Market data powered by FactSet and Web Financial Group. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. Volume is a useful item in many ways, and the 20-day average establishes a good … For the first nine months of 2019, Himax incurred a significant operating loss of $17.0 million and a net loss of $14.7 million, meaning full-year 2019 results will likely be deep in the red. How Analysts Feel About Himax Technologies, Inc. While our testing has found that a P/S ratio of <2 is the optimum range for returns, be sure to compare this ratio to its respective industry. Enterprise Value (EV) is Market Capitalization + Debt - Cash. Importantly, Himax does not expect the business environment to improve in the near term and sees waning demand in all industries that use consumer LCDs. A bright spot will be for the touch and display driver integration (TDDI) division for smartphones, where the company anticipates a strong rebound in the first quarter 2020, but even this might not lift earnings materially for next year. A ratio under 40% is generally considered to be good.But note; this ratio can vary widely from industry to industry. It measures a company's ability to pay short-term obligations. Net Margin is defined as net income divided by sales. The company is a worldwide market leader in display driver ICs (integrated circuits) and timing controllers used in a variety of electronic equipment such as TVs, laptops, monitors, and mobile phones. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. The Momentum Score takes all of this and more into account. ROE is always expressed as a percentage. To that end, you should be aware of the 1 warning sign we've spotted with Himax Technologies. This includes personalizing content and advertising. While earnings are the driving metric behind stock prices, there wouldn't be any earnings to calculate if there weren't any sales to begin with. Some of the items you'll see in this category might look very familiar, while other items might be quite new to some. The Current Ratio is defined as current assets divided by current liabilities. Investors use this metric to determine how a company's stock price stacks up to its intrinsic value. And like the P/E ratio, a lower number is typically considered 'better' than a higher number. If you wish to go to ZacksTrade, click OK. Himax Technologies, Inc. is a fabless semiconductor solution provider. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. This is also useful to know when comparing a stock's daily volume (which can be found on a ticker's hover-quote) to that of its average volume. It currently has a Growth Score of A. Cash flow itself is an important item on the income statement. A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. A P/B of 2 means it's selling at 2 times its book value. Investors who are in the know are in a bearish mood. Like most ratios, this number will vary from industry to industry. But note, different industries have different margin rates that are considered good. Himax Technologies, Inc. is a publicly traded company listed on the Nasdaq Stock Market under the symbol HIMX. The (F1) EPS Estimate Weekly Change calculates the percentage change in the consensus earnings estimate for the current year (F1) over the last week. Stocks with a short interest percentage above 10% is considered high, suggesting some investors are pessimistic about the stock. Since there is a fair amount of discretion in what's included and not included in the 'ITDA' portion of this calculation, it is considered a non-GAAP metric. Also, by looking at the rate of this item, rather than the actual dollar value, it makes for easier comparisons across the industry and peers. That means it scores higher than 43% of stocks. HIMX's strongest trending metric is stability; it's been moving down over the last 193 days. Simply put, the fact that Himax Technologies has more cash than debt is arguably a good indication that it can manage its debt safely. For example, a stock trading at $35 with earnings of $3 would have an earnings yield of 0.0857 or 8.57%. In this example, we are using the consensus earnings estimate for the Current Fiscal Year (F1). When comparing this ratio to different stocks in different industries, take note that some businesses are more capital intensive than others. Value Style - Learn more about the Value Style. Want More Great Investing Ideas? Himax's industry structure and the nature of the business make it an unattractive investment for … The most common way this ratio is used is to compare it to other stocks and to compare it to the 10 Year T-Bill. A strong cash flow is important for covering interest payments, particularly for highly leveraged companies. The tested combination of price performance, and earnings momentum (both actual and estimate revisions), creates a powerful timeliness indicator to help you identify stocks on the move so you know when to get in and when to get out. Recent price changes and earnings estimate revisions indicate this stock lacks momentum and would be a lackluster choice for momentum investors. Traditionally, investors would look at the stock with the lower P/E and deem it a bargain. If a company's expenses are growing faster than their sales, this will reduce their margins. Zacks Rank Education -- Learn more about the Zacks Rank Is Himax Technologies, Inc. (NASDAQ:HIMX) a buy, sell, or hold? Over the past quarter, shares of Himax Tech have risen 22%, and … its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. Himax Technologies, Inc. (NASDAQ:HIMX) Stock: Looks Like A Good Investment. It's then divided by the number of shares outstanding to determine how much cash is generated per share. Operating Margin for any stock indicates how profitable investing would be, and Himax Technologies Inc. [HIMX] shares currently have an operating margin of -2.72 and a Gross Margin at +18.12. Since bonds and stocks compete for investors' dollars, a higher yield typically needs to be paid to the stock investor for the extra risk being assumed vs. the virtual risk-free investment offered in U.S.-backed Treasuries. Our testing substantiates this with the optimum range for price performance between 0-20. In general, a lower number or multiple is usually considered better that a higher one. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. The 12 Week Price Change displays the percentage price change over the most recently completed 12 weeks (60 days). Copyright 2021 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. Like the earnings yield, which shows the anticipated yield (or return) on a stock based on the earnings and the price paid, the cash yield does the same, but with cash being the numerator instead of earnings. The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. We use cookies to understand how you use our site and to improve your experience. This is useful for obvious reasons, but can also put the current day's intraday gains into better context by knowing if the recently completed trading day was up or down. It takes the consensus sales estimate for the current fiscal year (F1) divided by the sales for the last completed fiscal year (F0) (actual if reported, the consensus if not). The company has provided weak guidance and has limited visibility on how things will pan out. Conventional wisdom also has it that if the yield on the stock market (S&P 500 for example) is lower that the yield on the 10 Yr., then stocks would be considered overvalued. This shows the percentage of profit a company earns on its sales. Several great articles have already been written about Himax Technologies Inc. , including this one by Cassiopeia Value Investing. A company with a P/E ratio of 40 and a growth rate of 50% would have a PEG ratio of 0.80 (40 / 50 = 0.80). In particular, we’ll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. Chart by author. The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. A yield of 8.57% also means 8.57 cents of earnings for $1 of investment. The Price to Book ratio or P/B is calculated as market capitalization divided by its book value. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B. With 12 weeks representing a meaningful part of a year, this time period will show whether a stock has been enjoying strong investor demand, or if it's in consolidation, or distress. Please reference the links below or contact the Himax Investor Relations team for additional information. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go … Zacks Style Scores Education - Learn more about the Zacks Style Scores. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment. The Value Scorecard table also displays the values for its respective Industry along with the values and Value Score of its three closest peers. (Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets.) The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Within the VGM Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy srocks with the highest probability of success. Himax is a semiconductor maker based in Taiwan. Himax Technologies Is a Risky Investment May 22, 2014 | About: HIMX -1.55% Himax Technologies ( NASDAQ:HIMX ) has touched new highs and was trading impressively on the stock market as a result of news that it will be supplying LCOS micro displays to Google . Himax Technologies Inc. had a pretty favorable run when it comes to the market performance. This ratio essentially compares the P/E to its growth rate, thus, for many, telling a more complete story than just the P/E ratio alone. The Projected Sales Growth (F1/F0) looks at the estimated growth rate for the current year. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Zacks' proprietary data indicates that Himax Technologies, Inc. is currently rated as a Zacks Rank 3 and we are looking for an inline return from the HIMX shares relative to the market in the next few months. If you already own HIMX, hold tight and enjoy the ride. The longer-term perspective helps smooth out short-term events. Aside from using absolute numbers, however, you can also find value by comparing the P/E ratio to its relevant industry and its peers. Get … The market cap still is very moderate compared to the growth chances and strong demand for its products. While the F1 consensus estimate and revision is a key driver of stock prices, the Q1 consensus is an important item as well, especially over the short-term, and particularly as a stock approaches its earnings date. To learn more, click here. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Below are the most recent moves that we’ve seen from analysts when it comes to HIMX. HIMX is lower by -$0.05 from the previous closing price of $3.45 on volume of 374,777 shares. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Visit Performance Disclosure for information about the performance numbers displayed above. As the name suggests, it's calculated as sales divided by assets. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock. Projected EPS Growth looks at the estimated growth rate for one year. However, the most telling sign of trouble is Himax's bottom line, which has steadily fallen from a high of $66.6 million back in 2014 to just $8.6 million in 2018. But they all have their place in the Growth style. Himax Tech (HIMX) is a Zacks Rank #2 (Buy) preannounced the quarter on Janurary 7 and the stock has been on a big run since then. The (Q1) EPS Estimate Monthly Change calculates the percentage change in the consensus earnings estimate for the current quarter (Q1) over the last 4 weeks. Many investors prefer EV to just Market Cap as a better way to determine the value of a company. This is also commonly referred to as the Asset Utilization ratio. Investors looking for lucrative $10 stocks, can count on Himax Technologies. * indicates the important links in the menu. It's packed with all of the company's key stats and salient decision making information. The proliferation of competition in an overcrowded LCD market also demonstrates the ease of entry for players offering a commoditized product. Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank. The company management teams may have good odds in positioning the firm resources to exploit market volatility in May.The stock standard deviation of daily returns for 30 days investing horizon is currently 6.84. The 1 Week Price Change displays the percentage price change over the last 5 trading days using the most recently completed close to the close from 5 days before. These returns cover a period from January 1, 1988 through April 5, 2021. Within the Finance Sector, it would fall into the M Industry of Banks & Thrifts. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation metric used to measure a company's value and is helpful in comparing one stock to another. In contrast, the net income that goes into the earnings portion of the P/E ratio does not add these in, thus artificially reducing the income and skewing the P/E ratio. This lack of free cash flow generation is a worrying sign for any business and is a huge red flag for Himax. Himax Technologies Inc.’s Net Margin is presently recorded at -2.03. Current Cash Flow Growth measures the percent change in the year over year Cash Flow. The company’s stock price has collected -12.54% of loss in the last five trading sessions. A positive change in the cash flow is desired and shows that more 'cash' is coming in than 'cash' going out. The Historical Cash Flow Growth is the longer-term (3-5 year annualized) growth rate of the cash flow change. As you can see, Himax is trading at depressed levels for good reason. A company with an ROE of 10%, for example, means it created 10 cents of assets for every $1 of shareholder equity in a given year. Himax Technologies's revenue was up 57.6% on a year-over-year basis. If a company's net margin is 15%, for example, that means its net income (or profit) is 15 cents for every $1 of sales the company makes. The Cash/Price ratio is calculated as cash and marketable securities per share divided by the stock price. Its Value Score of B indicates it would be a good pick for value investors. This time period essentially shows you how the consensus estimate has changed from the time of their last earnings report. Himax Technologies, Inc. (NASDAQ:HIMX) shares, dropped in value on Thursday, Mar 18, with the stock price down by -4.41% to the previous day’s close as weak demand from buyers trailed the stock to $12.8. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. In that case, they are not buying Himax because the equity is a good investment, but because they need to do something to avoid the feeling of missing out. If a stock's EPS consensus estimate is $1.10 now vs. $1.00 the week before, that will be reflected as a 10% change. Valuation metrics show that Himax Technologies, Inc. may be undervalued. are strong. It's also commonly referred to as a 'liquidity ratio'. Note; companies will typically sell for more than their book value in much the same way that a company will sell at a multiple of its earnings. See rankings and related performance below. While any stock can see a spike in price, it takes a real winner to consistently outperform the market. In general, the lower the ratio is the better. The Sales to Assets ratio (or Sales to Total Assets or S/TA for short) shows how much sales are generated from a company's assets. The EV/EBITDA ratio is a valuation multiple and is often used in addition, or as an alternative, to the P/E ratio. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. Gross margin also contracted from 23.4% to 19.5% as the company reported waning demand in industries that use consumer display panels. ZacksTrade and Zacks.com are separate companies. The Zacks database contains over 10,000 stocks. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. 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