Himax Technologies Inc. American Depositary Shares (HIMX)

FairStock Score: 21/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and sell at a sensible price. Himax is a fabless chip designer focused on display driver ICs and related imaging products, used in TVs, monitors, laptops, phones, tablets, autos, ePaper, and industrial displays. That is a cyclical, competitive field where scale and customer relationships matter, but pricing power is usually limited. In the latest reported quarter, fiscal Q2 2026, revenue was $227.4 million and net income was $19.9 million, an 8.74% net margin. That is profitable but thin. The provided return metrics are weak: ROE of 4.14% and ROCE of 1.47% as calculated by FairStock. Free cash flow is positive at $26.9 million on a trailing basis, but against a $1.9 billion market cap that is only a 1.4% FCF yield. The balance sheet has D/E of 0.65, and Altman Z-Score of 2.31 sits in the gray zone. Piotroski F-Score is 7/9, which is a positive sign on recent fundamentals. Valuation is the main problem. At the 2026-10-13 close of $12.67, the P/E is 60.33, P/B is 2.46, EV/EBITDA is 31.24, and PEG is 2.99. Graham Number is $3.49, leaving a margin of safety of -263.04%, meaning the price is far above what Graham-style earnings and book value would support. FairStock Score is 21/100, and its Lynch category is none because only 0 years of filed results are available. Growth may be improving, but I need durable returns, stronger cash generation, and a more reasonable price before this looks like a sound value proposition.

In plain English: Himax makes chips that control screens in phones, TVs, cars, and other devices. In the latest reported quarter, fiscal Q2 2026, sales were $227.4 million and profit was $19.9 million, an 8.74% margin, so the business is profitable but not highly profitable. Based on the numbers provided, the stock price looks expensive relative to the company's profits, cash flow, and accounting value, and the shares have been very volatile.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer