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Himax Technologies (HIMX)
NASDAQ:HIMX
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Himax Technologies
(NASDAQ:HIMX)
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Rating:66Neutral
Price Target:
$9.00
▲(5.39% Upside)
Himax Technologies' overall score reflects solid financial performance and attractive valuation, but is tempered by technical analysis signals and concerns from the earnings call about future revenue and profitability.
Positive Factors
Cash Flow Management
Himax Technologies' robust cash flow management enhances its financial flexibility, allowing it to invest in growth opportunities and weather economic uncertainties.
Automotive Sector Growth
The growth in the automotive sector underscores Himax's strong market position and potential for future revenue expansion in a key industry segment.
Non-Driver Sales Expansion
The rise in non-driver sales indicates successful diversification efforts, reducing dependence on core products and enhancing revenue stability.
Negative Factors
Revenue Decline Forecast
The anticipated revenue decline reflects potential challenges in maintaining growth momentum, which could impact long-term profitability and market position.
Projected Loss in Q3
The projected loss highlights financial pressures that may affect investor confidence and the company's ability to reinvest in strategic initiatives.
Increasing Leverage
Rising leverage could constrain financial flexibility and increase risk, especially if revenue continues to decline, impacting long-term sustainability.
Himax Technologies (HIMX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.49B
Dividend Yield4.33%
Average Volume (3M)1.11M
Price to Earnings (P/E)19.9
Beta (1Y)1.86
Revenue Growth-2.16%
EPS Growth-2.77%
CountryUS
Employees2,177
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.10
Shares Outstanding174,913,400
10 Day Avg. Volume1,100,497
30 Day Avg. Volume1,107,042
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)1.58
Price to Sales (P/S)1.55
P/FCF Ratio13.65
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue1.42
Enterprise Value/Gross Profit4.66
Enterprise Value/Ebitda12.50
Forecast
1Y Price Target
$10.00Price Target Upside17.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Himax Technologies Business Overview & Revenue Model
Company DescriptionHimax 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. The company also designs and provides controllers for touch sensor displays; in-cell touch and display driver integration single-chip solutions; light-emitting diode driver and power management ICs; and liquid crystal on silicon microdisplays for augmented reality (AR) devices and head-up displays for the automotive industry. In addition, it offers complementary metal-oxide-semiconductor image sensors and wafer-level optics for AR devices, 3D sensing, and ultra-low power AI image sensing, which are used in various applications, such as mobile phones, tablets, laptops, TV, PC camera, automobile, security, medical devices, home appliance, Internet of Things, etc. The company markets its display drivers and display-related products to panel manufacturers, agents or distributors, module manufacturers, and assembly houses; and non-driver products to camera module manufacturers, optical engine manufacturers, and television system manufacturers. Himax Technologies, Inc. was incorporated in 2001 and is headquartered in Tainan City, Taiwan.
How the Company Makes MoneyHimax Technologies generates revenue primarily through the sale of semiconductor products, particularly display driver ICs that are integral to various types of displays in smartphones, tablets, and televisions. The company has established key partnerships with major display manufacturers and electronics brands, which enable it to secure significant orders and long-term contracts. Additionally, Himax earns revenue from its automotive segment, providing advanced driver assistance systems (ADAS) and other automotive electronics solutions. The company also explores growth opportunities in emerging markets like augmented and virtual reality, further diversifying its revenue streams. Seasonal demand fluctuations in consumer electronics and advancements in display technologies impact its earnings, highlighting the importance of innovation and market trends in driving revenue.
Himax Technologies Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in gross margin and automotive sector performance, but faced challenges with projected revenue decline and operating income decline. The significant projected loss in Q3 also adds to the concerns.Q2-2025 Updates
Positive Updates
Q2 Gross Margin Exceeds Guidance
Q2 gross margin was 31.2%, outperforming the guidance of around 31% and improving from 30.5% in the prior quarter, primarily driven by a favorable product mix.
Strong Automotive Sector Performance
Automotive driver sales, including DDIC and TDDI, outperformed guidance with a single-digit decrease quarter-over-quarter, showing a 3.2% year-over-year increase, indicating resilient demand despite global softness in automotive sales.
Non-Driver Sales Increase
Q2 non-driver sales reached $45 million, a 14.7% increase from the previous quarter, primarily due to increased shipment of Tcon for automotive and monitor products.
Positive Cash Flow
Strong positive operating cash flow of $50.5 million in the second quarter.
Negative Updates
Revenue Decline in Q3 Forecast
Third quarter revenues are expected to decrease 12% to 17% sequentially, with a gross margin expected to be around 30%.
Projected Loss in Q3
The third quarter loss attributable to shareholders is estimated to be in the range of $0.20 to $0.40 per fully diluted ADS.
Operating Income Decline
Operating profit declined 8.6% sequentially, mainly due to higher operating expenses, partially offset by an increase in gross margin and gross profit.
Inventory Increase
Q2 inventory was $134.6 million, higher than the $129.9 million last quarter.
