One-glance verdict
Overvalued
$49.66 our estimate vs market $76.00
53% above our estimate, beyond the bull case
Fundamentals snapshot
Melexis NV
MLXSF · PNK · Technology · Semiconductors
Current price
$76.00
52-week range
$56.23 - $77.00
Market cap
$2.99B
Balance sheet
Watch
13.89x Strong cushion
Net debt $295.58M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 22.0% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 23.4% above its 5-year average P/E.
- Risk Operating margin compressed from 27.1% to 17.8% over 3 years.
What this company does
Melexis NV
Melexis designs and sells the tiny electronic chips and sensors that act as a car's nervous system. The company primarily makes money selling these components to carmakers for features like tire pressure monitoring, engine controls, and automatic windows. As cars become more electric and packed with technology, the need for these specialized chips grows.
How the company got here
Founded in a Belgian garage in 1988, Melexis has grown from a small startup into a global leader in semiconductor sensors for the automotive industry. A key part of its journey has been its focus on creating tiny electronic chips, called integrated circuits, that make cars smarter and safer. Over three decades, the company has consistently invested in research and development (the process of creating new products and improving existing ones), allowing it to supply billions of chips to car manufacturers worldwide. Today, nearly every new car built contains Melexis products, a testament to its long-term focus on innovation in a single, demanding industry.
What it actually does
Melexis makes tiny electronic components called semiconductor chips that act as the eyes and ears of a car. These chips are sensors that can detect things like speed, temperature, pressure, and magnetic fields. For example, a Melexis sensor in your car's pedal tells the engine how fast to go, while another helps with power steering to make turning the wheel easy. The company also makes driver chips that control motors for things like power windows and cooling fans. You can't see them, but on average, about 18 of these little chips are working behind the scenes in every new car on the road.
Automotive
This is the company's main business, making up the vast majority of its sales. Melexis designs and sells a wide variety of sensors and driver chips to companies that supply parts to major car manufacturers. These chips are critical for many car functions, from engine control and safety systems like electronic braking to in-cabin features like dashboard lighting. As cars become more electric and automated, the demand for these kinds of electronic components grows, which is a key reason for this segment's importance to the company.
Adjacent Markets
While smaller than its automotive business, Melexis is increasingly applying its technology to other areas. This includes products for e-bikes, robotics, smart home devices, and digital health. For example, the same kind of sensor that controls a motor in a car can be used in a robot's joint or a smart coffee machine. The company sees this as a significant growth opportunity, aiming to leverage its expertise in sensors and drivers for a world that is becoming more electrified and automated beyond just cars.
What management is betting on now
The company's leadership is focused on expanding its technology beyond its core automotive market into new, growing fields like robotics, alternative mobility (like e-bikes), and digital health. They are also heavily invested in the transition to electric vehicles (EVs), creating essential chips for EV batteries, motors, and thermal management systems that help increase a car's range. Another key priority is expanding its presence in Asia, particularly China, by establishing local manufacturing to get products to customers faster. This strategy aims to maintain its leadership in automotive technology while capturing new opportunities in a more electrified and automated world.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $49.66 vs current price $76.00
Our most-likely fair value is $49.66 a share — about 34.7% below today's price of $76.00, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $295.6M. Interest coverage 13.9x.
Net debt
$295.58M
Interest coverage
13.89x
Melexis NV's profit covers its interest bill about 13.9 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
MLXSF
BASELINE
Melexis NV
Total debt $337.44M Interest coverage 13.89x This is the baseline the peer rows are being compared against.
Total debt $304.01M Interest coverage 1.13x -92% vs MLXSF Carries about 12.3x less debt cushion than MLXSF.
Total debt $431.30M Interest coverage -9.10x -100% vs MLXSF This peer has almost no interest-payment cushion compared with MLXSF.
Total debt $0.00 Interest coverage -72.35x -100% vs MLXSF This peer has almost no interest-payment cushion compared with MLXSF.
Total debt $130.46M Interest coverage 512.67x +3,591% vs MLXSF Carries about 36.9x more debt cushion than MLXSF.
What you should know
The case for and against MLXSF
3 Rewards
2 Risks
Rewards
-
Returns 22.0% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 3/10 years.
-
Trades at 23.9x P/E vs peer median 270.1x (91.2% cheaper).
Risks
-
Stock trades 23.4% above its 5-year average P/E.
-
Operating margin compressed from 27.1% to 17.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.90x
Forward P/E
—
P/B
6.27x
P/S
3.53x
EV/EBITDA
17.42x
PEG ratio
2.01x
Profitability
How much profit each dollar creates
Gross margin
39.4%
Operating margin
17.8%
Net margin
12.2%
ROE
22.0%
ROA
10.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
5.87x
Quick ratio
2.90x
Total debt
$337.44M
Total cash
$41.86M
Growth
How the business has been compounding
Revenue TTM
$951.61M
Revenue 5Y CAGR
0.1%
EPS TTM
3.18
EPS 5Y CAGR
-17.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$141.58M
Free CF TTM
$108.67M
FCF margin
11.4%
Dividend
Shareholder payout
Yield
5.7%
Payout ratio
144.0%
Last ex-div date
2026-10-13