Infineon (IFNNY) AI Stock Analysis

Compare

562 Followers

IFNNY Dividends

Top Page

Infineon

(OTC:IFNNY)

71Outperform

Infineon's overall stock score of 71 reflects its strong profitability and solid balance sheet, tempered by challenges in cash flow and valuation concerns. The company shows robust performance in automotive and AI sectors, but faces risks from geopolitical and tariff uncertainties. The technical indicators suggest positive momentum, although the high P/E ratio calls for valuation caution.

Infineon (IFNNY) vs. S&P 500 (SPY)

Market Cap

$43.39B

Dividend Yield0.7%

Average Volume (3M)32.83K

Price to Earnings (P/E)44.4

Beta (1Y)1.45

Revenue Growth-8.53%

EPS Growth-68.71%

CountryUS

Employees58,065

SectorTechnology

Sector Strength67

IndustrySemiconductors

Share Statistics

EPS (TTM)0.38

Shares Outstanding1,305,921,100

10 Day Avg. Volume0

30 Day Avg. Volume32,834

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$56.51

Price Target Upside59.45% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Infineon 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 makes money primarily through the design, manufacturing, and sale of semiconductors and related products. The company generates revenue from several key business segments: Automotive, Industrial Power Control, Power & Sensor Systems, and Connected Secure Systems. The Automotive segment is a significant revenue driver, capitalizing on the growing demand for semiconductors in the electric and connected vehicle markets. Industrial Power Control focuses on power semiconductors used in energy-efficient industrial applications, including renewable energy systems. The Power & Sensor Systems segment provides products for power management and sensing solutions in consumer and industrial applications. Connected Secure Systems delivers security and connectivity solutions for smart card applications and embedded security. Infineon also benefits from strategic partnerships and collaborations with major tech firms and automotive companies, enhancing its market reach and technological capabilities.

Infineon Financial Statement Overview

Summary

Infineon's financial performance reflects strong profitability with robust margins and a stable balance sheet, characterized by low leverage. However, the company faces challenges in cash flow management, notably a significant decline in free cash flow. This suggests a need for improved operational efficiency and cost control to sustain long-term growth.

Income Statement

Positive

Infineon's TTM (Trailing-Twelve-Months) revenue shows a slight decline compared to the previous annual period, indicating a marginal drop in top-line growth. The gross profit margin is strong at approximately 39.6%, and the net profit margin is healthy at 6.5%. However, both EBIT and EBITDA margins have decreased, suggesting rising operational costs. Overall, the income statement reflects a solid profitability position, but with potential cost challenges.

Balance Sheet

Positive

The company's balance sheet is robust, with a debt-to-equity ratio of 0.29, indicating a conservative leverage position. The equity ratio stands at 61.3%, showcasing strong shareholder equity backing. Return on Equity (ROE) is modest at 5.3%, which suggests room for efficiency improvements. Overall, Infineon maintains a stable financial position with low leverage risk.

Cash Flow

Positive

Infineon's cash flow statement indicates a drop in free cash flow, with a growth rate of -30.8% compared to the previous year. The operating cash flow to net income ratio is strong, showing good cash conversion efficiency. However, the free cash flow to net income ratio is relatively low, indicating potential pressure on liquidity. Despite solid operational cash generation, the decrease in free cash flow warrants attention.

Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
14.96B	16.31B	14.22B	11.06B	8.57B
	Gross Profit
6.07B	7.41B	6.13B	4.26B	2.78B
	EBIT
2.19B	3.95B	2.85B	1.47B	581.00M
	EBITDA
4.18B	5.83B	4.53B	2.99B	1.81B
	Net Income Common Stockholders
1.30B	3.14B	2.18B	1.17B	368.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.20B	3.59B	3.72B	3.92B	3.23B
	Total Assets
28.64B	28.44B	26.91B	23.33B	22.00B
	Total Debt
5.17B	5.11B	6.05B	6.92B	7.33B
	Net Debt
3.36B	3.29B	4.61B	5.17B	5.48B
	Total Liabilities
11.42B	11.39B	11.97B	11.93B	11.78B
	Stockholders Equity
17.22B	17.04B	14.94B	11.40B	10.22B
Cash Flow		Free Cash Flow
61.00M	966.00M	1.67B	1.57B	712.00M
	Operating Cash Flow
2.78B	3.96B	3.98B	3.06B	1.81B
	Investing Cash Flow
-2.17B	-2.26B	-2.44B	-2.28B	-7.17B
	Financing Cash Flow
-615.00M	-1.30B	-1.87B	-885.00M	6.27B

Infineon Technical Analysis

Technical Analysis Sentiment

Positive

Last Price35.44

Price Trends

50DMA

34.11

Positive

100DMA

34.68

Positive

200DMA

33.88

Positive

Market Momentum

MACD

0.36

Negative

RSI

59.50

Neutral

STOCH

81.75

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IFNNY, the sentiment is Positive. The current price of 35.44 is above the 20-day moving average (MA) of 32.20, above the 50-day MA of 34.11, and above the 200-day MA of 33.88, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 59.50 is Neutral, neither overbought nor oversold. The STOCH value of 81.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IFNNY.

