Himax Technologies (HIMX) AI Stock Analysis

• Market Cap: $1.62B
• Dividend Yield: 3.87%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 21.7
• Beta (1Y): 1.92
• Revenue Growth: -2.16%
• EPS Growth: -2.77%
• Country: US
• Employees: 2,177
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.10
• Shares Outstanding: 174,913,400
• 10 Day Avg. Volume: 1,081,392
• 30 Day Avg. Volume: 1,056,149
• PEG Ratio: 0.27
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 13.65
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 12.50
• 1Y Price Target: $10.00
• Price Target Upside: 4.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $9.50 ▼(-0.63% Downside)

Himax Technologies' overall score reflects solid financial performance and positive technical indicators, tempered by concerns over declining revenue and projected losses. The valuation is moderate, with a decent dividend yield. The earnings call added some uncertainty with its guidance for a revenue decline.

Positive Factors

Cash Flow Management

Himax Technologies' robust cash flow management enhances its financial flexibility, allowing it to invest in growth opportunities and weather economic uncertainties.

Automotive Sector Growth

The growth in the automotive sector underscores Himax's strong market position and potential for future revenue expansion in a key industry segment.

Non-Driver Sales Expansion

The rise in non-driver sales indicates successful diversification efforts, reducing dependence on core products and enhancing revenue stability.

Negative Factors

Revenue Decline Forecast

The anticipated revenue decline reflects potential challenges in maintaining growth momentum, which could impact long-term profitability and market position.

Projected Loss in Q3

The projected loss highlights financial pressures that may affect investor confidence and the company's ability to reinvest in strategic initiatives.

Increasing Leverage

Rising leverage could constrain financial flexibility and increase risk, especially if revenue continues to decline, impacting long-term sustainability.

Himax Technologies Business Overview & Revenue Model

Company Description

Himax Technologies, Inc. is a leading provider of display drivers and related technologies, primarily serving the consumer electronics and automotive sectors. Founded in 2001 and headquartered in Tainan, Taiwan, the company specializes in the design and manufacturing of semiconductor products such as display driver ICs, timing controllers, and specialized chips for image processing. Himax operates in several segments, including display drivers for various display technologies, automotive electronics, and augmented and virtual reality solutions.

How the Company Makes Money

Himax Technologies generates revenue primarily through the sale of semiconductor products, particularly display driver ICs that are integral to various types of displays in smartphones, tablets, and televisions. The company has established key partnerships with major display manufacturers and electronics brands, which enable it to secure significant orders and long-term contracts. Additionally, Himax earns revenue from its automotive segment, providing advanced driver assistance systems (ADAS) and other automotive electronics solutions. The company also explores growth opportunities in emerging markets like augmented and virtual reality, further diversifying its revenue streams. Seasonal demand fluctuations in consumer electronics and advancements in display technologies impact its earnings, highlighting the importance of innovation and market trends in driving revenue.

Himax Technologies Financial Statement Overview

Summary

Himax Technologies shows solid profitability and cash flow management with stable margins and a balanced capital structure. However, declining revenue growth and increasing leverage are concerns.

Income Statement

Himax Technologies has experienced declining revenue growth over the past few years, with a TTM revenue decrease of 2.62%. Despite this, the company maintains healthy gross and net profit margins at 30.51% and 8.34% respectively. The EBIT and EBITDA margins are also stable, indicating operational efficiency. However, the negative revenue growth trend is a concern for future profitability.

Balance Sheet

The company's debt-to-equity ratio stands at 0.62, reflecting moderate leverage. Return on equity is at 8.40%, which, although lower than previous years, still indicates a reasonable return for shareholders. The equity ratio is stable, suggesting a balanced capital structure. However, the increasing debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Himax Technologies shows strong free cash flow growth at 33.66% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.19, and the free cash flow to net income ratio is 0.90, both suggesting efficient cash flow management. The positive cash flow trends provide a cushion against revenue declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	889.56M	906.80M	945.43M	1.20B	1.55B	887.28M
Gross Profit	271.43M	276.20M	263.50M	487.11M	748.58M	220.78M
EBITDA	101.17M	90.58M	58.65M	300.69M	567.01M	82.98M
Net Income	74.16M	79.75M	50.62M	236.98M	436.90M	47.13M
Balance Sheet
Total Assets	1.71B	1.64B	1.64B	1.70B	1.60B	909.82M
Cash, Cash Equivalents and Short-Term Investments	332.75M	224.57M	206.38M	229.90M	364.38M	201.42M
Total Debt	536.22M	545.36M	504.88M	427.48M	208.50M	172.95M
Total Liabilities	836.85M	743.19M	779.70M	807.94M	731.21M	424.62M
Stockholders Equity	864.64M	890.06M	856.77M	892.57M	869.72M	480.18M
Cash Flow
Free Cash Flow	133.16M	102.92M	129.35M	70.78M	380.25M	96.74M
Operating Cash Flow	148.76M	115.98M	152.84M	82.91M	388.28M	102.61M
Investing Cash Flow	-14.89M	-516.00K	-88.88M	15.00M	-232.68M	-22.36M
Financing Cash Flow	-66.53M	-88.22M	-93.59M	-211.07M	-4.49M	3.26M

Himax Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 9.56 is above the 20-day moving average (MA) of 9.02, above the 50-day MA of 8.58, and above the 200-day MA of 8.43, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 65.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HIMX.

Himax Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAB	―	$1.41B	13.61	9.89%	―	-1.79%	-22.58%
HIMX	―	$1.62B	21.68	8.64%	3.87%	-2.16%	-2.77%
VECO	―	$1.76B	28.83	7.83%	―	-0.19%	-28.72%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NVTS	―	$3.00B	―	-32.05%	―	-25.65%	-130.95%
UCTT	―	$1.36B	-8.98	-19.47%	―	14.28%	-1644.64%
MXL	―	$1.36B	―	-35.16%	―	7.53%	22.97%

Himax Technologies Corporate Events

Himax Technologies Announces Key Resolutions at Annual General Meeting

On August 13, 2025, Himax Technologies, Inc. held its annual general meeting where shareholders adopted the company’s 2024 audited accounts and financial reports. Additionally, the meeting saw the re-election of Mr. Yan-Kuin Su as an independent director and the extension of the company’s 2011 Long-Term Incentive Plan to 2030, indicating a strategic move to ensure long-term stability and growth.

Himax Technologies Reports Q2 2025 Results and Anticipates Q3 Revenue Decline

On August 7, 2025, Himax Technologies reported its second quarter 2025 financial results, revealing a slight decline in revenues but an exceeded gross margin guidance due to a favorable product mix. Despite ongoing macroeconomic uncertainties and tariff policy changes, Himax remains optimistic about its long-term growth, particularly in the automotive sector and new business ventures. The company anticipates a decline in third quarter revenues and gross margin, but continues to focus on expanding its product offerings in high-growth areas like WiseEye AI and AR glasses.