Himax Technologies, Inc. reports 90.7% CAPEX growth in 2018 and 5.6% Revenue growth
02/19/2019 • About Himax Technologies, Inc. (
$HIMX) • By InTwits
Himax Technologies, Inc. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 3.3% in 2018, 3.6% in 2017, 9.1% in 2016, 6.5% in 2015, 10.4% in 2014
- Himax Technologies, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: $76m in 2018, $40m in 2017, $8m in 2016, $10m in 2015, $11m in 2014
- The company has potentially unprofitable business model: ROIC is 0.6%
- It operates with high leverage: Net Debt/EBITDA is 3.3x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Himax Technologies, Inc.'s Revenue increased on 5.6%. Revenue growth showed small slowdown in 18Q4 - it was 5.5% YoY. EBITDA Margin showed almost no change in 2018.
Gross Margin decreased slightly on 1.0 pp from 24.4% to 23.3% in 2018. SG&A as a % of Revenue showed almost no change in 2018.
Net Income margin decreased on 2.9 pp from 4.1% to 1.2% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 Himax Technologies, Inc. had CAPEX/Revenue of 10.5%. CAPEX/Revenue increased on 9.1 pp from 1.4% in 2015 to 10.5% in 2018. Average CAPEX/Revenue for the last three years was 5.8%. Himax Technologies, Inc. maintained rich investment policy and has spent a lot to CAPEX (320% of EBITDA). CAPEX as a % of Revenue followed a growing trend at 2.3 pp per annum in the last 5 years.
Return on investment
The company operates at low ROIC (0.6%) and ROE (1.9%). ROIC decreased slightly on 0.77 pp from 1.3% to 0.55% in 2018. ROE decreased on 4.2 pp from 6.1% to 1.9% in 2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.3x and Debt / EBITDA is 7.8x. Net Debt / EBITDA jumped on 2.9x from 0.4x to 3.3x in 2018. Debt surged on 25.2% while cash dropped on 22.9%.
Himax Technologies, Inc. has short term refinancing risk: cash is only 57.8% of short term debt.
Valuation and dividends
Himax Technologies, Inc.'s trades at EV/EBITDA 31.0x and P/E 76.7x.
Financial and operational results
FY ended 12/31/2018
Himax Technologies, Inc. ($HIMX) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 840.5 | 691.8 | 802.9 | 685.2 | 723.6 | 5.6% |
| Gross Profit | 205.9 | 163.1 | 194.3 | 167.0 | 168.9 | 1.1% |
| SG&A | 40.8 | 37.7 | 38.6 | 41.0 | 42.2 | 3.0% |
| EBITDA | 87.3 | 44.8 | 73.0 | 24.8 | 23.7 | -4.5% |
| Net Income | 66.6 | 25.2 | 50.9 | 28.0 | 8.6 | -69.4% |
Balance Sheet
|
|---|
| Cash | 185.5 | 129.8 | 184.5 | 138.0 | 106.4 | -22.9% |
| Short Term Debt | 130.0 | 180.0 | 138.0 | 147.0 | 184.0 | 25.2% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 10.9 | 10.0 | 7.9 | 39.8 | 75.9 | 90.7% |
Ratios
|
|---|
| Revenue growth | 9.1% | -17.7% | 16.1% | -14.7% | 5.6% | |
| EBITDA growth | -1.5% | -48.7% | 62.8% | -66.0% | -4.5% | |
|
|---|
| Gross Margin | 24.5% | 23.6% | 24.2% | 24.4% | 23.3% | -1.0% |
| EBITDA Margin | 10.4% | 6.5% | 9.1% | 3.6% | 3.3% | -0.3% |
| SG&A, % of revenue | 4.8% | 5.5% | 4.8% | 6.0% | 5.8% | -0.1% |
| Net Income Margin | 7.9% | 3.6% | 6.3% | 4.1% | 1.2% | -2.9% |
| CAPEX, % of revenue | 1.3% | 1.4% | 1.0% | 5.8% | 10.5% | 4.7% |
|
|---|
| ROIC | 12.0% | 4.9% | 9.4% | 1.3% | 0.6% | -0.8% |
| ROE | 14.4% | 5.5% | 11.2% | 6.1% | 1.9% | -4.2% |
| Net Debt/EBITDA | -0.6x | 1.1x | -0.6x | 0.4x | 3.3x | 2.9x |
Himax Technologies, Inc. ($HIMX) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 163 | 181 | 188 | 191 | | 4.9% | 19.5% | -4.4% | 5.5% |
| EBITDA | 2 | 6 | 6 | 10 | | -63.0% | 124.4% | -26.0% | 10.7% |
| Net Income | -3 | 2 | 1 | 8 | | -307.6% | | -75.9% | -64.1% |
Balance Sheet
|
|---|
| Cash | 140 | 114 | 91 | 106 | | -26.6% | -35.4% | -35.7% | -22.9% |
