HIMX  Himax Technologies Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

1.75B

Vuru Grade

42.27/100

Current Price

$9.50
-0.66 (-6.50%)

Growth Price

$5.08
Overvalued by 46.51%

Stability Price

$2.71
Overvalued by 71.50%

Company Metrics

  • P/E 93.39
  • P/S 2.53
  • P/B 4.3
  • EPS 0.11
  • Cash ROIC 17.13%
  • Cash Ratio 0.60
  • Dividend 0.24 / 2.31%
  • Avg. Vol. 4.75M
  • Shares 184.21M
  • Market Cap. 1.75B

Company Description

Himax Technologies, Inc., together with its subsidiaries, designs, develops, and markets semiconductors for flat panel displays. Its products include display drivers and timing controllers for various thin film transistor liquid crystal displays (TFT-LCD) panels, which are used in desktop monitors, notebook computers, televisions, and mobile handsets, as well as consumer electronics products compr... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why Himax Technologies Inc. (ADR) Stock Plunged Today
Motley Fool - May 12, 2016
So what: Quarterly revenue rose 1.3% sequentially and 0.7% year over year, to $180.3 million, within Himax's guidance range for revenue to be in the range of down 1% to up 4% on a sequential basis.
The Wearables Revolution: Himax Technologies - Buy The Dips, Sell The Rips - Seeking Alpha
Brean Capital Weighs In on Himax Technologies, Inc. (ADR) (HIMX) and NVIDIA ... - Smarter Analyst
Himax Technologies, Inc. Appoints JPMorgan Chase Bank as New American ...
GlobeNewswire (press release) - Jul 19, 2017
TAINAN, Taiwan, July 19, 2017 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. (Nasdaq:HIMX) (“Himax” or “Company”), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, today announced its appointment of ...
Himax Technologies, Inc. (ADR) (HIMX) Fires Back at Oppenheimer - Smarter Analyst
What do Qualcomm and Himax do?
Motley Fool - Mar 21, 2017
Better Buy: Himax Technologies, Inc. vs. Qualcomm Inc. Which unloved ... Himax's business is split into three units -- display drivers for large panels (like monitors), display drivers for small/medium panels (like tablets and smartphones), and non ...
Overbuying Activity: Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) - Post Registrar
Call Players Pounce as Oversold Himax Technologies, Inc. (HIMX) Snaps Back
Schaeffers Research (blog) - Dec 15, 2016
Semiconductor stock Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) has made some sharp moves on the charts today, after brokerage firm Nomura cut its price target to $7.70 from $9.
Vetr Downgrades Himax After Price Rebounds
Benzinga - Sep 11, 2017
The Vetr crowd on Monday downgraded its rating on Himax Technologies, Inc. (ADR) (NASDAQ: HIMX) from 4.5 stars (Strong Buy), issued two days ago, to 3.5 stars (Buy).
Rosenblatt Raises Red Flags on Himax Technologies, Inc. (ADR) (HIMX)
Smarter Analyst - Jul 21, 2017
TV shipment cuts - “We believe TV inventory levels were around eight weeks by the end of June and will continue to negatively impact TV panel shipments in Q3.
Oppenheimer Sees Himax Technologies, Inc. (ADR) (HIMX) as an Overvalued Stock ...
Smarter Analyst - Sep 7, 2017
Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) has Oppenheimer analyst Andrew Uerkwitz musing nostalgically about the Taiwanese fabless semiconductor firm whose hyper growth prospects have yet to ever show up to the table.
Call Volume Peaks on Booming Himax Technologies Stock - Schaeffers Research (blog)
What's Ahead for Himax Technologies, Inc. (ADR) (HIMX) After Today's Big Increase? - Weekly Register
Himax Technologies, Inc. (ADR) (HIMX) Partnership With QUALCOMM, Inc. (QCOM ...
Smarter Analyst - Aug 31, 2017
Upon formalizing its partnership on the 3D sensing camera with QUALCOMM, Inc. (NASDAQ:QCOM), excited shareholders pushed Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) stock 6% northward yesterday with a continued rise of 5% this morning.
Himax Technologies Higher For Fifth Day In A Row - Benzinga
Today Himax Technologies, Inc. (ADR) (HIMX) Stock Rises - WeeklyHub
Himax: Oppenheimer Report 'Inaccurate, Misleading'
Benzinga - Jul 14, 2017
In response to negative ratings by Oppenheimer analyst Andrew Uerkwitz, Himax Technologies, Inc. (ADR) (NASDAQ: HIMX) told Benzinga Uerkwitz's Friday report is “inaccurate and misleading.
Jim Cramer Weighs In On Himax Technologies And Ferrari
Benzinga - Aug 8, 2017
Jim Cramer said on CNBC's "Mad Money" that Himax Technologies, Inc. (ADR) (NASDAQ: HIMX) sells at incredibly high price-to-earnings ratio in a market that doesn't tolerate that.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for HIMX to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate HIMX's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$9.50 Current Price

$5.08 Growth Price (DCF)

Overvalued by 46.51%


Growth Rate Assumed by Market: 23.32%


Future Free Cash Flow Growth Rate: -1.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$2.71 Stability Price (EPV)

Overvalued by 71.50%


Discount Rate: 15.0%

$2.01 NCA Price

Overvalued by 78.80%

$5.78 Book Price

Overvalued by 39.15%


Excellent Cash Return on Invested Capital over the past 5 years

HIMX has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

HIMX has created $17.13 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 45.61M 32.71M 82.79M 12.55M 76.77M
divided by
Invested Capital 293.57M 327.39M 289.75M 301.27M 280.28M
Cash ROIC 15.54% 9.99% 28.57% 4.16% 27.39%

Shrinking Return on Equity over the past 5 years

HIMX has been shrinking returns with capital that shareholders have invested. This is a negative sign and demonstrates that both the business and management performance are weakening over time.

