Himax Technologies (HIMX) AI Stock Analysis

• Market Cap: $1.65B
• Dividend Yield: 4.07%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.91
• Revenue Growth: 0.61%
• EPS Growth: 80.97%
• Country: US
• Employees: 2,177
• Sector: Technology
• Sector Strength: 96
• Industry: Semiconductors
• EPS (TTM): 0.11
• Shares Outstanding: 174,913,400
• 10 Day Avg. Volume: 955,606
• 30 Day Avg. Volume: 1,119,495
• PEG Ratio: 2.21
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.34
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 7.01
• Enterprise Value/Ebitda: 5.98
• 1Y Price Target: $9.40
• Price Target Upside: 3.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $10.50 ▲(15.38%Upside)

Himax Technologies scores moderately due to strong technical indicators and a solid valuation, balanced by mixed earnings call insights and financial performance concerns. The company's robust technical momentum and reasonable valuation are key strengths, but addressing revenue and cash flow declines remains critical for future success.

Positive Factors

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.

Market Diversification

Himax has diversified into OLED and strengthened its presence in the auto market, with rising OLED penetration expected to drive top-line growth.

Negative Factors

Market Competition

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

Revenue Decline

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

Himax Technologies Business Overview & Revenue Model

Company Description

Himax 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 Money

Himax 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 Financial Statement Overview

Summary

Himax Technologies demonstrates solid profitability and cash flow metrics, with improved margins and a stable balance sheet. However, declining revenues and free cash flow growth are notable risks, necessitating attention to reversing these trends for sustained 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.

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
EBITDA	90.58M	58.65M	273.80M	561.81M	82.98M
Net Income	79.75M	50.62M	236.98M	436.90M	47.13M
Balance Sheet
Total Assets	1.64B	1.64B	1.70B	1.60B	909.82M
Cash, Cash Equivalents and Short-Term Investments	224.57M	206.38M	229.90M	364.38M	201.42M
Total Debt	541.91M	498.14M	415.80M	203.90M	162.50M
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: Neutral
• Last Price: 9.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIMX, the sentiment is Neutral. The current price of 9.1 is below the 20-day moving average (MA) of 9.39, above the 50-day MA of 8.80, and above the 200-day MA of 7.73, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 32.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HIMX.

Himax Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACLS	84 Outperform	$2.42B	13.40	18.45%	―	-15.14%	-28.30%
ACMR	80 Outperform	$2.04B	20.45	12.21%	―	26.21%	17.34%
HIMX	74 Outperform	$1.65B	18.84	9.79%	4.07%	0.61%	80.97%
PLAB	73 Outperform	$1.27B	10.99	11.23%	―	-3.19%	-11.06%
VECO	71 Outperform	$1.30B	20.35	8.68%	―	3.30%	―
SIMO	70 Outperform	$2.58B	27.13	12.33%	2.57%	10.78%	58.82%
Sector *	63 Neutral	$34.93B	5.90	-12.00%	2.00%	5.61%	-19.55%