German stock report - Infineon Technologies

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UPDATE: Infineon Technologies decreases, 2 days' volume in a day January 17, 2018 20:00 CET

NEWS BITES - EUROPE

Infineon Technologies AG (ETR:IFX), Germany's largest Semiconductors company by market cap, has decreased 21.0c (0.9%) from its last trading session of January 16 to close at EUR23.78. Compared with the DAX Index which fell 90.6 points (0.7%) in the day, the relative price change was -0.2%. The fall was exacerbated by robust volume of 1.6 times the average daily volume of 329.8 million shares.

INFINEON TECHNOLOGIES ISSUED 13 NEW PATENTS IN THE WEEK OF JANUARY 16, 2018

Infineon Technologies (IFX) has been issued 13 new patents by the USPTO and EPO.

Highlights in today's Report:

SECTION 1 BEARISH SIGNALS

Fundamentals, Technicals

SECTION 2 BULLISH SIGNALS

Fundamentals, Undervaluation [compared with sector average], Technicals, High Performance Indicators

SECTION 3 PRICE VOLUME DYNAMICS

Technicals, Moving Annual Return, Beta

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

Financials Summary, Annual Report for the year ended September 30, 2017 (year-on-year comparisons with previous corresponding period)-, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 7 PATENTS

SECTION 8 STOCK BUZZ

SECTION 1 INFINEON TECHNOLOGIES BEARISH SIGNALS

1.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 0.9%, divided by average yield of dividend yielding stocks in the DAX Index of 1.9% is 47.7%. This suggests the stock is overvalued in dividend yield terms.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 2.7. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

+ Net profit margin has averaged 11.1% in the last 3 years. This is lower than the sector average of 13.1% and suggests a low margin of safety.

1.2 Technicals:

Downtrend: The stock dropped on high volatility today.

+ The price dropped 3.2% in the last week.

+ Compared with the DAX Index which fell 0.9% for the week, this represented a relative price decrease for Infineon Technologies stock of 2.3% for the week.

SECTION 2 INFINEON TECHNOLOGIES BULLISH SIGNALS

2.1 Fundamentals:

+ Total Liabilities/EBITDA of 4.3 is less than the Joseph Piotroski benchmark of 5.

+ Interest cover defined by EBIT/I is 15.8 times. This indicates it is less leveraged.

+ As per the Du Pont analysis, Return on Equity of 14.0% is better than sector average of 12.9%. This is computed as net profit margin of 11.2% times asset turnover [sales/assets] of 0.71 times leverage factor [total assets/shareholders' equity] of 1.8.

2.2 Undervaluation [compared with sector average]:

+ Price to Book of 6.7 [9.9]. We estimate Infineon Technologies stock is trading at a current year Price to Book of 4.6 and a forward year Price to Book of 3.2.

+ Dividend yield of 0.9% [0.2%].

2.3 Technicals:

+ In the last three months the stock has hit a new 52-week high eleven times, pointing to a significant uptrend.

+ The present value of EUR1,000 (PV1000) invested one year ago in Infineon Technologies is EUR1,471, comprising a capital gain of EUR453 and dividend reinvested of EUR19.

PV10001-week1-month1-year
IFX.ETR9681,0271,471
DAX Index9911,0061,140

+ The present value of EUR1,000 (PV1000) invested ten years ago in Infineon Technologies is EUR4,070, including a capital gain of EUR2,693 and dividend reinvested of EUR377.

+ 10 years Multiplier in EUR = 4.07x

+ Compound Annual Growth Rate (CAGR) in EUR = 15.1%

Present Value of USD1,000 invested 10 years ago:

+ The present value of USD1,000 (PV1000) invested ten years ago in Infineon Technologies is $US3,358, including a capital gain of $US2,047 and dividend reinvested of $US311.

+ 10 years ago EUR 1 equalled USD 1.4868

+ 10 years Multiplier in USD = 3.358x

+ Compound Annual Growth Rate (CAGR) in USD = 12.9%

Jan 17, 2018: EUR 1 equals USD 1.23

2.4 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverEUR12.5 billion (US$15.3 billion)In Top 1%
Price/MAP2001.12In Top Quartile
Interest Cover15.8In Top Quartile
Return on Assets [ROA] %8In Top Quartile

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 524,116,209 shares worth EUR12.5 billion (US$15.3 billion) traded today. In the past week, volume was 1.2 times average and the shares were down 3.2%.