HIMX has generated $10.60 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 50.14M 55.92M 63.90M 21.46M 48.75M
divided by
Stockholders' Equity 427.94M 449.82M 472.62M 438.70M 467.73M
Return on Equity 11.72% 12.43% 13.52% 4.89% 10.42%

Excellent Business Performance over the past 10 years

HIMX has been able to maintain profitability in good times and bad. This could mean HIMX has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

HIMX has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 58.16M 119.01M 63.04M 50.46M 24.59M 45.61M 32.71M 82.79M 12.55M 76.77M

Good Balance Sheet

HIMX's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 109.99M 149.07M 121.65M 105.47M 106.33M 138.91M 128.11M 187.84M 148.34M 194.61M
Current Assets 538.27M 434.65M 423.80M 485.92M 515.71M 567.09M 639.66M 729.58M 697.84M 702.97M
Total Assets 652.76M 565.55M 550.45M 619.62M 644.98M 674.60M 759.33M 832.99M 802.34M 799.63M
Current Liabilities 185.60M 91.63M 120.65M 205.75M 245.36M 242.12M 303.83M 355.41M 352.73M 324.75M
Total Liabilities 201.45M 102.38M 131.00M 213.74M 251.54M 246.66M 309.50M 360.37M 363.63M 331.90M
Stockholder' Equity 451.31M 463.17M 419.45M 405.88M 393.44M 427.94M 449.82M 472.62M 438.70M 467.73M
Current Ratio 2.90 4.74 3.51 2.36 2.10 2.34 2.11 2.05 1.98 2.16
TL-to-TA 0.31 0.18 0.24 0.34 0.39 0.37 0.41 0.43 0.45 0.42

Low or No Reinvestment of Profits over the past 10 years

HIMX has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to HIMX operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 215.40M 224.97M 209.12M 198.23M 187.71M 228.63M 247.71M 268.27M 237.38M 265.86M
Retained Earnings Growth - 4.44% -7.04% -5.21% -5.31% 21.80% 8.35% 8.30% -11.52% 12.00%

Competitive Industry over the past 10 years

HIMX is likely operating in an industry with medium to low barriers to entry. This may mean that HIMX doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that HIMX invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.49 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 112.60M 76.38M 39.65M 33.21M 10.71M 50.14M 55.92M 63.90M 21.46M 48.75M
divided by
Revenue 918.21M 832.80M 692.38M 642.69M 633.02M 737.26M 770.74M 840.54M 691.79M 802.92M
Net Profit Margin 12.26% 9.17% 5.73% 5.17% 1.69% 6.80% 7.26% 7.60% 3.10% 6.07%

Inconsistent Gross Profit Margins over the past 10 years

HIMX has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$29.58 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 202.05M 204.11M 141.83M 135.05M 553.98M 170.56M 191.85M 205.88M 163.14M 194.31M
divided by
Revenue 918.21M 832.80M 692.38M 642.69M 633.02M 737.26M 770.74M 840.54M 691.79M 802.92M
Gross Margin 22.00% 24.51% 20.48% 21.01% 87.51% 23.13% 24.89% 24.49% 23.58% 24.20%

Medium Capital Intensity over the past 10 years

HIMX has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

39.01% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 19.00M 17.49M 10.59M 7.17M 18.86M 6.56M 18.41M 10.93M 9.98M 7.90M
divided by
Net Income 112.60M 76.38M 39.65M 33.21M 10.71M 50.14M 55.92M 63.90M 21.46M 48.75M
Capital Expenditure Ratio 16.87% 22.90% 26.71% 21.60% 176.15% 13.08% 32.92% 17.11% 46.51% 16.21%

Very Strong Dividend History over the past 10 years

HIMX has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests HIMX is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 39.71M 66.82M 55.50M 44.10M 21.22M 10.68M 42.39M 46.04M 51.36M 22.35M
divided by
Shares Outstanding 197.54M 191.88M 370.23M 355.69M 176.91M 170.76M 171.81M 172.00M 171.79M 172.36M
Dividend Paid Per Share 0.20 0.35 0.15 0.12 0.12 0.06 0.25 0.27 0.30 0.13
Price at Year End 3.13 1.15 2.45 2.05 1.00 2.37 14.17 8.04 8.33 6.04
Dividend Yield 6.42% 30.28% 6.12% 6.05% 12.00% 2.64% 1.74% 3.33% 3.59% 2.15%

History of Stock Buybacks over the past 10 years

HIMX has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 197.54M 191.88M 370.23M 355.69M 176.91M 170.76M 171.81M 172.00M 171.79M 172.36M
Stock Bought Back - 2.95% -48.17% 4.09% 101.05% 3.60% -0.61% -0.11% 0.12% -0.33%
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