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Infineon (IFNNY)
OTHER OTC:IFNNY
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Infineon
(OTC:IFNNY)
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Rating:65Neutral
Price Target:
$41.00
▲(8.27% Upside)
Infineon's overall stock score reflects a stable financial position and positive earnings call sentiment, offset by technical indicators suggesting weak momentum and a high valuation. The company's focus on high-growth markets like AI and energy infrastructure is promising, but challenges in profitability margins and cash flow generation need to be addressed for sustained growth.
Infineon (IFNNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.26B
Dividend Yield0.98%
Average Volume (3M)6.11K
Price to Earnings (P/E)66.9
Beta (1Y)1.29
Revenue Growth-2.94%
EPS Growth-67.68%
CountryUS
Employees57,397
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.43
Shares Outstanding1,305,921,100
10 Day Avg. Volume8,025
30 Day Avg. Volume6,107
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue4.14
Enterprise Value/Gross Profit10.41
Enterprise Value/Ebitda17.15
Forecast
1Y Price Target
$41.00Price Target Upside8.27% Upside
Rating ConsensusHold
Number of Analyst Covering0
Infineon Business Overview & Revenue Model
Company DescriptionInfineon Technologies AG is a leading global semiconductor manufacturer headquartered in Germany, specializing in power semiconductors, microcontrollers, and sensors. The company operates in various sectors, including automotive, industrial power control, and security technologies. Infineon’s core products include chips for electric vehicles, energy-efficient power supplies, and security solutions for payment systems and identity verification.
How the Company Makes MoneyInfineon generates revenue primarily through the sale of semiconductor products across several key segments. The automotive sector is a major contributor, with demand for chips that facilitate electric vehicle technologies and advanced driver-assistance systems. The industrial power control segment focuses on energy-efficient solutions, which are increasingly in demand as industries seek to reduce energy consumption. Additionally, the company earns revenue from its security technologies, which include solutions for secure payment systems and identity management. Infineon also benefits from strategic partnerships with leading automotive and technology companies, which help expand its market reach and enhance product offerings. The growing trend towards electrification and automation in various industries further fuels the company's growth, as it positions itself to capitalize on these market shifts.
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:Aug 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Infineon's ability to achieve sequential revenue growth and improved margins despite currency headwinds and market uncertainties. The AI data center segment shows promising growth potential, while automotive market conditions remain a concern.Q3-2025 Updates
Positive Updates
Sequential Revenue Growth
Infineon's June quarter marked the second consecutive quarter with sequential growth at constant currency, with revenues increasing by around 3% to EUR 3.704 billion.
Strong Performance in Green Industrial Power (GIP) and Power & Sensor Systems (PSS)
GIP revenues increased by 9% quarter-over-quarter to EUR 431 million, while PSS recorded revenues of EUR 1.053 billion, an 8% increase quarter-over-quarter.
AI Data Center Expansion
Infineon projects AI-related revenues to reach around EUR 600 million this fiscal year, rising to around EUR 1 billion next year, with significant collaborations such as the one with NVIDIA.
Improved Gross Margin
The adjusted gross margin improved to 43% from 40.9% in the previous quarter, driven by lower idle costs and benefits from the Step Up program.
Negative Updates
Currency Headwinds
The company faced a substantial negative currency effect due to an unfavorable U.S. dollar-euro exchange rate, impacting revenue and order backlog.
Automotive Market Uncertainty
Concerns over potential tariff-led weakness in the U.S. and negative news flow in China could affect automotive demand, with some customers potentially lowering inventory targets further.
Idle Costs and Inventory Management
Idle charges remain a significant burden on margins, with plans to manage inventory reach to around 150-160 days, which is higher than historical norms.