+ Infineon Technologies is at a discount of 6.5% to its 12-month high of EUR25.45 on November 21, 2017. It is also at a premium of 46.3% to the 12-month low of EUR16.25 on January 23, 2017.

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has consistently exceeded 17%.

IFXClose (EUR)Dividends (EUR)Capital Gain %% YieldAnnual Return %
Jan 1723.780.2245.31.346.6
1 Yr ago16.370.2371.738.7
2 Yrs ago11.950.1831.2233.2
3 Yrs ago9.110.1219.21.620.8
4 Yrs ago7.640.1215.91.817.7

Close 5 years ago EUR6.59

3.3 Beta:

+ Beta: the Beta of Infineon Technologies stock is 1.2. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

SECTION 4 RANKING

4.1 Global Rank [out of 47,427 stocks] and Rank in the Europe Region [out of 8,529 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)33.1B460120
Total Assets (US$)12.2B2,417508
Revenue (US$)8.7B1,504360
Net Profit (US$)969M1,048232
Return on Equity %14.08,4171,709
Net Profit Margin %11.210,3241,685
Price to Book6.729,5034,398
Yield %0.917,0603,207
PV$1000 (1Year) US$*1,6966,2641,267
US$* Change (1Year) %68.76,3941,249

* 1 year ago EUR 1 = USD 1.06

Jan 17, 2018: EUR 1 equals USD 1.23

4.2 Independent Ratings

+ Industryweek 1000:

It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 588.

+ Forbes 2000:

Infineon Technologies AG is the 1300th largest by revenue in the Forbes Global 2000.

+ BSS/News Bites:

It is placed 178/744 in BSS News Bites' ranking of German performers in the past year, a percentile ranking of 76.

+ Vanguard Total World Stock ETF 7457:

The stock was one of 7457 global stocks selected by Vanguard Total World Stock ETF (VT). As at November 30, 2017, the Vanguard Total World Stock ETF held 314,333 shares worth $US8,960,336 or 0.06% by value of the ETF's portfolio [Ranked 290 out of 7457 by value and 12 out of 147 for Germany].

SECTION 5 INFINEON TECHNOLOGIES FINANCIALS

5.1 Financials Summary

Year endedSep 2017Sep 2016Sep 2015
Sales (USD B)8.67.97.1
Pretax (USD)1.1B859.8M634.2M
Net (USD M)963.4906.1773.2
EPS (EUR)--0.56

Sales was up 9.1% from US$7.9 billion in 2016 to US$8.6 billion in 2017. Net profit was up 6.3% from US$906.1 million in 2016 to US$963.4 million in 2017.

5.2 Annual Report for the year ended September 30, 2017 (year-on-year comparisons with previous corresponding period)-

Favourable Changes:

+ Net profit up 6.3% from EUR743.0m ($US835.8m) to EUR790.0m ($US932.7m)

+ Total revenue up 9.1% from EUR6.5b ($US7.3b) to EUR7.1b ($US8.4b).

+ EBIT Margin up from 11.9% to 14.1%.

+ Interest cover up 37.2% from 11.5 to 15.8.

+ EBIT to total assets up from 8.5% to 10.0%.

+ Profit before tax to Sales up from 10.9% to 13.2%.

+ Sales and marketing expenses to Sales down from 12.2% to 11.6%.

+ Interest expenses to Sales down from 1% to 0.9%.

+ Total liabilities to Total assets down 4.4% from 0.5 to 0.4.

+ Fixed Assets to Total Assets up from 23.3% to 26.7%.

+ Total Liabilities to EBITDA of 4.3 compares favourably with the Joseph Piotroski benchmark of <5. This ratio has improved by 17.7% from the previous year's ratio of 5.3.

+ Total Liabilities to Operating Cash Flow of 2.5 compares favourably with the Joseph Piotroski benchmark of <4. This ratio has improved by 20.6% from the previous year's ratio of 3.1.

+ Net tangible assets per share up 19.8% from EUR2.98 ($US3.4) to EUR3.57 ($US4.2).

Unfavourable Changes:

+ Current ratio down 21.1% from 2.9 to 2.3.

+ Working capital to total assets down from 32.6% to 27.9%.

Note:

+ Total revenue to total assets steady at 0.7.

