Himax Technologies, Inc. (NASDAQ: HIMX)

Sector: Technology Industry: Semiconductors CIK: 0001342338
P/B 1.72
P/E 24.19
P/S 1.74
Market Cap 1.50 Bn
ROIC (Qtr) 65.12
Div Yield % 8.53
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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Analysis

Pros

  • 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.

Cons

  • 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.

Peer Comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,276.26 Bn 43.11 22.85 10.48 Bn
2 AVGO Broadcom Inc. 1,690.87 Bn 89.31 28.22 64.23 Bn
3 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,514.32 Bn 29.36 12.71 31.18 Bn
4 AMD Advanced Micro Devices Inc 343.27 Bn 103.83 10.72 3.87 Bn
5 MU Micron Technology Inc 269.16 Bn 31.52 7.20 15.28 Bn
6 INTC Intel Corp 249.55 Bn 1,260.33 4.67 46.55 Bn
7 QCOM Qualcomm Inc/De 195.62 Bn 35.30 4.42 14.81 Bn
8 TXN Texas Instruments Inc 163.92 Bn 32.50 9.49 14.05 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.09 3.95
EV to Cash from Ops. 11.70 -331.60
EV to Debt 3.09 86.14
EV to EBIT 24.85 -55.96
EV to EBITDA 22.63 20.88
EV to Free Cash Flow [EV/FCF] 13.36 -4.09
EV to Market Cap 1.23 0.80
EV to Revenue 2.14 18.79
Price to Book Value [P/B] 1.72 5.23
Price to Earnings [P/E] 24.19 12.47

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 2.29
Dividend Payout Ratio % 0.00 8.00
Dividend per Basic Share 0.74 0.62
FCF Dividend Payout Ratio % 93.43 10.38
Interest Coverage 20.60 8.19

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 20.96 -155.77
Cash and Equivalents Growth (1y) % 32.43 44.44
Dividend Growth (1y) % 155.17 5.30
EBIAT Growth (1y) % -21.78 34.22
EBITDA Growth (1y) % -2.35 47.50
EBIT Growth (1y) % 3.77 30.14
EBT Growth (1y) % 4.85 47.04
EPS Growth (1y) % 0.00 36.18
FCF Growth (1y) % 6.82 252.76
Gross Profit Growth (1y) % -2.94 43.92

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.51 0.49
Cash Payout Ratio 0.00 0.09
Cash Ratio 0.33 2.23
Current Ratio 1.60 5.43
Debt to Equity Ratio 0.68 0.34
Interest Cover Ratio 20.60 8.19
Times Interest Earned 20.60 8.19

Profitability

Metric Value Industry Percentile
EBITDA Margin % 11.10 -112.44
EBIT Margin % 8.60 -92.10
EBT Margin % 8.18 -132.39
Gross Margin % 30.60 47.63
Net Profit Margin % 7.20 -133.41