Himax Technologies (HIMX) Valuation After Earnings Drop And Cautious Guidance

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Himax Technologies (HIMX) has been in focus after its fourth quarter 2025 earnings showed weaker year on year sales and profitability, along with softer guidance that points to a cautious near term outlook.

See our latest analysis for Himax Technologies.

The earnings release and softer guidance helped reverse some of Himax Technologies’ recent momentum, with the 30 day share price return declining by 9.18% and the 1 year total shareholder return declining by 26.23%. This contrasts with an 11.35% gain over three years. At the latest share price of US$7.72, the market reaction suggests investors are reassessing both the near term earnings risk and the longer term potential of newer areas such as WiseEye AI and OLED touch controllers.

If this update has you looking beyond a single name, it could be a good moment to see which other chip makers stand out in our list of 34 AI infrastructure stocks.

With Q4 earnings under pressure, guidance pointing to a near term trough, and the share price well below its 1 year level, the key question is whether this reset leaves Himax undervalued or if the market is already factoring in future growth.

Himax Technologies’ most followed narrative pegs fair value at about $8.54, a premium to the last close at $7.72, which helps frame the recent pullback.

Himax’s leading position and rapid expansion in automotive display ICs, including TDDI, traditional DDIC, Tcon, and a growing pipeline of OLED projects, position it at the heart of automotive digital cockpit upgrades and EV/autonomous vehicle adoption, trends expected to drive higher ASPs and gross margins in the coming years and accelerate revenue growth from 2027 onwards as mass production ramps up.

Read the complete narrative.

Curious what earnings profile and profit margins sit behind that fair value tag, and how future P/E expectations tie it all together? The narrative spells out a detailed path for revenue, profitability, and valuation multiples, and the numbers behind it may surprise you.

Result: Fair Value of $8.54 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, you still need to weigh risks such as sector-specific cyclicality in automotive and consumer electronics, as well as pressure on margins from rising costs and competition.

Find out about the key risks to this Himax Technologies narrative.

There is a very different story when you look at Himax through our DCF model. On this view, the fair value comes out at about $2.28 per share, which is below the current $7.72 price. This result suggests potential overvaluation and raises questions about how dependable long term cash flows might be.

If you want to see how the model gets to that $2.28 figure and which assumptions matter most, Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Himax Technologies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 53 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you are not convinced by these views or simply prefer to test your own assumptions, you can build a full Himax narrative yourself in just a few minutes using Do it your way.

A great starting point for your Himax Technologies research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

If Himax has you rethinking your watchlist, do not stop here, as some of the most interesting opportunities often sit just outside the names everyone talks about.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include HIMX.

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