DB:IFXA

Stock Analysis Report

Infineon Technologies

Executive Summary

Infineon Technologies AG, together with its subsidiaries, designs, develops, manufactures, and markets semiconductors and related system solutions worldwide.


Snowflake Analysis

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

How has Infineon Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IFXA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-11.7%

IFXA

-8.4%

DE Semiconductor

-6.8%

DE Market


1 Year Return

0.5%

IFXA

8.7%

DE Semiconductor

6.5%

DE Market

Return vs Industry: IFXA underperformed the German Semiconductor industry which returned 6.3% over the past year.

Return vs Market: IFXA underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

IFXAIndustryMarket
7 Day-11.7%-8.4%-6.8%
30 Day-5.8%-4.5%-3.7%
90 Day0%3.1%-3.6%
1 Year1.4%0.5%10.3%8.7%9.8%6.5%
3 Year17.0%13.6%22.0%18.0%6.8%-2.6%
5 Year99.9%88.6%81.8%72.8%12.5%-2.9%

Price Volatility Vs. Market

How volatile is Infineon Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Infineon Technologies undervalued compared to its fair value and its price relative to the market?

28.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IFXA (€19.6) is trading above our estimate of fair value (€8.12)

Significantly Below Fair Value: IFXA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IFXA is poor value based on its PE Ratio (29x) compared to the Semiconductor industry average (26.2x).

PE vs Market: IFXA is poor value based on its PE Ratio (29x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: IFXA is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: IFXA is overvalued based on its PB Ratio (2.6x) compared to the DE Semiconductor industry average (2.1x).


Next Steps

Future Growth

How is Infineon Technologies forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFXA's forecast earnings growth (12.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: IFXA's earnings (12.6% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: IFXA's earnings are forecast to grow, but not significantly.

Revenue vs Market: IFXA's revenue (7.8% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: IFXA's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IFXA's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

How has Infineon Technologies performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IFXA has high quality earnings.

Growing Profit Margin: IFXA's current net profit margins (10.6%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: IFXA's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: IFXA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IFXA had negative earnings growth (-33.3%) over the past year, making it difficult to compare to the Semiconductor industry average (-17.8%).


Return on Equity

High ROE: IFXA's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Infineon Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: IFXA's short term assets (€8.2B) exceed its short term liabilities (€2.0B).

Long Term Liabilities: IFXA's short term assets (€8.2B) exceed its long term liabilities (€2.7B).


Debt to Equity History and Analysis

Debt Level: IFXA's debt to equity ratio (15.4%) is considered satisfactory.

Reducing Debt: IFXA's debt to equity ratio has increased from 4.7% to 15.4% over the past 5 years.

Debt Coverage: IFXA's debt is well covered by operating cash flow (96.2%).

Interest Coverage: IFXA's interest payments on its debt are well covered by EBIT (30.9x coverage).


Balance Sheet

Inventory Level: IFXA has a high level of physical assets or inventory.

Debt Coverage by Assets: IFXA's debt is covered by short term assets (assets are 5.4x debt).


Next Steps

Dividend

What is Infineon Technologies's current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: IFXA's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: IFXA's dividend (1.31%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IFXA has been paying a dividend for less than 10 years.

Growing Dividend: IFXA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.1%), IFXA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IFXA's dividends in 3 years are forecast to be well covered by earnings (31.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Reinhard Ploss (64yo)

7.3yrs

Tenure

€2,993,071

Compensation

Dr. Reinhard Ploss has been Chief Executive Officer of Infineon Technologies AG since October 1, 2012 and has been its Labor Director since August 2010. Dr. Ploss serves as Chairman of Management Board at  ...


CEO Compensation Analysis

Compensation vs Market: Reinhard's total compensation ($USD3.26M) is about average for companies of similar size in the German market ($USD4.53M).

