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HIMX

Himax Technologies NasdaqGS:HIMX Stock Report

Last Price

US$4.97

Market Cap

US$866.3m

7D

-9.6%

1Y

-54.4%

Updated

26 Sep, 2022

Data

Company Financials +
HIMX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
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$4.97
52 Week HighUS$16.50
52 Week LowUS$4.95
Beta1.94
1 Month Change-22.34%
3 Month Change-44.41%
1 Year Change-54.40%
3 Year Change118.94%
5 Year Change-55.82%
Change since IPO-43.20%

Recent News & Updates

Sep 02

Himax Technologies: Finally, A Good Level

Summary Himax has so far seen only minor margin reversion, which was a major concern in the past. The company expects Q3 inventory to peak. There are signs that we are seeing metrics return to normal levels, but the stock has priced in a lot of the bad news. Himax Technologies (HIMX) is a popular Taiwan-based semiconductor company that gained widespread investor attention when supply chain disruptions brought about by the COVID-19 pandemic and favorable secular trends created a squeeze on semiconductor supplies. This left companies like Himax technologies with heightened pricing power, allowing them to not only pass on costs to customers but also increase their gross margins almost across the board. As the world moves past the pandemic, semiconductor stocks have begun to face headwinds, and Himax perhaps disproportionately so (I have covered Himax multiple times in the past. To view these articles, please search here). Today we will take a look at one of the largest semiconductor companies in the world and discuss if investors are pricing in too much negative news. Company Outlook When I wrote this article, I cautioned that Himax might begin to see some headwinds due to uncertainties on the customer side and potential geopolitical risks. The stock has declined roughly 30% since then, and we are now beginning to see signs of gross margins being brought back to earth. HIMX data by YCharts In the recent Q2 earnings report, the company posted revenue of $312.6 million which represented a 24.3% decline from the prior quarter. The company managed to maintain strong gross margins despite a challenging macroeconomic environment. The gross margin came in line with estimates at 43.6%. The company's non-IFRS after-tax profit was $76.8 million, which represented 43.9 cents per diluted ADS compared to the 69.7 cents in the prior quarter. The company also mentioned that it believes its inventory will peak in the third quarter and shared that its automotive IC business is now the largest segment from a revenue standpoint, and the segment looks set to represent more than 35% of total sales in the third quarter. Despite possible headwinds in Q3, the company is closing an impressive first half of the calendar year 2022. It has already beat revenue figures for the full year 2019, and we may yet see a strong fourth quarter if the expected global economic slowdowns are milder than forecasted and if geopolitical tensions abate. Himax Product We are also seeing signs of the future for the firm's internal business lines, with small and medium panel drivers taking up an increased share of company revenue. Himax Product One of the major concerns in the past was a large drop-off in gross margins. As you can see below, the pandemic forced gross margins up to elevated levels, and we are now seeing some normalization. In 2019 gross margins stood at 20.5%, but they reached a high of 48.5% in 2021 due in large part to the semiconductor crisis. Himax Technologies There were concerns that we could see gross margins falling 3% to 5% a quarter, but they have remained relatively stable, all things considered. They came in at 43.6% this quarter, which is still a decline, but at a rate that shareholders should be able to stomach. Himax Technologies The company's large display driver IC business continues to be a major contributor, responsible for nearly a quarter of the company's revenue. The large display drivers are used in 8K/4K TVs and gaming. Himax also has a position in consumer devices, smartphones, and tablets. We can also see that the market for drivers is spread fairly well across multiple companies, which is great because it allows Himax the flexibility of determining if they want to challenge the major players like Samsung or take market share from the smaller, less well-capitalized firms in the future. The company is also focusing on its Touch and Display Driver Integration (TDDI) segment. The company began with smartphones but later expanded to tablets and automotive options. Smartphone LCD offerings as a category have penetrated more than 70% of the market and are rapidly replacing the traditional Display Driver IC ("DDIC") options. Leadership is understandably bullish about the long-term prospects of this option, forecasting higher penetration and improved margins over time. We are also seeing notable increases in customer demand for panel features and size in automobiles, which ties in well with the shift to increasing device complexity that has recently become somewhat of a pronounced secular trend in developed nations. Himax Technologies The company also holds a strong position in the display driver IC space. It is already a market share leader of large display driver IC products in China and is seeing increased shipments of 4K products, but the firm is targeting improved participation in the development of next Gen 8K televisions. That segment has a higher barrier to entry. Valuation & Forward-Looking Commentary Now let's start with valuation. Himax shares are trading at just $0.70 per dollar of the company's revenue and a price-to-earnings ratio of just 2.5. These are extremely low numbers for a semiconductor stock, but there are reasons for the low valuation. HIMX PS Ratio data by YCharts As we mentioned earlier, Himax is a Taiwanese semiconductor company with heavy exposure to China. As tensions between the two nations trend to an escalation, it is understandable that investors may not want to commit to a purchase until the situation improves. There are also the current headwinds for growth stocks like Himax brought about by the Federal Reserve taking on a hawkish approach to address inflation. It is also worth noting that Himax hasn't really traded at elevated multiples with respect to revenue for some time now. The company does, however, have a great track record of returning cash to shareholders in the form of dividends and repurchases. HIMX Dividend Yield data by YCharts The major trend that investors should be paying attention to is the return to earth from revenue and gross margin standpoints. Revenue looks set to slow down in the calendar year 2022. This has nothing to do with the underlying health of the business, it's just that Himax had been overperforming, and we are now seeing signs of normalization.

