Breaking Down Vishay Intertechnology, Inc. (VSH) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in the tech sector? Have you considered how key financial metrics can offer a deeper understanding of a company's potential? Let's dive into Vishay Intertechnology, Inc.'s recent performance, particularly its 2024 fiscal year, where revenues reached $714.7 million in Q4, but the company faced a GAAP loss per share of ($0.49). We'll explore critical indicators such as the book-to-bill ratio of 1.01 and capital expenditures of $320.1 million, providing you with the insights needed to assess Vishay's financial health and strategic positioning in the market.

Vishay Intertechnology, Inc. (VSH) Revenue Analysis

Vishay Intertechnology, Inc. (VSH) operates as a global manufacturer and supplier of discrete semiconductors and passive electronic components. Understanding the sources and trends in their revenue is crucial for investors. The company's revenue streams are primarily categorized by product types and geographical regions.

Vishay's revenue is derived from the following key product categories:

• Discrete Semiconductors: These include diodes, rectifiers, transistors, and MOSFETs, which are essential components in electronic circuits.
• Passive Components: This segment features resistors, inductors, and capacitors, which regulate current flow, store energy, and filter signals in electronic devices.

Analyzing Vishay Intertechnology, Inc.'s revenue streams involves looking at both historical performance and the contributions of different business segments to the overall revenue.

Here's a breakdown of Vishay Intertechnology, Inc.'s revenue streams:

According to the 2024 data, Vishay Intertechnology, Inc. reported total revenue of $3.539 billion, a decrease of 11.4% compared to the $3.995 billion in 2023. This decline reflects changes in market conditions and demand across its various product lines and geographic regions.

A geographical breakdown of Vishay Intertechnology, Inc.'s revenue provides insights into its global market presence. For the year 2024:

• Americas: Revenue was $729.1 million, a decrease from $828.1 million in 2023.
• Europe: Revenue totaled $987.1 million, down from $1.126 billion in the previous year.
• Asia: Revenue reached $1.823 billion, compared to $2.041 billion in 2023.

The following table summarizes Vishay Intertechnology, Inc.'s revenue by geographic region for 2024 and 2023 (in millions of U.S. dollars):

Significant changes in revenue streams often stem from shifts in demand, technological advancements, and economic factors. In 2024, Vishay Intertechnology, Inc. faced challenges including inventory corrections at customers and distributors, particularly in Asia, impacting overall sales. Despite these challenges, strategic investments in expanding their product portfolio and production capacities are expected to drive future growth.

For more insights into Vishay Intertechnology, Inc. and its investors, check out: Exploring Vishay Intertechnology, Inc. (VSH) Investor Profile: Who’s Buying and Why?

Vishay Intertechnology, Inc. (VSH) Profitability Metrics

Assessing the financial health of Vishay Intertechnology, Inc. (VSH) requires a detailed look into its profitability metrics. Profitability ratios provide insights into how efficiently a company generates profit from its revenue and assets. Here's an analysis of Vishay's key profitability indicators:

• Gross Profit Margin: For the quarter ended December 2024, Vishay's gross profit was $142 million, resulting in a gross margin of 19.89%. The gross profit for the trailing twelve months (TTM) ended in December 2024 was $626 million.
• Operating Margin: Vishay Intertechnology's operating margin as of April 2025 (TTM) was -0.08%. The operating profit for the fiscal quarter ending in December 2024 was -$56.685 million.
• Net Profit Margin: The company's net profit margin turned negative in Q4 2024, reaching -9.28%, a considerable decline from 4.14% in Q1 2024. For the full year 2024, the profit margin was -1.06%.

A closer examination of these figures reveals the trends in profitability over time, as detailed below:

Vishay Intertechnology's gross margin of 19.89% for the quarter that ended in December 2024 indicates they have no sustainable competitive advantage. The highest Gross Margin % of Vishay Intertechnology was 30.28%. The lowest was 21.32%. And the median was 26.10%.

When comparing Vishay's profitability ratios with industry averages, it's important to consider several factors. Vishay's debt-to-equity ratio is 50.53%, which is higher than the industry average of 38.00%, indicating higher financial leverage. The company's strategic initiatives, like Vishay 3.0, aim to enhance revenue growth and improve profitability by focusing on customer engagement and business-minded approaches.

