German stock report - Infineon Technologies
Infineon Technologies sinks 4.7% July 21, 2017 20:00 CEST
NEWS BITES - EUROPE
Infineon Technologies AG (ETR:IFX), Germany's largest Semiconductors company by market cap, has sunk 90.50c (4.7%) from its last trading session of July 20 to close at EUR18.53. Compared with the DAX Index which fell 232.9 points (1.9%) in the day, the relative price change was -2.8%. The volume was 0.8 times the average daily trading volume of 137.1 million shares.
INFINEON TECHNOLOGIES ISSUED 12 NEW PATENTS IN THE WEEK OF JULY 18, 2017
Infineon Technologies (IFX) has been issued 12 new patents by the US Patent and Trademark Office. For details see Section 7
INFINEON TECHNOLOGIES BEARISH SIGNALS
+ 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.
+ Total Liabilities/EBITDA of 5.3 which compares unfavourably with the Joseph Piotroski benchmark of 5.
+ Over the last 3 years average annual compound growth rate of earnings per share was 5.9%. This is lower than sector average of 94.5%.
+ Net profit margin has averaged 11.2% in the last 3 years. This is lower than the sector average of 13.2% and suggests a low margin of safety.
1.2 Overvaluation [compared with sector average]:
+ Price/Earnings of 28.1 [13.7].
+ Price/Sales of 3.2 [1.9].
+ Price to Book of 8.4 [2.4].
+ Return on Capital Employed 10.2% [12.8%].
Downtrend: The stock dropped 4.7% on high volatility today.
+ The price dropped 3.8% in the last week and sank 5.8% in the last month.
+ Compared with the DAX Index which fell 3.3% for the week and 4.4% for the month, this represented a relative price decrease for Infineon Technologies stock of 0.5% for the week and 1.4% for the month.
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 19.04 minus the 26-day EMA of 19.11 is negative 0.06 suggesting a bearish signal. Both EMA prices are falling, another bearish signal.
+ The stock's relative price strength percentile is slipping at 63 for 6 months, 48 for 3 months and 22 for 1 month.
1.4 Low Performance Indicators:
|Description||Value||Rank In Market|
|Volatility %||5.3||In Bottom Quartile|
|Price Change %||-4.7||In Bottom Quartile|
|P/E * P/NTA||235.31||In Bottom Quartile|
INFINEON TECHNOLOGIES BULLISH SIGNALS
+ The company is cash rich with Cash to Market Capitalisation at 10.6%.
+ Interest cover defined by EBIT/I is 11.5 times. This indicates it is less leveraged.
+ As per the Du Pont analysis, Return on Equity of 14.8% is better than sector average of 12.6%. This is computed as net profit margin of 11.4% 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]:
+ Return on Equity 14.8% [12.8%].
+ Year-on-Year Earnings Growth of 17.9% [10.2%].
+ Price/Earnings/Growth of 0.9 [1.3].
+ In the last three months the stock has hit a new 52-week high ten times, pointing to a significant uptrend.
+ The present value of EUR1,000 (PV1000) invested one year ago in Infineon Technologies is EUR1,299, for a capital gain of EUR299.
+ The present value of EUR1,000 (PV1000) invested ten years ago in Infineon Technologies is EUR1,555, including a capital gain of EUR429 and dividend reinvested of EUR126.
+ 10 years Multiplier in EUR = 1.555x
+ Compound Annual Growth Rate (CAGR) in EUR = 4.5%
Present Value of USD1,000 invested 10 years ago:
+ The present value of USD1,000 (PV1000) invested ten years ago in Infineon Technologies is $US1,313, including a capital gain of $US207 and dividend reinvested of $US106.
+ 10 years ago EUR 1 equalled USD 1.38
+ 10 years Multiplier in USD = 1.313x
+ Compound Annual Growth Rate (CAGR) in USD = 2.8%
Jul 21, 2017: EUR 1 equals USD 1.17
2.4 Oversold/Bullish/Support Signals:
+ The stock is oversold according to the Williams % R indicator of -83.1, suggesting the price is close to its 14-day low of EUR18.30.
2.5 High Performance Indicators:
|Description||Value||Rank In Market|
|Today's Turnover||EUR1.9 billion (US$2.2 billion)||In Top 1%|
|Earnings Yield %||3.6||In Top 8%|
|Interest Cover||11.5||In Top Quartile|
|Return on Assets [ROA] %||8.2||In Top Quartile|
PRICE VOLUME DYNAMICS
+ Infineon Technologies is at a discount of 9.5% to its 12-month high of EUR20.48 on June 08. It is also at a premium of 36.6% to the 12-month low of EUR13.56 on August 03, 2016.
+ Beta: the Beta of Infineon Technologies stock is 0.9. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
3.3 Aggregate Volumes, Prices and Turnover Period:
[Volume Index or VI in brackets; 1 is average]
+ Xetra: IFX.ETR 103,000,000 [VI of 0.8] volume 99.9% of aggregate. Price: EUR18.53.
+ Stuttgart: IFX.STU 61,070 [VI of 3.8] volume 0.06% of aggregate. Price: EUR18.60.
+ Aggregate volume: there were 103.1 million shares of Infineon Technologies worth EUR1.9 billion traded today. The aggregate volume was 0.8 times average trading of 137.1 million shares.