| Short Term Debt | 147 | 147 | 164 | 184 | | 37.4% | 37.4% | 11.6% | 25.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 22.5% | 23.0% | 23.4% | 24.3% | | -0.7% | -0.8% | -2.1% | -0.3% |
| EBITDA Margin | 1.1% | 3.1% | 3.2% | 5.3% | | -2.1% | 1.5% | -0.9% | 0.3% |
| Net Income Margin | -1.7% | 1.1% | 0.5% | 4.4% | | -2.6% | 1.5% | -1.4% | -8.6% |
Peers in Semiconductors
Below you can find Himax Technologies, Inc. benchmarking vs. other companies in Semiconductors industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NanoFlex Power Corp ($OPVS) | | | | 72.5% | 354.8% |
| MoSys, Inc. ($MOSY) | | -18.4% | 37.2% | 46.8% | 87.7% |
| SMART Global Holdings, Inc. ($SGH) | | | -16.9% | 42.5% | 69.3% |
| Micron Technology, Inc. ($MU) | | -1.0% | -23.4% | 63.9% | 49.5% |
| Adesto Technologies Corporation ($IOTS) | | 4.3% | 1.6% | 27.6% | 48.8% |
| |
|---|
| Median (67 companies) | 54.6% | 9.7% | 4.4% | 11.0% | 4.7% |
|---|
| Himax Technologies, Inc. ($HIMX) | | -17.7% | 16.1% | -14.7% | 5.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CEVA, Inc. ($CEVA) | 90.2% | 90.9% | 91.6% | 92.1% | 89.8% |
| NVE Corporation ($NVEC) | 77.9% | 80.3% | 76.1% | 78.5% | 79.0% |
| Rambus, Inc. ($RMBS) | 85.9% | 84.7% | 80.1% | 79.9% | 76.8% |
| Universal Display Corporation ($OLED) | 76.0% | 64.2% | 83.9% | 80.8% | 75.5% |
| Intermolecular, Inc. ($IMI) | 48.3% | 57.4% | 66.5% | 67.5% | 70.3% |
| |
|---|
| Median (65 companies) | 46.4% | 47.7% | 48.0% | 49.1% | 51.0% |
|---|
| Himax Technologies, Inc. ($HIMX) | 24.5% | 23.6% | 24.2% | 24.4% | 23.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NVE Corporation ($NVEC) | 58.8% | 66.0% | 61.8% | 65.6% | 65.1% |
| Micron Technology, Inc. ($MU) | 31.7% | 35.0% | 25.4% | 47.9% | 65.0% |
| NXP Semiconductors N.V. ($NXPI) | 25.7% | 41.5% | 21.6% | 46.2% | 49.9% |
| Texas Instruments Incorporated ($TXN) | 39.7% | 42.0% | 43.5% | 46.7% | 48.6% |
| Intel Corp ($INTC) | 42.8% | 41.0% | 35.2% | 41.7% | 45.7% |
| |
|---|
| Median (66 companies) | 9.6% | 11.5% | 9.2% | 10.7% | 10.0% |
|---|
| Himax Technologies, Inc. ($HIMX) | 10.4% | 6.5% | 9.1% | 3.6% | 3.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Alpha and Omega Semiconductor Limited ($AOSL) | 3.0% | 6.6% | 6.5% | 12.2% | 42.2% |
| Renesola Ltd. ($SOL) | 3.5% | 0.0% | 0.0% | 78.0% | 41.7% |
| First Solar, Inc. ($FSLR) | 7.6% | 4.0% | 7.9% | 17.5% | 33.0% |
| Sigma Designs Inc ($SIGM) | 11.0% | 6.5% | 6.2% | 14.1% | 29.3% |
| Micron Technology, Inc. ($MU) | 19.0% | 24.8% | 46.9% | 23.3% | 29.2% |
| |
|---|
| Median (66 companies) | 3.6% | 4.0% | 3.7% | 4.7% | 4.4% |
|---|
| Himax Technologies, Inc. ($HIMX) | 1.3% | 1.4% | 1.0% | 5.8% | 10.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| SMART Global Holdings, Inc. ($SGH) | | | 2.5% | 21.5% | 51.7% |
| Texas Instruments Incorporated ($TXN) | 25.1% | 29.8% | 34.9% | 43.1% | 47.5% |
| Micron Technology, Inc. ($MU) | 18.8% | 15.8% | 0.8% | 21.5% | 42.9% |
| Applied Materials Inc ($AMAT) | 15.8% | 15.2% | 19.0% | 31.2% | 36.4% |
| NVIDIA Corporation ($NVDA) | 9.2% | 13.3% | 13.1% | 27.3% | 35.3% |
| |
|---|
| Median (73 companies) | 5.0% | 3.8% | 1.4% | 3.2% | 5.2% |
|---|
| Himax Technologies, Inc. ($HIMX) | 12.0% | 4.9% | 9.4% | 1.3% | 0.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 25.4x | 3.3x | 3.0x | 7.2x | 98.6x |
| Inphi Corporation ($IPHI) | | -6.4x | 4.5x | 33.7x | 32.2x |
| JinkoSolar Holding Company Limited ($JKS) | 4.2x | 3.3x | 4.1x | 11.0x | 8.2x |
| Lattice Semiconductor Corporation ($LSCC) | -1.8x | | 6.5x | 19.0x | 3.9x |
| Renesola Ltd. ($SOL) | 7.0x | 35.0x | 123.6x | 2.3x | 3.3x |
| |
|---|
| Median (45 companies) | -0.5x | -0.3x | 0.4x | 0.4x | 0.3x |
|---|
| Himax Technologies, Inc. ($HIMX) | -0.6x | 1.1x | -0.6x | 0.4x | 3.3x |
