German stock report - Infineon Technologies

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UPDATE: Infineon Technologies hits year-high 9th time in one month October 18, 2017 20:00 CEST

NEWS BITES - EUROPE

Infineon Technologies AG (ETR:IFX), Germany's largest Semiconductors company by market cap, hit a 52-week high of EUR22.66 during the day, but closed lower at EUR22.18. In the last one month the stock has hit a new 52-week high nine times and in the last three months ten times. The stock price has decreased 18.50c (0.8%) from its last trading session of October 17 to close at EUR22.18. Compared with the DAX Index which rose 48.0 points (0.4%) in the day, the relative price change was -1.2%. The fall was exacerbated by high volume of 2.2 times the average daily volume of 213.8 million shares.

INFINEON TECHNOLOGIES ISSUED 15 NEW PATENTS IN THE WEEK OF OCTOBER 17, 2017

Infineon Technologies (IFX) has been issued 15 new patents by the USPTO and EPO.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

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

SECTION 2 BEARISH SIGNALS

Fundamentals, Overvaluation [compared with sector average], Technicals, Low Performance Indicators

SECTION 3 PRICE VOLUME DYNAMICS

Momentum, Moving Annual Return, Beta

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

Financials Summary, 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 BULLISH SIGNALS

1.1 Fundamentals:

+ 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 12.9%. 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.

1.2 Undervaluation [compared with sector average]:

+ Return on Equity 14.8% [12.9%].

+ Year-on-Year Earnings Growth of 17.9% [10.6%].

+ Price/Earnings/Growth of 1.1 [1.3].

1.3 Technicals:

+ The price lifted 2.2% in the last week and jumped 6.5% in the last month.

+ Compared with the DAX Index which rose 0.6% for the week and 3.9% for the month, this represented a relative price increase for Infineon Technologies stock of 1.6% for the week and 2.7% for the month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 21.73 minus the 26-day EMA of 21.23 is positive 0.5 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ Rises to Falls: in the past month the number of rises outnumbered falls 13:8 or 1.6:1.

+ The 2.1% discount to 12-month high of EUR22.66 against the 48.8% premium to 12-month low of EUR14.91 suggests the stock continues to push for new highs.

+ 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 EUR1,396, comprising a capital gain of EUR378 and dividend reinvested of EUR18.

PV10001-week1-month1-year
IFX.ETR1,0221,0651,396
DAX Index1,0061,0301,227

+ The present value of EUR1,000 (PV1000) invested ten years ago in Infineon Technologies is EUR2,213, including a capital gain of EUR1,008 and dividend reinvested of EUR205.

+ 10 years Multiplier in EUR = 2.213x

+ Compound Annual Growth Rate (CAGR) in EUR = 8.3%

Present Value of USD1,000 invested 10 years ago:

+ The present value of USD1,000 (PV1000) invested ten years ago in Infineon Technologies is $US1,834, including a capital gain of $US664 and dividend reinvested of $US170.

+ 10 years ago EUR 1 equalled USD 1.42

+ 10 years Multiplier in USD = 1.834x

+ Compound Annual Growth Rate (CAGR) in USD = 6.2%

Oct 18, 2017: EUR 1 equals USD 1.18

1.4 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverEUR10.6 billion (US$12.5 billion)In Top 1%
Earnings Yield %3.0In Top 8%
Price/MAP501.05In Top 10%
Price/MAP2001.17In Top Quartile
Interest Cover11.5In Top Quartile
Return on Assets [ROA] %8.2In Top Quartile

SECTION 2 INFINEON TECHNOLOGIES BEARISH SIGNALS

2.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 1%, divided by average yield of dividend yielding stocks in the DAX Index of 2.0% is 49.5%. This suggests the stock is overvalued in dividend yield terms.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 2.8. 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 95.4%.

+ Net profit margin has averaged 11.2% in the last 3 years. This is lower than the sector average of 13.3% and suggests a low margin of safety.

2.2 Overvaluation [compared with sector average]:

+ Price/Earnings of 33.6 [13.4].

+ Price/Sales of 3.9 [1.9].

+ Price to Book of 10 [2.3].

+ Return on Capital Employed 10.2% [13.1%].

2.3 Technicals:

Overbought/Bearish/Resistance Signals:

+ The Relative Strength Index (RSI) of 71.5 has penetrated the overbought line of 70, suggesting the price gain of 5.5% in the last 14 days is unusually high.

