Strategic Metrics
Exchange: Brussels
Market capitalization at the time of writing: ~€2.9 billion
Revenue: €964 million (2023)
EBIT: €261 million (2023)
Net profit: €209 million (2023)
Pays dividends?: 
What does the company do?
Melexis designs, develops, tests, and markets advanced integrated semiconductor devices. The company has been operating for over 30 years, and its core expertise stems from over 20 years of experience in the automotive electronics market. https://www.melexis.com/en/investors
Melexis has outsourced the manufacturing of its microchips; the most significant supplier is X-FAB, where the individuals who brought Melexis to the stock exchange and are still involved are also significant shareholders. https://www.xfab.com/investors
Key product areas:
- Sensors and sensor interfaces
- Embedded and smart controllers
Melexis supplies its products to various industries, but its most important customer base is in the automotive industry. The company sells its products to automotive customers in Europe, Asia, and North America (automotive customers include Tesla, NIO, and BYD).
According to the 2023 financial statements, 90% of Melexis’ revenue comes from the sale of chips to car manufacturers. The remaining 10% comes from the “Beyond Automotive” segment, which focuses on areas such as sustainable world, alternative mobility, robotics, and digital health.
Melexis products are used in applications such as:
- Powertrain electrification
- Thermal management
- Lighting
- Electric braking
- Electric steering
- Battery
Melexis also sees many opportunities in alternative mobility in the coming years, such as electric bicycles, electric scooters, drones, and electric vertical take-off and landing aircraft (eVTOL). In addition, Melexis sensors are also used in robotics.
Examples of Melexis product usage:
- The Samsung Galaxy Watch5 smartwatch uses Melexis’ unique MLX90632 temperature sensor for menstrual cycle tracking.
- Melexis’ third-generation smart LIN driver MLX81330 (0.5 A motor driver) and MLX81332 (1.0 A motor driver) are aimed at automotive mechatronic applications with power up to 10 W, including motor-driven flaps and valves, small blowers, and pumps.
Company history and owners
Melexis was founded in 1988 under the name Bulcke Hybrid Technology. It was acquired in 1994 by Elex, which was backed by three entrepreneurs: Roland Duchâtelet, Rudi Dewinter, and Françoise Chombar.
Each of them has served as Melexis’ CEO: first Roland Duchâtelet, then Rudi Dewinter. Dewinter later moved to X-FAB. Françoise Chombar was appointed COO in 1994 and became co-CEO alongside her husband Rudi Dewinter in 2004. Chombar served as sole CEO from 2011 to 2021. Marc Biron, who joined the company in 1997, is the current CEO.
Melexis was listed on the Easdaq stock exchange in October 1997.
Today, Melexis’ ownership is divided such that Elex (the Duchâtelet family’s investment and holding company) and Sensinnovat (the De Winter-Chombar family’s equivalent) together own 50% + 1 (share) of Melexis shares. The split is 25%/25%, with Sensinnovat holding that one additional share.
https://www.melexis.com/en/news/2023/financial/14nov2023-changes-to-the-shareholding-structure
In X-FAB, the ownership stakes are Elex 25%, Sensinnovat 24.2%.
Share
According to the 1998 financial statements, the number of shares was 45,600,000, from which it decreased to 40.4 million by 2012, and has remained at that figure ever since. 
For dividend hunters, it’s worth noting that dividends totaling almost €900 million have been paid out during the company’s history. (I have not verified the exact amount; the information is from the link above, 
Econopolis).
Growth targets
Melexis held a Capital Markets Day in November 2023, where targets until 2030 were announced. The growth target for the automotive segment is given with the assumption that global vehicle production will not grow quantitatively (S&P Global forecasts 1.7% annual growth, source: 2023 Capital Markets Day material). The company’s growth target is based on the electrification of transport, premiumization, and the increase in intelligent driver assistance systems, which will increasingly require Melexis products in every vehicle.
Growth drivers for Beyond Automotive include the development of robotics and an aging population.
Cash flow and results 2019-2023
Melexis has sought to ensure product availability (apparently due to bottlenecks caused by the COVID-19 pandemic) and has negotiated long-term agreements with its suppliers. The 2023 cash flow was impacted by advance payments of €189 million to X-FAB, as the agreement with Melexis required X-FAB to expand capacity. The final installment of ~€9 million related to this was paid in February 2024.
In the 2023 financial statements, cash flow was commented on as follows:
Following the Advance Payment for a total amount of around EUR 189.2 million, 2023 will be cash flow negative; 2024 cash should be break even, and 2025 and beyond should be cash positive (all other circumstances remaining the same).
Share price development
As can be seen from the company’s results and cash flow development (considering the above for 2023), progress has been made like Timo Jutila himself, except for the share price.
Other interesting things
Smithson Investment Trust, a fund company founded by Terry Smith’s Fundsmith, which invests in small and mid-cap companies, bought Melexis in the summer.
Final words
Here is an introduction to the company; apologies if there is any confusion or shortcomings, as this has been written throughout the day whenever time permitted. I also tried using NotebookLM as an aid, which is quite a suitable tool for this purpose. I will not comment further on valuation, risks, or opportunities; there are many smarter people here to comment on those if the company sparks interest.
I own shares.
Finally, that song.
Edit. A typo was found
) EU and USA are in decline.