Company Guidance
During Infineon's fiscal third quarter earnings call for 2025, the company provided a detailed guidance and outlook. CEO Jochen Hanebeck highlighted that the semiconductor market is emerging from a prolonged downturn, with Infineon experiencing sequential revenue growth of over 9% at constant currency. For the September quarter, they anticipate revenues to grow again, marking the first year-over-year growth in two years, despite material adverse currency impacts. The company recorded third-quarter revenues of EUR 3.704 billion, a sequential increase of 3%, and a segment result margin of 18%. Automotive revenues slightly increased to EUR 1.870 billion with a segment margin of 19.8%. In Green Industrial Power, revenues rose 9% quarter-over-quarter to EUR 431 million, with a segment result margin of 14.2%. Power & Sensor Systems saw an 8% revenue increase to EUR 1.053 billion, achieving an 18.8% segment margin. Connected Secure Systems revenues decreased by 2% to EUR 349 million, maintaining a segment margin of 11.2%. The company plans for a September quarter revenue of around EUR 3.9 billion, with a high teens percentage segment result margin, anticipating an annual revenue of EUR 14.6 billion for the fiscal year. Despite geopolitical and macroeconomic headwinds, Infineon is well-positioned in high-growth markets like AI, energy infrastructure, and automotive, supported by their comprehensive portfolio and ongoing cost-saving initiatives.Infineon Financial Statement Overview
Summary
Infineon demonstrates a stable financial position with consistent revenue growth and a strong balance sheet. However, recent declines in profitability margins and free cash flow generation pose potential challenges. The company needs to focus on improving operational efficiencies and cash flow management to sustain long-term growth.Income Statement
Infineon has shown a stable revenue growth trajectory with a slight increase in the TTM period. However, the gross profit margin has slightly decreased over the years, and the net profit margin has seen a decline in the TTM compared to the previous year. The EBIT and EBITDA margins have also decreased, indicating some pressure on operational efficiency.70
Positive
Balance Sheet
The company's debt-to-equity ratio has improved over the years, indicating better leverage management. Return on equity has decreased in the TTM period, reflecting a decline in profitability. The equity ratio remains strong, suggesting a solid capital structure.75
Positive
Cash Flow
Infineon's free cash flow has decreased significantly in the TTM period, impacting the free cash flow growth rate negatively. The operating cash flow to net income ratio remains stable, but the free cash flow to net income ratio has declined, indicating reduced cash generation efficiency.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.64B | 14.96B | 16.31B | 14.22B | 11.06B | 8.57B |
| Gross Profit | 5.83B | 6.07B | 7.41B | 6.13B | 4.26B | 2.78B |
| EBITDA | 3.54B | 4.18B | 5.83B | 4.53B | 2.99B | 1.81B |
| Net Income | 700.00M | 1.30B | 3.14B | 2.18B | 1.17B | 368.00M |
Balance Sheet | ||||||
| Total Assets | 28.06B | 28.64B | 28.44B | 26.91B | 23.33B | 22.00B |
| Cash, Cash Equivalents and Short-Term Investments | 1.54B | 2.20B | 3.59B | 3.72B | 3.92B | 3.23B |
| Total Debt | 5.37B | 5.17B | 5.11B | 6.05B | 6.92B | 7.33B |
| Total Liabilities | 11.35B | 11.42B | 11.39B | 11.97B | 11.93B | 11.78B |
| Stockholders Equity | 16.71B | 17.22B | 17.04B | 14.94B | 11.40B | 10.22B |
Cash Flow | ||||||
| Free Cash Flow | 547.00M | 61.00M | 966.00M | 1.67B | 1.57B | 712.00M |
| Operating Cash Flow | 2.91B | 2.78B | 3.96B | 3.98B | 3.06B | 1.81B |
| Investing Cash Flow | -1.94B | -2.17B | -2.26B | -2.44B | -2.28B | -7.17B |
| Financing Cash Flow | -1.43B | -615.00M | -1.30B | -1.87B | -885.00M | 6.27B |
Infineon Technical Analysis
Negative
37.87
Price Trends
39.64
Negative
40.57
Negative
37.90
Negative
Market Momentum
-0.40
Positive
44.74
Neutral
41.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IFNNY, the sentiment is Negative. The current price of 37.87 is below the 20-day moving average (MA) of 38.75, below the 50-day MA of 39.64, and below the 200-day MA of 37.90, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 44.74 is Neutral, neither overbought nor oversold. The STOCH value of 41.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IFNNY.
Infineon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $54.04B | 25.33 | 23.11% | 1.89% | -7.53% | -21.88% | |
72 Outperform | $25.83B | 42.64 | 3.72% | 1.18% | -22.97% | -78.58% | |
69 Neutral | $21.48B | 49.01 | 5.72% | ― | -17.93% | -75.83% | |
69 Neutral | $75.82B | ― | -0.75% | 0.27% | 37.05% | 89.40% | |
65 Neutral | $49.26B | 66.88 | 6.85% | 0.98% | -2.94% | -67.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $35.15B | 84.25 | -2.24% | 2.79% | -35.70% | -113.08% |
* Technology Sector Average
IFNNY
Infineon
37.87
5.59
17.32%
MRVL
Marvell
87.95
6.38
7.82%
MCHP
Microchip
65.14
-7.89
-10.80%
NXPI
NXP Semiconductors
214.35
-11.53
-5.10%
ON
ON Semiconductor
52.53
-14.61
-21.76%
STM
STMicroelectronics
29.25
2.13
7.85%
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.