Himax Technologies, Inc. (NASDAQ: HIMX)

Sector: Technology Industry: Semiconductors CIK: 0001342338
Market Cap 1.43 Bn
P/B 1.64
P/E 23.02
P/S 1.65
ROIC (Qtr) 65.12
Div Yield % 8.96
Rev 1y % (Qtr) -10.45
Total Debt (Qtr) 599.19 Mn
Debt/Equity (Qtr) 0.68

About

Himax Technologies, Inc., with its ticker symbol HIMX, operates in the semiconductor industry, specifically in the design, development, and manufacturing of display imaging processing technologies. The company's main business activities encompass a broad range of display applications, including TVs, PC monitors, laptops, mobile phones, tablets, automotive displays, and industrial displays. Himax generates revenue primarily through the sale of its display driver ICs, timing controllers, and other semiconductor products. Its primary products include...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 158.21M provides strong 228.29x coverage of stock compensation 693000, indicating sustainable incentive practices.
  • Operating cash flow of 158.21M provides exceptional 116.07x coverage of minority interest expenses 1.36M, showing strong core operations.
  • Strong tangible asset base of 1.67B provides 2.78x coverage of total debt 599.18M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 158.21M provides exceptional 43.75x coverage of interest expenses 3.62M, showing strong debt service capability.
  • Robust free cash flow of 138.47M exceeds capital expenditure of 19.73M by 7.02x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 158.21M barely covers its investment activities of (13.45M), with a coverage ratio of -11.76, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (13.45M) provide weak support for R&D spending of 157.06M, which is -0.09x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 158.21M is outpaced by equity issuance of (6M) (-26.37 ratio), indicating concerning reliance on equity markets for funding operations.
  • Fixed assets of 120.30M showing 5.62x ratio to depreciation of 21.39M indicates aging infrastructure requiring significant near-term capital investment.
  • Operating cash flow of 158.21M provides only 1.01x coverage of R&D expenses of 157.06M, suggesting vulnerability in maintaining innovation investments.

Products and services [axis] Breakdown of Revenue (2024)

Applications Breakdown of Revenue (2024)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,521.08 Bn 45.58 24.16 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,648.98 Bn 31.97 13.84 31.18 Bn
3 AVGO Broadcom Inc. 1,565.97 Bn 67.71 24.51 65.14 Bn
4 MU Micron Technology Inc 366.37 Bn 30.76 8.66 12.43 Bn
5 AMD Advanced Micro Devices Inc 333.34 Bn 100.83 10.41 3.87 Bn
6 INTC Intel Corp 271.33 Bn 1,370.33 5.08 46.55 Bn
7 QCOM Qualcomm Inc/De 199.55 Bn 36.01 4.51 14.81 Bn
8 TXN Texas Instruments Inc 172.17 Bn 34.14 9.97 14.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.05 4.13
EV to Cash from Ops. EV/CFO 11.24 -370.81
EV to Debt EV to Debt 2.97 88.27
EV to EBIT EV/EBIT 23.87 -65.23
EV to EBITDA EV/EBITDA 21.74 22.97
EV to Free Cash Flow [EV/FCF] EV/FCF 12.84 -8.14
EV to Market Cap EV to Market Cap 1.24 0.80
EV to Revenue EV/Rev 2.05 20.31
Price to Book Value [P/B] P/B 1.64 5.16
Price to Earnings [P/E] P/E 23.02 9.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 2.39
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 8.25
Dividend per Basic Share Div per Share (Qtr) 0.74 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 93.43 9.91
Interest Coverage Int. cover (Qtr) 20.60 8.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 20.96 -155.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 32.43 45.60
Dividend Growth (1y) % Div 1y % (Qtr) 155.17 5.64
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -21.78 26.23
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2.35 47.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.77 25.83
EBT Growth (1y) % EBT 1y % (Qtr) 4.85 39.93
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 24.64
FCF Growth (1y) % FCF 1y % (Qtr) 6.82 244.42
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.94 43.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.51 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 0.33 2.23
Current Ratio Curr Ratio (Qtr) 1.60 5.43
Debt to Equity Ratio Debt/Equity (Qtr) 0.68 0.34
Interest Cover Ratio Int Coverage (Qtr) 20.60 8.38
Times Interest Earned Times Interest Earned (Qtr) 20.60 8.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.10 -112.38
EBIT Margin % EBIT Margin % (Qtr) 8.60 -91.98
EBT Margin % EBT Margin % (Qtr) 8.18 -132.25
Gross Margin % Gross Margin % (Qtr) 30.60 47.73
Net Profit Margin % Net Margin % (Qtr) 7.20 -133.26