Himax Technologies Inc. American Depositary Shares (HIMX)

FairStock Score: 21/100 — RISKY

Key Financials

Strengths

• Generates $30 million in annual free cash flow (1.6% yield on market cap)
• Attractive 3.2% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($4) with negative 184% margin of safety—limited downside protection
• Revenue declining at 14.4% year-over-year signals potential demand weakness or market share loss

AI Analysis

Himax Technologies Inc. American Depositary Shares is a micro-cap technology company valued at $1.9 billion. The business generates $832 million in annual revenue with a 0.8% net margin and $30 million in free cash flow. From a quality standpoint, Himax shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.4 in the grey zone. On valuation, the stock is commanding a steep 42.0x multiple, with trades far above its Graham Number ($4) with no margin of safety. Growth dynamics show revenue growing at -14.4% and profit growth of -74.3%. The 3.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 21/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $30 million in annual free cash flow (1.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 42x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer