INFINEON TECHNOLOGIES AG (1IFX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1IFX - DE0006231004 - Common Stock
40.695 EUR
-1.22 (-2.91%)
1IFX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 industry peers in the Semiconductors & Semiconductor Equipment industry. 1IFX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1IFX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1IFX was profitable.
- In the past year 1IFX had a positive cash flow from operations.
- Each year in the past 5 years 1IFX has been profitable.
- 1IFX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 3.27%, 1IFX is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 5.85%, 1IFX is doing worse than 60.87% of the companies in the same industry.
- With a Return On Invested Capital value of 4.81%, 1IFX is not doing good in the industry: 62.32% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for 1IFX is below the industry average of 14.31%.
- The last Return On Invested Capital (4.81%) for 1IFX is well below the 3 year average (9.33%), which needs to be investigated, but indicates that 1IFX had better years and this may not be a problem.
| 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
- The Profit Margin of 1IFX (6.80%) is worse than 68.12% of its industry peers.
- 1IFX's Profit Margin has improved in the last couple of years.
- 1IFX has a Operating Margin of 10.42%. This is in the lower half of the industry: 1IFX underperforms 66.67% of its industry peers.
- 1IFX's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 39.28%, 1IFX is not doing good in the industry: 71.01% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of 1IFX has grown nicely.
| 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), 1IFX is destroying value.
- The number of shares outstanding for 1IFX has been increased compared to 1 year ago.
- Compared to 5 years ago, 1IFX has about the same amount of shares outstanding.
- The debt/assets ratio for 1IFX is higher compared to a year ago.
2.2 Solvency
- 1IFX has an Altman-Z score of 3.53. This indicates that 1IFX is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of 1IFX (3.53) is worse than 71.01% of its industry peers.
- The Debt to FCF ratio of 1IFX is 6.46, which is on the high side as it means it would take 1IFX, 6.46 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 6.46, 1IFX is not doing good in the industry: 63.77% of the companies in the same industry are doing better.
- 1IFX has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
- 1IFX has a Debt to Equity ratio of 0.36. This is in the lower half of the industry: 1IFX underperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 3.53 |
ROIC/WACC0.45
WACC10.63%
2.3 Liquidity
- 1IFX has a Current Ratio of 1.70. This is a normal value and indicates that 1IFX is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.70, 1IFX is not doing good in the industry: 81.16% of the companies in the same industry are doing better.
- 1IFX has a Quick Ratio of 1.70. This is a bad value and indicates that 1IFX is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1IFX has a worse Quick ratio (0.98) than 84.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- The earnings per share for 1IFX have decreased strongly by -25.67% in the last year.
- Measured over the past years, 1IFX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.15% on average per year.
- 1IFX shows a decrease in Revenue. In the last year, the revenue decreased by -1.96%.
- The Revenue has been growing by 11.35% on average over the past years. This is quite good.
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
- 1IFX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.66% yearly.
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.
- 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
- 1IFX is valuated quite expensively with a Price/Earnings ratio of 29.28.
- Compared to the rest of the industry, the Price/Earnings ratio of 1IFX indicates a somewhat cheap valuation: 1IFX is cheaper than 75.36% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of 1IFX to the average of the S&P500 Index (27.21), we can say 1IFX is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 25.27, the valuation of 1IFX can be described as expensive.
- 60.87% of the companies in the same industry are more expensive than 1IFX, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1IFX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.28 | ||
| Fwd PE | 25.27 |
4.2 Price Multiples
- 1IFX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1IFX is cheaper than 66.67% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1IFX indicates a somewhat cheap valuation: 1IFX is cheaper than 68.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.58 | ||
| EV/EBITDA | 16.69 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1IFX does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as 1IFX's earnings are expected to grow with 25.05% in the coming years.
PEG (NY)1.85
PEG (5Y)1.71
EPS Next 2Y25.78%
EPS Next 3Y25.05%
5. Dividend
5.1 Amount
- 1IFX has a yearly dividend return of 0.82%, which is pretty low.
- 1IFX's Dividend Yield is a higher than the industry average which is at 0.74.
- With a Dividend Yield of 0.82, 1IFX pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
- The dividend of 1IFX has a limited annual growth rate of 5.79%.
Dividend Growth(5Y)5.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1IFX pays out 45.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
- 1IFX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.64%
EPS Next 2Y25.78%
EPS Next 3Y25.05%
INFINEON TECHNOLOGIES AG / 1IFX.MI FAQ
What is the fundamental rating for 1IFX stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1IFX.MI.
What is the valuation status of INFINEON TECHNOLOGIES AG (1IFX.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to INFINEON TECHNOLOGIES AG (1IFX.MI). This can be considered as Fairly Valued.
How profitable is INFINEON TECHNOLOGIES AG (1IFX.MI) stock?
INFINEON TECHNOLOGIES AG (1IFX.MI) has a profitability rating of 4 / 10.
What is the valuation of INFINEON TECHNOLOGIES AG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INFINEON TECHNOLOGIES AG (1IFX.MI) is 29.28 and the Price/Book (PB) ratio is 3.12.
Is the dividend of INFINEON TECHNOLOGIES AG sustainable?
The dividend rating of INFINEON TECHNOLOGIES AG (1IFX.MI) is 4 / 10 and the dividend payout ratio is 45.64%.