Himax Technologies, Inc. Net Debt / EBITDA surged on 17.2x from 3.3x to 20.4x in 2019 while EBITDA dropped on 74.3%
02/13/2020 • About Himax Technologies, Inc. (
$HIMX) • By InTwits
Himax Technologies, Inc. reported 2019 financial results today. Here are the key drivers of the company's long term financial model:
- Himax Technologies, Inc. is a company in decline: 2019 revenue growth was -7.2%, 5 years revenue CAGR was -4.4%
- EBITDA Margin is declining: 0.9% in 2019 vs. 3.3% in 2018 vs. 6.5% in 2015
- EBITDA Margin is quite volatile: 0.9% in 2019, 3.3% in 2018, 3.6% in 2017, 9.1% in 2016, 6.5% in 2015
- Himax Technologies, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's in pair with industry average of 7.8%
- CAPEX is quite volatile: $100m in 2019, $76m in 2018, $40m in 2017, $8m in 2016, $10m in 2015
- The company has unprofitable business model: ROIC is -2.9%
- It operates with high leverage: Net Debt/EBITDA is 20.4x while industry average is 2.3x
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 decreased on 7.2%. Revenue decline showed acceleration in 19Q4 - it was 8.4% YoY. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 3.3% to 0.91% in 2019. During the last 5 years EBITDA Margin topped in 2016 at 9.1% and was declining since that time.
Gross Margin decreased on 2.8 pp from 23.3% to 20.5% in 2019. During 2015-2019 Gross Margin topped in 2017 at 24.4% and was declining since that time. SG&A as a % of Revenue showed almost no change in 2019.
Net Income margin decreased on 3.2 pp from 1.2% to -2.0% in 2019. During 2015-2019 Net Income margin topped in 2016 at 6.3% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 14.9% in 2019. Himax Technologies, Inc.'s CAPEX/Revenue surged on 14.0 pp from 0.98% in 2016 to 14.9% in 2019. Average CAPEX/Revenue for the last three years was 10.4%. Himax Technologies, Inc. has spent a lot to CAPEX (1,649% of EBITDA) which didn't stop revenue from falling. CAPEX as a % of Revenue followed a growing trend at 3.7 pp per annum in the last 5 years.
Return on investment
The company operates at negative ROIC (-2.9%) and ROE (-3.1%). ROIC decreased on 3.4 pp from 0.55% to -2.9% in 2019. ROE decreased on 5.0 pp from 1.9% to -3.1% in 2019. During the last 5 years ROIC topped in 2016 at 9.4% and was declining since that time. During 2015-2019 ROE topped in 2016 at 11.2% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 20.4x and Debt / EBITDA is 37.0x. Net Debt / EBITDA surged on 17.2x from 3.3x to 20.4x in 2019. Debt surged on 22.6% while cash decreased on 5.1%. During the last 5 years Net Debt/EBITDA bottomed in 2016 at -0.6x and was growing since that time.
Himax Technologies, Inc. has short term refinancing risk: cash is only 45.4% of short term debt.
Management team
The company has 1,975 employees. Average revenue per employee in 2019 was
$340,170.
