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
|Historical stock prices|
|Current Share Price||US$4.97|
|52 Week High||US$16.50|
|52 Week Low||US$4.95|
|1 Month Change||-22.34%|
|3 Month Change||-44.41%|
|1 Year Change||-54.40%|
|3 Year Change||118.94%|
|5 Year Change||-55.82%|
|Change since IPO||-43.20%|
Recent News & Updates
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.
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...
|HIMX||US Semiconductor||US Market|
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.
|HIMX Average Weekly Movement||8.1%|
|Semiconductor Industry Average Movement||8.1%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.8%|
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
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
|HIMX fundamental statistics|
Is HIMX overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|HIMX income statement (TTM)|
|Cost of Revenue||US$817.30m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||2.57|
|Net Profit Margin||28.01%|
How did HIMX perform over the long term?See historical performance and comparison
25.2%Current Dividend Yield
Is HIMX undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is HIMX's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does HIMX's PE Ratio compare to its peers?
|HIMX PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
AOSL Alpha and Omega Semiconductor
SGH SMART Global Holdings
SIMO Silicon Motion Technology
HIMX Himax Technologies
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.
|Current PE Ratio||1.9x|
|Fair PE Ratio||9.1x|
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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How is Himax Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Himax Technologies performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
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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How is Himax Technologies's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
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.
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What is Himax Technologies's current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Himax Technologies Dividend Yield vs Market|
|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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How experienced are the management team and are they aligned to shareholders interests?
Jordan Wu (61 yo)
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...
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.
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Himax Technologies, Inc.'s employee growth, exchange listings and data sources
- 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
- Himax Technologies, Inc.
- No.26, Zih Lian Road
- Sinshih District
- Tainan City
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|HIMX||NasdaqGS (Nasdaq Global Select)||Yes||SPONS ADR EA REPR 2 ORD SHS NPV||US||USD||Mar 2006|
|H6Q||DB (Deutsche Boerse AG)||Yes||SPONS ADR EA REPR 2 ORD SHS NPV||DE||EUR||Mar 2006|
|0J5H||LSE (London Stock Exchange)||Yes||SPONS ADR EA REPR 2 ORD SHS NPV||GB||USD||Mar 2006|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/26 00:00|
|End of Day Share Price||2022/09/26 00:00|
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.