INFINEON TECHNOLOGIES AG (IFX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:IFX - DE0006231004 - Common Stock
43.42 EUR
+1.1 (+2.6%)
We assign a fundamental rating of 4 out of 10 to IFX. IFX was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. IFX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- In the past year IFX had a positive cash flow from operations.
- Each year in the past 5 years IFX has been profitable.
- In the past 5 years IFX always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.27%, IFX is doing worse than 71.01% of the companies in the same industry.
- IFX has a worse Return On Equity (5.85%) than 62.32% of its industry peers.
- IFX's Return On Invested Capital of 4.81% is on the low side compared to the rest of the industry. IFX is outperformed by 63.77% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- IFX's Profit Margin of 6.80% is on the low side compared to the rest of the industry. IFX is outperformed by 69.57% of its industry peers.
- In the last couple of years the Profit Margin of IFX has grown nicely.
- IFX has a worse Operating Margin (10.42%) than 68.12% of its industry peers.
- In the last couple of years the Operating Margin of IFX has grown nicely.
- Looking at the Gross Margin, with a value of 39.28%, IFX is doing worse than 72.46% 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
- IFX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- IFX has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for IFX remains at a similar level compared to 5 years ago.
- IFX has a worse debt/assets ratio than last year.
2.2 Solvency
- IFX has an Altman-Z score of 3.62. This indicates that IFX is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of IFX (3.62) is worse than 65.22% of its industry peers.
- The Debt to FCF ratio of IFX is 6.46, which is on the high side as it means it would take IFX, 6.46 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 6.46, IFX is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 0.36 indicates that IFX is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.36, IFX is doing worse than 62.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 3.62 |
ROIC/WACC0.45
WACC10.63%
2.3 Liquidity
- IFX has a Current Ratio of 1.70. This is a normal value and indicates that IFX is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.70, IFX is not doing good in the industry: 82.61% of the companies in the same industry are doing better.
- 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.
- Looking at the Quick ratio, with a value of 0.98, IFX is doing worse than 85.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- The earnings per share for IFX have decreased strongly by -25.67% in the last year.
- 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
- IFX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.98% yearly.
- The Revenue is expected to grow by 8.66% on average over the next years. This is quite good.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
- IFX is valuated quite expensively with a Price/Earnings ratio of 31.24.
- IFX's Price/Earnings ratio is a bit cheaper when compared to the industry. IFX is cheaper than 73.91% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. IFX is around the same levels.
- IFX is valuated quite expensively with a Price/Forward Earnings ratio of 26.96.
- IFX's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of IFX to the average of the S&P500 Index (25.95), we can say IFX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.24 | ||
| Fwd PE | 26.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IFX is valued a bit cheaper than the industry average as 62.32% of the companies are valued more expensively.
- IFX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IFX is cheaper than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.76 | ||
| EV/EBITDA | 17.31 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IFX does not grow enough to justify the current Price/Earnings ratio.
- IFX's earnings are expected to grow with 25.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.97
PEG (5Y)1.82
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 1.82, 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%.