Himax Technologies (HIMX) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: 4.48%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 29.7
• Beta (1Y): 2.02
• Revenue Growth: -3.62%
• EPS Growth: -20.33%
• Country: US
• Employees: 2,177
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.04
• Shares Outstanding: 174,913,400
• 10 Day Avg. Volume: 1,044,398
• 30 Day Avg. Volume: 1,018,111
• PEG Ratio: -0.75
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 11.92
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 14.12
• 1Y Price Target: $9.00
• Price Target Upside: 19.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.33
• Revenue Forecast (FY): $819.80M

• Rating: 55 Neutral
• Price Target: $8.00 ▲(6.52% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

HIMX scores mid-range primarily due to stable-but-muted financial performance (still profitable with positive free cash flow, but multi-year revenue/margin compression and higher leverage) and weak technicals (below key moving averages with negative momentum). Valuation is balanced by a solid dividend yield but a high P/E for the current earnings trend, while the latest earnings call suggests near-term softness with a potential rebound later in 2026 and longer-term upside from strategic products.

Positive Factors

Strong Free Cash Flow

Consistent positive free cash flow (~$120M in 2025) and operating cash inflow (~$140M) provide durable financial flexibility. Over the next 2–6 months this supports ongoing R&D, sample/validation programs and dividend/capex needs without immediate reliance on equity markets, cushioning cyclicality.

Automotive Market Leadership

Leading share in automotive DDIC/TDDI and many design wins create higher‑visibility, durable revenue streams versus consumer cyclicality. Automotive design cycles and OEM qualifications produce longer product lifecycles and stickier revenue, supporting margin and volume stability in the medium term.

Strategic CPO and AI product pipeline

Progress on co‑packaged optics (Gen‑2 CPO), WiseEye AI and microdisplay programs represent structural diversification into higher-growth, higher-value markets. Validation in 2026 and potential meaningful 2027 revenue could materially improve product mix and long‑term margins beyond commodity driver ICs.

Negative Factors

Multi-year Revenue and Margin Compression

Material revenue decline since 2021 and compressed net margins signal waning pricing power and weaker end‑market demand. Over the next several quarters this limits internal funding for growth initiatives and raises dependency on successful product launches to restore scale and profitability.

Rising Leverage

Leverage has increased meaningfully versus prior cycles, reducing balance‑sheet flexibility. Elevated debt levels raise interest and refinancing risk and constrain the ability to invest or absorb further downside in a cyclical downturn over the coming 2–6 months without slowing other investments or altering capital return policies.

Cost and Working Capital Pressures

Rising commodity and foundry costs, plus elevated inventory and DSO, create persistent margin risk and working‑capital strain. These headwinds can compress gross and operating margins and limit cash conversion in the medium term unless offset by price pass‑throughs or improved mix.

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 semiconductor products, particularly display drivers and related components. The company's key revenue streams include the sale of driver ICs for LCD and OLED displays, touch controllers, and image sensors. Himax serves a diverse customer base, including major manufacturers in the consumer electronics, automotive, and industrial sectors. Additionally, the company benefits from strategic partnerships with technology firms and OEMs that integrate its products into their devices. The growth in demand for advanced display technologies, especially in smartphones, tablets, and automotive displays, drives significant revenue for Himax, along with the increasing trend of display integration and miniaturization in electronic devices.

Himax Technologies Financial Statement Overview

Summary

Financials are adequate but still downcycle-pressured: revenue has contracted materially since 2021 and net margin fell to ~5% in 2025 despite remaining profitable. Free cash flow is positive (~$120M in 2025) with healthy cash conversion, but FCF declined again in 2025. The balance sheet remains generally sound (equity-supported), though leverage has risen versus 2021, reducing flexibility.

Income Statement

Profitability has normalized materially versus the 2021–2022 peak: revenue declined from $1.55B (2021) to $832M (2025) and margins compressed (gross margin ~31% in 2024–2025 vs ~48% in 2021). Net income remains positive ($44M in 2025), but net margin fell to ~5% (from ~9% in 2024 and ~28% in 2021), indicating weaker pricing/power and/or less favorable mix. A positive is that gross margin has been relatively steady around ~30% in the last two years, suggesting some stabilization even as growth remains challenged.

