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Vishay (VSH)
:VSH
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Vishay Intertechnology
(NYSE:VSH)47Neutral
Positive Factors
Market Positioning
Vishay is well positioned to benefit from the recovery of the semiconductor cycle and the long-term trend of increasing electronic content driven by the digitalization/electrification of applications across its core automotive and industrial markets.
Product Portfolio
The company boasts a strong portfolio of discrete semiconductors and passive electronic components to capitalize on the rising demand for power semiconductors.
Negative Factors
Growth Transformation Concerns
Concerns exist regarding the company’s growth transformation initiatives, as they may dampen margin and earnings potential in the intermediate term.
Market Challenges
In the near term, the recovery in the automotive and industrial markets has been slower than anticipated, posing a risk to consensus estimates.
Operational Efficiency
Underutilization of the Newport Fab is expected to be a significant headwind to gross margins.
Vishay Intertechnology (VSH) vs. S&P 500 (SPY)
Market Cap
$2.39B
Dividend Yield2.25%
Average Volume (3M)2.01M
Price to Earnings (P/E)26.7
Beta (1Y)1.08
Revenue Growth-13.65%
EPS Growth-110.03%
CountryUS
Employees22,700
SectorTechnology
Sector Strength48
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)-0.23
Shares Outstanding123,469,864
10 Day Avg. Volume2,023,121
30 Day Avg. Volume2,011,241
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.82
Price to Cash Flow (P/CF)8.90
P/FCF Ratio8.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.00Price Target Upside7.77% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
Vishay Intertechnology Business Overview & Revenue Model
Company DescriptionVishay Intertechnology, Inc. is a leading global manufacturer of discrete semiconductors and passive electronic components. The company operates in various sectors including automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Vishay's core products include diodes, MOSFETs, optoelectronics, resistors, capacitors, and inductors, which are vital for electronic circuitry in a wide range of applications.
How the Company Makes MoneyVishay Intertechnology generates revenue primarily through the sale of its extensive portfolio of electronic components. The company's business model is centered around manufacturing and supplying discrete semiconductors and passive components to original equipment manufacturers (OEMs), electronic manufacturing services (EMS) companies, and distributors worldwide. Key revenue streams include its semiconductor products like power MOSFETs, diodes, and optoelectronics, as well as passive components such as resistors, capacitors, and inductors. Vishay's earnings are bolstered by its strong market presence and strategic partnerships within the electronics industry, which enhance its ability to capture demand across various high-growth sectors including automotive and industrial applications.
Vishay Intertechnology Financial Statement Overview
Summary
Vishay Intertechnology faces significant financial challenges with declining revenue and profitability. The balance sheet shows increased leverage and a negative return on equity, while cash flow generation has weakened considerably. The company needs to address operational inefficiencies and enhance its cash flow management to improve financial stability.Income Statement
Vishay Intertechnology's revenue has decreased by approximately 13.6% from 2023 to 2024. Gross profit margin fell from 28.6% in 2023 to 21.3% in 2024, highlighting decreased operational efficiency. The net profit margin turned negative in 2024, moving from 9.5% in 2023 to -1.1%, indicating a significant decline in profitability. EBIT and EBITDA margins also deteriorated significantly, reflecting operational challenges.45
Neutral
Balance Sheet
The company's debt-to-equity ratio increased, indicating higher leverage, with total debt rising to $120.1 million in 2024 from $94.8 million in 2023. The equity ratio remains strong, with stockholders' equity accounting for a significant portion of total assets in 2023. Return on equity (ROE) has turned negative, suggesting inefficiencies in generating profit from equity.60
Neutral
Cash Flow
Operating cash flow decreased from $365.7 million in 2023 to $173.7 million in 2024, indicating weaker cash generation from core activities. Free cash flow also turned negative in 2024, down from $36.3 million in 2023, driven by higher capital expenditures. The operating cash flow to net income ratio indicates cash flow management challenges.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.94B | 3.40B | 3.50B | 3.24B | 2.50B | Gross Profit |
| 626.29M | 974.49M | 1.06B | 887.91M | 581.90M | EBIT |
| 5.63M | 486.14M | 615.49M | 467.80M | 209.71M | EBITDA |
| 235.74M | 676.91M | 774.63M | 619.18M | 366.18M | Net Income Common Stockholders |
| -31.15M | 323.82M | 428.81M | 297.97M | 122.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 606.42M | 1.01B | 916.10M | 920.85M | 778.35M | Total Assets |
| 4.11B | 4.24B | 3.87B | 3.54B | 3.15B | Total Debt |
| 1.03B | 947.50M | 634.75M | 579.04M | 503.18M | Net Debt |
| 434.85M | -25.22M | 23.92M | -195.06M | -116.69M | Total Liabilities |
| 2.08B | 2.04B | 1.82B | 1.80B | 1.58B | Stockholders Equity |
| 2.03B | 2.20B | 2.05B | 1.74B | 1.58B |
| Cash Flow | Free Cash Flow | |||
| -146.38M | 36.29M | 158.98M | 238.73M | 191.34M | Operating Cash Flow |
| 173.70M | 365.70M | 484.29M | 457.10M | 314.94M | Investing Cash Flow |
| -512.46M | -72.85M | -528.93M | -230.48M | -192.08M | Financing Cash Flow |
| -35.40M | 61.06M | -101.02M | -58.81M | -209.38M |
Vishay Intertechnology Technical Analysis
Positive
17.63
Price Trends
17.24
Positive
17.33
Positive
19.12
Negative
Market Momentum
0.04
Positive
51.20
Neutral
61.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSH, the sentiment is Positive. The current price of 17.63 is below the 20-day moving average (MA) of 17.76, above the 50-day MA of 17.24, and below the 200-day MA of 19.12, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 61.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSH.
