Briefing From The Editor — VSH Stock

Now trading at a price of $22.77, Vishay Intertechnology has moved -0.8% so far today on a volume of 202,829, compared to its average of 950,760. In contrast, the S&P 500 index moved -0.0%.

Vishay Intertechnology shares moved 6.1% over the last 52 weeks, with a high of $23.39 and a low of $16.73. During this time, the stock outperformed the S&P 500 index by 18.7%. As of January 2022, the company's 50-day average price is $22.0. Vishay Intertechnology, Inc. manufactures and supplies discrete semiconductors and passive electronic components in Asia, Europe, and the Americas. The mid-cap Technology company has 22,800 full time employees and is based in Malvern, PA. Vishay Intertechnology has returned a 1.7% dividend yield over the last 12 months.

Snapshot of the Company's Growing Profitability and Low Debt Levels:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $2,668 $2,502 $3,240
Revenue Growth n/a -6.24% 29.52%
Gross Margins 25.2% 23.3% 27.4%
Gross Margins Growth n/a -7.54% 17.6%
Operating Margins 10.7% 8.4% 14.4%
Operating Margins Growth n/a -21.5% 71.43%
Earnings Per Share $1.13 $0.85 $2.05
EPS Growth n/a -24.78% 141.18%
Free Cash Flow (MM) $140 $191 $239
FCF Growth n/a 36.86% 24.77%
Capital Expenditures (MM) -$157 -$124 -$218
Net Debt / EBITDA -0.39 -0.55 -0.47

The Market Is Undervaluing Vishay Intertechnology:

Compared to the Technology sector's average of 26.5, Vishay Intertechnology has a trailing twelve month P/E ratio of 8.4 and, according to its EPS guidance of 2.7, an expected P/E ratio of 8.4.

Vishay Intertechnology is undervalued in terms of its assets because its P/B ratio is 1.7 compared to its sector average of 5.57. The company's shares are currently trading 13.3% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 1.34 * 13.389) = $20.09

Vishay Intertechnology Is the Subject of Mixed Market Indicators:

4 analysts are following Vishay Intertechnology and have set target prices ranging from $20 to $22 per share. On average, they have given the company a rating of hold. At the current price of $22.77, VSH is trading 8.4% away from its average analyst target price of $21 per share, implying an analyst consensus of little upside potential for the stock.

The company has an average amount of shares sold short since 5.2% of the company's shares are tied to short positions. Institutions own 96.7% of Vishay Intertechnology's shares, while the insider ownership rate stands at 0.63%. The biggest shareholder is Blackrock Inc. with a 12% stake in the company worth approximately $351,716,918.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.