German stock report - Infineon Technologies

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Infineon Technologies rises in 4 out of last 5 days September 19, 2018 20:00 CEST

NEWS BITES - EUROPE

Infineon Technologies AG (ETR:IFX), Germany's largest Semiconductors company by market cap, has increased 6.0c (0.3%). Compared with the DAX Index which rose 56.5 points (0.5%) in the day, the relative price change was -0.2%. The volume was 0.8 times the average daily trading volume of 486.3 million shares. Infineon Technologies' stock rose in four out of the last 5 trading days, for a 5-day rise of 6.4% to close at EUR19.90Its MCap is EUR22.6 billion (US$26.4 billion).

Infineon Technologies (IFX) has been issued 11 new patents by the USPTO and EPO.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

SECTION 2 BEARISH SIGNALS

SECTION 3 PRICE VOLUME DYNAMICS

SECTION 4 RELATED NEWS

SECTION 5 SUMMARY FINANCIALS

SECTION 6 PROFILE

SECTION 1 INFINEON TECHNOLOGIES BULLISH SIGNALS

1.1 Technicals:

+ The present value of EUR1,000 (PV1000) invested ten years ago in Infineon Technologies is EUR4,305, including a capital gain of EUR2,993 and dividend reinvested of EUR312.

+ 10 years Multiplier in EUR = 4.305x

+ Compound Annual Growth Rate (CAGR) in EUR = 15.7%

Present Value of USD1,000 invested 10 years ago:

+ The present value of USD1,000 (PV1000) invested ten years ago in Infineon Technologies is $US3,542, including a capital gain of $US2,286 and dividend reinvested of $US256.

+ 10 years ago EUR 1 equalled USD 1.4196

+ 10 years Multiplier in USD = 3.542x

+ Compound Annual Growth Rate (CAGR) in USD = 13.5%

Sep 19, 2018: EUR 1 equals USD 1.17

1.2 Oversold/Bullish/Support Signals:

+ The Relative Strength Index (RSI) of 28.5 has breached the oversold line of 30, suggesting the price decrease of 9.2% in the last 14 days is unusually high.

High Performance Indicator and rank of Infineon Technologies in the German market:

DescriptionIFX ValueRank In Market
Today's Trading TurnoverEUR7.8 billion (US$9.2 billion)In Top 1%

1.3 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 [ROE] of 14.0% is better than sector average of 12.4%. ROE 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.

Quarterly Trend in Revenue, Net Profit and Net Profit Margin:

+ Net Profit margin is positive and has seen consecutive rises in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Mar 18 [Q2]3.1122.924.9
Dec 17 [Q1]--11.6

1.4 Undervaluation [compared with sector average]:

+ Price to Book of 5.6 [9.6]. We estimate Infineon Technologies stock is trading at a current year Price to Book of 3.9 and a forward year Price to Book of 2.7.

+ Return on Equity 14.0% [12.4%].

+ Dividend yield of 1.3% [0.2%].

SECTION 2 INFINEON TECHNOLOGIES BEARISH SIGNALS

2.1 Technicals:

+ In the last three months the stock has hit a new 52-week low four times, pointing to a downtrend.

2.2 Fundamentals:

+ The relative yield of IFX, defined by its yield of 1.3%, divided by average yield of dividend yielding stocks in the DAX Index of 3.0% is 41.7%. This suggests Infineon Technologies stock is overvalued in dividend yield terms.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 2.3. 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 13.3% and suggests a low margin of safety.

SECTION 3 INFINEON TECHNOLOGIES PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 394,083,664 shares worth EUR7.8 billion (US$9.2 billion) traded today. In the past week, volume was 1.2 times average and the shares were up 6.4%. The volume was 0.8 times the average daily trading volume of 486.3 million shares.

+ Infineon Technologies is at a discount of 22.8% to its 12-month high of EUR25.76 on June 15. It is also at a premium of 8.9% to the 12-month low of EUR18.27 on September 12.

+ The present value of EUR1,000 (PV1000) invested one year ago in Infineon Technologies is EUR976, comprising a capital loss of EUR35 and dividend reinvested of EUR11.

PV10001-week1-month1-year
IFX.ETR1,064934976
DAX Index1,015975972

3.2 Moving Annual Return (Past 5 years)

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 4 out of 5 years.

IFXClose (EUR)Dividends (EUR)Capital Gain / (Loss) %% YieldAnnual Return %
Sep 1919.90.25(3.5)1.2(2.3)
1 Yr ago20.620.2242.51.544.1
2 Yrs ago14.470.249.72.151.8
3 Yrs ago9.660.189.4211.4
4 Yrs ago8.830.1218.41.620.0

Close 5 years ago EUR7.46

3.3 Beta & Alpha:

+ Beta: the Beta of Infineon Technologies stock is 1.4. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

+ Alpha: the Alpha of the stock is 3.1. The actual return of -1.94% exceeded the expected return of -5.1%, reflecting outperformance.

3.4 The Past Year

+ Infineon Technologies AG (ETR:IFX), dipped 72.12c (or 3.5%) in the past year to close at EUR19.90 today. Compared with the DAX Index which has fallen 2.8% over the same period, this is a relative price change of -0.8%.

SECTION 4 INFINEON TECHNOLOGIES RELATED NEWS

4.1 Patent

Infineon Technologies (IFX) has been issued 11 new patents by the USPTO and EPO.

To view more details on these Patents, click here

4.2 Other News

+ BSS/News Bites:

Infineon Technologies AG is placed 412/764 in BSS News Bites' ranking of German performers in the past year, a percentile ranking of 46.

+ Vanguard Total World Stock ETF 7587:

The stock was one of 7587 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 1,370 shares in the period Jun 30, 2018 to Jul 31, 2018 worth $US-30,343 at an estimated Volume Weighted Average Price (VWAP) of $US22.1481. As at Jul 31, 2018, the Vanguard Total World Stock ETF held 368,254 shares worth $US9,545,115 or 0.06% by value of the ETF's portfolio [Ranked 330 out of 7587 by value and 14 out of 156 for Germany].

SECTION 5 INFINEON TECHNOLOGIES SUMMARY FINANCIALS

5.1 Dividend History

+ Trailing 12 months dividend has improved from 12.0c in 2014 to 25.0c in 2018.

5.2 Financials Summary (Past 3 years)

Year endedSep 2017Sep 2016Sep 2015
Sales (USD B)8.37.66.8
Pretax (USD)1.1B824M607.8M
Net (USD M)923.4868.4741
EPS (EUR)--0.56

+ Sales were up 9.1% from US$7.6 billion in 2016 to US$8.3 billion in 2017.

+ Net profit was up 6.3% from US$868.4 million in 2016 to US$923.4 million in 2017.

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 Top Management

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

6.3 Issued Capital

Based on 1,136,332,899 issued shares the market capitalisation is EUR22.6 billion (US$26.4 billion).

COMPANY IDENTIFIERS

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

Business Sector: Technology Equipment

Industry Group: Semiconductors & Semiconductor Equipment

Industry: Semiconductors

Economic Sector: Technology

ISIN: DE0006231004

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

PermID: 4295870063

RIC: IFXGn.DE

Infineon Technologies Ag

Source: www.BuySellSignals.com