Vishay Intertechnology Risk Analysis
Vishay Intertechnology disclosed 20 risk factors in its most recent earnings report. Vishay Intertechnology 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 Intertechnology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $107.26B | 72.03 | 4.43% | 1.63% | -19.28% | -44.00% | |
69 Neutral | $2.34B | 42.40 | 3.66% | ― | 9.41% | ― | |
68 Neutral | $28.75B | 105.40 | 4.71% | 3.04% | -44.31% | -86.74% | |
67 Neutral | $18.61B | 12.15 | 18.97% | ― | -14.19% | -27.42% | |
65 Neutral | $169.69B | 36.67 | 28.25% | 2.79% | -10.72% | -26.60% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
47 Neutral | $2.39B | 26.74 | -1.47% | 2.25% | -13.65% | -110.03% |
* Technology Sector Average
Performance Comparison
VSH
Vishay Intertechnology
17.63
-5.16
-22.64%
ADI
Analog Devices
216.26
20.31
10.36%
MCHP
Microchip
53.45
-36.29
-40.44%
ON
ON Semiconductor
44.16
-38.43
-46.53%
TXN
Texas Instruments
186.49
16.45
9.67%
TTMI
TTM Technologies
21.89
7.25
49.52%
Vishay Intertechnology Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 5.95% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in strategic positioning for future growth and a positive book-to-bill ratio, but faced challenges such as declining revenues, macroeconomic headwinds in Europe, and a significant goodwill impairment charge.Highlights
Positive Book-to-Bill Ratio
The company reported a book-to-bill ratio of 1.01 for Q4, marking the first time in nine quarters that this metric has been over one, indicating a potential uptick in demand.
Strategic Positioning for AI and E-Mobility
Vishay Intertechnology, Inc. is well-positioned to benefit from trends in AI and e-mobility, with design activities focused on AI server power and automotive applications.
Capacity Expansion and Innovation
The company has expanded annualized capacity by 23% since the beginning of its Vishay three-point-o initiative, with significant investments in silicon carbide technology and capacity expansion projects.
Strong Order Intake for Smart Grid Projects
Order intake for smart grid infrastructure projects continues to be strong, particularly in Asia, providing a potential growth avenue.
Positive Developments in Automotive and Industrial Sectors
Automotive demand shows potential growth in the first half of 2025, with new programs using AI chipsets for driver assistance and autonomous driving.
Lowlights
Revenue Decline
Revenue for the fourth quarter was $714.7 million, a 2.8% decrease compared to the third quarter, and the full-year revenue of $2.9 billion was below 2023 levels.
Weak Macroeconomic Conditions in Europe
The company faced challenging macroeconomic conditions in Europe, with distributors working through high inventory levels and customers stopping shipments in Q4.
Goodwill Impairment Charge
A $66 million non-cash goodwill impairment charge was recorded in the quarter, impacting the MOSFETs reporting unit and affecting GAAP operating margins.
Increased SG&A Expenses
SG&A expenses rose to $132 million, which was higher than expected due to increased R&D expenses and unanticipated legal and professional fees.
Negative Free Cash Flow
The company reported negative free cash flow of $76 million for the fourth quarter and expects continued negative free cash flow in 2025 due to ongoing capacity expansion plans.
Company Guidance
During the fourth quarter 2024 earnings call, Vishay Intertechnology, Inc. reported a slight decrease in revenue to $714.7 million compared to the third quarter, culminating in a full-year revenue of $2.9 billion, which was below 2023 levels. Despite a challenging period of inventory digestion and weak macroeconomic conditions in Europe, the company noted that inventory levels are normalizing, particularly in the semiconductor sector. The book-to-bill ratio improved to 1.01 from 0.88 in Q3, driven by semiconductors and a positive trend in passive components. Gross margin for the quarter was 19.9%, while adjusted EBITDA was $66 million, reflecting a margin of 9.3%. For Q1 2025, revenue guidance is set at $710 million, with a gross margin expectation of around 19.0%. In terms of strategic initiatives, Vishay emphasized its commitment to capacity expansion, innovation, and engagement with emerging megatrends like e-mobility and sustainability, aiming to achieve its five-year strategic plan goals amid ongoing regional market dynamics.Vishay Intertechnology Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Ziv Shoshani Resigns from Vishay Intertechnology Board
Neutral
Feb 27, 2025
On February 26, 2025, Ziv Shoshani resigned from the Board of Directors of Vishay Intertechnology, Inc. to focus on his role at Vishay Precision Group, Inc. His resignation was not due to any disagreements with the company’s operations or policies. Additionally, the Compensation Committee of Vishay Intertechnology set the 2025 base salaries for several officers and increased the minimum target annual cash bonus opportunity for Peter Henrici to 75%, while other bonus opportunities remained unchanged.
Executive/Board Changes
Vishay Intertechnology Appoints New Executive Vice President
Neutral
Jan 14, 2025
On January 13, 2025, Vishay Intertechnology appointed Roy Shoshani as the Executive Vice President – Chief Operating Officer of Semiconductors and Chief Technical Officer. This appointment was not influenced by any arrangement, despite Mr. Shoshani’s familial ties to other board members. Additionally, the Compensation Committee approved an amendment to Mr. Shoshani’s employment agreement.
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.