Financial and operational results
FY ended 12/31/2019
Himax Technologies, Inc. ($HIMX) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 691.8 | 802.9 | 685.2 | 723.6 | 671.8 | -7.2% |
| Gross Profit | 163.1 | 194.3 | 167.0 | 168.9 | 137.9 | -18.4% |
| SG&A | 37.7 | 38.6 | 41.0 | 42.2 | 41.3 | -2.1% |
| EBITDA | 44.8 | 73.0 | 24.8 | 23.7 | 6.1 | -74.3% |
| EBIT | | | | | -18.3 | |
| Net Income | 25.2 | 50.9 | 28.0 | 8.6 | -13.6 | -258.9% |
| Stock Based Compensation | | | | | 0.5 | |
Balance Sheet
|
|---|
| Cash | 129.8 | 184.5 | 138.0 | 106.4 | 101.1 | -5.1% |
| Accounts Receivable | | | | | 164.9 | |
| Inventory | | | | | 143.8 | |
| Accounts Payable | | | | | 114.3 | |
| Short Term Debt | 180.0 | 138.0 | 147.0 | 184.0 | 222.8 | 21.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 2.8 | |
Cash flow
|
|---|
| Capex | 10.0 | 7.9 | 39.8 | 75.9 | 100.4 | 32.2% |
Ratios
|
|---|
| Revenue growth | -17.7% | 16.1% | -14.7% | 5.6% | -7.2% | |
| EBITDA growth | -48.7% | 62.8% | -66.0% | -4.5% | -74.3% | |
|
|---|
| Gross Margin | 23.6% | 24.2% | 24.4% | 23.3% | 20.5% | -2.8% |
| EBITDA Margin | 6.5% | 9.1% | 3.6% | 3.3% | 0.9% | -2.4% |
| EBIT Margin | | | | | -2.7% |
| SG&A, % of revenue | 5.5% | 4.8% | 6.0% | 5.8% | 6.1% | 0.3% |
| SBC, % of revenue | | | | | 0.1% |
| Net Income Margin | 3.6% | 6.3% | 4.1% | 1.2% | -2.0% | -3.2% |
| CAPEX, % of revenue | 1.4% | 1.0% | 5.8% | 10.5% | 14.9% | 4.5% |
|
|---|
| ROIC | 4.9% | 9.4% | 1.3% | 0.6% | -2.9% | -3.4% |
| ROE | 5.5% | 11.2% | 6.1% | 1.9% | -3.1% | -5.0% |
| Net Debt/EBITDA | 1.1x | -0.6x | 0.4x | 3.3x | 20.4x | 17.2x |
People
|
|---|
| Employees | | | | | 1,975 | |
| Revenue/Employee, th. $ | | | | | 340 | |
Himax Technologies, Inc. ($HIMX) key quoterly financial indicators
| mln. $ | 19Q1 | 19Q2 | 19Q3 | 19Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 163 | 169 | 164 | 175 | | 0.1% | -6.8% | -12.9% | -8.4% |
| EBITDA | 3 | 0 | -2 | 5 | | 61.8% | -100.0% | -133.5% | -51.0% |
| Net Income | -2 | -5 | -7 | 1 | | | -344.4% | -887.4% | -88.2% |
Balance Sheet
|
|---|
| Cash | 97 | 93 | 117 | 101 | | -30.6% | -18.8% | 28.6% | -5.1% |
| Short Term Debt | 204 | 241 | 255 | 223 | | 38.8% | 63.9% | 55.5% | 21.2% |
| Long Term Debt | 0 | 0 | 0 | 3 | | | | | |
Ratios
|
|---|
| Gross Margin | 23.0% | 19.0% | 19.0% | 21.0% | | 0.5% | -4.0% | -4.4% | -3.3% |
| EBITDA Margin | 1.8% | 0.0% | -1.2% | 2.9% | | 0.7% | -3.1% | -4.4% | -2.5% |
| Net Income Margin | -1.2% | -3.0% | -4.3% | 0.6% | | 0.5% | -4.1% | -4.7% | -3.9% |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| 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) | | | 63.9% | 49.5% | -23.0% |
| Adesto Technologies Corporation ($IOTS) | 4.3% | 1.6% | 27.6% | 48.8% | |
| |
|---|
