Daily Stock Analysis: Himax Technologies

By Fredrik Arnold

Thursday, June 16, 2022 11:00 AM EDT

Himax Technologies Inc, known by the ticker symbol (HIMX) is a Small-cap Semiconductor firm, operating in the technology business sector. This is my first-ever report on HIMX for this Viital portfolio, but HIMX was reviewed and selected for one of my first 6 portfolios.

Himax Technologies Inc is a semiconductor solution provider dedicated to display imaging processing technologies. It operates through the Driver Integrated Circuit and Non-Driver Products segments.

The majority of the firm's revenue gets derived from the Driver Integrated Circuit segment. It offers display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, virtual reality (VR) devices, and many other consumer electronics devices.

It also designs and provides controllers for touch sensor displays, in-cell Touch and Display Driver Integration single-chip solutions, LED driver ICs, power management ICs, scaler products for monitors and projectors. Geographically, it generates the majority of its revenue from China.

The company markets its display drivers and display-related products to panel manufacturers, agents or distributors, module manufacturers, and assembly houses; and non-driver products to camera module manufacturers, optical engine manufacturers, and television system manufacturers.

Himax Technologies, Inc. was incorporated in 2001 and is headquartered in Tainan City, Taiwan.

Three key data points gauge any dividend equity or fund such as The Himax Technologies Inc.

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

HIMX Price

HIMX’s price per share was $9.27 as of yesterday's market close. One year ago its price was $13.83. Therefore, HIMX’s share price fell $4.26 or about 31% in the past year.

If HIMX’s stock trades in the range of $7.00 to $15.00 this next year, its recent $9.27 share price might rise by $1.73 to reach $11.00 by June 16, 2023. My $1.73 upside estimate is $0.88 under the median of target estimates from four analysts covering HIMX for brokerages.

HIMX Dividends

HIMX’s most recently declared annual dividend of $1.25 is payable July 12, 2022 to shareholders on record as of June 29th. There’s time to get in on this year’s generous promise to pay.

HIMX initiated their first annual dividend of $0.20 as of October 31, 2007. The A dividend has varied from $0.00 unpaid as of 2019 and 2020, to The $1.25 payout forthcoming in July. That annual payout is calculated to deliver a 13.48% annual yield per yesterday’s $9.27 share price.

HIMX Returns

Adding the $1.25 HIMX annual dividend to my estimated one-year price upside estimate of $1.73 shows a $2.98 potential gross gain, per share, to be reduced by any costs to trade HIMX shares.

At yesterday's $9.27 closing price per share, a little over $1000 would buy 108 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.09 per share.

Subtract that maybe $0.09 brokerage cost from my estimated $2.98 gross gain estimate per share results in a net gain of $2.89 X108 shares = $312.12 for a 31.2% net gain including a 13.48% forward looking dividend yield.

So it is that Himax Technologies Inc shows a possible 31.2% net gain including a 31.48% forward-looking dividend yield.

Over the next year at this time our $1000 investment in Himax Technologies Inc shares could generate $134.80 in cash dividends. Of course, a single share of HIMX stock bought at yesterday's $9.27 price is 14.54 times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this one good time to pick up HIMX shares based on their forward looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 14,54 times greater than yesterday's single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Himax Technologies Inc. Only time and money invested in this stock will determine its market value.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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