Himax Technologies (HIMX) AI Stock Analysis

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Himax Technologies

(NASDAQ:HIMX)

Rating:70Neutral

Price Target:

$8.50

▲(1.19%Upside)

Himax Technologies' stock score reflects solid financial performance with good profitability and a stable balance sheet, despite concerns over declining revenue and cash flow growth. Technical indicators suggest moderate market momentum, while valuation metrics show reasonable pricing and an attractive dividend yield. The earnings call provided a mixed outlook, highlighting both growth in key areas and challenges such as sequential revenue declines and geopolitical risks.

Positive Factors

AR and CPO 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.

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.

Revenue Growth

Himax's non-driver IC business is poised to surpass traditional DDIC as the main profit driver, with expected significant revenue growth.

Negative Factors

Automotive Market Challenges

Automotive driver IC sales are expected to decline by a mid-single percentage due to waning Chinese government automotive subsidies and the impact of tariffs.

Competition and Market Conditions

Oversupply from Chinese foundries and lukewarm consumer tech demand have intensified competition, particularly in the LCD segment.

Display Revenue Declines

China panel OEMs are adopting a cautious inventory stance reflecting the tariff situation, with low visibility leading analysts to model continued revenue sequential declines in displays.

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

Market Cap

$1.51B

Dividend Yield3.41%

Average Volume (3M)1.16M

Price to Earnings (P/E)17.2

Beta (1Y)1.91

Revenue Growth0.61%

EPS Growth80.97%

CountryUS

Employees2,177

SectorTechnology

Sector Strength80

IndustrySemiconductors

Share Statistics

EPS (TTM)0.11

Shares Outstanding174,913,400

10 Day Avg. Volume1,284,132

30 Day Avg. Volume1,160,429

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)1.50

Price to Sales (P/S)0.00

P/FCF Ratio6.36

Enterprise Value/Market Cap0.65

Enterprise Value/Revenue0.27

Enterprise Value/Gross Profit3.54

Enterprise Value/Ebitda3.02

Forecast

1Y Price Target

$9.40

Price Target Upside11.90% 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: 12.45%|

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 and cash flow metrics, with improved margins and stable debt ratios. However, declining revenues and free cash flow growth are notable risks. 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

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
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

Technical Analysis Sentiment

Positive

Last Price8.40

Price Trends

50DMA

7.50

Positive

100DMA

8.47

Negative

200DMA

7.26

Positive

Market Momentum

MACD

0.29

Negative

RSI

60.24

Neutral

STOCH

57.12

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 8.4 is above the 20-day moving average (MA) of 7.99, above the 50-day MA of 7.50, and above the 200-day MA of 7.26, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 57.12 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACLS	81 Outperform	$1.87B	10.68	18.45%	―	-15.14%	-28.30%
ACMR	80 Outperform	$1.49B	14.89	12.21%	―	26.21%	17.34%
VECO	73 Outperform	$1.19B	18.59	8.68%	―	3.30%	―
SIMO	70 Outperform	$2.14B	22.76	12.33%	3.13%	10.78%	58.82%
HIMX	70 Neutral	$1.51B	17.20	9.79%	3.41%	0.61%	80.97%
PLAB	69 Neutral	$1.28B	8.81	11.23%	―	-3.19%	-11.06%
Sector *	61 Neutral	$11.51B	10.19	-6.95%	2.94%	7.57%	-9.20%

* Technology Sector Average

Performance Comparison

HIMX

Himax Technologies

8.40

2.17

34.83%

ACLS

Axcelis Technologies

57.55

-55.34

-49.02%

PLAB

Photronics

16.94

-9.78

-36.60%

SIMO

Silicon Motion

62.28

-11.44

-15.52%

VECO

Veeco

19.58

-21.67

-52.53%

ACMR

ACM Research

22.71

0.09

0.40%

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.