Himax Technologies (HIMX) Is Today's Perilous Reversal Stock

Trade-Ideas LLC identified Himax Technologies (HIMX) as a "perilous reversal" (up big yesterday but down big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Himax Technologies

(

HIMX

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Himax Technologies as such a stock due to the following factors:

  • HIMX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.0 million.
  • HIMX has traded 205,849 shares today.
  • HIMX is down 3.6% today.
  • HIMX was up 8% yesterday.

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More details on HIMX:

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. The company operates through Driver IC and Non-Driver Products segments. The stock currently has a dividend yield of 4.3%. HIMX has a PE ratio of 19. Currently there are 3 analysts that rate Himax Technologies a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Himax Technologies has been 1.9 million shares per day over the past 30 days. Himax has a market cap of $1.2 billion and is part of the technology sector and electronics industry. Shares are down 13.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Himax Technologies as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
  • HIMX, with its decline in revenue, underperformed when compared the industry average of 10.8%. Since the same quarter one year prior, revenues fell by 25.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Net operating cash flow has decreased to $14.14 million or 38.10% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, HIMAX TECHNOLOGIES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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