Company Guidance
During Himax Technologies' second quarter 2025 earnings call, the company provided guidance for the third quarter, expecting revenues to decrease by 12% to 17% sequentially, with a projected gross margin around 30%, influenced by product mix. The anticipated loss attributable to shareholders is estimated to be between $0.20 to $0.40 per fully diluted ADS, driven in part by an expected $7.5 million annual employee bonus expense. Himax's Q2 2025 results included a gross margin of 31.2% and revenues of $214.8 million, a slight sequential decline of 0.2%. The automotive business, a significant revenue contributor, accounted for approximately 50% of total revenue, with a noted 3.2% year-over-year increase in net automotive driver sales. Non-driver sales rose 14.7% sequentially, driven by increased Tcon shipments for automotive and monitor products. Operating expenses were $48.9 million, rising by 6.9% from the previous quarter, influenced by NT dollar appreciation. The company ended Q2 with $332.8 million in cash and equivalents, supported by a strong operating cash flow of $50.5 million. Looking ahead, Himax plans to manage inventory conservatively amidst ongoing economic uncertainties while maintaining its strategic focus on expanding into high-growth markets such as WiseEye AI and co-package optics.Himax Technologies Financial Statement Overview
Summary
Himax Technologies shows solid profitability and cash flow management with stable margins and a balanced capital structure. However, declining revenue growth and increasing leverage are concerns.Income Statement
Himax Technologies has experienced declining revenue growth over the past few years, with a TTM revenue decrease of 2.62%. Despite this, the company maintains healthy gross and net profit margins at 30.51% and 8.34% respectively. The EBIT and EBITDA margins are also stable, indicating operational efficiency. However, the negative revenue growth trend is a concern for future profitability.65
Positive
Balance Sheet
The company's debt-to-equity ratio stands at 0.62, reflecting moderate leverage. Return on equity is at 8.40%, which, although lower than previous years, still indicates a reasonable return for shareholders. The equity ratio is stable, suggesting a balanced capital structure. However, the increasing debt levels over the years could pose a risk if not managed carefully.70
Positive
Cash Flow
Himax Technologies shows strong free cash flow growth at 33.66% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.19, and the free cash flow to net income ratio is 0.90, both suggesting efficient cash flow management. The positive cash flow trends provide a cushion against revenue declines.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 889.56M | 906.80M | 945.43M | 1.20B | 1.55B | 887.28M |
| Gross Profit | 271.43M | 276.20M | 263.50M | 487.11M | 748.58M | 220.78M |
| EBITDA | 101.17M | 90.58M | 58.65M | 300.69M | 567.01M | 82.98M |
| Net Income | 74.16M | 79.75M | 50.62M | 236.98M | 436.90M | 47.13M |
Balance Sheet | ||||||
| Total Assets | 1.71B | 1.64B | 1.64B | 1.70B | 1.60B | 909.82M |
| Cash, Cash Equivalents and Short-Term Investments | 332.75M | 224.57M | 206.38M | 229.90M | 364.38M | 201.42M |
| Total Debt | 536.22M | 545.36M | 504.88M | 427.48M | 208.50M | 172.95M |
| Total Liabilities | 836.85M | 743.19M | 779.70M | 807.94M | 731.21M | 424.62M |
| Stockholders Equity | 864.64M | 890.06M | 856.77M | 892.57M | 869.72M | 480.18M |
Cash Flow | ||||||
| Free Cash Flow | 133.16M | 102.92M | 129.35M | 70.78M | 380.25M | 96.74M |
| Operating Cash Flow | 148.76M | 115.98M | 152.84M | 82.91M | 388.28M | 102.61M |
| Investing Cash Flow | -14.89M | -516.00K | -88.88M | 15.00M | -232.68M | -22.36M |
| Financing Cash Flow | -66.53M | -88.22M | -93.59M | -211.07M | -4.49M | 3.26M |
Himax Technologies Technical Analysis
Positive
8.54
Price Trends
8.40
Positive
8.45
Positive
8.28
Positive
Market Momentum
0.12
Negative
52.58
Neutral
60.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIMX, the sentiment is Positive. The current price of 8.54 is above the 20-day moving average (MA) of 8.44, above the 50-day MA of 8.40, and above the 200-day MA of 8.28, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 60.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HIMX.
Himax Technologies Risk Analysis
Himax Technologies disclosed 40 risk factors in its most recent earnings report. Himax Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Himax Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.06B | 19.93 | 15.50% | ― | -19.38% | -33.03% | |
77 Outperform | $1.37B | 13.15 | 9.64% | ― | -1.79% | -22.58% | |
75 Outperform | $2.42B | 22.92 | 11.46% | ― | 17.53% | 27.74% | |
70 Outperform | $3.08B | 38.13 | ― | 2.20% | -0.29% | 1.47% | |
70 Neutral | $1.80B | 29.46 | 7.08% | ― | -0.19% | -28.72% | |
66 Neutral | $1.49B | 19.93 | 8.64% | 4.33% | -2.16% | -2.77% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
HIMX
Himax Technologies
8.54
3.25
61.44%
MXL
Maxlinear
16.09
1.61
11.12%
PLAB
Photronics
23.22
-1.54
-6.22%
UCTT
Ultra Clean Holdings
26.68
-13.25
-33.18%
VECO
Veeco
29.87
-3.26
-9.84%
NVTS
Navitas Semiconductor
6.43
3.98
162.45%
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.