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Himax Technologies (HIMX)
NASDAQ:HIMX
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Himax Technologies
(NASDAQ:HIMX)
Rating:73Outperform
Price Target:
$9.50
▲(6.98%Upside)
Positive Factors
Automotive Market
Automotive remains the company's largest revenue contributor currently, accounting for almost half of 2024 revenue and growing 20% YoY.
Business Expansion
Himax is expanding its non-driver IC business by tapping the growing cloud AI and edge AI markets, which bodes well for top-line growth and margin expansion.
Technology Positioning
Himax stands out in terms of early and leading technology positioning in what will eventually unfold as an architectural change in AI packaging and secular growth trend.
Negative Factors
Automotive Sales Decline
Automotive driver IC sales are expected to decline by a mid-single percentage in 2Q QoQ due to waning Chinese government automotive subsidies and the impact of tariffs.
Market Competition
Oversupply from Chinese foundries and lukewarm consumer tech demand have intensified competition, particularly in the LCD segment.
Revenue Decline
China panel OEMs are adopting a cautious inventory stance reflecting the tariff situation, with low second-half visibility leading us to model continued revenue sequential declines in displays.
Himax Technologies (HIMX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.55B
Dividend Yield3.26%
Average Volume (3M)1.19M
Price to Earnings (P/E)17.7
Beta (1Y)1.89
Revenue Growth0.61%
EPS Growth80.97%
CountryUS
Employees2,177
SectorTechnology
Sector Strength79
IndustrySemiconductors
Share Statistics
EPS (TTM)0.11
Shares Outstanding174,913,400
10 Day Avg. Volume1,150,015
30 Day Avg. Volume1,189,611
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)2.43
Price to Sales (P/S)0.00
P/FCF Ratio30.66
Enterprise Value/Market Cap1.52
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit8.58
Enterprise Value/Ebitda7.31
Forecast
1Y Price Target
$9.40Price Target Upside5.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Himax Technologies Business Overview & Revenue Model
Company DescriptionHimax Technologies, Inc. (HIMX) is a leading provider of display imaging processing technologies. The company is primarily engaged in the design, development, and sale of semiconductors that are critical components in displays for consumer electronics. Himax's core products include display drivers and timing controllers used in televisions, laptops, monitors, mobile phones, tablets, automotive displays, and other consumer electronics. The company operates in the semiconductor industry, focusing on delivering innovative and high-performance solutions for display imaging applications.
How the Company Makes MoneyHimax Technologies generates revenue through the sale of its semiconductor products, which are integral to the functioning of display panels in various consumer electronics. The company's key revenue streams include display driver ICs and non-driver products such as timing controllers, touch controller ICs, CMOS image sensors, wafer level optics, and power management ICs. Himax collaborates with panel manufacturers and consumer electronics companies, forming strategic partnerships to integrate its technologies into a wide range of devices. The demand for more advanced display technologies, such as OLED and AMOLED, and the increasing use of displays in automotive and Internet of Things (IoT) applications, significantly contribute to the company's earnings. Himax also benefits from its strong R&D capabilities, enabling it to innovate and maintain a competitive edge in the rapidly evolving semiconductor market.
Himax Technologies Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 18.88%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. Despite some positive aspects, such as year-over-year revenue growth, strong performance in the automotive segment, and effective inventory management, the company faced sequential revenue declines, challenges in specific segments, and geopolitical uncertainties affecting future visibility.Q1-2025 Updates
Positive Updates
Positive Revenue Performance
First quarter revenue was $215.1 million, a 3.7% increase year-over-year, reaching the high end of the guidance range despite a typical seasonal slowdown.
Gross Margin and Profit Exceed Expectations
Gross margin was 30.5%, in line with guidance, and profit per diluted ADS was 11.4 cents, exceeding the guidance range due to lower operating expenses.
Strong Performance in Automotive Segment
Q1 automotive driver sales outperformed guidance, with auto IC sales rising nearly 20% year-over-year, reflecting strong customer reliance on Himax's technology.
Improved Inventory Management
Inventory levels have steadily declined for ten consecutive quarters, demonstrating effective management amid macroeconomic uncertainty.
Commitment to Innovation and Growth
Continued investment in new technologies such as ultralow power AI and AR glasses, indicating potential substantial growth opportunities.
Negative Updates
Sequential Revenue Decline
First quarter revenue decreased by 9.3% sequentially due to typical seasonal downturns and pull-forward inventory purchases by customers.
Challenges in Small and Medium-sized Display Driver Segment
Revenue from the small and medium-sized display driver segment fell by 9.8% sequentially amid a typical low season, with declines in smartphone and tablet driver sales.
Non-driver Sales Decline
Q1 non-driver sales decreased by 12.8% from the previous quarter, primarily due to the absence of a one-time ASIC Tcon shipment.
Geopolitical and Tariff Concerns
US tariffs and global trade tensions have created market demand uncertainty, impacting customer order behavior and contributing to conservative Q2 revenue guidance.
