 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $2.36
MG Growth Estimate 1.52%
MG Value $27.23
Opinion Overvalued
MG Grade C
MG Value based on 3% Growth $34.24
MG Value based on 0% Growth $20.07
Market Implied Growth Rate 11.05%
Current Price $72.27
% of Intrinsic Value 265.43%

Xilinx, Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings growth over the last ten years, and the high PEmg and PB ratios. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $2.14 in 2015 to an estimated $2.36 for 2019. This level of demonstrated earnings growth does not support the market’s implied estimate of 11.05% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Xilinx, Inc. revealed the company was trading above its Graham Number of $24.05. The company pays a dividend of $1.4 per share, for a yield of 1.9% Its PEmg (price over earnings per share – ModernGraham) was 30.61, which was below the industry average of 49.78, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $5.57.

Xilinx, Inc. receives an average overall rating in the ModernGraham grading system, scoring a C.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) $5.57
Graham Number $24.05
PEmg 30.61
Current Ratio 4.42
PB Ratio 7.90
Current Dividend $1.40
Dividend Yield 1.94%
Number of Consecutive Years of Dividend Growth 14

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 3/1/2018
Total Current Assets $4,144,486,000
Total Current Liabilities $937,203,000
Long-Term Debt $1,214,440,000
Total Assets $5,055,687,000
Intangible Assets $166,544,000
Total Liabilities $2,725,452,000
Shares Outstanding (Diluted Average) 254,855,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $2.81
Mar2018 $1.99
Mar2017 $2.32
Mar2016 $2.05
Mar2015 $2.35
Mar2014 $2.19
Mar2013 $1.79
Mar2012 $1.95
Mar2011 $2.39
Mar2010 $1.29
Mar2009 $1.31
Mar2008 $1.25
Mar2007 $1.02
Mar2006 $1.00
Mar2005 $0.87
Mar2004 $0.85
Mar2003 $0.36
Mar2002 -$0.34
Mar2001 $0.10
Mar2000 $1.90
Mar1999 $0.33

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $2.36
Mar2018 $2.15
Mar2017 $2.20
Mar2016 $2.12
Mar2015 $2.14
Mar2014 $2.00
Mar2013 $1.85
Mar2012 $1.80
Mar2011 $1.64
Mar2010 $1.23
Mar2009 $1.17
Mar2008 $1.06
Mar2007 $0.92
Mar2006 $0.76
Mar2005 $0.55
Mar2004 $0.45
Mar2003 $0.32

Recommended Reading:

Other ModernGraham posts about the company

Xilinx Inc Valuation – February 2017 $XLNX
Xilinx Inc Valuation – August 2016 $XLNX
Xilinx Inc Valuation – February 2016 $XLNX
Xilinx Inc. Valuation – November 2015 Update $XLNX
Xilinx Inc. Analysis – August 2015 Update $XLNX

Other ModernGraham posts about related companies

Qualcomm Inc Valuation – May 2018 $QCOM
Advanced Micro Devices Inc Valuation – May 2018 $AMD
Ametek Inc Valuation – April 2018 $AME
Qorvo Inc Valuation – April 2018 $QRVO
FLIR Systems Inc Valuation – April 2018 $FLIR
NetApp Inc Valuation – April 2018 $NTAP
Applied Materials Inc Valuation – April 2018 $AMAT
Broadcom Inc Valuation – April 2018 $AVGO
Microchip Technology Inc Valuation – April 2018 $MCHP
KLA-Tencor Corp Valuation – March 2018 $KLAC

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Xilinx Inc Valuation – February 2017 $XLNX

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Stocks for Using A Benjamin Graham Value Investing Strategy – February 2017.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Xilinx Inc (XLNX) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Xilinx, Inc. (Xilinx) is engaged in designing and developing programmable devices and associated technologies. The Company’s programmable devices and associated technologies include integrated circuits (ICs) in the form of programmable logic devices (PLDs), including programmable System on Chips (SoCs) and three-dimensional ICs (3D ICs); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx, and various third-party verification and IP cores. The Company provides design services, customer training, field engineering and technical support. Its PLDs include field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs) that its customers program to perform desired logic functions, and programmable SoCs, which combine (Advanced reduced instruction set computing (RISC) Machines (ARM)) processor-based systems with programmable logic in a single device.