4.1 Global Rank [out of 47,512 stocks] and Rank in the Europe Region [out of 8,350 stocks]
|Description||Value||Global Rank||In Eur Region|
|Total Assets (US$)||10.6B||2,514||518|
|Net Profit (US$)||863.5M||1,079||235|
|Return on Equity %||14.8||7,473||1,472|
|Net Profit Margin %||11.4||9,811||1,642|
|Price to Book||8.8||28,167||4,748|
|PV$1000 (1Year) US$*||1,375||9,106||1,955|
|US$* Change (1Year) %||48.5||7,545||1,574|
* 1 year ago EUR 1 = USD 1.1
Jul 21, 2017: EUR 1 equals USD 1.17
4.2 Independent Ratings
Infineon Technologies AG was ranked 723 in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2015; a deterioration over a year from rank 721 in 2014.
It is the 1300th largest by revenue in the Forbes Global 2000.
It is placed 264/766 in BSS News Bites' ranking of German performers in the past year, a percentile ranking of 66.
INFINEON TECHNOLOGIES FINANCIALS
5.1 Financials Summary
|Year ended||Sep 2016||Sep 2015||Sep 2014|
|Sales (USD B)||7.4||6.6||4.9|
|Pretax (USD M)||807.2||595.4||594.3|
|Net (USD M)||850.7||725.9||612.6|
5.2 Annual Report for the year ended September 30, 2016 (year-on-year comparisons with previous corresponding period)-
Infineon Technologies maintains double digit EPS Growth
+ Net profit up 17.2% from EUR634.0m ($US712.1m) to EUR743.0m ($US835.8m)
+ EPS up 17.9% from 56.0c (US62.9c) to 66.0c (US74.24c).
+ EBIT Margin up from 9.8% to 11.9%.
+ EBIT to total assets up from 6.5% to 8.5%.
+ Sales and marketing expenses to Sales down from 13.4% to 12.2%.
+ Profit before tax to Sales up from 9% to 10.9%.
+ Current ratio up 13.1% from 2.6 to 2.9.
+ Working capital to total assets up from 28.9% to 32.6%.
+ Total current assets to Total Assets up from 47.1% to 49.4%.
+ Total Liabilities to Operating Cash Flow of 3.1 compares favourably with the Joseph Piotroski benchmark of <4. This ratio has improved by 36.9% from the previous year's ratio of 5.0.
+ Net tangible assets per share up 14.6% from EUR2.6 ($US2.9) to EUR2.98 ($US3.4).
+ Interest expenses to Sales up from 0.8% to 1%.
+ Total non-current assets to Total Assets down from 52.9% to 50.6%.
+ Fixed Assets to Total Assets down from 23.9% to 23.3%.
+ Total Liabilities to EBITDA of 5.3 compares unfavourably with the Joseph Piotroski benchmark of <5. However, it has improved by 26.5% from the previous year's ratio of 7.2.
+ Interest cover steady at 11.5.
+ Total revenue to total assets steady at 0.7.
+ Total liabilities to Total assets steady at 0.5.
+ Intangibles to Total Assets down from 19.9% to 18.2%.
+ Current Inventory to Total Assets up from 12.9% to 13.1%.
INFINEON TECHNOLOGIES PROFILE
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 Level||Name of Sector|
|Business Sector||Technology Equipment|
|Industry Group||Semiconductors & Semiconductor Equipment|
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 EUR21 billion (US$24.5 billion).
INFINEON TECHNOLOGIES PATENTS
Issued July 18, 2017
MEMS device with polymer layer, system of a MEMS device with a polymer layer, method of making a MEMS device with a polymer layer [9,708,180]
Methods for producing a cavity within a semiconductor substrate [9,708,182]
Field emission devices and methods of making thereof [9,711,392]
Package arrangement including external block comprising semiconductor material and electrically conductive plastic material [9,711,462]
Trench transistor having a doped semiconductor region [9,711,621]
Reverse-conducting IGBT [9,711,626]
Semiconductor device with cell trench structures and a contact structure [9,711,641]
JFET and method of manufacturing thereof [9,711,660]
Vertical hall device comprising a slot in the hall effect region [9,711,712]
Dead-time optimization of DC-DC converters [9,712,046]
Method for driving a transistor device and electronic circuit [9,712,147]
Double calibration loop for random spread spectrum modulator [9,712,174]
To view more details on these Patents, click here
To view Recent Company Headlines, click here
June 21: Infineon receives "Supplier of the Year Award" from DENSO
June 12: Infineon Technologies: Preventing cyber-attacks in rescue services: security 'made in Germany' protects respirators
May 29: Infineon Technologies: 'eRamp' strengthens Germany and Europe in power electronics
May 19: Microelectronics for connected production: Infineon launches 'Productive4.0' research project in Dresden
May 04: Infineon Technologies: Above-average seasonal revenue growth and higher earnings driven by strong demand in Automotive, Industrial and Power Supply
Physical Address: Am Campeon 1 - 12 Neubiberg, D-85579 Germany
Country of Incorporation: Germany
Exchange: Xetra Stock Exchange
DE:IFX; ETR:IFX; GR:IFX; IFXGn.DE
Infineon Technologies Ag