Aug 29
Should You Investigate Himax Technologies, Inc. (NASDAQ:HIMX) At US$6.40?

Should You Investigate Himax Technologies, Inc. (NASDAQ:HIMX) At US$6.40?

Himax Technologies, Inc. ( NASDAQ:HIMX ), might not be a large cap stock, but it saw significant share price movement...

Shareholder Returns

HIMXUS SemiconductorUS Market
7D-9.6%-8.0%-6.9%
1Y-54.4%-30.7%-23.7%

Return vs Industry: HIMX underperformed the US Semiconductor industry which returned -29.7% over the past year.

Return vs Market: HIMX underperformed the US Market which returned -23% over the past year.

Price Volatility

Is HIMX's price volatile compared to industry and market?
HIMX volatility
HIMX Average Weekly Movement8.1%
Semiconductor Industry Average Movement8.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: HIMX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HIMX's weekly volatility (8%) 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$866.26m
Earnings (TTM)US$447.62m
Revenue (TTM)US$1.60b

1.9x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIMX income statement (TTM)
RevenueUS$1.60b
Cost of RevenueUS$817.30m
Gross ProfitUS$780.95m
Other ExpensesUS$333.34m
EarningsUS$447.62m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.57
Gross Margin48.86%
Net Profit Margin28.01%
Debt/Equity Ratio23.9%

How did HIMX perform over the long term?

See historical performance and comparison

Dividends

25.2%

Current Dividend Yield

49%

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/Revenue0.4x
Enterprise Value/EBITDA1.1x
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 Average13.9x
AOSL Alpha and Omega Semiconductor
1.8x-75.0%US$831.2m
SGH SMART Global Holdings
11.9x25.8%US$800.9m
SITM SiTime
31.6x18.0%US$1.7b
SIMO Silicon Motion Technology
10.4x15.2%US$2.3b
HIMX Himax Technologies
1.9x-20.2%US$866.3m

Price-To-Earnings vs Peers: HIMX is good value based on its Price-To-Earnings Ratio (1.9x) compared to the peer average (13.9x).


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 (1.9x) compared to the US Semiconductor industry average (15.5x)


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 Ratio1.9x
Fair PE Ratio9.1x

Price-To-Earnings vs Fair Ratio: HIMX is good value based on its Price-To-Earnings Ratio (1.9x) compared to the estimated Fair Price-To-Earnings Ratio (9.1x).


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 ($4.97) is trading below our estimate of fair value ($20.13)

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


-20.2%

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 (-20.2% per year).

Earnings vs Market: HIMX's earnings are forecast to decline over the next 3 years (-20.2% 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 (-5.4% per year).

High Growth Revenue: HIMX's revenue is forecast to decline over the next 3 years (-5.4% 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 (23.6%)


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Past Performance

How has Himax Technologies performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


75.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HIMX has a high level of non-cash earnings.

Growing Profit Margin: HIMX's current net profit margins (28%) are higher than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: HIMX's earnings have grown significantly by 75.7% per year over the past 5 years.