XLNX Chart

XLNX data by YCharts

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Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Recent valuations of the components of the Dow Jones Industrial Average are available for free members, including this one of Microsoft Corporation.  In addition, here is a post detailing what can be found within each individual company’s valuation.

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Downloadable PDF version of this valuation:

ModernGraham Valuation of XLNX – February 2017

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $15,063,886,602 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 3.88 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 73.51% Pass
6. Moderate PEmg Ratio PEmg < 20 27.45 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 6.56 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 3.88 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.34 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

EPSmg $2.19
MG Growth Estimate 2.70%
MG Value $30.42
Opinion Overvalued
MG Grade C+
MG Value based on 3% Growth $31.73
MG Value based on 0% Growth $18.60
Market Implied Growth Rate 9.47%
Current Price $60.06
% of Intrinsic Value 197.42%

Xilinx, Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PEmg and PB ratios. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $1.85 in 2013 to an estimated $2.19 for 2017. This level of demonstrated earnings growth does not support the market’s implied estimate of 9.47% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Xilinx, Inc. revealed the company was trading above its Graham Number of $22.44. The company pays a dividend of $1.3 per share, for a yield of 2.2%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 27.45, which was below the industry average of 28.12, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $5.76.

Xilinx, Inc. receives an average overall rating in the ModernGraham grading system, scoring a C+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) $5.76
Graham Number $22.44
PEmg 27.45
Current Ratio 3.88
PB Ratio 6.56
Current Dividend $1.30
Dividend Yield 2.16%
Number of Consecutive Years of Dividend Growth 13

[/not-level-free]

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2016
Total Current Assets $3,916,052,000
Total Current Liabilities $1,010,042,000
Long-Term Debt $994,842,000
Total Assets $4,836,288,000
Intangible Assets $166,046,000
Total Liabilities $2,356,685,000
Shares Outstanding (Diluted Average) 270,781,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $2.28
Mar2016 $2.05
Mar2015 $2.35
Mar2014 $2.19
Mar2013 $1.79
Mar2012 $1.95
Mar2011 $2.39
Mar2010 $1.29
Mar2009 $1.31
Mar2008 $1.25
Mar2007 $1.02
Mar2006 $1.00
Mar2005 $0.87
Mar2004 $0.85
Mar2003 $0.36
Mar2002 -$0.34
Mar2001 $0.10
Mar2000 $1.90
Mar1999 $0.33
Mar1998 $0.40
Mar1997 $0.35

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $2.19
Mar2016 $2.12
Mar2015 $2.14
Mar2014 $2.00
Mar2013 $1.85
Mar2012 $1.80
Mar2011 $1.64
Mar2010 $1.23
Mar2009 $1.17
Mar2008 $1.06
Mar2007 $0.92
Mar2006 $0.76
Mar2005 $0.55
Mar2004 $0.45
Mar2003 $0.32
Mar2002 $0.36
Mar2001 $0.68

Recommended Reading:

Other ModernGraham posts about the company

Xilinx Inc Valuation – February 2016 $XLNX
Xilinx Inc. Valuation – November 2015 Update $XLNX
Xilinx Inc. Analysis – August 2015 Update $XLNX
47 Companies in the Spotlight This Week – 5/16/15
Xilinx Inc. Quarterly Valuation – May 2015 $XLNX

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Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Xilinx Inc Valuation – August 2016 $XLNX

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – July 2016.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Xilinx Inc (XLNX) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Xilinx, Inc. (Xilinx) is engaged in designing and developing programmable devices and associated technologies. The Company’s programmable devices and associated technologies include integrated circuits (ICs) in the form of programmable logic devices (PLDs), including programmable System on Chips (SoCs) and three-dimensional ICs (3D ICs); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx, and various third-party verification and IP cores. The Company provides design services, customer training, field engineering and technical support. Its PLDs include field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs) that its customers program to perform desired logic functions, and programmable SoCs, which combine (Advanced reduced instruction set computing (RISC) Machines (ARM)) processor-based systems with programmable logic in a single device.

