Himax Technologies (HIMX) AI Stock Analysis

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Himax Technologies

(NASDAQ:HIMX)

63Neutral

Himax Technologies scores moderately, driven by robust profitability and a strong balance sheet. However, declining revenues and technical weakness dampen the outlook. Positive earnings call highlights in automotive and non-driver ICs provide optimism, but challenges in large display drivers and revenue declines weigh on the overall score.

Positive Factors

AR technology advancements

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 sector growth

Automotive remains the company's largest revenue contributor currently, accounting for almost half of 2024 revenue and growing 20% YoY.

Higher-margin diversification

Higher-margin diversification opportunities remain promising, having outpaced driver product sales and tracking up high single digit versus declines in the core business.

Negative Factors

Revenue decline

3Q24 revenue was $222.4 million, down 7.2% QoQ.

Himax Technologies (HIMX) vs. S&P 500 (SPY)

Market Cap

$1.13B

Dividend Yield4.33%

Average Volume (3M)2.10M

Price to Earnings (P/E)14.2

Beta (1Y)1.93

Revenue Growth-4.43%

EPS Growth57.01%

CountryUS

Employees2,177

SectorTechnology

Sector Strength45

IndustrySemiconductors

Share Statistics

EPS (TTM)0.46

Shares Outstanding174,913,400

10 Day Avg. Volume1,675,336

30 Day Avg. Volume2,104,236

Financial Highlights & Ratios

PEG Ratio0.25

Price to Book (P/B)N/A

Price to Sales (P/S)6.49

Price to Cash Flow (P/CF)N/A

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

$15.00

Price Target Upside138.85% 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 shows solid profitability and cash flow metrics, though declining revenues and free cash flow growth are notable risks. The company maintains a strong balance sheet with adequate equity and manageable debt levels, but reversing revenue decline and enhancing cash flow growth is essential.

Income Statement

Positive

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

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price6.28

Price Trends

50DMA

8.55

Negative

100DMA

8.29

Negative

200DMA

7.20

Negative

Market Momentum

MACD

-0.63

Negative

RSI

36.68

Neutral

STOCH

65.23

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIMX, the sentiment is Negative. The current price of 6.28 is below the 20-day moving average (MA) of 6.95, below the 50-day MA of 8.55, and below the 200-day MA of 7.20, indicating a bearish trend. The MACD of -0.63 indicates Negative momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 65.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACMR	76 Outperform	$1.22B	12.72	12.40%	―	40.23%	29.40%
PLAB	75 Outperform	$1.12B	7.49	13.70%	―	-3.85%	5.95%
ACLS	73 Outperform	$1.44B	7.29	21.41%	―	-9.97%	-17.87%
VECO	70 Neutral	$1.04B	14.60	10.43%	―	7.63%	―
SIMO	69 Neutral	$1.32B	14.57	12.01%	5.07%	25.18%	69.11%
HIMX	63 Neutral	$1.13B	14.20	9.11%	4.33%	-4.43%	57.01%
Sector *	58 Neutral	$10.03B	10.00	-6.85%	3.09%	7.49%	-11.58%

* Technology Sector Average

Performance Comparison

HIMX

Himax Technologies

6.28

1.56

33.05%

ACLS

Axcelis Technologies

45.23

-51.73

-53.35%

PLAB

Photronics

17.69

-7.99

-31.11%

SIMO

Silicon Motion

38.95

-31.13

-44.42%

VECO

Veeco

17.61

-15.13

-46.21%

ACMR

ACM Research

18.40

-7.35

-28.54%

Himax Technologies Earnings Call Summary

Earnings Call Date: Feb 13, 2025 | % Change Since: -31.29% | Next Earnings Date: May 8, 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.

Highlights

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.

Lowlights

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.