Vishay is actively managing its operational efficiency through various measures:

• Cost Management: Vishay is implementing restructuring actions to optimize its manufacturing footprint and streamline decision-making. These actions include streamlining selling, general, and administrative functions, which will result in severance payments to approximately 170 employees (6% of the SG&A workforce).
• Gross Margin Trends: In Q3 2024, the gross margin was 20.5%, which included a negative impact of approximately 150 basis points due to the addition of Newport. For Q4 2024, management expected a gross profit margin in the range of 20.0% +/- 50 basis points, including a negative impact of approximately 175 to 200 basis points from Newport. For Q1 2025, a gross profit margin of 19.0% +/- 50 basis points is expected, which includes a negative impact of approximately 175-200 basis points related to Newport.

Despite recent challenges, Vishay is taking strategic steps to improve its financial performance and capitalize on future market opportunities. For more insights into Vishay Intertechnology, Inc. (VSH), explore Exploring Vishay Intertechnology, Inc. (VSH) Investor Profile: Who’s Buying and Why?.

Vishay Intertechnology, Inc. (VSH) Debt vs. Equity Structure

Understanding how Vishay Intertechnology, Inc. (VSH) finances its growth involves examining its debt levels, debt-to-equity ratio, and recent financing activities. This analysis provides insights into the company's financial risk and its approach to funding operations and expansion. For further details, you might find this resource helpful: Breaking Down Vishay Intertechnology, Inc. (VSH) Financial Health: Key Insights for Investors.

Vishay Intertechnology, Inc. relies on a mix of debt and equity to fund its operations. As of December 31, 2024, Vishay's long-term debt stood at $544.8 million. Additionally, the company reported total current liabilities of $597.3 million, which includes short-term debt and other obligations. These figures provide a snapshot of the company's debt obligations at the end of the fiscal year 2024.

The debt-to-equity ratio is a critical metric for assessing a company's financial leverage. As of the end of 2024, Vishay Intertechnology, Inc. reported a debt-to-equity ratio of 0.36. This ratio indicates that Vishay has $0.36 of debt for every dollar of equity, suggesting a relatively conservative approach to financing compared to some of its peers. It's important to compare this ratio to industry standards to gauge whether Vishay's leverage is typical for its sector.

To provide a clearer picture, here’s a summary of Vishay’s capital structure components as of December 31, 2024:

Monitoring Vishay's financing activities, such as debt issuances and refinancing, provides valuable insights into its financial strategy. Analyzing these activities in conjunction with the company's debt levels and debt-to-equity ratio helps investors understand how Vishay manages its capital structure and financial risk.

Vishay Intertechnology, Inc. strategically balances debt and equity to optimize its financial structure. While specific details on recent credit ratings or refinancing activities aren't available, the company's financial statements indicate a measured approach to leveraging debt, maintaining a reasonable debt-to-equity ratio. This balance allows Vishay to fund its operations and strategic initiatives while managing financial risk.

Vishay Intertechnology, Inc. (VSH) Liquidity and Solvency

Liquidity is crucial for understanding Vishay Intertechnology, Inc.'s ability to meet its short-term obligations. Key metrics like the current and quick ratios provide insights into this aspect of financial health.

For the fiscal year 2024, Vishay Intertechnology, Inc. reported a current ratio of 2.7, indicating a strong liquidity position. This ratio, calculated by dividing current assets by current liabilities, shows the company has $2.7 of current assets for every $1 of current liabilities. A generally acceptable benchmark is 1.5 to 2.0, so Vishay's ratio suggests a healthy ability to cover its short-term debts. The quick ratio, which excludes inventories from current assets, was 1.9 for the same period. This more conservative measure still indicates a robust capacity to meet immediate obligations without relying on the sale of inventories.

Analyzing working capital trends provides additional perspective. Vishay Intertechnology, Inc.’s working capital has remained consistently positive, reflecting effective management of short-term assets and liabilities. While specific figures for 2024 working capital trends would offer a clearer picture, maintaining positive working capital generally supports smooth operational activities and financial flexibility.

Cash flow statements offer a comprehensive view of Vishay's financial activities. Examining cash flow from operating, investing, and financing activities helps to understand the company's cash generation and usage. For the fiscal year 2024:

• Cash flow from operating activities remained positive, indicating the company’s core business operations are generating cash.
• Cash flow from investing activities reflected strategic investments in long-term assets.
• Cash flow from financing activities showed a balance between debt management and shareholder returns.

The following table summarizes Vishay Intertechnology's cash flow activities for 2024 (in millions of USD):

Overall, Vishay Intertechnology, Inc. demonstrates a strong liquidity position with healthy current and quick ratios, positive working capital trends, and robust cash flow from operating activities. These indicators suggest the company is well-equipped to meet its short-term obligations and invest in future growth. Investors can find more about the company's direction at Mission Statement, Vision, & Core Values of Vishay Intertechnology, Inc. (VSH).

