Is Himax Technologies Undervalued Right Now?

imageStock Markets21 minutes ago (May 20, 2021 11:30AM ET)

(C) Reuters. Is Himax Technologies Undervalued Right Now?

Taiwanese fabless semiconductor company Himax Technologies (NASDAQ:HIMX) is one of the top players in the semiconductor sector. The company’s chips are used in several industries worldwide. However, is its valuation in sync with its near-term growth prospects? Read on to find out.Fabless semiconductor company Himax Technologies, Inc.’s (HIMX) shares have more than tripled since hitting their 52-week low of $2.91 on May 27. Since HIMX’s chips are used in laptops, car navigation systems and augmented reality (AR) devices, the company saw solid demand during the pandemic, and its shares have gained 130.8% over the past six months to close yesterday’s trading session at $11.17. However, we think HIMX is still trading at a reasonable valuation considering its impressive near-term growth prospects.

In terms of forward non-GAAP P/E ratio, HIMX’s 6.64x is 72.5% lower than the 24.14x industry average. In terms of forward EV/S and P/S, its 1.31x and 1.37x, respectively, are lower than the 4.11x and 4.19x industry averages.

The rising demand for semiconductors has created a huge shortage of chips. And because HIMX is now ramping up its production, it should benefit significantly in the near-term.

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Is Himax Technologies Undervalued Right Now?

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