Melexis NV (MELE.BR) | Investment Case

1. Company Snapshot

1.a. Company Description

Melexis NV designs, develops, tests, and markets advanced integrated semiconductor devices primarily for the automotive industry in Europe, the Middle-East, Africa, the Asia Pacific, and North and Latin America.The company provides magnetic position, latch and switch, current, inductive position, tire monitoring, temperature, optical, pressure, and speed sensor ICs. It also offers embedded motor driver, fan and pump, LED, and pre driver ICs; and LIN/CAN system basis, NFC/RFID, radio-frequency receiver and transmitter, and switch controller ICs. The company was founded in 1988 and is headquartered in Ieper, Belgium.Melexis NV is a subsidiary of Xtrion N.V.

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1.b. Last Insights on MELE

Melexis NV faces negative drivers, including a lack of significant updates on its growth initiatives and financial objectives, despite hosting its 2025 Capital Markets Day. The event, which took place on November 5, 2025, featured presentations from the executive team, but did not provide new insights into the company's strategy. Additionally, the current market sentiment in the micro-electronic semiconductor solutions sector is cautious, with investors focusing on dividend stocks with strong fundamentals. Melexis' recent earnings release was not available, but its valuation may be impacted by the sector's trends.

1.c. Company Highlights

Last Price	61.45
Change Percentage	1.57%
Open	60.7
Previous Close	60.5
Market Cap ( Millions)	2488
Volume	161625
Year High	76.5
Year Low	42.34
M A 50	60.23
M A 200	61.8

FCF Yield	3.72%
Dividend Yield	5.39%
ROE	23.36%
Debt / Equity	63.29%
Net Debt / EBIDTA	130.73%
Price To Book	4.87
Price Earnings Ratio	18.8
Price To FCF	26.89
Price To sales	2.91
EV / EBITDA	12.61

2. Melexis' Q3 2025 Earnings: Gradual Recovery Continues

Melexis reported sales of EUR 215.3 million for Q3 2025, a 2% increase from the previous quarter and a 13% decrease from the same quarter last year. The gross margin was 38.8%, and the EPS came in at EUR 0.68, slightly below estimates of EUR 0.698. The company's guidance for Q4 2025 is between EUR 215 million and EUR 220 million in sales. As Karen Van Griensven noted, "The euro-U.S. dollar exchange rate evolution had a negative effect of 2% on sales compared to the same quarter of last year and a negative impact of 1% on sales compared to the previous quarter."

Publication Date: Nov -03

                                    📋 Highlights
                                    Q3 Sales Growth::
                                                Achieved EUR 215.3 million, exceeding guidance; 2% sequential growth driven by Europe, with stable performance in APAC and Americas.
Product Launches::
                                                9 product launches in 2025, including a 48V motor driver for EVs and upgraded sensors, boosting content in modern vehicles.
Financial Performance::
                                                Gross margin at 38.8% (down 23% YoY), with Q4 guidance of EUR 215–220 million and full-year sales of EUR 840–845 million.
Inventory & Yield Impact::
                                                High inventory levels (-2% margin impact) and elevated yields (-2% margin drag) noted, with normalization expected.
Market Strategy::
                                                Focused on 48V EV architecture, cost control, and supply chain diversification, with cautious outlook for 2026 due to limited visibility.

                                

Segment Performance

The company's pressure sensors performed well, particularly for internal combustion engine applications. Melexis launched three new products during Q3, including a magnetic sensor for small motor applications and a motor driver for smart fans used in server cooling. The company recorded new design wins, including two significant ones, with one being for a motor driver designed for the 48-volt architecture of EV vehicles.

Outlook and Guidance

Melexis expects a gradual improvement in the gross margin despite high inventories. The company is cautious about its outlook for 2026, citing limited visibility. For the full year 2025, Melexis expects sales to be between EUR 840 million and EUR 845 million, with a gross profit margin around 39% and an operating margin around 16%. Analysts estimate next year's revenue growth at 10.1%.

