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Infineon Technologies AG (DE:IFX)
XETRA:IFX
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Infineon Technologies AG
(XETRA:IFX)
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Rating:64Neutral
Price Target:
€35.00
â–²(7.16% Upside)
Infineon Technologies AG's overall stock score is driven by stable financial performance and a positive outlook from the earnings call, despite challenges in profitability and cash flow. Technical indicators suggest bearish momentum, and the stock appears overvalued based on its high P/E ratio.
Positive Factors
Strong Market Position
Infineon's leadership in semiconductor solutions across key sectors like automotive and industrial power control solidifies its market position, ensuring sustained demand and competitive advantage.
Strategic Acquisitions
The acquisition of Marvell's Ethernet business enhances Infineon's automotive semiconductor portfolio, strengthening its product offerings and market reach in the automotive sector.
Revenue Growth in Key Segments
Growth in the Green Industrial Power segment indicates strong demand for energy-efficient solutions, supporting Infineon's revenue expansion and aligning with global sustainability trends.
Negative Factors
Profitability Margin Pressure
Decreasing net profit margins suggest challenges in maintaining operational efficiency, which could impact long-term profitability if not addressed.
Free Cash Flow Decline
A significant decline in free cash flow indicates potential challenges in cash generation, which could affect Infineon's ability to invest in growth opportunities and manage financial obligations.
Automotive Market Uncertainties
Uncertainties in the automotive market, including tariff impacts and competitive pressures, pose risks to Infineon's revenue from this key sector, potentially affecting future growth.
Infineon Technologies AG (IFX) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$42.51B
Dividend Yield1.07%
Average Volume (3M)3.31M
Price to Earnings (P/E)64.0
Beta (1Y)1.81
Revenue Growth-3.60%
EPS Growth-67.86%
CountryDE
Employees57,397
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.37
Shares Outstanding1,305,921,100
10 Day Avg. Volume3,437,125
30 Day Avg. Volume3,307,625
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue3.53
Enterprise Value/Gross Profit8.87
Enterprise Value/Ebitda14.61
Forecast
1Y Price Target
$42.30Price Target Upside29.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Infineon Technologies AG Business Overview & Revenue Model
Company DescriptionInfineon Technologies AG designs, develops, manufactures, and markets semiconductors and related system solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and radar sensor integrated circuits (ICs); transceivers; silicon carbide diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company's Industrial Power Control segment provides bare dies, discrete IGBTs, driver ICs, SIC diodes, and IGBT modules and stacks for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers gas sensors, MEMS microphones, and pressure sensors chips; discrete low-voltage, mid-voltage, and high-voltage power MOSFETs; control ICs; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, Internet of Things, LED and conventional lighting systems, mobile devices, and power management applications. The company's Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, Internet of Things, mobile communication, payment system, ticketing, access control, and trusted computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Munich, Germany.
How the Company Makes MoneyInfineon Technologies generates revenue primarily through the sale of semiconductor products and solutions. Its core revenue streams include automotive semiconductors, which cater to the growing demand for electric vehicles and advanced driver-assistance systems; industrial power control products that enhance energy efficiency in manufacturing and renewable energy applications; and security solutions that protect data and transactions in various industries. The company benefits from long-term partnerships with major automotive and industrial clients, which provide stable demand for its products. Additionally, Infineon's focus on research and development enables it to innovate continuously, capturing emerging market opportunities and enhancing its competitive position, thus contributing to sustained earnings growth.
Infineon Technologies AG Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted sequential revenue growth and significant accomplishments in the Step Up program and AI data center collaboration. However, challenges such as currency impacts, automotive market uncertainties, and idle charges remain. Despite these challenges, the company maintains a positive outlook for future growth.Q3-2025 Updates
Positive Updates
Sequential Revenue Growth
Infineon reported revenues of EUR 3.704 billion for the third quarter, marking a sequential increase of around 3% despite substantial negative currency effects.
Improved Segment Results
Segment result amounted to EUR 668 million with a segment result margin of 18%, indicating improvement from volume growth and lower idle costs.
Strong Performance in Green Industrial Power
Green Industrial Power saw a 9% increase in revenues quarter-over-quarter to EUR 431 million, with key applications contributing to the sequential improvement.
Power & Sensor Systems Growth
The division recorded revenues of EUR 1.053 billion, growing 8% quarter-over-quarter, driven by power solutions for AI servers and a high segment result margin of 18.8%.
AI Data Center Collaboration
Infineon announced a collaboration with NVIDIA to develop an 800-volt high-voltage direct current power delivery architecture for AI data centers.
Progress in Step Up Program
The Step Up program is contributing positively to cost of goods sold earlier than anticipated, with a notable positive impact from the second half of this fiscal year onwards.
Acquisition of Marvell's Ethernet Business
Infineon obtained all necessary regulatory approvals for acquiring the Automotive Ethernet business from Marvell, which will complement its automotive semiconductor portfolio.
Negative Updates
Currency Impact on Revenues
The average U.S. dollar-euro exchange rate of 1.14 versus 1.05 in the previous quarter resulted in a substantial negative currency effect on revenues.
Automotive Market Uncertainties
Concerns over potential tariff-led weakness in the U.S. and negative news flow around inventory build, price wars, and removal of trade-in subsidies in China affect the automotive market outlook.
Continued Idle Charges
Idle charges continue to be a material margin drag, expected to impact profitability due to efforts to manage inventory levels.
