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Himax Technologies (HIMX)
NASDAQ:HIMX
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Himax Technologies
(NASDAQ:HIMX)
69Neutral
Positive Factors
AR Technology
There is a renewed enthusiasm for AR glasses, where Himax is well positioned with its LCos micro displays, WLO waveguide, and WiseEye AI solutions.
Automotive Market
Automotive remains the company's largest revenue contributor currently, accounting for almost half of 2024 revenue and growing 20% YoY.
CPO and AR Opportunities
Co-Packed Optics and AR opportunities, which reach to the core of Himax's technology capabilities, represent secular growth vectors making Himax worth revisiting as a medium-term speculative investment.
Partnerships
Himax, via its partnership with FOCI, is engaged with multiple hyperscalers for CPO solutions and is now in small volume production, addressing surging bandwidth needs.
Negative Factors
Core Business Decline
Higher-margin diversification opportunities remain promising, having outpaced driver product sales since 2022 with revenue tracking up high-single-digit this year versus declines in the core business.
Revenue Performance
3Q24 revenue was $222.4 million, down 7.2% QoQ.
Himax Technologies (HIMX) vs. S&P 500 (SPY)
Market Cap
$1.32B
Dividend Yield3.64%
Average Volume (3M)1.60M
Price to Earnings (P/E)16.9
Beta (1Y)1.96
Revenue Growth-4.43%
EPS Growth57.01%
CountryUS
Employees2,177
SectorTechnology
Sector Strength66
IndustrySemiconductors
Share Statistics
EPS (TTM)0.46
Shares Outstanding174,913,400
10 Day Avg. Volume1,102,682
30 Day Avg. Volume1,596,664
Financial Highlights & Ratios
PEG Ratio0.30
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 Cap0.61
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.89
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.00Price Target Upside95.06% 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 through the sale of its integrated circuit products, primarily display driver ICs and timing controllers. These components are essential for the functionality of various digital displays across different devices. The company serves a diverse customer base, including manufacturers of consumer electronics such as smartphones, tablets, and TVs, as well as automotive display makers. Revenue streams are further bolstered by partnerships with manufacturers and technology companies that integrate Himax's solutions into their products. Additionally, the company may engage in licensing its technologies and intellectual property, providing another source of revenue. Himax's earnings are influenced by factors such as the demand for consumer electronics, technological advancements in display technologies, and strategic partnerships with major electronics manufacturers.
Himax Technologies Financial Statement Overview
Summary
Himax Technologies displays solid profitability and cash flow metrics, but declining revenues and free cash flow growth are notable risks. Despite this, the company maintains a strong balance sheet with adequate equity and manageable debt levels. Continued attention to reversing revenue decline and enhancing cash flow growth is essential for future performance.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.―
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
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.―
| 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 |
| 538.20M | 498.14M | 415.80M | 203.90M | 162.50M | Net Debt |
| 320.05M | 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
7.69
Price Trends
7.97
Negative
8.42
Negative
7.15
Positive
Market Momentum
-0.14
Negative
58.15
Neutral
86.24
Negative
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 7.69 is above the 20-day moving average (MA) of 6.64, below the 50-day MA of 7.97, and above the 200-day MA of 7.15, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 58.15 is Neutral, neither overbought nor oversold. The STOCH value of 86.24 is Negative, 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.22B | 8.15 | 13.70% | ― | -3.85% | 5.95% | |
75 Outperform | $1.26B | 13.09 | 12.40% | ― | 40.23% | 29.40% | |
70 Outperform | $1.79B | 19.88 | 12.33% | 3.72% | 10.78% | 58.82% | |
70 Neutral | $1.14B | 16.00 | 10.43% | ― | 7.63% | ― | |
69 Neutral | $1.32B | 16.88 | 9.11% | 3.64% | -4.43% | 57.01% | |
67 Neutral | $1.68B | 8.51 | 21.41% | ― | -9.97% | -17.87% | |
60 Neutral | $10.94B | 10.48 | -7.04% | 2.99% | 7.55% | -12.20% |
* Technology Sector Average
Performance Comparison
HIMX
Himax Technologies
7.69
2.69
53.80%
ACLS
Axcelis Technologies
52.30
-61.13
-53.89%
PLAB
Photronics
19.22
-9.81
-33.79%
SIMO
Silicon Motion
53.51
-22.48
-29.58%
VECO
Veeco
19.67
-17.82
-47.53%
ACMR
ACM Research
19.93
-7.82
-28.18%
Himax Technologies Earnings Call Summary
Earnings Call Date:Feb 13, 2025
(Q4-2024)
| % Change Since: -15.86%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong performance in key segments such as automotive and non-driver ICs, while facing challenges in large display driver revenues and overall annual revenue decline. The outlook for Q1 2025 indicates a seasonal decline but maintains a positive long-term view in automotive and advanced technologies.Q4-2024 Updates
Positive Updates
Surpassing Q4 Guidance
Q4 2024 revenues, gross margin, and profit all surpassed guidance. Revenues registered $237.2 million, a 6.7% increase sequentially and a 4.2% increase year-over-year.
Strong Automotive Segment Performance
Automotive driver sales, including both traditional DDIC and TDDI, experienced mid-teens increase. Automotive TDDI sales exceeded DDIC sales for the first time, highlighting global adoption.
Non-driver Sales Growth
Q4 non-driver sales reached $45.4 million, a 24.9% increase from the previous quarter, driven by a onetime Tcon product shipment.
Revenue Growth in Automotive IC
Automotive IC sales increased by nearly 20% year-over-year in 2024, outpacing the overall automotive market growth.
Strong Cash Flow and Inventory Management
Achieved a strong positive operating cash flow of $35.4 million for Q4, with inventory levels steadily declining to a healthy level.
Negative Updates
Decline in Large Display Drivers Revenue
Revenue for large display drivers came in at $25 million, reflecting an 18.6% sequential decline due to customer destocking and price competition.
Overall Revenue Decline for 2024
Total revenues for 2024 were $906.8 million, a slight decline of 4.1% compared to 2023, attributed to global demand weakness.
Q1 2025 Revenue Guidance Decrease
First quarter 2025 revenues expected to decrease by 8.5% to 12.5% sequentially due to low seasonal demand from Lunar New Year holidays.
Challenges in Large Panel Display Drivers
Revenue for large panel display drivers decreased by 28.3% year-over-year, representing a shrinking percentage of total sales.
Company Guidance
During the Himax Technologies Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided guidance indicating robust financial performance that exceeded previous expectations. The fourth quarter revenues were reported at $237.2 million, marking a 6.7% sequential increase and a 4.2% year-over-year rise. The gross margin reached 30.5%, surpassing the guidance of flat to slightly up from 30%, and the profit per diluted ADS was $0.14, above the guidance range of $0.09 to $0.11. The automotive business was highlighted as a strong performer, accounting for around 50% of total Q4 revenues, driven by mid-teens increases in automotive driver sales. For the first quarter of 2025, Himax expects revenues to decrease by 8.5% to 12.5% sequentially due to seasonal demand changes, but anticipates a gross margin of around 30.5% and a year-over-year profit increase of 26% to 54%. The company remains optimistic about its automotive and non-driver product lines, as well as emerging technologies like Co-Packaged Optics (CPO) and WiseEye AI, which are expected to drive future growth.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.