Balance Sheet

The balance sheet looks generally sound with equity of ~$893M against total debt of ~$597M (debt-to-equity ~0.67 in 2025). However, leverage has trended up meaningfully from 2021 (debt-to-equity ~0.24) as debt rose while earnings cooled, reducing financial flexibility compared with the prior cycle. Returns on equity also moderated to ~4.9% in 2025 (down from ~8.9% in 2024 and far below 2021–2022), but the company still maintains a solid equity base relative to total assets (~$1.74B).

Cash Flow

Cash generation is positive and relatively consistent: operating cash flow was $140M and free cash flow was ~$120M in 2025, with free cash flow running at ~86% of net income—healthy cash conversion. The main weakness is growth: free cash flow declined in 2024 and again in 2025 (2025 free cash flow growth -13.7%), indicating the downcycle is still pressuring cash expansion. Operating cash flow relative to revenue is also modest (~17–22% across 2023–2025), which is workable but not robust for a semiconductor name when compared to peak-cycle years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	832.17M	906.80M	945.43M	1.20B	1.55B
Gross Profit	254.36M	276.20M	263.50M	487.11M	748.58M
EBITDA	66.67M	90.58M	58.65M	300.69M	567.01M
Net Income	43.94M	79.75M	50.62M	236.98M	436.90M
Balance Sheet
Total Assets	1.74B	1.64B	1.64B	1.70B	1.60B
Cash, Cash Equivalents and Short-Term Investments	854.52M	224.57M	206.38M	229.90M	364.38M
Total Debt	596.77M	545.36M	498.14M	420.02M	208.50M
Total Liabilities	832.88M	743.19M	779.70M	807.94M	731.21M
Stockholders Equity	893.39M	890.06M	856.77M	892.57M	869.72M
Cash Flow
Free Cash Flow	119.90M	102.77M	129.35M	70.78M	380.25M
Operating Cash Flow	140.03M	115.98M	152.84M	82.91M	388.28M
Investing Cash Flow	-20.35M	-516.00K	-88.88M	15.00M	-232.68M
Financing Cash Flow	-80.74M	-88.22M	-93.59M	-211.07M	-4.49M

Himax Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.51 is below the 20-day moving average (MA) of 7.93, below the 50-day MA of 8.24, and below the 200-day MA of 8.40, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 18.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIMX.

Himax Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAB	74 Outperform	$2.22B	16.27	11.89%	―	-2.04%	8.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VECO	61 Neutral	$1.77B	34.97	6.12%	―	-3.90%	-41.66%
MXL	56 Neutral	$1.60B	-11.53	-28.23%	―	7.53%	22.97%
HIMX	55 Neutral	$1.31B	29.73	4.95%	4.48%	-3.62%	-20.33%
UCTT	53 Neutral	$2.49B	-16.07	-20.61%	―	6.65%	-4652.36%
NVTS	48 Neutral	$1.86B	-12.63	-33.25%	―	-38.06%	-50.14%

Himax Technologies Corporate Events

Himax Technologies Posts Solid Q4 2025, Sees Q1 2026 as Earnings Trough Before Rebound

Himax Technologies reported fourth-quarter 2025 revenue of $203.1 million, up 2% sequentially and ahead of guidance, with gross margin at 30.4% and earnings of 3.6 cents per diluted ADS at the top end of its forecast range. For full year 2025, revenue fell 8.2% to $832.2 million amid weak consumer electronics demand and cautious panel customers, though gross margin held at 30.6% and non-driver product sales grew 7%, lifting their share of total revenue to 20%.

The company guided first-quarter 2026 revenue to decline 2%–6% quarter on quarter, with flat to slightly lower gross margin and profit of 2–4 cents per diluted ADS, and said it expects Q1 to mark the trough for the year before a rebound from Q2 driven by lean customer inventories and new automotive projects entering mass production. Despite limited near-term visibility in the automotive sector, Himax highlighted resilient automotive driver IC growth, dominant share in automotive Tcon, and accelerating WiseEye AI and smart glasses opportunities as key long-term growth drivers that should improve its product mix and profitability and reinforce its competitive position.

The most recent analyst rating on (HIMX) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Himax Technologies stock, see the HIMX Stock Forecast page.