+ Cost of Goods Sold to Sales down from 64% to 62.9%.

+ Debt to Equity steady at 0.3.

+ Total non-current assets to Total Assets up from 50.6% to 51%.

+ Total current assets to Total Assets down from 49.4% to 49%.

+ Short-term investments to Total Assets down from 17.8% to 16%.

+ Intangibles to Total Assets down from 18.2% to 15.9%.

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (c)
17 Jan 201822
17 Jan 201720
17 Jan 201618
17 Jan 201512
17 Jan 201412

SECTION 6 INFINEON TECHNOLOGIES PROFILE

6.1 Activities

Infineon Technologies AG designs, manufactures, and markets semiconductors and related products. The Company's products include microprocessors, memory components, microcontrollers, integrated circuits, digital and analog sensors, and fiber optics. Infineon markets its products to the communications, automotive, industrial, and consumer electronics sectors.

6.2 Industry & Sector

Classification LevelName of Sector
Business SectorTechnology Equipment
Industry GroupSemiconductors & Semiconductor Equipment
IndustrySemiconductors
Economic SectorTechnology

6.3 Top Management

The chief executive officer is Reinhard Ploss and the chief financial officer is Dominik Asam.

6.4 Issued Capital

Based on 1,135,201,707 issued shares the market capitalisation is EUR27 billion (US$33.1 billion).

SECTION 7 INFINEON TECHNOLOGIES PATENTS

Issued January 16, 2018

Hybrid digital/analog noise shaping in the sigma-delta conversion [9,871,533]

Bipolar semiconductor device with sub-cathode enhancement regions [9,871,128]

Discrete semiconductor transistor [9,871,126]

Bipolar transistor [9,871,125]

Magnetic field sensor circuit in package with means to add a signal from a coil [9,869,729]

Sensing method and system for correcting an input waveform from a coded wheel [9,869,568]

Molded cavity package with embedded conductive layer and enhanced sealing [9,868,632]

Circuit arrangement and a method for operating a circuit arrangement [9,870,011]

Voltage regulation system and method for providing power to a load [9,870,017]

Interface circuit [9,870,331]

Method of manufacturing a termination arrangement for a vertical MOSFET [9,871,119]

Multi-level chip interconnect [9,871,017]

Acoustic sensor package [9,872,111]

To view more details on these Patents, click here

SECTION 8 STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

January 15: Infineon Technologies announces dividend

Infineon Technologies today announced a final dividend of 25.0c per share. The ex dividend date is Friday, February 23.

June 21 2017: Infineon receives "Supplier of the Year Award" from DENSO

Munich, Germany - 19 June 2017 - The Japanese automotive system supplier DENSO has honored Infineon with a "Supplier of the Year Award". DENSO acknowledged the Infineon North America team for their outstanding local support. The award is given to the supplier who demonstrates commitment to exceptional quality and logistics performance.

June 12 2017: Infineon Technologies: Preventing cyber-attacks in rescue services: security 'made in Germany' protects respirators

- An appalling scenario: a famous soccer player is involved in a serious traffic accident, just as his team is fighting to avoid relegation. While the player's accident is not yet publicly known, the IT systems of the hospital are attacked. Looking for sensitive data, the perpetrators come across the name and records of the soccer player.

May 29 2017: Infineon Technologies: 'eRamp' strengthens Germany and Europe in power electronics

Munich and Dresden, Germany - 29 May 2017 - One of the most important European research projects for energy efficiency, "eRamp", is coming to a close. Over the past three years, 26 partners from business and science have explored innovative electronics components for using energy even more efficiently.

May 19 2017: Microelectronics for connected production: Infineon launches 'Productive4.0' research project in Dresden

Munich and Dresden, Germany - 19 May 2017 - "Productive4.0", the largest European research initiative to date in the field of Industry 4.0, was launched today at Infineon Technologies in Dresden. Coordinated by Infineon Technologies AG, more than 100 partners from 19 European countries will work on digitizing and networking industry.

Contact: 49-89-234-25649

Physical Address: Am Campeon 1 - 12 Neubiberg, D-85579 Germany

State/Province/Country: Germany

Country of Incorporation: Germany

Exchange: Xetra Stock Exchange

ISIN: DE0006231004

DE:IFX; ETR:IFX; GR:IFX; IFXGn.DE

PermID: 4295870063

Infineon Technologies Ag

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