Vishay Intertechnology, Inc. (VSH) Valuation Analysis

To assess whether Vishay Intertechnology, Inc. (VSH) is overvalued or undervalued, several key financial metrics and analyses can be considered.

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: As of April 2025, Vishay's P/E ratio is reported as -47.4. A negative P/E ratio indicates that the company has negative earnings (losses) over the past 12 months, making it difficult to interpret in isolation.
• Forward P/E: The forward P/E ratio is 11.71. This is based on analysts' estimates of future earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio is 0.75. This suggests that the company's market value is less than its book value, which might indicate undervaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is 6.16. This is often used to value companies, with lower values typically suggesting better value.

Stock Price Trends:

• 52-Week Range: The 52-week high is $24.69, and the 52-week low is $10.35.
• Current Price: As of April 17, 2025, the stock price is $11.24.
• 1-Year Performance: The stock price has decreased by approximately -46.70% over the past year.

Dividend Analysis:

• Dividend Yield: The forward dividend yield is 3.56%.
• Annual Payout: The annual payout is $0.40 per share.
• Payout Ratio: The payout ratio is 63.4%.
• Dividend Frequency: Dividends are paid quarterly. The ex-dividend date was March 13, 2025, and the payout date was March 27, 2025.

Analyst Consensus:

• Rating: The analyst consensus is a 'Moderate Sell.'
• Price Target: The average 12-month price target from analysts is $19.00.

Additional Factors:

• Profitability: Vishay reported a negative profit margin of -1.06% and a GAAP loss per share of ($0.49) for Q4 2024.
• Revenue: Q4 2024 revenues were $714.7 million.

Here's a table summarizing key valuation metrics for Vishay Intertechnology, Inc. (VSH):

Considering these metrics, Vishay Intertechnology, Inc. presents a mixed valuation picture. While some indicators like P/B and EV/EBITDA might suggest it is undervalued, negative profitability and a recent stock price decline should be considered. Analyst opinions lean towards a 'Moderate Sell,' but with a price target significantly above the current price, there may be an anticipation of future improvement.

See also: Mission Statement, Vision, & Core Values of Vishay Intertechnology, Inc. (VSH).

Vishay Intertechnology, Inc. (VSH) Risk Factors

Vishay Intertechnology, Inc. (VSH) faces a variety of internal and external risks that could significantly impact its financial health. These risks span across industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Key Risks Facing Vishay Intertechnology, Inc. (VSH):

• Industry Competition: The electronic component industry is highly competitive, requiring continuous innovation.
• Cyclical Nature: The cyclical nature of the industry can lead to unpredictable demand fluctuations.
• Supply Chain Disruptions: Reliance on a complex global supply chain makes Vishay vulnerable to disruptions.
• Currency Exchange Rates: Exposure to foreign currency exchange rate fluctuations can impact financial results.
• Intangible Assets: Potential impairment of intangible assets, including goodwill, poses a risk.
• Regulatory Compliance: Compliance with environmental, government contracting, and data privacy regulations is essential.

Operational, Financial, and Strategic Risks:

Recent earnings reports and filings highlight several operational, financial, and strategic risks for Vishay Intertechnology, Inc. (VSH). The company's Q4 2024 revenue was reported at $714.7 million, a decrease from $746.28 million in Q1 2024, primarily due to industry-wide inventory digestion and weak macroeconomic conditions in Europe. The net profit margin turned negative in Q4 2024, dropping to -9.28% from 4.14% in Q1 2024, indicating deteriorating profitability. Additionally, the debt-to-equity ratio stands at 50.53%, exceeding the industry average of 38.00%, reflecting higher financial leverage. The company also anticipates negative free cash flow in 2025 due to capacity expansion plans.

Mitigation Strategies and Plans:

Vishay Intertechnology, Inc. (VSH) is actively implementing several strategies to mitigate these risks and position itself for future growth. These include:

• Vishay 3.0 Initiative: This initiative focuses on a customer-first and business-minded approach to drive revenue growth and improve profitability.
• Capacity Expansion: Strategic investments are being made to expand production capacity, particularly in areas like AI servers and smart grid infrastructure. However, delays in projects like the Itzehoe expansion in Germany have occurred, with the timeline adjusted beyond 2024.
• Cost Reduction: Restructuring actions, including streamlining administrative functions and consolidating manufacturing facilities, are expected to yield annualized cost savings of at least $23 million by the end of 2026. These actions include severance payments to approximately 170 employees (6% of the SG&A workforce) and the closure of three manufacturing facilities.
• Strategic Acquisitions: While the acquisition of Newport has negatively impacted gross margins in the short term, Vishay expects it to become margin neutral by the end of the year and profitable in 2026.
• Hedging: The company utilizes forward contracts to hedge a portion of projected cash flows from foreign currency exchange rate exposures.

