As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Himax Technologies Inc (HIMX)
Himax Technologies Inc is a semiconductor solution provider dedicated to display imaging processing technologies. It operates through the Driver Integrated Circuit and Non-Driver Products segments. The majority of the firm’s revenue gets derived from the Driver Integrated Circuit segment. It offers display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, virtual reality (VR) devices, and many other consumer electronics devices. It also designs and provides controllers for touch sensor displays, in-cell Touch and Display Driver Integration single-chip solutions, LED driver ICs, power management ICs, scaler products for monitors and projectors. Geographically, it generates the majority of its revenue from China.
A quick look at the share price history (below) over the past twelve months shows that the price is down 36%. Here’s why the company is undervalued.
Summary
Market Cap: $1.56 Billion
Enterprise Value: $1.17 Billion
Operating Earnings
Operating Earnings: $603 Million
Acquirer’s Multiple
Acquirer’s Multiple: 1.94
Free Cash Flow (TTM)
Free Cash Flow: $390 Million
FCF/EV Yield
FCF/EV Yield: 25%
Shareholder Yield:
Shareholder Yield: 3.03%
Other Indicators
Piotroski F-Score: 5
Altman Z-Score: 4.63
ROA (5 Year Avge%): 34.09
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