Company Guidance
During Himax Technologies' Q1 2025 earnings call, the company reported a revenue of $215.1 million, marking a 9.3% sequential decrease but a 3.7% year-over-year increase, with gross margin steady at 30.5%. Profit per diluted ADS was 11.4 cents, surpassing the guidance range of 9 to 11 cents, mainly due to reduced operating expenses. The large display driver segment revenue was $25.0 million, while the small and medium-sized display driver segment recorded $150.5 million, with automotive driver sales outperforming guidance. Non-driver sales reached $39.6 million, a 12.8% decrease from the previous quarter. Himax's first-quarter operating expenses were $45.7 million, with operating income of $19.8 million or 9.2% of sales. The company reported a $20.0 million after-tax profit, with a strong operating cash flow of $56 million. For Q2 2025, Himax anticipates a revenue change of -5.0% to +30% sequentially, with a gross margin around 31% and profit per diluted ADS between 8.5 cents and 11.5 cents.Himax Technologies Financial Statement Overview
Summary
Himax Technologies displays solid profitability with an improved net profit margin and stable debt levels. However, declining revenue and free cash flow growth are notable concerns that weigh down the financial performance score.Income Statement
Himax Technologies showed a decline in revenue over the past two years, with a revenue decrease of 4.08% from 2023 to 2024. The gross profit margin improved to 30.46% in 2024. The net profit margin increased to 8.8%, reflecting better cost management. EBIT margin improved to 7.53% in 2024, while the EBITDA margin was 9.99%. Despite recent improvements, the revenue growth trend is concerning.65
Positive
Balance Sheet
The debt-to-equity ratio remained stable at 0.60, indicating moderate leverage. Return on equity (ROE) improved to 8.96%, showing better profitability. The equity ratio stood at 54.30%, indicating a strong equity base. Overall, the balance sheet shows financial stability with a healthy equity position, though attention to debt levels is needed.72
Positive
Cash Flow
Free cash flow decreased by 20.38% from 2023 to 2024, while operating cash flow to net income ratio was 1.45, indicating good cash generation relative to earnings. The free cash flow to net income ratio was 1.29. The cash flow position remains strong, though the decline in free cash flow growth is a concern.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 906.80M | 945.43M | 1.20B | 1.55B | 887.28M | Gross Profit |
| 276.20M | 263.50M | 487.11M | 748.58M | 220.78M | EBIT |
| 68.22M | 43.21M | 257.59M | 545.02M | 57.93M | EBITDA |
| 90.58M | 58.65M | 273.80M | 561.81M | 82.98M | Net Income Common Stockholders |
| 79.75M | 50.62M | 236.98M | 436.90M | 47.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 224.57M | 206.38M | 229.90M | 364.38M | 201.42M | Total Assets |
| 1.64B | 1.64B | 1.70B | 1.60B | 909.82M | Total Debt |
| 541.91M | 498.14M | 415.80M | 203.90M | 162.50M | Net Debt |
| 323.76M | 306.39M | 194.22M | -132.12M | -22.44M | Total Liabilities |
| 743.19M | 779.70M | 807.94M | 731.21M | 424.62M | Stockholders Equity |
| 890.06M | 856.77M | 892.57M | 869.72M | 480.18M |
| Cash Flow | Free Cash Flow | |||
| 102.92M | 129.35M | 70.78M | 380.25M | 96.74M | Operating Cash Flow |
| 115.98M | 152.84M | 82.91M | 388.28M | 102.61M | Investing Cash Flow |
| -516.00K | -88.88M | 15.00M | -232.68M | -22.36M | Financing Cash Flow |
| -88.22M | -93.59M | -211.07M | -4.49M | 3.26M |
Himax Technologies Technical Analysis
Positive
8.88
Price Trends
7.63
Positive
8.54
Positive
7.44
Positive
Market Momentum
0.32
Negative
61.57
Neutral
70.48
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 8.88 is above the 20-day moving average (MA) of 8.53, above the 50-day MA of 7.63, and above the 200-day MA of 7.44, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 70.48 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.09B | 11.92 | 18.45% | ― | -15.14% | -28.30% | |
76 Outperform | $1.56B | 15.58 | 12.21% | ― | 26.21% | 17.34% | |
74 Outperform | $1.22B | 19.20 | 8.68% | ― | 3.30% | ― | |
73 Outperform | $1.55B | 17.72 | 9.79% | 3.26% | 0.61% | 80.97% | |
70 Outperform | $2.26B | 23.97 | 12.33% | 2.97% | 10.78% | 58.82% | |
69 Neutral | $1.10B | 9.55 | 11.23% | ― | -3.19% | -11.06% | |
62 Neutral | $11.80B | 10.10 | -7.47% | 2.99% | 7.37% | -8.16% |
* Technology Sector Average
Performance Comparison
HIMX
Himax Technologies
8.88
2.42
37.46%
ACLS
Axcelis Technologies
65.07
-72.95
-52.85%
PLAB
Photronics
18.36
-6.78
-26.97%
SIMO
Silicon Motion
66.96
-13.32
-16.59%
VECO
Veeco
20.43
-26.75
-56.70%
ACMR
ACM Research
24.37
0.68
2.87%
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.