Himax Technologies: A Great 2024, But The Company Seems To Be Fairly Valued Right Now

Gytis Zizys
3.17K Followers

Summary

  • Himax has delivered strong returns and improved financials but now trades near fair value, prompting my downgrade to a hold rating.
  • Automotive IC and WiseEye AI segments are key growth drivers, with robust market share and promising design wins fueling future revenue potential.
  • HIMX boasts a strong balance sheet, improved margins, and operational efficiency, yet management remains cautious on near-term growth.
  • While long-term prospects are positive, current upside is limited; I prefer to wait for more clarity before considering a new position.

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Introduction

It has been over a year since I covered Himax Technologies (NASDAQ:HIMX), and since then, the company has done particularly well, rewarding investors with total returns of over 82% compared to the S&P 500's (

This article was written by

3.17K Followers
MSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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