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HIMX

Himax Technologies NasdaqGS:HIMX Stock Report

Last Price

US$7.22

Market Cap

US$1.3b

7D

2.8%

1Y

-49.4%

Updated

11 Aug, 2022

Data

Company Financials +
HIMX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance6/6
Financial Health6/6
Dividends5/6

HIMX Stock Overview

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies in China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States.

Himax Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Himax Technologies
Historical stock prices
Current Share PriceUS$7.22
52 Week HighUS$16.50
52 Week LowUS$6.18
Beta1.92
1 Month Change11.77%
3 Month Change-23.27%
1 Year Change-49.37%
3 Year Change234.26%
5 Year Change-12.17%
Change since IPO-17.49%

Recent News & Updates

Aug 10

Himax Technologies Q2 2022 Earnings Preview

Himax Technologies (NASDAQ:HIMX) is scheduled to announce Q2 earnings results on Thursday, August 11th, before market open. The consensus EPS Estimate is $0.42 (-32.3% Y/Y) and the consensus Revenue Estimate is $321.64M (-12.0% Y/Y). Over the last 2 years, HIMX has beaten EPS estimates 50% of the time and has beaten revenue estimates 50% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 1 downward. Revenue estimates have seen 0 upward revisions and 3 downward.

Aug 01

Himax: Enticing Dividend, Beware Of Supply Chain And Country Exposure Risks

Himax is a provider of integrated circuits that are used in everything from television, cars, and laptops to mobile phones. Its first quarter 2022 sales have been impacted by supply chain issues, which should persist in Q2. There are also revenue concentration risks with over 80% of products sold in China. On the other hand, Himax has good year-on-year growth, profitability, and valuation metrics. The Himax dividend yield is high, but, short-term risks also remain high, and before buying, it is better to wait for an announcement as to country-level diversification. Taiwan-based Himax Technologies, Inc. (HIMX) produces integrated circuits ("ICs") that are used in everything from television, cars, and laptops to mobile phones. A look at its share price shown in the orange chart below shows that it has been underperforming with respect to the iShares Semiconductor ETF (SOXX) since July 14. SA Charting (www.seekingalpha.com) This downside could be related to Credit Swiss’ downgrading the stock with a target of $7, or roughly 15 cents below the current share price. Thus, the aim of this thesis is to assess whether this downgrade is justified by first looking at revenue growth in light of supply chain constraints. Supply Chain Woes Likely To Continue Revenues for the first quarter of 2022 of $412.7 million as shown in the extract below, represented a 33.6% increase over the same period last year. However, these constituted a sequential decrease when compared to the fourth quarter of 2021, by $39 million (or 8.6%), and were below the company’s own guidance. Quarterly income statement (www,seekingalpha.com) The reasons provided for the shortfall was that the first quarter is typically low seasonally but things were exacerbated by the Covid-19-related lockdowns in China and the Ukraine conflict, which both caused major disruptions in the supply chain. For investors, while Himax operates in the semiconductor industry, it does not own foundries and thus has to source the chips it needs to build its ICs. Consequently, with components not reaching its assembly plants in time, the production of image processing products which it then ships to automotive and consumer electronics manufacturers has suffered, resulting in a shortfall in revenues. Now, Himax's first quarter lasts from January to March. Looking ahead, since China’s lockdowns occurred from March 26 and were gradually lifted only from May 27, it means that the worst effects of the lockdown will only be felt in the second quarter, lasting from April to June (earning report expected before the market open on August 11). Thus, expect a more significant drop in revenues when the next quarter’s financial results are announced. There could also be a drop in profitability in case the company resorts to expedited shipping to accelerate shipments, but this conversely implies more expenses. Looking at the demand side of the equation, there was also a decline in smartphone sales due to market sluggishness. This decline is aligned with a regression in the global smartphone market as measured by Counterpoint Research, which points to factors like the East European conflict, economic slowdown in China, and components shortages due to successive waves of Covid. Since smartphone LCDs constituted 9.1% of overall revenues in 2021, expect pressure on sales to continue. Therefore, in addition to the supply side, there is also a demand-led impact. Some positives amid concentration risks On the other hand, gross margins of 47% came within the guidance of 46% to 48%, despite falling from Q4-2019’s record high of 51.8%. This is due mostly to the absence of fixed costs related to factory ownership as the company outsources most of its manufacturing to third parties. To this end, capital expenses of less than $3.6 million remain low since Himax does not have to spend much to build factories. There is also a strategic intent that explains part of the sales decline. Thus, in anticipation of certain clients slashing down inventories for certain types of products, Himax has been transitioning production accordingly. This is essential for a cyclical industry where one of the main risks is a late economic cycle when growth peaks and inflation accelerates. In this case, the main problem for the Taiwanese company remains its overwhelming exposure to the Chinese market, at 84% during the last quarter of 2021, or the same as in Q4-2020. This means that there has been no progress in exporting to the rest of the world. Revenue exposure to China (www.seekingalpha.com) Now, the Chinese central bank is not facing the same challenges as the U.S or Europe in terms of inflation and GDP growth, which are at 2.5% and 4.3% (expected for 2022) respectively for China. However, inflation is rising while growth is on the downside with one of the main problems facing China being the spread of Covid-19, which shows no sign of abating. To exacerbate matters from the economic standpoint, the country's zero Covid-19 policy which entails locking down entire cities or regions to hamper the progression of the disease is proving detrimental to economic growth. Moreover, with the Chinese Communist party meeting scheduled some time towards the end of the year, the priority should rather be the health mandate, above all other considerations. In these circumstances, one starts to wonder whether it is not preferable to avoid the stock despite its enticing dividend yields. For this purpose, investors will note that Himax’s annual revenues as shown in the orange chart below, seem to closely follow China’s GDP, which from a record $32.4 trillion in 2021 fell sharply in 2022. However, it subsequently failed to rebound sharply as during the previous years. Therefore, in all likelihood, Himax’s annual sales have reached an all-time high and will see a decline this year. Comparison of annual revenues with China's GDP (www.ycharts.com) Therefore, going forward, there are risks related to revenue being heavily skewed towards China, but, for those willing to overlook the risks, it is important to thoroughly explain the dividend part. Dividend Yields, Valuations, and Conclusion Himax pays a forward yield of 17.46%, but, this is paid on an annual basis, and distributions were already effected in July for those who owned the stock till June 29. Now, for those who want to purchase shares, its high yields can contribute to shielding the stock from downsides to some extent. This is evidenced by the trajectory of the total returns in the orange chart below which include both the price performance as well as dividends in case these are reinvested. These total returns have delivered double the stock price performance, but this remains conditional to the dividend payments being sustained. Comparison of price returns and total returns (www.ycharts.com) Still, looking at the past, the company has not been consistent in dividend payments which were considerably reduced in 2019 and 2020 following a significant decrease in cash generated from operations in 2018. Dividends were fully reinstated in 2021 after an improvement in cash flow but could be again reduced if operating income continues on a downtrend from the $142.3 million as shown in the quarterly income statement above.

