X-FAB Silicon Foundries

Fair Value is based on 5 analyst following the company. The company is active in the domain of semi-conductors so highly volatile but the story behind this company is very appealing : It is a family owned company with a management being there already for longtime and having themselves important stakes They have a very tight relation of being the producers of Melexis (that only conceives chips) qnd hence is assured by a steady flow of orders The current figures are biased by a hefty investment in building up extra capacity They do not target high volumes as this is a battle they can not win, they are just strong in making small to medium batches The major risks and attention points are : Will follow the volatily of the semiconductor business Linked to auto industry so if this one is suffering XFab will perform weaker as well They realize high margins but if Revenue is not attained immediate impact on the bottom line as there are consequent sunk costs.

Key Takeaways Capacity expansion and product pipeline growth will enhance revenue and margins as utilization improves, driven by demand and focus on automotive MOSFETs. Transition to specialized high-demand technologies for automotive, industrial, and medical markets is expected to support steady revenue and improved earnings. Weakness in automotive inventory corrections and decreased liquidity from CapEx payments pose risks to revenue, cash flow, and earnings stability.