Valuation

With a P/E Ratio of 19.1 and an EV/EBITDA of 12.79, Melexis appears to be reasonably valued. The company's ROE is 23.36%, indicating strong profitability. The Dividend Yield is 5.92%, making it an attractive option for income investors. The current valuation metrics suggest that the market has priced in a moderate growth outlook for Melexis.

Risk Factors

Melexis faces risks related to inventory levels and potential pricing pressure in China. However, the company has taken steps to mitigate these risks, including cost reduction and supply chain diversification. The company's inventory levels are high, but it doesn't expect them to increase further.

3. NewsRoom

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Dec -01

Source:

Melexis hosts its Capital Markets Day today

Nov -05

Source:

Melexis and Google Cloud Announce Expanded Strategic Partnership to Accelerate Enterprise-Wide AI Transformation

Oct -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Semiconductor Devices

Expected Growth: 2.0%

Melexis NV's 2.0% growth in Semiconductor Devices is driven by increasing demand for advanced driver-assistance systems (ADAS) and autonomous vehicles, as well as growing adoption of IoT devices and smart sensors. Additionally, the company's focus on innovative sensor technologies and strategic partnerships contribute to its growth momentum.

7. Detailed Products

Temperature Sensors

Melexis NV offers a wide range of temperature sensors, including thermistors, thermocouples, and resistance temperature detectors (RTDs). These sensors are designed to provide accurate temperature measurements in various applications.

Magnetic Sensors

Melexis NV's magnetic sensors are designed to detect changes in magnetic fields, providing accurate and reliable measurements in various applications.

Pressure Sensors

Melexis NV's pressure sensors are designed to measure pressure in various applications, including industrial, automotive, and medical devices.

Inertial Sensors

Melexis NV's inertial sensors are designed to measure acceleration, roll, pitch, and yaw in various applications.

Position Sensors

Melexis NV's position sensors are designed to detect the position and movement of objects in various applications.

Time-of-Flight (ToF) Sensors

Melexis NV's ToF sensors are designed to measure distance and movement in various applications.

8. Melexis NV's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Melexis NV is moderate due to the presence of alternative technologies and products in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Melexis NV's products and the lack of substitutes.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market, but Melexis NV's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the semiconductor industry, including the need for significant capital investment and technological expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the semiconductor industry, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	25.25%
Debt Cost	3.95%
Equity Weight	74.75%
Equity Cost	10.49%
WACC	8.84%
Leverage	33.79%

11. Quality Control: Melexis NV passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Melexis

A-Score: 5.1/10

Value: 2.7

Growth: 6.6

Quality: 6.7

Yield: 7.5

Momentum: 3.5

Volatility: 3.7

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Quality: 8.3

Yield: 0.0

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Volatility: 1.0

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A-Score: 4.5/10

Value: 0.2

Growth: 8.9

Quality: 8.4

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

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BESI

A-Score: 4.2/10

Value: 0.0

Growth: 4.7

Quality: 7.6

Yield: 5.0

Momentum: 6.5

Volatility: 1.7

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AIXTRON

A-Score: 4.2/10

Value: 4.9

Growth: 7.0

Quality: 6.8

Yield: 1.2

Momentum: 4.0

Volatility: 1.3

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A-Score: 4.2/10

Value: 3.3

Growth: 5.0

Quality: 5.5

Yield: 0.0

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

8.34%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.84%

Melexis NV - BE0165385973

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MELE

1.c. Company Highlights

Higher Yield

Average Quality

Medium Volatility

Earnings Beats

Better Quality

Stable Momentum

Earnings Miss

Fairly Valued

Average Growth

Revenues Beats

Weak Momentum

Revenues Miss

2. Melexis' Q3 2025 Earnings: Gradual Recovery Continues

Segment Performance

Outlook and Guidance

Valuation

Risk Factors

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Semiconductor Devices

Expected Growth: 2.0%

7. Detailed Products

Temperature Sensors

Magnetic Sensors

Pressure Sensors

Inertial Sensors

Position Sensors

Time-of-Flight (ToF) Sensors

8. Melexis NV's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Melexis NV passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

61.45$

Current Price

61.45$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA