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Infineon Technologies AG ADR IFNNY

Morningstar Rating
$36.09 +0.04 (0.11%)
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Company Report

Infineon Earnings: Maintain EUR 50 Fair Value Estimate as We Look Toward Its Long-Term Opportunities

Narrow-moat Infineon Technologies reported fiscal first-quarter results and provided investors with forecasts for the March quarter and all of fiscal 2024 (ending September) that were modestly below our expectations, as the company is also feeling the repercussions of chip inventory corrections at many of its key customers in the automotive and industrial end markets. Still, we’re encouraged that Infineon still foresees revenue growth in automotive, its largest end market. We believe that shares have more than priced in this near-term cyclical downturn. We maintain our EUR 50 fair value estimate and still view Infineon as undervalued and one of our top picks in the technology sector.

Price vs Fair Value

IFNNY is trading at a 33% discount.
Price
$36.09
Fair Value
$94.00
Uncertainty
High
1-Star Price
$86.10
5-Star Price
$53.20
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Infineon is now focused on its core industrial, automotive, and card security markets after a series of smart divestitures of underperforming businesses.

Bears

Unlike some other large U.S.-based peers, Infineon has a large discrete chip business that is more commoditylike, in our view, and carries inherently lower gross margins than high-performance analog chips.

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News

Trading Information

Previous Close Price
$36.05
Day Range
$35.7136.32
52-Week Range
$28.8344.46
Bid/Ask
$36.09 / $37.00
Market Cap
$47.05 Bil
Volume/Avg
79,437 / 226,984

Key Statistics

Price/Earnings (Normalized)
13.41
Price/Sales
2.71
Dividend Yield (Trailing)
1.05%
Dividend Yield (Forward)
1.05%
Total Yield
1.05%

Company Profile

Infineon Technologies AG headquartered in Munich, was spun off from German industrial conglomerate Siemens in 2000 and today is one of Europe’s largest chipmakers. The company is a leader in the automotive semiconductor market with prominent products used in active safety and powertrain content within vehicles. Infineon is also the market leader in power semiconductors used to deliver voltage within a wide variety of electrical systems. The company operates in four segments: automotive, or ATV, green industrial power, or GIP, power and sensor systems, or PSS, and connected secure systems, or CSS.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Growth
Total Number of Employees
59,340

Competitors

Valuation

Metric
IFNNY
NXPI
ON
Price/Earnings (Normalized)
13.4117.8015.08
Price/Book Value
2.667.434.32
Price/Sales
2.714.924.27
Price/Cash Flow
9.0915.9712.41
Price/Earnings
IFNNY
NXPI
ON

Financial Strength

Metric
IFNNY
NXPI
ON
Quick Ratio
0.861.201.57
Current Ratio
1.841.912.71
Interest Coverage
29.588.2333.66
Quick Ratio
IFNNY
NXPI
ON

Profitability

Metric
IFNNY
NXPI
ON
Return on Assets (Normalized)
11.03%15.37%17.76%
Return on Equity (Normalized)
20.22%44.97%32.34%
Return on Invested Capital (Normalized)
14.11%19.74%21.53%
Return on Assets
IFNNY
NXPI
ON
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