Infineon Technologies AG
🇩🇪 IFX.XETRA · Frankfurt · DE0006231004
Technology
EUR 38.96 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
49.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 38.96 ÷ 0.78 = 49.7
TTM period through: 2025-12-31
Forward P/E (estimated): 24.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 50.6
Yield (Fwd)
0.90%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 0.87%
Net Debt/EBITDA (TTM)
1.8x
Latest quarter: 7.7x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 7.7x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
44.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 44.4%
Cash Flow Payout (TTM): 14.7%
FCF Coverage (TTM): 2.95x
ROE
5.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
15.7x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Infineon is a leading global semiconductor manufacturer, but its business model and current metrics are fundamentally misaligned with this conservative dividend strategy. The 0.87% yield falls well below minimum income requirements, and the extreme valuation (P/E ~50) provides no margin of safety amid cyclical sector headwinds. Not recommended for new positions, as better opportunities exist in more stable, essential service businesses.
Sector Context
Infineon Technologies is a leading global semiconductor manufacturer specializing in power systems, automotive technology, and IoT applications. However, the Technology sector is characterized by high cyclicality and rapid technological obsolescence, making it fundamentally unsuitable for conservative dividend strategies that demand predictable, utility-like cash flows.
Temporary Opportunity Identified
The company reported a recent quarterly net loss (-€83M) driven by a cyclical semiconductor market downturn, inventory corrections, and €218 million in one-time restructuring expenses.
📊 Strategy Analysis
- • Solid balance sheet with a safe Net Debt/EBITDA of 1.80x and conservative Debt/Equity of 0.49
- • Maintains a dominant global market position in power and automotive semiconductors with a strong 10-year revenue CAGR of 8.5%
⚠ What to Watch
- • Operates in the Technology sector, which is explicitly excluded from this strategy due to high cyclicality and rapid obsolescence risks
- • Dividend yield of 0.87% falls drastically below the strategy's 3.0% minimum requirement for income generation
- • Extremely elevated valuation with a trailing P/E of 49.73 offers no margin of safety for a cyclical business model
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.