Specific Risk Factors Disclosed by Vishay Intertechnology, Inc. (VSH):

In its most recent earnings report, Vishay Intertechnology, Inc. (VSH) disclosed 23 risk factors. These risks are categorized to highlight the challenges the company faces. Key areas of concern include:

• Market Conditions: Declines in product demand on a global basis can lead to order cancellations, lower prices, and adverse impacts on operations.
• Customer Dependence: The loss of a major customer could significantly affect the results of operations.
• Foreign Exchange Risks: Fluctuations in foreign currency exchange rates, particularly in regions with significant subsidiaries like Germany, Israel, and Asia, can impact financial performance.

Vishay Intertechnology, Inc. (VSH) is also involved in various environmental remediation programs and related litigation.

Regulatory and Compliance Risks:

Staying compliant with evolving regulations is critical for Vishay Intertechnology, Inc. (VSH). Several regulatory changes in 2024 and beyond could impact the company's operations. These include:

• New Battery Regulation (EU) 2023/1542: Requires CE marking for certain batteries to improve safety and sustainability.
• AI Act: Harmonized rules for artificial intelligence, with CE marking requirements for high-risk AI systems.
• Cyber Resilience Act (CRA): Cybersecurity requirements for digital products with CE marking and potential fines for non-compliance.
• New General Product Safety Regulation: Increased responsibility for economic operators, risk assessments, and regular testing of consumer products.

Financial Performance and Outlook:

Vishay Intertechnology, Inc. (VSH)'s financial performance has weakened, with revenue declining sequentially throughout 2024. The company's Q4 2024 revenue was $714.72 million, down from $746.28 million in Q1 2024. The gross profit margin decreased from 22.83% in Q1 2024 to 19.89% in Q4 2024, and the net profit margin turned negative, dropping from 4.14% to -9.28% over the same period. The company reported a GAAP loss per share of ($0.49) for Q4 2024.

Management expects revenues for Q1 2025 to be in the range of $710 million +/- $20 million, with a gross profit margin of around 19.0%, including the negative impact from the Newport acquisition. Despite these challenges, Vishay is strategically positioned to benefit from growth in AI server power and smart grid infrastructure projects.

See more on Vishay Intertechnology, Inc. (VSH) Financial Health: Key Insights for Investors: Breaking Down Vishay Intertechnology, Inc. (VSH) Financial Health: Key Insights for Investors

Vishay Intertechnology, Inc. (VSH) Growth Opportunities

For Vishay Intertechnology, Inc. (VSH), several factors point toward potential future growth. These encompass product innovations, strategic market expansions, and the impact of acquisitions.

Vishay's growth is significantly driven by several key factors:

• Product Innovations: The company's continuous efforts in developing new and advanced components, such as semiconductors and passive components, tailored for evolving industry needs.
• Market Expansion: Strategic initiatives to penetrate growing markets, including automotive, industrial, and telecommunications sectors, particularly in regions with increasing demand.
• Acquisitions: Leveraging strategic acquisitions to broaden product portfolios, enhance technological capabilities, and expand market presence.

While specific revenue growth projections and earnings estimates for Vishay Intertechnology, Inc. (VSH) are not available in the provided search results, factors influencing potential growth can be assessed. These include overall market trends, the company's strategic initiatives, and its competitive positioning. For detailed financial forecasts, consulting analyst reports and the company's investor relations releases is recommended.

Strategic initiatives and partnerships play a crucial role in Vishay’s growth trajectory:

• Strategic Partnerships: Collaborations with technology leaders and industry partners to develop integrated solutions and expand market reach.
• Capacity Expansion: Investments in increasing production capacity to meet rising demand, particularly for high-growth products.
• R&D Investments: Continued investment in research and development to drive innovation and maintain a competitive edge in key product areas.

Vishay's competitive advantages significantly contribute to its growth prospects:

• Broad Product Portfolio: A wide array of passive and active components catering to diverse customer needs.
• Global Footprint: Extensive manufacturing and sales operations worldwide, enabling efficient supply chain management and localized customer support.
• Strong Customer Relationships: Long-standing relationships with major customers across various industries, providing a stable revenue base and opportunities for growth.

To get more insights into the company's values, refer to: Mission Statement, Vision, & Core Values of Vishay Intertechnology, Inc. (VSH).

Below is a table summarizing Vishay Intertechnology, Inc.'s key financial data for the fiscal year 2024. Note that since specific financial projections were not available in the search results, the table focuses on showcasing the company's financial performance and position based on available information.