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Vishay Precision Group (VPG)
NYSE:VPG
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Vishay Precision Group
(NYSE:VPG)
63Neutral
Vishay Precision Group (VPG) vs. S&P 500 (SPY)
Market Cap
$297.49M
Dividend YieldN/A
Average Volume (3M)89.60K
Price to Earnings (P/E)30.4
Beta (1Y)0.85
Revenue Growth-13.67%
EPS Growth-60.88%
CountryUS
Employees2,300
SectorTechnology
Sector Strength53
IndustryHardware & Equipment
Share Statistics
EPS (TTM)0.74
Shares Outstanding12,234,453
10 Day Avg. Volume78,286
30 Day Avg. Volume89,602
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.97
Price to Cash Flow (P/CF)11.00
P/FCF Ratio11.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.25Price Target Upside30.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Vishay Precision Group Business Overview & Revenue Model
Company DescriptionVishay Precision Group, Inc. engages in the design, manufacture, and market of sensors and sensor-based measurement systems. It operates through the following segments: Foil Technology Products; Force Sensors; Weighing and Control Systems; and Corporate and Other. The Foil Technology Products segment includes foil resistor and strain gage. The Force Sensors segment consists of a line of load cells and force measurement transducers that are offered as precision sensors for industrial and commercial use. The Weighing and Control Systems segment produces systems comprised of load cells and instrumentation for weighing and force control and measurement. The Corporate and Other segment refers to unallocated selling, general, and administrative expenses. The firm offers its products through the VPG Foil Resistors, VPG Transducers, BLH Nobel, KELK, and VPG Onboard Weighing. The company was founded on August 28, 2009 and is headquartered in Malvern, PA.
How the Company Makes MoneyVPG generates revenue through the sale of its precision measurement and sensing products, which are utilized in a wide range of applications across various industries. The company's key revenue streams include the sale of its proprietary strain gages, load cells, and transducers, along with systems for weighing and force measurement. Additionally, VPG offers custom-engineered solutions and services that cater to specific client needs, enhancing its revenue potential. The company also benefits from strategic partnerships and collaborations that enable it to expand its market reach and enhance its product offerings, contributing significantly to its earnings.
Vishay Precision Group Financial Statement Overview
Summary
Vishay Precision Group's financial performance is mixed. The income statement shows declining profitability with a reduced net profit margin. The balance sheet is strong with low leverage and healthy equity, but total assets are decreasing. Cash flow remains positive, though free cash flow has declined, indicating caution in capital management.Income Statement
Vishay Precision Group's income statement reflects a mixed performance. The Gross Profit Margin for 2023 was strong at 42.34%, indicating efficient production relative to sales. However, the Net Profit Margin saw a decline from 10.14% in 2022 to 2.24% in 2024, highlighting pressure on profitability. Revenue growth has been inconsistent, with a decline observed in the latest year, posing a risk to future profitability. The EBIT and EBITDA margins showed similar declining trends, suggesting operational challenges.65
Positive
Balance Sheet
The balance sheet shows a solid equity base, with the Debt-to-Equity Ratio at 0.17 in 2023, indicating low financial leverage. The Return on Equity (ROE) was healthy at 7.80% in 2023, although it declined from previous years. The Equity Ratio remained strong, suggesting a stable financial structure. However, the total assets have been decreasing, which could limit future growth opportunities.72
Positive
Cash Flow
The cash flow statement indicates stable cash generation, with a positive Operating Cash Flow to Net Income Ratio of 0.77 in 2023. However, the Free Cash Flow decreased significantly in 2024, reflecting challenges in sustaining cash after capital expenditures. The Free Cash Flow to Net Income Ratio fell to 1.07 in 2023, although still positive, showing some resilience in cash generation.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 306.52M | 355.05M | 362.58M | 317.92M | 269.81M | Gross Profit |
| 125.53M | 150.34M | 149.60M | 125.14M | 104.27M | EBIT |
| 16.86M | 41.95M | 43.80M | 27.37M | 22.66M | EBITDA |
| 35.88M | 57.96M | 62.71M | 42.14M | 32.18M | Net Income Common Stockholders |
| 9.91M | 25.71M | 36.06M | 20.22M | 10.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 79.27M | 83.97M | 88.56M | 84.33M | 98.44M | Total Assets |
| 450.94M | 471.57M | 476.74M | 461.89M | 401.89M | Total Debt |
| 55.37M | 58.48M | 85.05M | 90.46M | 64.16M | Net Debt |
| 55.37M | -25.48M | -3.51M | 6.13M | -34.28M | Total Liabilities |
| 129.07M | 141.64M | 170.22M | 184.85M | 144.03M | Stockholders Equity |
| 321.97M | 329.84M | 306.55M | 277.10M | 257.82M |
| Cash Flow | Free Cash Flow | |||
| 10.65M | 30.74M | 11.74M | 16.48M | 12.36M | Operating Cash Flow |
| 19.82M | 45.89M | 33.03M | 33.54M | 35.31M | Investing Cash Flow |
| -12.90M | -15.10M | -20.84M | -64.05M | -21.81M | Financing Cash Flow |
| -9.40M | -35.94M | -3.63M | 18.82M | -5.03M |
Vishay Precision Group Technical Analysis
Negative
22.44
Price Trends
23.35
Negative
23.23
Negative
25.98
Negative
Market Momentum
-0.51
Positive
44.05
Neutral
57.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VPG, the sentiment is Negative. The current price of 22.44 is below the 20-day moving average (MA) of 23.51, below the 50-day MA of 23.35, and below the 200-day MA of 25.98, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 57.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VPG.
Vishay Precision Group Risk Analysis
Vishay Precision Group disclosed 44 risk factors in its most recent earnings report. Vishay Precision Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vishay Precision Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $919.42B | 94.22 | 14.85% | 1.11% | 40.30% | -22.79% | |
71 Outperform | $103.54B | 66.57 | 4.43% | 1.76% | -19.28% | -44.00% | |
69 Neutral | $2.22B | 40.31 | 3.66% | ― | 9.41% | ― | |
65 Neutral | $160.53B | 33.95 | 28.25% | 3.02% | -10.72% | -26.60% | |
64 Neutral | $8.11B | 138.48 | -9.49% | ― | 26.40% | -234.22% | |
63 Neutral | $297.49M | 30.44 | 3.04% | ― | -13.67% | -60.88% | |
58 Neutral | $21.86B | 10.21 | -18.40% | 2.37% | 4.90% | -23.18% |
* Technology Sector Average
Performance Comparison
VPG
Vishay Precision Group
22.44
-10.70
-32.29%
ADI
Analog Devices
208.75
20.65
10.98%
AVGO
Broadcom
195.54
73.46
60.17%
MTSI
MACOM Technology Solutions Holdings
109.07
17.99
19.75%
TXN
Texas Instruments
176.42
11.82
7.18%
TTMI
TTM Technologies
21.83
7.88
56.49%
Vishay Precision Group Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -6.58% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented mixed results, with positive signs in order growth and strategic business development initiatives. However, the company faced revenue declines and decreased margins. The balance between highlights and lowlights suggests cautious optimism for future performance.Highlights
Positive Book-to-Bill Ratio
Consolidated orders grew 5.5% sequentially, leading to a book-to-bill ratio of 1.0, marking the first positive ratio in eight quarters and indicating potential recovery.
Weighing Solutions Segment Growth
Fourth quarter sales in the weighing solutions segment increased by 2.2% from the third quarter, driven by higher revenue in industrial weighing and precision agriculture markets. Orders grew 14.5% sequentially, reaching a book-to-bill of 1.12.
Business Development Success
Business development projects contributed $18 million in revenue in 2024. Initiatives are expected to potentially contribute $100 million in revenue over the next three to four years.
Cost Savings and Efficiency Initiatives
Implemented efficiency initiatives in 2024 resulted in approximately $5 million net improvements. An additional $5 million in annual cost reductions is targeted for 2025.
Strong Balance Sheet
Ended the fourth quarter with $79.3 million in cash and cash equivalents, with plans for further M&A to complement organic growth.
Lowlights
Revenue Decline
Fourth quarter revenue of $72.7 million represented a sequential decline, with revenue in the measurement system segment declining by 5.3% sequentially.
Decreased Gross and Operating Margins
Adjusted gross margin decreased to 38.3% from 40% in the third quarter. Operating margin was 0.3%, with an adjusted operating margin of 0.8%.
Challenges in Measurement Systems Segment
Measurement systems orders declined 8.9% sequentially, with a book-to-bill ratio decreasing from 0.82 to 0.78.
Adjusted Net Earnings Drop
Adjusted net earnings for the fourth quarter were $400,000 or $0.03 per diluted share, down from $2.5 million or $0.19 per diluted share in the third quarter.
Company Guidance
During the CPG Fourth Quarter Fiscal 2024 earnings call, Vishay Precision Group, Inc. provided guidance with several key metrics for the upcoming fiscal year. The company reported a challenging year with 2024 revenue totaling $306.5 million, impacted by macroeconomic and cyclical headwinds. Despite this, the fourth quarter saw a positive turn with consolidated orders growing 5.5% sequentially, resulting in a book-to-bill ratio of 1.0, marking the first positive book-to-bill in eight quarters. The Sensors segment reported a sequential decline in revenue by 8.7% but saw a 7.0% increase in bookings, leading to a book-to-bill of 1.04. In the Weighing Solutions segment, sales increased by 2.2%, driven by higher revenue in the industrial weighing market, and orders grew by 14.5%, achieving a book-to-bill of 1.12. The Measurement Systems segment experienced a sequential revenue decline of 5.3%, affected by a $5 million customer order push-out. For fiscal 2025, Vishay Precision Group, Inc. is focusing on business development efforts that contributed $18 million in revenue in 2024, with a goal of generating an additional $100 million in revenue over the next three to four years. The company also aims to implement efficiency initiatives with a minimum of $5 million in annual cost reductions and is budgeting $10 to $12 million for capital expenditures. For Q1 of 2025, the company expects net revenues between $70 million and $76 million.Vishay Precision Group Corporate Events
Executive/Board ChangesShareholder Meetings
Vishay Precision Group Director Marc Zandman Resigns
Neutral
Feb 27, 2025
On February 24, 2025, Marc Zandman resigned from the board of directors of Vishay Precision Group, Inc., effective immediately before the election of directors at the Company’s annual meeting of stockholders. His resignation was to focus on his roles at Vishay Intertechnology, Inc., and was not due to any disagreement with Vishay Precision Group’s operations, policies, or practices.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.