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Infineon (IFNNY)
OTHER OTC:IFNNY
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Infineon
(OTC:IFNNY)
Rating:72Outperform
Price Target:
$46.00
▲(12.94%Upside)
Infineon (IFNNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.76B
Dividend Yield0.95%
Average Volume (3M)29.19K
Price to Earnings (P/E)64.0
Beta (1Y)1.30
Revenue Growth-6.90%
EPS Growth-70.06%
CountryUS
Employees57,397
SectorTechnology
Sector Strength92
IndustrySemiconductors
Share Statistics
EPS (TTM)0.38
Shares Outstanding1,305,921,100
10 Day Avg. Volume70,501
30 Day Avg. Volume29,193
Financial Highlights & Ratios
PEG Ratio-3.68
Price to Book (P/B)2.86
Price to Sales (P/S)0.00
P/FCF Ratio66.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$46.00Price Target Upside12.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Infineon Business Overview & Revenue Model
Company DescriptionInfineon Technologies AG designs, develops, manufactures, and markets semiconductors and related system solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and radar sensor integrated circuits (ICs); transceivers; silicon carbide diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company's Industrial Power Control segment provides bare dies, discrete IGBTs, driver ICs, SIC diodes, and IGBT modules and stacks for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers gas sensors, MEMS microphones, and pressure sensors chips; discrete low-voltage, mid-voltage, and high-voltage power MOSFETs; control ICs; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, Internet of Things, LED and conventional lighting systems, mobile devices, and power management applications. The company's Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, Internet of Things, mobile communication, payment system, ticketing, access control, and trusted computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Munich, Germany.
How the Company Makes MoneyInfineon generates revenue primarily through the sale of its semiconductor products, which are integral to a wide range of electronic devices and systems. The company's key revenue streams include the automotive sector, where its chips are used for powertrain, safety, and networking applications; industrial power control, which involves power semiconductors used in renewable energy, industrial drives, and home appliances; power & sensor systems, supplying products for power management and sensor solutions in consumer electronics; and connected secure systems, offering security solutions for smart cards and embedded systems. Infineon also benefits from strategic partnerships and collaborations with major automotive and electronics manufacturers, enhancing its market reach and technological advancements. The company’s strong focus on research and development enables it to innovate continuously, maintaining a competitive edge in the semiconductor industry.
Infineon Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across various business units, indicating which segments are performing well and where the company might focus its strategic efforts for expansion.
Breaks down sales across various business units, indicating which segments are performing well and where the company might focus its strategic efforts for expansion.
Data provided by:
Main Street Data
Main Street DataInfineon Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q2-2025)
| % Change Since: 18.44%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with strong performance in the automotive semiconductor and AI data center markets, strategic acquisitions, and sustainability achievements. However, significant challenges include geopolitical and tariff uncertainties, struggles in the Green Industrial Power segment, currency headwinds, and potential tariff-related revenue impacts.Q2-2025 Updates
Positive Updates
Strong Automotive Semiconductor Performance
Infineon maintained its position as the #1 global automotive semiconductor provider with a market share of 13.5%, and increased market share in automotive MCUs to 32%, becoming the global #1 across all applications.
AI Data Center Growth
Infineon confirmed its revenue prediction of EUR 600 million for AI-related products for the current year, and expects to reach EUR 1 billion next year, reflecting strong growth momentum and share gains in the AI server power solutions market.
Strategic Acquisition
Infineon announced the acquisition of Marvell's automotive Ethernet business for USD 2.5 billion, strengthening its microcontroller franchise and positioning for future software-defined vehicles.
Sustainability Achievements
Infineon's science-based target, including Scope 3 emissions, was approved by the Science Based Targets initiative, strengthening its position as a sustainability leader.
Negative Updates
Geopolitical and Tariff Uncertainty
Anticipated headwinds from newly implemented U.S. import tariffs and potential retaliatory measures are expected to impact demand, especially in the automotive sector.
Green Industrial Power Segment Challenges
The GIP segment recorded a 17% sequential revenue increase but remained 15% below last year's levels, with continued pricing pressures and underutilization charges affecting margins.
Currency Headwinds
Infineon adjusted its U.S. dollar-euro exchange rate assumption from $1.05 to $1.125, resulting in a projected EUR 400 million revenue headwind for the second half of the fiscal year.
Potential Revenue Impact from Tariffs
The company estimates a 10% revenue haircut for Q4 due to anticipated indirect demand effects from tariffs, impacting overall fiscal year guidance.
Company Guidance
During the conference call for Infineon's fiscal second quarter of 2025, the company reported revenues of EUR 3.591 billion, marking a 5% increase compared to the previous quarter. The segment result was EUR 601 million, with a segment result margin of 16.7%, consistent with the prior quarter. The automotive division achieved revenues of EUR 1.858 billion, reflecting a 6% sequential growth. The company's order backlog stood at around EUR 20 billion at the end of March. Despite challenges from geopolitical uncertainties and potential tariff impacts, Infineon revised its revenue guidance for fiscal 2025, anticipating a slight decline on an annual basis. The adjusted gross margin is expected to be around 40%, with a mid-teens segment result margin. Additionally, capital expenditures were reduced to approximately EUR 2.3 billion from an earlier estimate of EUR 2.5 billion, while free cash flow is projected at around EUR 900 million. The company continues to focus on innovation, with notable achievements in the automotive sector and AI data center power solutions.Infineon Financial Statement Overview
Summary
Infineon demonstrates stable financial performance with a strong balance sheet and efficient cash flow generation. However, profitability and sales growth face challenges, as indicated by a declining net profit margin and revenue.Income Statement
Infineon shows a mixed performance in its income statement metrics. The Gross Profit Margin for TTM is approximately 39.6%, indicating a strong ability to manage production costs. However, the Net Profit Margin has decreased to 5.5%, reflecting reduced profitability due to higher operating expenses or other costs. Revenue has decreased by 11.3% in the TTM period compared to the previous annual report, suggesting a downturn in sales. EBIT and EBITDA margins are healthy at 11.1% and 24.9%, respectively, but have decreased from previous levels, indicating pressure on operating efficiency.70
Positive
Balance Sheet
The balance sheet of Infineon is robust with a Debt-to-Equity Ratio of 0.34, suggesting a conservative approach to leverage. The company maintains a good Equity Ratio of 59.1%, indicating financial stability and a strong capital base. The Return on Equity (ROE) for the TTM is 4.7%, a decline from previous periods, which may concern investors looking for higher returns. Overall, the balance sheet reflects stability but with some pressure on returns.75
Positive
Cash Flow
Infineon's cash flow statement shows a 1106.6% increase in Free Cash Flow in the TTM compared to the prior annual report, demonstrating strong operational cash conversion. The Operating Cash Flow to Net Income Ratio stands at 4.21, indicating efficient cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is 0.92, suggesting that not all net income is translating into free cash flow. The cash flow metrics suggest strong operational efficiency, but challenges in translating income into free cash flow.65
Positive
| Breakdown | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.96B | 16.31B | 14.22B | 11.06B | 8.57B |
| Gross Profit | 6.07B | 7.41B | 6.13B | 4.26B | 2.78B |
| EBITDA | 4.18B | 5.83B | 4.53B | 2.99B | 1.81B |
| Net Income | 1.30B | 3.14B | 2.18B | 1.17B | 368.00M |
Balance Sheet | |||||
| Total Assets | 28.64B | 28.44B | 26.91B | 23.33B | 22.00B |
| Cash, Cash Equivalents and Short-Term Investments | 2.20B | 3.59B | 3.72B | 3.92B | 3.23B |
| Total Debt | 5.17B | 5.11B | 6.05B | 6.92B | 7.33B |
| Total Liabilities | 11.42B | 11.39B | 11.97B | 11.93B | 11.78B |
| Stockholders Equity | 17.22B | 17.04B | 14.94B | 11.40B | 10.22B |
Cash Flow | |||||
| Free Cash Flow | 61.00M | 966.00M | 1.67B | 1.57B | 712.00M |
| Operating Cash Flow | 2.78B | 3.96B | 3.98B | 3.06B | 1.81B |
| Investing Cash Flow | -2.17B | -2.26B | -2.44B | -2.28B | -7.17B |
| Financing Cash Flow | -615.00M | -1.30B | -1.87B | -885.00M | 6.27B |
Infineon Technical Analysis
Neutral
40.73
Price Trends
41.17
Negative
37.64
Positive
35.81
Positive
Market Momentum
0.30
Positive
39.79
Neutral
0.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IFNNY, the sentiment is Neutral. The current price of 40.73 is below the 20-day moving average (MA) of 43.21, below the 50-day MA of 41.17, and above the 200-day MA of 35.81, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 39.79 is Neutral, neither overbought nor oversold. The STOCH value of 0.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IFNNY.
Infineon Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $57.61B | 27.00 | 23.11% | 1.78% | -7.53% | -21.88% | |
72 Outperform | $24.51B | 40.69 | 7.85% | ― | -18.28% | -70.98% | |
72 Outperform | $52.76B | 64.01 | 7.74% | 0.95% | -6.90% | -70.06% | |
69 Neutral | $65.45B | ― | -3.54% | 0.32% | 21.60% | 50.00% | |
64 Neutral | $38.06B | 84.25 | >-0.01% | 2.58% | -42.35% | -100.12% | |
63 Neutral | $34.94B | 5.14 | -11.21% | 1.86% | 5.61% | -19.33% | |
60 Neutral | $23.46B | 38.37 | 3.72% | 1.15% | -22.97% | -78.58% |
* Technology Sector Average
Performance Comparison
IFNNY
Infineon
40.73
6.80
20.04%
MRVL
Marvell
75.91
13.32
21.28%
MCHP
Microchip
70.53
-13.66
-16.23%
NXPI
NXP Semiconductors
228.49
-18.57
-7.52%
ON
ON Semiconductor
58.66
-15.31
-20.70%
STM
STMicroelectronics
26.69
-5.53
-17.16%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.