Infineon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXPI	73 Outperform	$47.53B	20.29	26.02%	2.15%	-7.21%	-15.29%
IFNNY	71 Outperform	$43.39B	44.36	8.74%	0.70%	-8.53%	-68.71%
STM	70 Outperform	$20.38B	19.57	6.33%	1.32%	-25.35%	-70.00%
MCHP	66 Neutral	$25.41B	84.25	>-0.01%	3.69%	-44.31%	-86.74%
ON	65 Neutral	$16.09B	26.71	7.85%	―	-18.28%	-70.98%
MRVL	62 Neutral	$52.88B	―	-6.26%	0.42%	4.71%	5.57%
Sector *	60 Neutral	$10.94B	10.37	-6.73%	2.98%	7.75%	-12.61%

* Technology Sector Average

Performance Comparison

IFNNY

Infineon

35.44

-5.21

-12.82%

MRVL

Marvell

59.65

-8.59

-12.59%

MCHP

Microchip

55.33

-33.95

-38.03%

NXPI

NXP Semiconductors

191.88

-65.32

-25.40%

ON Semiconductor

40.98

-29.48

-41.84%

STM

STMicroelectronics

23.93

-16.15

-40.29%

Infineon Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q2-2025)

% Change Since: 3.05%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment with strong performance in the automotive semiconductor and AI data center markets, strategic acquisitions, and sustainability achievements. However, significant challenges include geopolitical and tariff uncertainties, struggles in the Green Industrial Power segment, currency headwinds, and potential tariff-related revenue impacts.

Q2-2025 Updates

Positive Updates

Strong Automotive Semiconductor Performance

Infineon maintained its position as the #1 global automotive semiconductor provider with a market share of 13.5%, and increased market share in automotive MCUs to 32%, becoming the global #1 across all applications.

AI Data Center Growth

Infineon confirmed its revenue prediction of EUR 600 million for AI-related products for the current year, and expects to reach EUR 1 billion next year, reflecting strong growth momentum and share gains in the AI server power solutions market.

Strategic Acquisition

Infineon announced the acquisition of Marvell's automotive Ethernet business for USD 2.5 billion, strengthening its microcontroller franchise and positioning for future software-defined vehicles.

Sustainability Achievements

Infineon's science-based target, including Scope 3 emissions, was approved by the Science Based Targets initiative, strengthening its position as a sustainability leader.

Negative Updates

Geopolitical and Tariff Uncertainty

Anticipated headwinds from newly implemented U.S. import tariffs and potential retaliatory measures are expected to impact demand, especially in the automotive sector.

Green Industrial Power Segment Challenges

The GIP segment recorded a 17% sequential revenue increase but remained 15% below last year's levels, with continued pricing pressures and underutilization charges affecting margins.

Currency Headwinds

Infineon adjusted its U.S. dollar-euro exchange rate assumption from $1.05 to $1.125, resulting in a projected EUR 400 million revenue headwind for the second half of the fiscal year.

Potential Revenue Impact from Tariffs

The company estimates a 10% revenue haircut for Q4 due to anticipated indirect demand effects from tariffs, impacting overall fiscal year guidance.

Company Guidance

During the conference call for Infineon's fiscal second quarter of 2025, the company reported revenues of EUR 3.591 billion, marking a 5% increase compared to the previous quarter. The segment result was EUR 601 million, with a segment result margin of 16.7%, consistent with the prior quarter. The automotive division achieved revenues of EUR 1.858 billion, reflecting a 6% sequential growth. The company's order backlog stood at around EUR 20 billion at the end of March. Despite challenges from geopolitical uncertainties and potential tariff impacts, Infineon revised its revenue guidance for fiscal 2025, anticipating a slight decline on an annual basis. The adjusted gross margin is expected to be around 40%, with a mid-teens segment result margin. Additionally, capital expenditures were reduced to approximately EUR 2.3 billion from an earlier estimate of EUR 2.5 billion, while free cash flow is projected at around EUR 900 million. The company continues to focus on innovation, with notable achievements in the automotive sector and AI data center power solutions.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.