Jul 22
We Think Himax Technologies (NASDAQ:HIMX) Can Manage Its Debt With Ease

We Think Himax Technologies (NASDAQ:HIMX) Can Manage Its Debt With Ease

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 14

Himax stock falls as Credit Suisse cuts rating to Neutral

Himax Technologies (NASDAQ:HIMX) stock fell ~7% on July 14 after Credit Suisse downgraded the stock to Neutral from Outperform with a $7 price target. The SA Quant Rating on HIMX is Hold, which takes into account factors such as growth and profitability, among others things. The rating is in contrast to the average Wall Street Analysts' Rating of Buy, with an Average Price Target of $10.18. YTD, Himax's stock has declined over 50%. The chart below shows YTD price-return performance of HIMX and its peers against SP500TR:

Jun 30
Do Himax Technologies' (NASDAQ:HIMX) Earnings Warrant Your Attention?

Do Himax Technologies' (NASDAQ:HIMX) Earnings Warrant Your Attention?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

HIMXUS SemiconductorUS Market
7D2.8%-3.3%1.3%
1Y-49.4%-7.6%-11.7%

Return vs Industry: HIMX underperformed the US Semiconductor industry which returned -8.1% over the past year.

Return vs Market: HIMX underperformed the US Market which returned -11.6% over the past year.

Price Volatility

Is HIMX's price volatile compared to industry and market?
HIMX volatility
HIMX Average Weekly Movement9.5%
Semiconductor Industry Average Movement8.9%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: HIMX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: HIMX's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20012,100Jordan Wuhttps://www.himax.com.tw

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies in China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States. The company operates through two segments, Driver IC and Non-Driver Products. It offers display driver integrated circuits (ICs) and timing controllers that are used in televisions, laptops, monitors, mobile phones, tablets, automotive, digital cameras, car navigation, virtual reality devices, and other consumer electronic devices.

Himax Technologies Fundamentals Summary

How do Himax Technologies's earnings and revenue compare to its market cap?
HIMX fundamental statistics
Market CapUS$1.26b
Earnings (TTM)US$485.87m
Revenue (TTM)US$1.65b

2.6x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIMX income statement (TTM)
RevenueUS$0
Cost of RevenueUS$0
Gross ProfitUS$0
Other ExpensesUS$0
EarningsUS$0

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)2.79
Gross Margin49.56%
Net Profit Margin29.43%
Debt/Equity Ratio20.5%

How did HIMX perform over the long term?

