NEW YORK (TheStreet) -- Shares of Himax Technologies (HIMX - Get Report) were gaining 5.4% to $8.56 Tuesday after the semiconductor announced that its Liquid Crystal on Silicon (LCoS) microdisplay won a Taiwan Outstanding Photonics Product Award from the Photonics Industry and Technology Development Association.
Himax's 0.22-inch Front-Lit LCoS module won the Taiwan Outstanding Photonics Product Award.
The product integrates an LED illumination system and a polarization beam splitter. The company says the module "delivers rich colors, high contrast, and outstanding reflectivity and is therefore widely seen by many in the industry as the microdisplay of choice for head-mounted devices."
"We are honored to win this prestigious award and we want to thank the Photonics Industry and Technology Development Association for it," President and CEO Jordan Wu said. "Our team of engineers are working with some of the most innovative and reputable companies in the world who use our Front-Lit LCoS modules for their next generation head mounted display products."
About 2.8 million shares of Himax Technologies were traded by 10:07 a.m. Tuesday, compared to the company's average trading volume of about 2.8 million shares a day.
TheStreet Ratings team rates HIMAX TECHNOLOGIES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HIMAX TECHNOLOGIES INC (HIMX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HIMX's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, HIMX has a quick ratio of 1.53, which demonstrates the ability of the company to cover short-term liquidity needs.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- HIMX, with its decline in revenue, slightly underperformed the industry average of 0.7%. Since the same quarter one year prior, revenues slightly dropped by 8.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- HIMAX TECHNOLOGIES INC's earnings per share declined by 22.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HIMAX TECHNOLOGIES INC increased its bottom line by earning $0.39 versus $0.35 in the prior year. For the next year, the market is expecting a contraction of 24.9% in earnings ($0.29 versus $0.39).
- You can view the full analysis from the report here: HIMX Ratings Report