XLNX Chart

XLNX data by YCharts

[level-free]
To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

[/level-free]
[not-level-free]

Downloadable PDF version of this valuation:

ModernGraham Valuation of XLNX – August 2016

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $13,503,073,332 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 3.83 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 69.87% Pass
6. Moderate PEmg Ratio PEmg < 20 24.82 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 5.46 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 3.83 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.33 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

XLNX value chart August 2016

EPSmg $2.14
MG Growth Estimate 2.32%
MG Value $28.16
Opinion Overvalued
MG Grade C
MG Value based on 3% Growth $31.05
MG Value based on 0% Growth $18.20
Market Implied Growth Rate 8.16%
Current Price $53.14
% of Intrinsic Value 188.73%

Xilinx, Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PEmg and PB ratios. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $1.85 in 2013 to an estimated $2.14 for 2017. This level of demonstrated earnings growth does not support the market’s implied estimate of 8.16% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Xilinx, Inc. revealed the company was trading above its Graham Number of $22.18. The company pays a dividend of $1.26 per share, for a yield of 2.4%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 24.82, which was above the industry average of 22.64. Finally, the company was trading above its Net Current Asset Value (NCAV) of $6.33.

Xilinx, Inc. receives an average overall rating in the ModernGraham grading system, scoring a C.

Stage 3: Information for Further Research

XLNX charts August 2016

Net Current Asset Value (NCAV) $6.33
Graham Number $22.18
PEmg 24.82
Current Ratio 3.83
PB Ratio 5.46
Current Dividend $1.26
Dividend Yield 2.37%
Number of Consecutive Years of Dividend Growth 13

[/not-level-free]

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2016
Total Current Assets $4,021,700,000
Total Current Liabilities $1,051,364,000
Long-Term Debt $994,039,000
Total Assets $4,926,475,000
Intangible Assets $164,254,000
Total Liabilities $2,336,803,000
Shares Outstanding (Diluted Average) 266,206,000

Earnings Per Share History

Next Fiscal Year Estimate $2.14
Mar2016 $2.05
Mar2015 $2.35
Mar2014 $2.19
Mar2013 $1.79
Mar2012 $1.95
Mar2011 $2.39
Mar2010 $1.29
Mar2009 $1.31
Mar2008 $1.25
Mar2007 $1.02
Mar2006 $1.00
Mar2005 $0.87
Mar2004 $0.85
Mar2003 $0.36
Mar2002 -$0.34
Mar2001 $0.10
Mar2000 $1.90
Mar1999 $0.33
Mar1998 $0.40
Mar1997 $0.35

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $2.14
Mar2016 $2.12
Mar2015 $2.14
Mar2014 $2.00
Mar2013 $1.85
Mar2012 $1.80
Mar2011 $1.64
Mar2010 $1.23
Mar2009 $1.17
Mar2008 $1.06
Mar2007 $0.92
Mar2006 $0.76
Mar2005 $0.55
Mar2004 $0.45
Mar2003 $0.32
Mar2002 $0.36
Mar2001 $0.68

Recommended Reading:

Other ModernGraham posts about the company

Xilinx Inc Valuation – February 2016 $XLNX
Xilinx Inc. Valuation – November 2015 Update $XLNX
Xilinx Inc. Valuation – November 2015 Update $XLNX
Xilinx Inc. Analysis – August 2015 Update $XLNX
47 Companies in the Spotlight This Week – 5/16/15

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Jabil Circuit Inc Valuation – July 2016 $JBL
KLA-Tencor Corp Valuation – July 2016 $KLAC
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Arrow Electronics Inc Valuation – July 2016 $ARW

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Xilinx Inc Valuation – February 2016 $XLNX

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – February 2016.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Xilinx Inc (XLNX) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Xilinx, Inc. (Xilinx) designs and develops programmable devices and associated technologies. The Company’s programmable devices and associated technologies include integrated circuits (IC) in the form of programmable logic devices (PLD); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx, and third-party verification and IP cores. The Company provides design services, customer training, field engineering and technical support. Its PLDs include field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs), programmable System on Chips (SoCs) and three-dimensional ICs (3D ICs). Its product portfolio is designed to provide integration for electronic equipment manufacturers in end markets, such as wired and wireless communications, industrial, scientific and medical, aerospace and defense, audio, video and broadcast, consumer, automotive, and test and measurement.