Compensation vs Earnings: Reinhard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Reinhard Ploss
Chairman of Management Board7.3yrs€2.99mno data
Peter Gruber
CFO of Operations & Employee Representative Member of Supervisory Board11yrs€123.00kno data
Helmut Gassel
Chief Marketing Officer & Member of Management Board3.6yrs€1.79mno data
Jochen Hanebeck
COO & Member of Management Board4.1yrs€1.78mno data
Sven Schneider
CFO & Member of Management Board0.8yrsno datano data
Alexander Foltin
Head of Investor Relations0yrsno datano data
Michael von Eickstedt
Corporate VP & General Counsel0yrsno datano data
Klaus Walther
Corporate Vice President of Communications6.6yrsno datano data
Thomas Marquardt
Global Head of Human Resources16.6yrsno datano data
Ulrich Pelzer
Head of Finance - Power Management & Multimarket Segment5yrsno datano data

5.0yrs

Average Tenure

55yo

Average Age

Experienced Management: IFXA's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Gruber
CFO of Operations & Employee Representative Member of Supervisory Board11yrs€123.00kno data
Peter Bauer
Member of Supervisory Board5yrs€133.00kno data
Johann Dechant
Deputy Chairman of Supervisory Board5yrs€148.00kno data
Wolfgang Eder
Chairman of the Supervisory Board0.5yrs€82.00kno data
Renate Köcher
Member of Supervisory Board15.1yrs€100.00kno data
Manfred Puffer
Member of Supervisory Board10.6yrs€90.00kno data
Eckart Sünner
Member of Supervisory Board12.5yrs€182.33kno data
Kerstin Schulzendorf
Employee Representative Member of Supervisory Board5yrs€104.00kno data
Gerhard Hobbach
Employee Representative Member of Supervisory Board13yrs€125.00kno data
Hans-Ulrich Holdenried
Member of Supervisory Board10.1yrs€127.00kno data

10.3yrs

Average Tenure

59yo

Average Age

Experienced Board: IFXA's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.


Top Shareholders

Company Information

Infineon Technologies AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Infineon Technologies AG
  • Ticker: IFXA
  • Exchange: DB
  • Founded:
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: €25.571b
  • Shares outstanding: 1.24b
  • Website: https://www.infineon.com

Number of Employees


Location

  • Infineon Technologies AG
  • Am Campeon 1-15
  • Neubiberg
  • Munich
  • Bavaria
  • 85579
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IFNN.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2000
IFNN.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDMar 2000
IFXDB (Deutsche Boerse AG)YesBearer SharesDEEURMar 2000
0KEDLSE (London Stock Exchange)YesBearer SharesGBEURMar 2000
IFXXTRA (XETRA Trading Platform)YesBearer SharesDEEURMar 2000
IFXADB (Deutsche Boerse AG)SPONSORED ADRDEEURMar 2000
INFINEONBUSE (Budapest Stock Exchange)YesBearer SharesHUHUFMar 2000
IFXDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURMar 2000
IFXBIT (Borsa Italiana)YesBearer SharesITEURMar 2000
IFXSWX (SIX Swiss Exchange)YesBearer SharesCHCHFMar 2000
IFX NBMV (Bolsa Mexicana de Valores)YesBearer SharesMXMXNMar 2000
IFXWBAG (Wiener Boerse AG)YesBearer SharesATEURMar 2000

Biography

Infineon Technologies AG, together with its subsidiaries, designs, develops, manufactures, and markets semiconductors and related system solutions worldwide. Its Automotive segment offers automotive microcontrollers for powertrain, safety, and driver assistance systems; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and radar sensor integrated circuits (ICs); transceivers; silicon carbide diodes; and voltage regulators for use in assistance and safety systems, comfort electronics, powertrain, and security products. The company’s Industrial Power Control segment provides bare dies, discrete IGBTs, driver ICs, IGBT modules and stacks, and silicon carbide MOSEFTs and modules for electric vehicle charging stations, home appliances, industrial drives, industrial power supplies, industrial robots, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power Management & Multimarket segment offers control ICs, customized chips, discrete low-voltage and high-voltage power MOSFETs and driver ICs, GPS low-noise amplifiers, MEMS and ASICs for pressure sensors and silicon microphones, radar sensor ICs, RF antenna switches and power transistors, silicon carbide diodes, and transient voltage suppressor diodes for use in audio amplifiers, cellular infrastructure, electric vehicle charging stations, DC motors, various components, Internet of Things, LED and conventional lighting systems, mobile devices, and power management applications. The company’s Digital Security Solutions segment provides contact-based, contactless, dual interface, and embedded security controllers for authentication, automotive, government identification document, healthcare card, Internet of Things, mobile communication, payment system, mobile payment, ticketing, access control, and trusted computing applications. Infineon Technologies AG is headquartered in Munich, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 21:36
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.