See historical performance and comparison

Dividends

17.3%

Current Dividend Yield

45%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is HIMX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HIMX?

Other financial metrics that can be useful for relative valuation.

HIMX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA1.6x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does HIMX's PE Ratio compare to its peers?

HIMX PE Ratio vs Peers
The above table shows the PE ratio for HIMX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.4x
AOSL Alpha and Omega Semiconductor
2.4xn/aUS$1.1b
SGH SMART Global Holdings
14.3x40.9%US$958.8m
SIMO Silicon Motion Technology
12.5x19.3%US$2.8b
CSIQ Canadian Solar
32.2x0.9%US$2.6b
HIMX Himax Technologies
2.6x-24.2%US$1.3b

Price-To-Earnings vs Peers: HIMX is good value based on its Price-To-Earnings Ratio (2.6x) compared to the peer average (15.4x).


Price to Earnings Ratio vs Industry

How does HIMX's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: HIMX is good value based on its Price-To-Earnings Ratio (2.6x) compared to the US Semiconductor industry average (20.4x)


Price to Earnings Ratio vs Fair Ratio

What is HIMX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HIMX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.6x
Fair PE Ratio8.9x

Price-To-Earnings vs Fair Ratio: HIMX is good value based on its Price-To-Earnings Ratio (2.6x) compared to the estimated Fair Price-To-Earnings Ratio (8.9x).


Share Price vs Fair Value

What is the Fair Price of HIMX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HIMX ($7.22) is trading below our estimate of fair value ($13.36)

Significantly Below Fair Value: HIMX is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Himax Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-24.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIMX's earnings are forecast to decline over the next 3 years (-24.2% per year).

Earnings vs Market: HIMX's earnings are forecast to decline over the next 3 years (-24.2% per year).

High Growth Earnings: HIMX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HIMX's revenue is expected to decline over the next 3 years (-8.5% per year).

High Growth Revenue: HIMX's revenue is forecast to decline over the next 3 years (-8.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HIMX's Return on Equity is forecast to be high in 3 years time (25.1%)


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Past Performance

How has Himax Technologies performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


80.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HIMX has high quality earnings.

Growing Profit Margin: HIMX's current net profit margins (29.4%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: HIMX's earnings have grown significantly by 80.2% per year over the past 5 years.

Accelerating Growth: HIMX's earnings growth over the past year (338.8%) exceeds its 5-year average (80.2% per year).

Earnings vs Industry: HIMX earnings growth over the past year (338.8%) exceeded the Semiconductor industry 52.7%.


Return on Equity

High ROE: HIMX's Return on Equity (48.8%) is considered outstanding.


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Financial Health

How is Himax Technologies's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HIMX's short term assets ($1.4B) exceed its short term liabilities ($647.5M).

Long Term Liabilities: HIMX's short term assets ($1.4B) exceed its long term liabilities ($132.9M).


Debt to Equity History and Analysis

Debt Level: HIMX has more cash than its total debt.

Reducing Debt: HIMX's debt to equity ratio has reduced from 22.6% to 20.5% over the past 5 years.

Debt Coverage: HIMX's debt is well covered by operating cash flow (197.6%).

Interest Coverage: HIMX's interest payments on its debt are well covered by EBIT (18830.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


17.31%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HIMX's dividend (17.31%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: HIMX's dividend (17.31%) is in the top 25% of dividend payers in the US market (4.05%)


Stability and Growth of Payments

Stable Dividend: HIMX's dividend payments have been volatile in the past 10 years.

Growing Dividend: HIMX's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44.9%), HIMX's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55.8%), HIMX's dividend payments are covered by cash flows.


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Management

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


CEO

Jordan Wu (61 yo)

no data

Tenure

Mr. Jordan Wu serves as the Chief Executive Officer and President at Himax Display, Inc. Mr. Wu founded to Himax Technologies, Inc. He has been the Chief Executive Officer and President at Himax Technologi...


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Himax Technologies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Himax Technologies, Inc.
  • Ticker: HIMX
  • Exchange: NasdaqGS
  • Founded: 2001
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$1.258b
  • Shares outstanding: 174.30m
  • Website: https://www.himax.com.tw

Number of Employees


Location

  • Himax Technologies, Inc.
  • No.26, Zih Lian Road
  • Sinshih District
  • Tainan City
  • 74148
  • Taiwan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.