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Downloadable PDF version of this valuation:

ModernGraham Valuation of XLNX – February 2016

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $11,939,113,048 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 4.30 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 83.24% Pass
6. Moderate PEmg Ratio PEmg < 20 22.34 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 4.90 Fail
Score
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 4.30 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.32 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

XLNX value Chart February 2016

EPSmg $2.11
MG Growth Estimate 2.52%
MG Value $28.54
Opinion Overvalued
MG Value based on 3% Growth $30.55
MG Value based on 0% Growth $17.91
Market Implied Growth Rate 6.92%
Current Price $47.07
% of Intrinsic Value 164.94%

Xilinx, Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PEmg and PB ratios. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $1.80 in 2012 to an estimated $2.11 for 2016. This level of demonstrated earnings growth does not support the market’s implied estimate of 6.92% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.

Stage 3: Information for Further Research

XLNX Charts February 2016

Net Current Asset Value (NCAV) $6.30
Graham Number $21.40
PEmg 22.34
Current Ratio 4.30
PB Ratio 4.90
Dividend Yield 2.59%
Number of Consecutive Years of Dividend Growth 12

[/not-level-free]

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information Dec2015
Total Current Assets $4,008,294,000
Total Current Liabilities $932,909,000
Long-Term Debt $995,584,000
Total Assets $4,898,157,000
Intangible Assets $166,742,000
Total Liabilities $2,308,453,000
Shares Outstanding (Diluted Average) 269,611,000

Earnings Per Share History

Next Fiscal Year Estimate $2.02
Mar2015 $2.35
Mar2014 $2.19
Mar2013 $1.79
Mar2012 $1.95
Mar2011 $2.39
Mar2010 $1.29
Mar2009 $1.31
Mar2008 $1.25
Mar2007 $1.02
Mar2006 $1.00
Mar2005 $0.87
Mar2004 $0.85
Mar2003 $0.36
Mar2002 -$0.34
Mar2001 $0.10
Mar2000 $1.90
Mar1999 $0.33
Mar1998 $0.40
Mar1997 $0.35
Mar1996 $0.32

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $2.11
Mar2015 $2.14
Mar2014 $2.00
Mar2013 $1.85
Mar2012 $1.80
Mar2011 $1.64
Mar2010 $1.23
Mar2009 $1.17
Mar2008 $1.06
Mar2007 $0.92
Mar2006 $0.76
Mar2005 $0.55
Mar2004 $0.45
Mar2003 $0.32
Mar2002 $0.36
Mar2001 $0.68
Mar2000 $0.87

Recommended Reading:

Other ModernGraham posts about the company

Xilinx Inc. Valuation – November 2015 Update $XLNX
Xilinx Inc. Analysis – August 2015 Update $XLNX
47 Companies in the Spotlight This Week – 5/16/15
Xilinx Inc. Quarterly Valuation – May 2015 $XLNX
34 Companies in the Spotlight This Week – 2/7/15

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Microchip Technology Inc Valuation – January 2016 Update $MCHP
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KLA-Tencor Corp Valuation – January 2016 Update $KLAC
Lam Research Corp Valuation – January 2016 Update $LRCX

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Xilinx Inc. Valuation – November 2015 Update $XLNX

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Most Undervalued Companies for the Defensive Investor – October 2015.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Xilinx Inc. (XLNX) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Xilinx, Inc. (Xilinx) designs and develops programmable devices and associated technologies. The Company’s programmable devices and associated technologies include integrated circuits (IC) in the form of programmable logic devices (PLD); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx, and third-party verification and IP cores. The Company provides design services, customer training, field engineering and technical support. Its PLDs include field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs), programmable System on Chips (SoCs) and three-dimensional ICs (3D ICs). Its product portfolio is designed to provide integration for electronic equipment manufacturers in end markets, such as wired and wireless communications, industrial, scientific and medical, aerospace and defense, audio, video and broadcast, consumer, automotive, and test and measurement.

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To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

[/level-free]
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Downloadable PDF version of this valuation:

ModernGraham Valuation of XLNX – November 2015

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $12,196,033,739 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 4.19 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 82.12% Pass
6. Moderate PEmg Ratio PEmg < 20 22.67 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 4.85 Fail
Score
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 4.19 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.33 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

XLNX value Chart November 2015

EPSmg $2.09
MG Growth Estimate 2.41%
MG Value $27.89
Opinion Overvalued
MG Value based on 3% Growth $30.35
MG Value based on 0% Growth $17.79
Market Implied Growth Rate 7.09%
Current Price $47.46
% of Intrinsic Value 170.15%

Xilinx Inc. qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the high PEmg and PB ratios.  The Enterprising Investor has no initial concerns.  As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.

