Is Infineon Technologies AG (ETR:IFX) Trading At A 32% Discount?
Dec 01
German (DAX) Tech Sector Analysis
UpdatedDec 02, 2023
DataAggregated Company Financials
Companies134
- 7D3.8%
- 3M10.4%
- 1Y25.3%
- YTD36.4%
Over the last 7 days, the Tech industry has risen 2.4%, driven by gains from SAP of 4.0%. This takes the industry's 12 month performance to a gain of 24%. Looking forward, earnings are forecast to grow by 24% annually.
Sector Valuation and Performance
Has the German Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 02 Dec 2023 | €271.0b | €80.3b | €6.7b | 19.5x | 40.6x | 3.4x |
| Mon, 30 Oct 2023 | €231.4b | €79.7b | €6.7b | 19.6x | 34.4x | 2.9x |
| Wed, 27 Sep 2023 | €230.2b | €79.5b | €6.3b | 18.9x | 36.7x | 2.9x |
| Fri, 25 Aug 2023 | €241.7b | €79.4b | €6.3b | 19.5x | 38.5x | 3x |
| Sun, 23 Jul 2023 | €243.1b | €78.0b | €5.9b | 21.4x | 41.2x | 3.1x |
| Tue, 20 Jun 2023 | €249.9b | €77.7b | €6.3b | 23.8x | 39.6x | 3.2x |
| Thu, 18 May 2023 | €239.6b | €77.4b | €6.4b | 23.4x | 37.5x | 3.1x |
| Sat, 15 Apr 2023 | €235.7b | €75.5b | €6.6b | 24.7x | 35.6x | 3.1x |
| Mon, 13 Mar 2023 | €226.4b | €75.0b | €6.6b | 24.5x | 34.2x | 3x |
| Wed, 08 Feb 2023 | €228.7b | €74.8b | €6.6b | 25.3x | 34.6x | 3.1x |
| Fri, 06 Jan 2023 | €203.3b | €73.4b | €7.3b | 24x | 27.9x | 2.8x |
| Sun, 04 Dec 2022 | €205.5b | €67.7b | €7.1b | 23.5x | 29.1x | 3x |
| Tue, 01 Nov 2022 | €184.4b | €71.5b | €7.0b | 21x | 26.3x | 2.6x |
| Thu, 29 Sep 2022 | €168.5b | €70.1b | €7.7b | 19.2x | 21.9x | 2.4x |
| Sat, 27 Aug 2022 | €179.9b | €69.9b | €7.4b | 22.7x | 24.3x | 2.6x |
| Mon, 25 Jul 2022 | €189.8b | €67.4b | €8.1b | 22.5x | 23.5x | 2.8x |
| Wed, 22 Jun 2022 | €185.8b | €67.3b | €7.9b | 22.3x | 23.6x | 2.8x |
| Fri, 20 May 2022 | €190.7b | €61.9b | €7.6b | 22.5x | 25x | 3.1x |
| Sun, 17 Apr 2022 | €208.4b | €65.0b | €7.8b | 25.9x | 26.7x | 3.2x |
| Tue, 15 Mar 2022 | €214.6b | €66.5b | €7.9b | 25.1x | 27.3x | 3.2x |
| Thu, 10 Feb 2022 | €238.9b | €66.1b | €7.8b | 28.6x | 30.6x | 3.6x |
| Sat, 08 Jan 2022 | €266.5b | €65.1b | €8.1b | 32.4x | 32.8x | 4.1x |
| Mon, 06 Dec 2021 | €261.2b | €65.4b | €8.1b | 30x | 32.3x | 4x |
| Wed, 03 Nov 2021 | €283.7b | €65.6b | €7.7b | 34.8x | 36.6x | 4.3x |
| Fri, 01 Oct 2021 | €262.6b | €65.2b | €7.8b | 34.2x | 33.5x | 4x |
| Sun, 29 Aug 2021 | €269.2b | €67.5b | €8.2b | 32.5x | 32.9x | 4x |
| Mon, 05 Jul 2021 | €252.7b | €67.5b | €8.2b | 29.4x | 30.9x | 3.7x |
| Thu, 08 Apr 2021 | €228.9b | €65.4b | €7.4b | 31.2x | 31.1x | 3.5x |
| Sun, 10 Jan 2021 | €226.6b | €64.2b | €7.0b | 31.2x | 32.4x | 3.5x |
Price to Earnings Ratio
33x
Current Industry PE
- Investors are optimistic on the German Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 40.2x which is higher than its 3-year average PE of 32.0x.
- The industry is trading close to its 3-year average PS ratio of 3.3x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 8.5% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the German Tech sector?
| DE Market | 1.41% | |
| Tech | 3.83% | |
| Semiconductors | 6.54% | |
| Electronic Equipment and Components | 4.45% | |
| Software | 3.54% | |
| Communications | 0.58% | |
| IT | -2.11% | |
| Tech Hardware | -9.42% | |
Industry PE
- Investors are most optimistic about the Software industry which is trading above its 3-year average PE ratio of 41.9x.
- Analysts are expecting annual earnings growth of 29.3%, which is higher than its past year's earnings growth of 4.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Tech Hardware industry, expecting annual earnings growth of 113% over the next 5 years.
- In contrast, the Semiconductors industry is expected to see its earnings grow by 6.5% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SAP SAP | €146.70 | 4.0% +€6.5b | 37.8% | PE85x | |
| IFX Infineon Technologies | €36.14 | 7.2% +€3.2b | 12.6% | PE15.1x | |
| AIXA AIXTRON | €33.87 | 9.5% +€329.3m | 8.9% | PE28.5x | |
| JEN Jenoptik | €26.14 | 9.2% +€125.9m | -5.9% | PE21.3x | |
| ELG Elmos Semiconductor | €79.30 | 6.3% +€80.5m | 26.5% | PE14.5x |
