INFINEON TECHNOLOGIES AG (IFX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:IFX - DE0006231004 - Common Stock
42.295 EUR
-0.29 (-0.68%)
IFX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 industry peers in the Semiconductors & Semiconductor Equipment industry. There are concerns on the financial health of IFX while its profitability can be described as average. IFX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- IFX had positive earnings in the past year.
- IFX had a positive operating cash flow in the past year.
- Each year in the past 5 years IFX has been profitable.
- Each year in the past 5 years IFX had a positive operating cash flow.
1.2 Ratios
- IFX's Return On Assets of 3.27% is on the low side compared to the rest of the industry. IFX is outperformed by 72.06% of its industry peers.
- With a Return On Equity value of 5.85%, IFX is not doing good in the industry: 63.24% of the companies in the same industry are doing better.
- IFX has a Return On Invested Capital of 4.81%. This is in the lower half of the industry: IFX underperforms 63.24% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IFX is below the industry average of 14.31%.
- The 3 year average ROIC (9.33%) for IFX is well above the current ROIC(4.81%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 5.85% | ||
| ROIC | 4.81% |
ROA(3y)6.21%
ROA(5y)6.31%
ROE(3y)10.49%
ROE(5y)11.18%
ROIC(3y)9.33%
ROIC(5y)8.88%
1.3 Margins
- With a Profit Margin value of 6.80%, IFX is not doing good in the industry: 69.12% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of IFX has grown nicely.
- IFX has a Operating Margin of 10.42%. This is in the lower half of the industry: IFX underperforms 66.18% of its industry peers.
- IFX's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 39.28%, IFX is doing worse than 73.53% of the companies in the same industry.
- IFX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.42% | ||
| PM (TTM) | 6.8% | ||
| GM | 39.28% |
OM growth 3Y-13.09%
OM growth 5Y14.14%
PM growth 3Y-23.39%
PM growth 5Y11.83%
GM growth 3Y-3.1%
GM growth 5Y3.9%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IFX is destroying value.
- IFX has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, IFX has about the same amount of shares outstanding.
- The debt/assets ratio for IFX is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.62 indicates that IFX is not in any danger for bankruptcy at the moment.
- IFX's Altman-Z score of 3.62 is on the low side compared to the rest of the industry. IFX is outperformed by 61.76% of its industry peers.
- IFX has a debt to FCF ratio of 6.46. This is a slightly negative value and a sign of low solvency as IFX would need 6.46 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.46, IFX is doing worse than 63.24% of the companies in the same industry.
- IFX has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
- IFX has a Debt to Equity ratio (0.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 3.62 |
ROIC/WACC0.45
WACC10.64%
2.3 Liquidity
- A Current Ratio of 1.70 indicates that IFX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.70, IFX is doing worse than 80.88% of the companies in the same industry.
- IFX has a Quick Ratio of 1.70. This is a bad value and indicates that IFX is not financially healthy enough and could expect problems in meeting its short term obligations.
- IFX has a worse Quick ratio (0.98) than 83.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- IFX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.67%.
- The Earnings Per Share has been growing by 17.15% on average over the past years. This is quite good.
- IFX shows a decrease in Revenue. In the last year, the revenue decreased by -1.96%.
- Measured over the past years, IFX shows a quite strong growth in Revenue. The Revenue has been growing by 11.35% on average per year.
EPS 1Y (TTM)-25.67%
EPS 3Y-10.97%
EPS 5Y17.15%
EPS Q2Q%-30.61%
Revenue 1Y (TTM)-1.96%
Revenue growth 3Y1.03%
Revenue growth 5Y11.35%
Sales Q2Q%0.61%
3.2 Future
- The Earnings Per Share is expected to grow by 21.98% on average over the next years. This is a very strong growth
- Based on estimates for the next years, IFX will show a quite strong growth in Revenue. The Revenue will grow by 8.66% on average per year.
EPS Next Y15.85%
EPS Next 2Y25.78%
EPS Next 3Y25.05%
EPS Next 5Y21.98%
Revenue Next Year6.44%
Revenue Next 2Y8.84%
Revenue Next 3Y9.3%
Revenue Next 5Y8.66%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 30.43 indicates a quite expensive valuation of IFX.
- Based on the Price/Earnings ratio, IFX is valued a bit cheaper than the industry average as 69.12% of the companies are valued more expensively.
- IFX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 26.26 indicates a quite expensive valuation of IFX.
- The rest of the industry has a similar Price/Forward Earnings ratio as IFX.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, IFX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.43 | ||
| Fwd PE | 26.26 |
4.2 Price Multiples
- 61.76% of the companies in the same industry are more expensive than IFX, based on the Enterprise Value to EBITDA ratio.
- IFX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IFX is cheaper than 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.45 | ||
| EV/EBITDA | 17.3 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as IFX's earnings are expected to grow with 25.05% in the coming years.
PEG (NY)1.92
PEG (5Y)1.77
EPS Next 2Y25.78%
EPS Next 3Y25.05%
5. Dividend
5.1 Amount
- IFX has a yearly dividend return of 0.82%, which is pretty low.
- IFX's Dividend Yield is a higher than the industry average which is at 0.74.
- Compared to an average S&P500 Dividend Yield of 1.81, IFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
- The dividend of IFX has a limited annual growth rate of 5.79%.
Dividend Growth(5Y)5.79%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
- IFX pays out 45.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of IFX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.64%
EPS Next 2Y25.78%
EPS Next 3Y25.05%
INFINEON TECHNOLOGIES AG / IFX.DE FAQ
What is the fundamental rating for IFX stock?
ChartMill assigns a fundamental rating of 4 / 10 to IFX.DE.
What is the valuation status of INFINEON TECHNOLOGIES AG (IFX.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to INFINEON TECHNOLOGIES AG (IFX.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for INFINEON TECHNOLOGIES AG?
INFINEON TECHNOLOGIES AG (IFX.DE) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for IFX stock?
The Earnings per Share (EPS) of INFINEON TECHNOLOGIES AG (IFX.DE) is expected to grow by 15.85% in the next year.
Can you provide the dividend sustainability for IFX stock?
The dividend rating of INFINEON TECHNOLOGIES AG (IFX.DE) is 4 / 10 and the dividend payout ratio is 45.64%.