As for a valuation, the company appears to be overvalued after growing its EPSmg (normalized earnings) from $1.80 in 2012 to an estimated $2.09 for 2016.  This level of demonstrated earnings growth does not support the market’s implied estimate of 7.09% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Xilinx Inc. (XLNX)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Stage 3: Information for Further Research

XLNX Charts November 2015

Net Current Asset Value (NCAV) $6.37
Graham Number $21.17
PEmg 22.67
Current Ratio 4.19
PB Ratio 4.85
Dividend Yield 2.53%
Number of Consecutive Years of Dividend Growth 12

 

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Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Total Current Assets $3,981,161,000
Total Current Liabilities $950,342,000
Long-Term Debt $995,333,000
Total Assets $4,890,350,000
Intangible Assets $168,510,000
Total Liabilities $2,287,101,000
Shares Outstanding (Diluted Average) 266,046,000

Earnings Per Share History

Next Fiscal Year Estimate $1.98
Mar15 $2.35
Mar14 $2.19
Mar13 $1.79
Mar12 $1.95
Mar11 $2.39
Mar10 $1.29
Mar09 $1.31
Mar08 $1.25
Mar07 $1.02
Mar06 $1.00
Mar05 $0.87
Mar04 $0.85
Mar03 $0.36
Mar02 -$0.34
Mar01 $0.10
Mar00 $1.90
Mar99 $0.33
Mar98 $0.40
Mar97 $0.35
Mar96 $0.32

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $2.09
Mar15 $2.14
Mar14 $2.00
Mar13 $1.85
Mar12 $1.80
Mar11 $1.64
Mar10 $1.23
Mar09 $1.17
Mar08 $1.06
Mar07 $0.92
Mar06 $0.76
Mar05 $0.55
Mar04 $0.45
Mar03 $0.32
Mar02 $0.36
Mar01 $0.68
Mar00 $0.87

Recommended Reading:

Other ModernGraham posts about the company

Xilinx Inc. Analysis – August 2015 Update $XLNX
47 Companies in the Spotlight This Week – 5/16/15
Xilinx Inc. Quarterly Valuation – May 2015 $XLNX
34 Companies in the Spotlight This Week – 2/7/15
Xilinx Inc. Quarterly Valuation – February 2015 $XLNX

Other ModernGraham posts about related companies

Ametek Inc. Valuation – November 2015 Update $AME
Skyworks Solutions Inc. Valuation – October 2015 Update $SWKS
Agilent Technologies Inc. Valuation – October 2015 Update $A
Western Digital Corporation Valuation – October 2015 Update $WDC
MTS Systems Corporation Valuation – October 2015 Update $MTSC
Linear Technology Corp Valuation – October 2015 Update $LLTC
Altera Corporation Analysis – October 2015 Update $ALTR
Lam Research Corporation Analysis – October 2015 Update $LRCX
Amphenol Corporation Analysis – October 2015 Update $APH
NetApp Inc. Analysis – September 2015 Update $NTAP

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Xilinx Inc. Analysis – August 2015 Update $XLNX

500px-Xilinx_logo.svgBenjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 5 Most Undervalued Companies for the Defensive Investor – July 2015.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Xilinx Inc. (XLNX) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Xilinx, Inc., is a technology company. The Company is engaged in designing and developing programmable devices and associated technologies. The Company’s Product Families include: UltraScale Product Families, delivers application specific integrated circuits; 28 nanometer (nm) Product Families, provides K metal gate, and low power process technology; 40nm and 45nm Product Families, provides 40nm process technology; 65nm Product Families, offers Virtex-5 LX FPGAs logic-intensive designs, Virtex-5 LXT FPGAs, Virtex-5 SXT FPGAs DSP, Virtex-5 FXT FPGAs with embedded processing and Virtex-5 TXT FPGAs for bandwidth serial connectivity; Other Product Families, offers single-chip, nonvolatile solutions characterized by instant-on and universal interconnect, and EasyPath field programmable gate arrays (FPGA), offer customers FPGA designs. The Company also offers Programmable Platforms, Design Tools, Development Boards, Kits and Configuration Products , and Engineering Services.