Accelerating Growth: HIMX's earnings growth over the past year (105.1%) exceeds its 5-year average (75.7% per year).

Earnings vs Industry: HIMX earnings growth over the past year (105.1%) exceeded the Semiconductor industry 54.4%.


Return on Equity

High ROE: HIMX's Return on Equity (52.9%) 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 ($796.7M).

Long Term Liabilities: HIMX's short term assets ($1.4B) exceed its long term liabilities ($153.0M).


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 24.9% to 23.9% over the past 5 years.

Debt Coverage: HIMX's debt is well covered by operating cash flow (161.2%).

Interest Coverage: HIMX earns more interest than it pays, so coverage of interest payments is not a concern.


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


25.15%

Current Dividend Yield

Dividend Yield vs Market

Himax Technologies Dividend Yield vs Market
How does Himax Technologies dividend yield compare to the market?
SegmentDividend Yield
Company (Himax Technologies)25.2%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Semiconductor)2.1%
Analyst forecast in 3 Years (Himax Technologies)18.9%

Notable Dividend: HIMX's dividend (25.15%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: HIMX's dividend (25.15%) is in the top 25% of dividend payers in the US market (4.57%)


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 (48.8%), HIMX's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (69.6%), 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

What is the ownership structure of HIMX?
Owner TypeNumber of SharesOwnership Percentage
Institutions36,361,56620.9%
Individual Insiders49,239,64928.3%
General Public88,697,35550.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 45.58% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
21.51%
Biing-Seng Wu
37,484,909$186.3m0%no data
6.06%
Whei-Lan Teng
10,567,860$52.5m0%no data
3.69%
Yiheng Capital Management, L.P.
6,423,445$31.9m-17%2.05%
2.23%
AllianceBernstein L.P.
3,890,673$19.3m4.28%0.01%
2.06%
Lazard Asset Management LLC
3,591,508$17.8m-10.54%0.02%
1.89%
Arch Finance Ltd., Asset Management Arm
3,300,106$16.4m0%90.77%
1.11%
State of Wisconsin Investment Board
1,940,707$9.6m-3.87%0.03%
0.82%
Marshall Wace LLP
1,432,845$7.1m2552.19%0.02%
0.71%
Upright Financial Corp.
1,239,400$6.2m0%34.55%
0.7%
CapWealth Advisors, LLC
1,213,529$6.0m71.07%0.78%
0.51%
Fubon Asset Management Co., Ltd.
891,114$4.4m0%0.12%
0.5%
Susquehanna International Group, LLP, Asset Management Arm
869,519$4.3m-20.7%0.01%
0.46%
Polunin Capital Partners Limited
796,868$4.0m0%0.46%
0.36%
Bank of America Corporation, Asset Management Arm
635,668$3.2m10264.72%no data
0.34%
Group One Trading LP, Asset Management Arm
595,454$3.0m1124.94%0.09%
0.34%
State Street Global Advisors, Inc.
594,411$3.0m-38.06%no data
0.33%
Acadian Asset Management LLC
574,802$2.9m-74.58%0.01%
0.31%
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
534,805$2.7m-25.19%no data
0.26%
Yuan-Chuan Horng
458,052$2.3m0%no data
0.24%
Kennedy Capital Management, Inc.
423,613$2.1m-36.58%0.06%
0.24%
Citadel Advisors LLC
417,636$2.1m-50.75%no data
0.24%
Stifel Asset Management Corp.
412,008$2.0m1.59%no data
0.23%
O'Shaughnessy Asset Management, LLC
400,966$2.0m133.44%0.04%
0.23%
Jordan Wu
399,432$2.0m0%no data
0.2%
Credit Suisse, Investment Banking and Securities Investments
353,904$1.8m-45.06%no data

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$866.264m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIMXNasdaqGS (Nasdaq Global Select)YesSPONS ADR EA REPR 2 ORD SHS NPVUSUSDMar 2006
H6QDB (Deutsche Boerse AG)YesSPONS ADR EA REPR 2 ORD SHS NPVDEEURMar 2006
0J5HLSE (London Stock Exchange)YesSPONS ADR EA REPR 2 ORD SHS NPVGBUSDMar 2006

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/26 00:00
End of Day Share Price2022/09/26 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.