German stock report - Infineon Technologies

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Infineon Technologies hits year-high 2nd time in three months June 15, 2018 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 EUR25.76 during the day, but closed lower at EUR25.11. In the last three months Infineon Technologies' stock has hit a new 52-week high twice. Infineon Technologies' stock price has decreased 38.0c (1.5%) from its last trading session of June 14 to close at EUR25.11. Compared with the DAX Index which fell 59.3 points (0.5%) in the day, the relative price change was -1.0%. The fall was exacerbated by high volume of 2.1 times the average daily volume of 447.8 million shares.

Infineon Technologies (IFX) has been issued 2 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 GLOBAL RANKING

SECTION 6 SUMMARY FINANCIALS

SECTION 7 PROFILE

SECTION 1 INFINEON TECHNOLOGIES BULLISH SIGNALS

1.1 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 13.4%. 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.

1.2 Undervaluation [compared with sector average]:

+ Price to Book of 7 [9.7]. We estimate Infineon Technologies stock is trading at a current year Price to Book of 4.9 and a forward year Price to Book of 3.4.

+ Dividend yield of 1% [0.2%].

1.3 Technicals:

+ The price increased 1.5% in the last week and climbed 4.2% in the last month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 24.7 minus the 26-day EMA of 24.09 is positive 0.61 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 14:9 or 1.6:1.

+ The 2.5% discount to 12-month high of EUR25.76 against the 40.8% premium to 12-month low of EUR17.83 suggests the stock continues to push for new highs.

+ In the last three months the stock has hit a new 52-week high twice.

+ The present value of EUR1,000 (PV1000) invested one year ago in Infineon Technologies is EUR1,316, comprising a capital gain of EUR301 and dividend reinvested of EUR15.

PV10001-week1-month1-year
IFX.ETR1,0151,0421,316
DAX Index1,0221,0151,028

+ The present value of EUR1,000 (PV1000) invested ten years ago in Infineon Technologies is EUR4,414, including a capital gain of EUR2,961 and dividend reinvested of EUR454.

+ 10 years Multiplier in EUR = 4.414x

+ Compound Annual Growth Rate (CAGR) in EUR = 16.0%

Present Value of USD1,000 invested 10 years ago:

+ The present value of USD1,000 (PV1000) invested ten years ago in Infineon Technologies is $US3,321, including a capital gain of $US1,980 and dividend reinvested of $US341.

+ 10 years ago EUR 1 equalled USD 1.5374

+ 10 years Multiplier in USD = 3.321x

+ Compound Annual Growth Rate (CAGR) in USD = 12.8%

Jun 15, 2018: EUR 1 equals USD 1.16

1.4 High Performance Indicators:

DescriptionIFX ValueRank In Market
Today's TurnoverEUR24 billion (US$27.7 billion)In Top 1%
Price/MAP501.09In Top Quartile
Price/MAP2001.11In Top Quartile
Interest Cover15.8In Top Quartile
Return on Assets [ROA] %8In Top Quartile

SECTION 2 INFINEON TECHNOLOGIES BEARISH SIGNALS

2.1 Fundamentals:

+ The relative yield of IFX, defined by its yield of 1%, divided by average yield of dividend yielding stocks in the DAX Index of 3.1% is 32.6%. This suggests Infineon Technologies stock is overvalued in dividend yield terms.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 2.9. 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 13.2% and suggests a low margin of safety.

2.2 Overvaluation [compared with sector average]:

+ Return on Assets 8% [8.9%].

SECTION 3 INFINEON TECHNOLOGIES PRICE VOLUME DYNAMICS

3.1 Momentum:

+ Volume: there were 954,063,280 shares worth EUR24 billion (US$27.7 billion) traded today. In the past week, volume was 1.2 times average and the shares were up 1.5%.

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has consistently exceeded 10%.

IFXClose (EUR)Dividends (EUR)Capital Gain %% YieldAnnual Return %
Jun 1525.110.2530.11.331.4
1 Yr ago19.30.22541.855.8
2 Yrs ago12.530.28.71.710.4
3 Yrs ago11.530.1826.6228.5
4 Yrs ago9.110.1238.91.840.7

Close 5 years ago EUR6.56

3.3 Beta:

+ 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.

3.4 The Past Year

+ Infineon Technologies AG (ETR:IFX), advanced EUR5.81 (or 30.1%) in the past year to close at EUR25.11 today. Compared with the DAX Index which rose 702.3 points (or 5.7%) in the quarter, this is a relative price increase of 2.4%. The stock is trading at a Price/NTA of 7 times. The Price/NTA is 0.7 times the sector average of 9.7; and is the 9th lowest in the Semiconductors sector.

SECTION 4 INFINEON TECHNOLOGIES RELATED NEWS

4.1 Patent

Infineon Technologies (IFX) has been issued 2 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 177/788 in BSS News Bites' ranking of German performers in the past year, a percentile ranking of 78.

+ Vanguard Total World Stock ETF 7581:

The stock was one of 7581 global stocks selected by Vanguard Total World Stock ETF (VT) who bought 14,828 shares in the period Jan 31, 2018 to Apr 30, 2018 worth $US317,273 at an estimated Volume Weighted Average Price (VWAP) of $US21.3969. As at Apr 30, 2018, the Vanguard Total World Stock ETF held 354,703 shares worth $US9,205,359 or 0.05% by value of the ETF's portfolio [Ranked 326 out of 7581 by value and 12 out of 153 for Germany].

SECTION 5 INFINEON TECHNOLOGIES GLOBAL RANKING

Global Rank [out of 47,577 stocks] and Rank in the Europe Region [out of 8,515 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)33B429102
Total Assets (US$)11.5B2,536507
Revenue (US$)8.2B1,622366
Net Profit (US$)913.8M1,212255
Return on Equity %14.08,6101,815
Net Profit Margin %11.210,6001,754
Price to Book7.231,5654,663
Yield %1.018,2533,328
PV$1000 (1Year) US$*1,3577,208978
US$* Change (1Year) %36.76,978949

* 1 year ago EUR 1 = USD 1.13

Jun 15, 2018: EUR 1 equals USD 1.16

SECTION 6 INFINEON TECHNOLOGIES SUMMARY FINANCIALS

6.1 Dividend History

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

6.2 Financials Summary

Year endedSep 2017Sep 2016Sep 2015
Sales (USD B)8.47.76.8
Pretax (USD)1.1B831.7M613.5M
Net (USD M)932876.6748
EPS (EUR)--0.56

+ Sales were up 9.1% from US$7.7 billion in 2016 to US$8.4 billion in 2017.

+ Net profit was up 6.3% from US$876.6 million in 2016 to US$932 million in 2017.

SECTION 7 INFINEON TECHNOLOGIES PROFILE

7.1 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.

7.2 Top Management

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

7.3 Issued Capital

Based on 1,136,332,899 issued shares the market capitalisation is EUR28.5 billion (US$33 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

Economic Sector: Technology

Business Sector: Technology Equipment

Industry Group: Semiconductors & Semiconductor Equipment

Industry: Semiconductors

ISIN: DE0006231004

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

PermID: 4295870063

RIC: IFXGn.DE

Infineon Technologies Ag

Source: www.BuySellSignals.com