INFINEON TECHNOLOGIES AG (IFX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:IFX - DE0006231004 - Common Stock
41.8 EUR
-1.62 (-3.73%)
IFX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium 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.
- IFX had positive earnings in each of the past 5 years.
- Each year in the past 5 years IFX had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 3.27%, IFX is not doing good in the industry: 71.01% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 5.85%, IFX is doing worse than 62.32% of the companies in the same industry.
- With a Return On Invested Capital value of 4.81%, IFX is not doing good in the industry: 63.77% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for IFX is below the industry average of 14.31%.
- The last Return On Invested Capital (4.81%) for IFX is well below the 3 year average (9.33%), which needs to be investigated, but indicates that IFX 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
- With a Profit Margin value of 6.80%, IFX is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
- IFX's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 10.42%, IFX is not doing good in the industry: 68.12% of the companies in the same industry are doing better.
- IFX's Operating Margin has improved in the last couple of years.
- The Gross Margin of IFX (39.28%) is worse than 72.46% of its industry peers.
- In the last couple of years the Gross Margin of IFX 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IFX is destroying value.
- IFX has more shares outstanding than it did 1 year ago.
- IFX has about the same amout of shares outstanding than it did 5 years ago.
- IFX has a worse debt/assets ratio than last year.
2.2 Solvency
- IFX has an Altman-Z score of 3.69. This indicates that IFX is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of IFX (3.69) 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.
- The Debt to FCF ratio of IFX (6.46) is worse than 65.22% of its industry peers.
- IFX has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
- IFX has a Debt to Equity ratio of 0.36. This is in the lower half of the industry: IFX underperforms 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 3.69 |
ROIC/WACC0.45
WACC10.64%
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.
- The Current ratio of IFX (1.70) is worse than 82.61% of its industry peers.
- A Quick Ratio of 0.98 indicates that IFX may have some problems paying its short term obligations.
- IFX's Quick ratio of 0.98 is on the low side compared to the rest of the industry. IFX is outperformed by 85.51% 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 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%.
- 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
- IFX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.98% yearly.
- IFX 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
- With a Price/Earnings ratio of 30.07, IFX can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of IFX indicates a somewhat cheap valuation: IFX is cheaper than 72.46% of the companies listed in the same industry.
- IFX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.39.
- IFX is valuated quite expensively with a Price/Forward Earnings ratio of 25.96.
- IFX's Price/Forward Earnings is on the same level as the industry average.
- IFX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.07 | ||
| Fwd PE | 25.96 |
4.2 Price Multiples
- IFX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IFX is cheaper than 62.32% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, IFX is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.87 | ||
| EV/EBITDA | 17.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- IFX's earnings are expected to grow with 25.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.9
PEG (5Y)1.75
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.
- Compared to an average industry Dividend Yield of 0.74, IFX pays a bit more dividend than its industry peers.
- 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.
- IFX'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 / 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%.