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Defensive Investor – must pass at least 6 of the following 7 tests: Score = 5/7

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – current ratio greater than 2 – PASS
  3. Earnings Stability – positive earnings per share for at least 10 straight years -PASS
  4. Dividend Record – has paid a dividend for at least 10 straight years – PASS
  5. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – PASS
  6. Moderate PEmg ratio – PEmg is less than 20 – FAIL
  7. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – FAIL

Enterprising Investor – must pass at least 4 of the following 5 tests or be suitable for a defensive investor: Score = 5/5

  1. Sufficiently Strong Financial Condition, Part 1 – current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt to Net Current Assets ratio less than 1.1 – PASS
  3. Earnings Stability – positive earnings per share for at least 5 years – PASS
  4. Dividend Record – currently pays a dividend – PASS
  5. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $42.88
MG Value $25.99
MG Opinion Overvalued
Value Based on 3% Growth $29.77
Value Based on 0% Growth $17.45
Market Implied Growth Rate 6.19%
Net Current Asset Value (NCAV) $6.25
PEmg 20.88
Current Ratio 4.16
PB Ratio 4.42

Balance Sheet – June 2015

Current Assets $3,980,000,000
Current Liabilities $957,000,000
Total Debt $995,000,000
Total Assets $4,916,000,000
Intangible Assets $170,000,000
Total Liabilities $2,289,000,000
Outstanding Shares 270,700,000

Earnings Per Share

2016 (estimate) $1.86
2015 $2.35
2014 $2.19
2013 $1.79
2012 $1.95
2011 $2.39
2010 $1.29
2009 $1.31
2008 $1.25
2007 $1.02
2006 $1.00

Earnings Per Share – ModernGraham

2016 (estimate) $2.05
2015 $2.14
2014 $2.00
2013 $1.85
2012 $1.80
2011 $1.64

Dividend History

Free Cash Flow

Conclusion:

Xilinx Inc. qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the high PEmg and PB ratios.  The Enterprising Investor has no initial concerns.  As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with the evaluation.  As for a valuation, the company appears to be overvalued after growing its EPSmg (normalized earnings) from $1.80 in 2012 to an estimated $2.05 for 2015.  This level of demonstrated earnings growth does not support the market’s implied estimate of 6.19% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Xilinx Inc. (XLNX)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

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Xilinx Inc. Quarterly Valuation – May 2015 $XLNX

500px-Xilinx_logo.svgXilinx Inc. (XLNX) may attract some potential investors, as the company has trailed the market in the last year. Benjamin Graham, the father of value investing, taught that the most important aspect to consider is whether a company is trading at a discount relative to its intrinsic value. It is through a thorough fundamental analysis that the investor is able to make a determination about a potential investment’s merits. Here is a look at how the company fares in the ModernGraham valuation model.

The model is inspired by the teachings of Benjamin Graham and considers numerous metrics intended to help the investor reduce risk levels. The first part of the analysis is to determine whether the company is suitable for the very conservative Defensive Investor or the less conservative Enterprising Investor, who is willing to spend a greater amount of time conducting further research.

In addition, Graham strongly suggested that investors avoid speculation, in order to remove the subjective elements of emotion. This is best achieved by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another. By using the ModernGraham method, one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.

XLNX Chart

XLNX data by YCharts

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Defensive Investor – Must pass at least 6 of the following 7 tests: Score = 5/7

  1. Adequate Size of Enterprise – Market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – Current ratio greater than 2 – PASS
  3. Earnings Stability – Positive earnings per share for at least 10 straight years – PASS
  4. Dividend Record – Has paid a dividend for at least 10 straight years – PASS
  5. Earnings Growth – Earnings per share has increased by at least 1/3 over the last 10 years, using 3-year averages at the beginning and end of the period – PASS
  6. Moderate PEmg (price over normalized earnings) Ratio – PEmg is less than 20 – FAIL
  7. Moderate Price-to-Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – FAIL

Enterprising Investor – Must pass at least 4 of the following 5 tests or be suitable for a Defensive Investor: Score = 5/5