+ The Money Flow Index [MFI] is 88.1 suggesting an overbought 14-day trend, being above 80. The Money Ratio of 7.4 suggests positive money flow was 7.4 times negative money flow.

+ The Stochastic indicator of 82.0 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

2.4 Low Performance Indicators:

DescriptionValueRank In Market
P/E * P/NTA337.11In Bottom 4%
Price to Sales3.9In Bottom Quartile

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Momentum:

+ Volume: there were 479,157,796 shares worth EUR10.6 billion (US$12.5 billion) traded today. In the past week, volume was 1.8 times average and the shares were up 2.2%.

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has consistently exceeded 3%.

IFXClose (EUR)Dividends (EUR)Capital Gain %% YieldAnnual Return %
Oct 1822.180.2237.81.439.2
1 Yr ago16.10.246.41.848.2
2 Yrs ago110.1851.92.554.4
3 Yrs ago7.240.121.31.73.0
4 Yrs ago7.150.1236.62.338.9

Close 5 years ago EUR5.24

3.3 Beta:

+ 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.

SECTION 4 RANKING

4.1 Global Rank [out of 47,797 stocks] and Rank in the Europe Region [out of 8,438 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)29.6B484134
Total Assets (US$)10.7B2,571533
Revenue (US$)7.6B1,652378
Net Profit (US$)872.5M1,120243
Return on Equity %14.87,5621,541
Net Profit Margin %11.410,0491,677
Price to Book10.130,4094,860
Price/Earnings33.916,8343,134
Yield %1.016,6373,003
PV$1000 (1Year) US$*1,4987,3751,609
US$* Change (1Year) %51.77,1901,569

* 1 year ago EUR 1 = USD 1.1

Oct 18, 2017: EUR 1 equals USD 1.18

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 233/742 in BSS News Bites' ranking of German performers in the past year, a percentile ranking of 68.

SECTION 5 INFINEON TECHNOLOGIES FINANCIALS

5.1 Financials Summary

Year endedSep 2016Sep 2015Sep 2014
Sales (USD B)7.76.95.1
Pretax (USD M)834.9615.8614.7
Net (USD M)879.9750.8633.6
EPS (EUR)0.660.560.4355

Net profit was up 17.2% from US$750.8 million in 2015 to US$879.9 million in 2016. Earnings Per Share (EPS) was up 17.9% from 56.0c to 66.0c.

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (c)
18 Oct 201722
18 Oct 201620
18 Oct 201518
18 Oct 201412
18 Oct 201312

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 EUR25.2 billion (US$29.6 billion).

SECTION 7 INFINEON TECHNOLOGIES PATENTS

Issued October 17, 2017

Micromechanical semiconductor sensing device [9,790,086]

Synchronization of a data signal [9,791,887]

Method for structuring a substrate using a protection layer as a mask [9,793,119]

Method for forming a wafer structure, a method for forming a semiconductor device and a wafer structure [9,793,167]

Sensor for a semiconductor device [9,793,184]

Power semiconductor device including a cooling material [9,793,255]

System and method for a transducer interface [9,794,665]

Semiconductor device including a circuit to compensate for parasitic inductance [9,793,889]

Safety crowbar for voltage converters [9,793,809]

Semiconductor device having an impurity concentration and method of manufacturing thereof [9,793,362]

Crack stop barrier and method of manufacturing thereof [9,793,224]

Semiconductor device arrangement and a method for forming a semiconductor device arrangement [9,793,182]

Segmented edge protection shield [9,793,129]

Lightweight trace based measurement systems and methods [9,792,199]

Radar signal processor, radar system and method for monitoring a functional safety of a radar system [9,791,560]

To view more details on these Patents, click here

SECTION 8 STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

June 21: 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: 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: 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: 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.

May 04: Infineon Technologies: Above-average seasonal revenue growth and higher earnings driven by strong demand in Automotive, Industrial and Power Supply

Neubiberg, Germany, 4 May 2017 - Infineon Technologies AG today reported results for the second quarter of its 2017 fiscal year (period ended 31 March 2017).

"The favorable market development we saw in the first quarter of the fiscal year has continued into the second three-month period. Current order situation gives us good reason for optimism and we have raised our forecast for the full year," said Dr.

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

Source: www.BuySellSignals.com