INFINEON TECHNOLOGIES AG (IFX.DE) Stock Fundamental Analysis
FRA:IFX - Deutsche Boerse Ag - DE0006231004 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to IFX. IFX was compared to 51 industry peers in the Semiconductors & Semiconductor Equipment industry. While IFX is still in line with the averages on profitability rating, there are concerns on its financial health. IFX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IFX was profitable.
In the past year IFX had a positive cash flow from operations.
In the past 5 years IFX has always been profitable.
In the past 5 years IFX always reported a positive cash flow from operatings.
1.2 Ratios
IFX has a worse Return On Assets (2.67%) than 80.39% of its industry peers.
IFX's Return On Equity of 4.52% is on the low side compared to the rest of the industry. IFX is outperformed by 74.51% of its industry peers.
IFX has a Return On Invested Capital of 5.51%. This is in the lower half of the industry: IFX underperforms 66.67% of its industry peers.
IFX had an Average Return On Invested Capital over the past 3 years of 11.24%. This is below the industry average of 15.12%.
The 3 year average ROIC (11.24%) for IFX is well above the current ROIC(5.51%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.67% | ||
| ROE | 4.52% | ||
| ROIC | 5.51% |
ROA(3y)7.79%
ROA(5y)5.95%
ROE(3y)13.34%
ROE(5y)10.66%
ROIC(3y)11.24%
ROIC(5y)8.52%
1.3 Margins
Looking at the Profit Margin, with a value of 5.28%, IFX is doing worse than 80.39% of the companies in the same industry.
IFX's Profit Margin has declined in the last couple of years.
IFX has a Operating Margin of 11.18%. This is in the lower half of the industry: IFX underperforms 68.63% of its industry peers.
IFX's Operating Margin has improved in the last couple of years.
IFX has a Gross Margin of 39.66%. This is in the lower half of the industry: IFX underperforms 68.63% of its industry peers.
In the last couple of years the Gross Margin of IFX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.18% | ||
| PM (TTM) | 5.28% | ||
| GM | 39.66% |
OM growth 3Y8.56%
OM growth 5Y3.29%
PM growth 3Y-6.29%
PM growth 5Y-4.73%
GM growth 3Y1.76%
GM growth 5Y1.71%
2. Health
2.1 Basic Checks
IFX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for IFX has been reduced compared to 1 year ago.
The number of shares outstanding for IFX has been increased compared to 5 years ago.
The debt/assets ratio for IFX is higher compared to a year ago.
2.2 Solvency
IFX has an Altman-Z score of 3.76. This indicates that IFX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IFX (3.76) is worse than 68.63% of its industry peers.
IFX has a debt to FCF ratio of 8.00. This is a slightly negative value and a sign of low solvency as IFX would need 8.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.00, IFX is doing worse than 62.75% of the companies in the same industry.
IFX has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
IFX's Debt to Equity ratio of 0.32 is on the low side compared to the rest of the industry. IFX is outperformed by 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 8 | ||
| Altman-Z | 3.76 |
ROIC/WACC0.53
WACC10.37%
2.3 Liquidity
A Current Ratio of 1.99 indicates that IFX should not have too much problems paying its short term obligations.
IFX has a worse Current ratio (1.99) than 62.75% of its industry peers.
A Quick Ratio of 1.09 indicates that IFX should not have too much problems paying its short term obligations.
IFX has a worse Quick ratio (1.09) than 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for IFX have decreased strongly by -29.52% in the last year.
Measured over the past years, IFX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.75% on average per year.
Looking at the last year, IFX shows a decrease in Revenue. The Revenue has decreased by -6.02% in the last year.
The Revenue has been growing by 13.25% on average over the past years. This is quite good.
EPS 1Y (TTM)-29.52%
EPS 3Y15.94%
EPS 5Y15.75%
EPS Q2Q%-19.05%
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y10.58%
Revenue growth 5Y13.25%
Sales Q2Q%-1.13%
3.2 Future
The Earnings Per Share is expected to grow by 10.26% on average over the next years. This is quite good.
IFX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.86% yearly.
EPS Next Y-14.23%
EPS Next 2Y8.38%
EPS Next 3Y12.89%
EPS Next 5Y10.26%
Revenue Next Year0.27%
Revenue Next 2Y5.38%
Revenue Next 3Y6.89%
Revenue Next 5Y6.86%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.74 indicates a rather expensive valuation of IFX.
IFX's Price/Earnings ratio is a bit cheaper when compared to the industry. IFX is cheaper than 62.75% of the companies in the same industry.
IFX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.29, the valuation of IFX can be described as rather expensive.
70.59% of the companies in the same industry are more expensive than IFX, based on the Price/Forward Earnings ratio.
IFX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.74 | ||
| Fwd PE | 17.29 |
4.2 Price Multiples
IFX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IFX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.39 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
IFX's earnings are expected to grow with 12.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.51
EPS Next 2Y8.38%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
IFX has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 1.12, IFX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, IFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of IFX grows each year by 6.41%, which is quite nice.