Challenges in Connected Secure Systems
This division saw a 2% decrease in revenues compared to the previous quarter due to unfavorable currency developments, with a segment result margin of 11.2%.
Company Guidance
During the Infineon Technologies fiscal third-quarter conference call for 2025, several key metrics were discussed, highlighting both performance and outlook. The company reported revenues of EUR 3.704 billion, marking a sequential growth of approximately 3% despite adverse currency effects. The segment result was EUR 668 million, with a margin of 18%. Notably, the order backlog stood at around EUR 18 billion. The automotive division achieved revenues of EUR 1.870 billion, with a segment result margin of 19.8%. Meanwhile, revenues for Green Industrial Power grew by 9% to EUR 431 million, and Power & Sensor Systems saw an 8% increase to EUR 1.053 billion, driven by AI server power solutions. Infineon maintained its guidance for AI-related revenues, expecting EUR 600 million for the fiscal year, rising to EUR 1 billion next year. Looking ahead, fourth-quarter revenues are forecasted to be around EUR 3.9 billion, with a high teens percentage segment result margin. The full-year outlook expects revenues of approximately EUR 14.6 billion, with an adjusted gross margin of at least 40% and a high teens segment result margin.Infineon Technologies AG Financial Statement Overview
Summary
Infineon Technologies AG demonstrates a stable financial position with a strong balance sheet and consistent revenue growth. However, profitability margins have faced pressure, and free cash flow generation has weakened. The company maintains a solid equity base and manageable debt levels, positioning it well for future growth despite current challenges.Income Statement
Infineon Technologies AG has shown a stable revenue growth rate of 1.4% in the TTM period despite a decline in the previous year. The gross profit margin remains healthy at approximately 39.8%, although it has decreased from previous years. The net profit margin has also decreased to 4.8%, indicating pressure on profitability. EBIT and EBITDA margins have similarly declined, reflecting challenges in maintaining operational efficiency.70
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.32, indicating a strong balance sheet with manageable leverage. Return on equity has decreased to 4.0%, suggesting reduced profitability relative to shareholder equity. The equity ratio remains robust at around 59.6%, highlighting a solid capital structure.75
Positive
Cash Flow
Operating cash flow remains strong, but free cash flow has decreased significantly by 25.7% in the TTM period, indicating potential challenges in cash generation. The operating cash flow to net income ratio is stable, but the free cash flow to net income ratio has declined, reflecting reduced cash conversion efficiency.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.64B | 14.96B | 16.31B | 14.22B | 11.06B | 8.57B |
| Gross Profit | 5.83B | 6.07B | 7.41B | 6.13B | 4.26B | 2.78B |
| EBITDA | 3.54B | 4.18B | 5.81B | 4.51B | 3.01B | 1.87B |
| Net Income | 700.00M | 1.30B | 3.14B | 2.18B | 1.17B | 368.00M |
Balance Sheet | ||||||
| Total Assets | 28.06B | 28.64B | 28.44B | 26.91B | 23.33B | 22.00B |
| Cash, Cash Equivalents and Short-Term Investments | 1.54B | 2.20B | 3.59B | 3.72B | 3.92B | 3.23B |
| Total Debt | 5.37B | 5.17B | 5.11B | 6.05B | 6.92B | 7.33B |
| Total Liabilities | 11.35B | 11.42B | 11.39B | 11.97B | 11.93B | 11.78B |
| Stockholders Equity | 16.71B | 17.22B | 17.04B | 14.94B | 11.40B | 10.22B |
Cash Flow | ||||||
| Free Cash Flow | 547.00M | 61.00M | 966.00M | 1.67B | 1.57B | 712.00M |
| Operating Cash Flow | 2.91B | 2.78B | 3.96B | 3.98B | 3.06B | 1.81B |
| Investing Cash Flow | -1.94B | -2.17B | -2.26B | -2.44B | -2.28B | -7.17B |
| Financing Cash Flow | -1.43B | -615.00M | -1.30B | -1.87B | -885.00M | 6.27B |
Infineon Technologies AG Technical Analysis
Negative
32.66
Price Trends
34.52
Negative
35.04
Negative
33.79
Negative
Market Momentum
-0.42
Negative
43.56
Neutral
55.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:IFX, the sentiment is Negative. The current price of 32.66 is above the 20-day moving average (MA) of 32.61, below the 50-day MA of 34.52, and below the 200-day MA of 33.79, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 55.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:IFX.
Infineon Technologies AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 1.39B | 11.23 | 21.28% | 1.23% | -2.03% | 20.37% | |
69 Neutral | 1.70B | 16.20 | 12.54% | 0.99% | 0.59% | -11.99% | |
68 Neutral | 565.82M | 10.28 | 19.07% | 1.01% | 42.54% | 174.07% | |
64 Neutral | $42.51B | 63.99 | 6.85% | 1.07% | -3.60% | -67.86% | |
54 Neutral | 1.34B | 46.04 | 1.52% | 0.45% | -0.55% | -73.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
DE:IFX
Infineon Technologies AG
32.67
1.49
4.78%
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AIXTRON
15.18
-0.66
-4.17%
GB:0N9K
ELMOS Semiconductor
81.20
15.95
24.44%
GB:0G0X
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50.00
-9.51
-15.98%
GB:0R8P
Siltronic
44.51
-23.55
-34.60%
GB:0Q3C
Suss Microtec
29.56
-38.53
-56.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.