IFNNF - Infineon Offers Great Value In Semiconductors
2024-06-04 01:40:34 ET
Summary
- Infineon is expanding its manufacturing infrastructure with new modules in Malaysia, Germany, and Indonesia; this highlights its capital-intensive business model.
- IFNNY boasts the highest growth rates among its major competitors, but has relatively low free cash flow generation. However, its stronger balance sheet offers some relief to this issue.
- The Company is overvalued based on my DCF model but undervalued according to my DE model. This balances out to a fair valuation, supported by peer analysis and historical P/E ratios.
- In the cyclical semiconductor industry, Infineon must allocate capital wisely to preserve free cash flow during weak demand periods. High capex and infrastructure needs to make long-term competitiveness challenging.
...
Infineon Offers Great Value In Semiconductors