  1. Sufficiently Strong Financial Condition, Part 1 – Current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt-to-Net Current Assets ratio less than 1.1 – PASS
  3. Earnings Stability – Positive earnings per share for at least 5 years – PASS
  4. Dividend Record – Currently pays a dividend – PASS
  5. Earnings Growth – EPSmg greater than that 5 years ago – PASS

Valuation Summary

Key Data

Recent Price $43.17
MG Value $38.17
MG Opinion Overvalued
Value Based on 3% Growth $31.10
Value Based on 0% Growth $18.23
Market Implied Growth Rate 5.81%
Net Current Asset Value (NCAV) $9.73
PEmg 20.13
Current Ratio 4.09
PB Ratio 2.80

Balance Sheet – March 2015

Current Assets $3,935,000,000
Current Liabilities $963,000,000
Total Debt $995,000,000
Total Assets $4,898,000,000
Intangible Assets $0
Total Liabilities $2,286,000,000
Outstanding Shares 169,500,000

Earnings Per Share

2015 $2.35
2014 $2.19
2013 $1.79
2012 $1.95
2011 $2.39
2010 $1.29
2009 $1.31
2008 $1.25
2007 $1.02
2006 $1.00
2005 $0.87

Earnings Per Share – ModernGraham

2015 $2.14
2014 $2.00
2013 $1.85
2012 $1.80
2011 $1.64
2010 $1.23

Dividend History

XLNX Dividend Chart

XLNX Dividend data by YCharts

Conclusion

Xilinx Inc. passes the initial requirements of the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PEmg and PB ratios, and the Enterprising Investor has no initial concerns. As a result, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to valuation, it is critical to consider the company’s earnings history. In this case, the company has seen its EPSmg (normalized earnings) rise from $1.64 in 2011 to only an estimated $2.14 for 2015. This is not a very high level of earnings growth, and does not support the market’s implied estimate for 5.81% annual growth over the next 7-10 years. The ModernGraham valuation model returns an estimate of intrinsic value falling below the current price, indicating that the company is overvalued at the present time.

Disclaimer: The author did not hold a position in any of the companies listed in this article at the time of publication and had no intention of changing that position within the next 72 hours. Logos taken from either the company website or Wikipedia; this article is not affiliated with the companies in any manner.

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Xilinx Inc. Quarterly Valuation – February 2015 $XLNX

500px-Xilinx_logo.svg

Xilinx should attract both the Enterprising Investor and the more conservative Defensive Investor. The Defensive Investor is only concerned with the high PB ratio, while the Enterprising Investor has no initial concerns. Therefore, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

From a valuation side of things, the company has grown its EPSmg (normalized earnings) from $1.64 in 2011 to an estimated $2.14 for 2014. This is a strong level of demonstrated growth, and is in line with the market’s implied estimate for earnings growth of 4.85% over the next 7-10 years. The ModernGraham valuation model, therefore, returns an estimate of intrinsic value falling within a margin of safety relative to the current price, indicating the company is fairly valued at the present time.

Be sure to check out previous ModernGraham valuations of Xilinx Inc. (XLNX) for greater perspective!

Read the full valuation on Seeking Alpha!

XLNX Chart

XLNX data by YCharts

Disclaimer:  The author did not hold a position in Xilinx Inc. (XLNX) at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

Xilinx Inc. Quarterly Valuation – October 2014 $XLNX

500px-Xilinx_logo.svg

On the surface, Xilinx. Inc. should attract both the Defensive Investor and the Enterprising Investor. The only requirement of either investor type which the company fails to satisfy is the Defensive Investor’s requirement of a low PB ratio. As a result, both types of value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

The next step is to consider the company’s intrinsic value through an analysis of the company’s earnings growth and a comparison to the market’s implied estimate of further earnings growth. In this case, the company has grown its EPSmg (normalized earnings) from $1.64 in 2011 to only an estimated $2.16 for 2015. This low level of demonstrated growth does not support the market’s implied estimate for earnings growth of 5.73% over the next 7-10 years. The ModernGraham valuation model therefore returns an estimate of intrinsic value falling below the current price, indicating the company is overvalued at the present time.

Be sure to read previous ModernGraham valuations of Xilinx Inc. for better perspective!

Read the full valuation on Seeking Alpha!

XLNX Chart

XLNX data by YCharts

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