Dividend Growth(5Y)6.41%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
58.86% of the earnings are spent on dividend by IFX. This is a bit on the high side, but may be sustainable.
IFX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.86%
EPS Next 2Y8.38%
EPS Next 3Y12.89%
FRA:IFX (7/11/2025, 7:00:00 PM)
37.98
-0.28 (-0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners46.66%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap49.60B
Analysts81.88
Price Target40.44 (6.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.35
Dividend Growth(5Y)6.41%
DP58.86%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.56%
Min EPS beat(2)3.19%
Max EPS beat(2)23.94%
EPS beat(4)4
Avg EPS beat(4)7.88%
Min EPS beat(4)1.58%
Max EPS beat(4)23.94%
EPS beat(8)8
Avg EPS beat(8)8.35%
EPS beat(12)12
Avg EPS beat(12)8.65%
EPS beat(16)15
Avg EPS beat(16)9.04%
Revenue beat(2)1
Avg Revenue beat(2)2.41%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)5.55%
Revenue beat(4)1
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-3.32%
Max Revenue beat(4)5.55%
Revenue beat(8)2
Avg Revenue beat(8)-0.62%
Revenue beat(12)5
Avg Revenue beat(12)0.22%
Revenue beat(16)8
Avg Revenue beat(16)0.36%
PT rev (1m)-2.3%
PT rev (3m)-5.34%
EPS NQ rev (1m)-2.25%
EPS NQ rev (3m)-14.26%
EPS NY rev (1m)0%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-4.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.74 | ||
| Fwd PE | 17.29 | ||
| P/S | 3.39 | ||
| P/FCF | 67.39 | ||
| P/OCF | 14.76 | ||
| P/B | 2.9 | ||
| P/tB | 6.75 | ||
| EV/EBITDA | 15.13 |
EPS(TTM)1.6
EY4.21%
EPS(NY)2.2
Fwd EY5.78%
FCF(TTM)0.56
FCFY1.48%
OCF(TTM)2.57
OCFY6.77%
SpS11.21
BVpS13.1
TBVpS5.63
PEG (NY)N/A
PEG (5Y)1.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.67% | ||
| ROE | 4.52% | ||
| ROCE | 6.78% | ||
| ROIC | 5.51% | ||
| ROICexc | 5.93% | ||
| ROICexgc | 10.49% | ||
| OM | 11.18% | ||
| PM (TTM) | 5.28% | ||
| GM | 39.66% | ||
| FCFM | 5.03% |
ROA(3y)7.79%
ROA(5y)5.95%
ROE(3y)13.34%
ROE(5y)10.66%
ROIC(3y)11.24%
ROIC(5y)8.52%
ROICexc(3y)13.19%
ROICexc(5y)10.13%
ROICexgc(3y)27.93%
ROICexgc(5y)22.61%
ROCE(3y)13.84%
ROCE(5y)10.48%
ROICexcg growth 3Y-5.66%
ROICexcg growth 5Y1.68%
ROICexc growth 3Y6.77%
ROICexc growth 5Y-4.81%
OM growth 3Y8.56%
OM growth 5Y3.29%
PM growth 3Y-6.29%
PM growth 5Y-4.73%
GM growth 3Y1.76%
GM growth 5Y1.71%
F-Score4
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 8 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 137.17% | ||
| Cap/Sales | 17.93% | ||
| Interest Coverage | 10.16 | ||
| Cash Conversion | 94.67% | ||
| Profit Quality | 95.21% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 3.76 |
F-Score4
WACC10.37%
ROIC/WACC0.53
Cap/Depr(3y)151.77%
Cap/Depr(5y)128.29%
Cap/Sales(3y)17.6%
Cap/Sales(5y)15.83%
Profit Quality(3y)37.85%
Profit Quality(5y)92.91%
High Growth Momentum
Growth
EPS 1Y (TTM)-29.52%
EPS 3Y15.94%
EPS 5Y15.75%
EPS Q2Q%-19.05%
EPS Next Y-14.23%
EPS Next 2Y8.38%
EPS Next 3Y12.89%
EPS Next 5Y10.26%
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y10.58%
Revenue growth 5Y13.25%
Sales Q2Q%-1.13%
Revenue Next Year0.27%
Revenue Next 2Y5.38%
Revenue Next 3Y6.89%
Revenue Next 5Y6.86%
EBIT growth 1Y-48.34%
EBIT growth 3Y20.04%
EBIT growth 5Y16.98%
EBIT Next Year45.14%
EBIT Next 3Y32.02%
EBIT Next 5Y23.64%
FCF growth 1Y-41.96%
FCF growth 3Y-66.12%
FCF growth 5Y-16.47%
OCF growth 1Y-12.66%
OCF growth 3Y-3.2%
OCF growth 5Y11.67%