| Median (68 companies) | 10.6% | 4.8% | 11.0% | 4.4% | -12.7% |
|---|
| Himax Technologies, Inc. ($HIMX) | | 16.1% | -14.7% | 5.6% | -7.2% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| CEVA, Inc. ($CEVA) | 90.9% | 91.6% | 92.1% | 89.8% | |
| NVE Corporation ($NVEC) | 80.3% | 76.1% | 78.5% | 79.0% | |
| Rambus, Inc. ($RMBS) | 84.7% | 80.1% | 79.9% | 76.8% | |
| Universal Display Corporation ($OLED) | 64.2% | 83.9% | 80.8% | 75.5% | |
| Intermolecular, Inc. ($IMI) | 57.4% | 66.5% | 67.5% | 70.3% | |
| |
|---|
| Median (67 companies) | 48.1% | 48.0% | 49.1% | 50.4% | 47.5% |
|---|
| Himax Technologies, Inc. ($HIMX) | 23.6% | 24.2% | 24.4% | 23.3% | 20.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| NVE Corporation ($NVEC) | 66.0% | 61.8% | 65.6% | 65.1% | |
| Micron Technology, Inc. ($MU) | | 25.4% | 47.9% | 65.0% | 54.7% |
| NXP Semiconductors N.V. ($NXPI) | 41.5% | 21.6% | 46.2% | 49.9% | |
| Texas Instruments Incorporated ($TXN) | 42.0% | 43.5% | 46.7% | 48.6% | |
| Intel Corp ($INTC) | 41.0% | 35.2% | 41.7% | 45.7% | |
| |
|---|
| Median (68 companies) | 11.4% | 9.2% | 10.7% | 9.8% | 37.4% |
|---|
| Himax Technologies, Inc. ($HIMX) | 6.5% | 9.1% | 3.6% | 3.3% | 0.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Alpha and Omega Semiconductor Limited ($AOSL) | 6.6% | 6.5% | 12.2% | 42.2% | |
| Renesola Ltd. ($SOL) | 0.0% | 0.0% | 78.0% | 41.7% | |
| First Solar, Inc. ($FSLR) | 4.0% | 7.9% | 17.5% | 33.0% | |
| Sigma Designs Inc ($SIGM) | 6.5% | 6.2% | 14.1% | 29.3% | |
| Micron Technology, Inc. ($MU) | | 46.9% | 23.3% | 29.2% | 41.8% |
| |
|---|
| Median (68 companies) | 4.0% | 3.7% | 4.7% | 4.2% | 11.8% |
|---|
| Himax Technologies, Inc. ($HIMX) | 1.4% | 1.0% | 5.8% | 10.5% | 14.9% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| SMART Global Holdings, Inc. ($SGH) | | 2.5% | 21.5% | 51.7% | |
| Texas Instruments Incorporated ($TXN) | 29.8% | 34.9% | 43.1% | 47.5% | |
| Micron Technology, Inc. ($MU) | | 0.8% | 21.5% | 42.9% | 18.5% |
| Applied Materials Inc ($AMAT) | 15.2% | 19.0% | 31.2% | 36.4% | |
| NVIDIA Corporation ($NVDA) | 13.3% | 13.1% | 27.3% | 35.3% | |
| |
|---|
| Median (76 companies) | 3.6% | 1.4% | 3.2% | 3.0% | 18.5% |
|---|
| Himax Technologies, Inc. ($HIMX) | 4.9% | 9.4% | 1.3% | 0.6% | -2.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 3.3x | 3.0x | 7.2x | 98.6x | |
| Inphi Corporation ($IPHI) | -6.4x | 4.5x | 33.7x | 32.2x | |
| JinkoSolar Holding Company Limited ($JKS) | 3.3x | 4.1x | 11.0x | 8.2x | |
| Lattice Semiconductor Corporation ($LSCC) | | 6.5x | 19.0x | 3.9x | |
| Renesola Ltd. ($SOL) | 35.0x | 123.6x | 2.3x | 3.3x | |
| |
|---|
| Median (45 companies) | -0.5x | 0.4x | 0.4x | 0.3x | -0.1x |
|---|
| Himax Technologies, Inc. ($HIMX) | 1.1x | -0.6x | 0.4x | 3.3x | 20.4x |
