Himax Technologies, Inc. is a small-cap semiconductor company headquartered in Taiwan. Himax is a fabless semiconductor company, meaning that it designs and sells the hardware for chips but doesn’t manufacture the actual wafer or chip itself.
Trading at an extreme discount, Himax possesses an excellent valuation grade, showcasing a forward P/E ratio of 5.47x, a -77.64 difference to the sector, and forward metrics like EV/Sales (1.23x) and EV/EBITDA 5.18x also at extremely discounted levels.
Despite a challenging political environment between the nations of Taiwan and China, coupled with the U.S. imposing restrictions on the exporting of semiconductors, Taiwan continues to be the leading chip market. Bullish momentum continues pushing Himax on an uptrend, with analysts calling the stock overbought as its price rises. With demand persisting for the industry and positive guidance anticipated, 2023 could spell tremendous results for Himax’s profits and growth.