Vishay Intertechnology, Inc. reports 25.0% Net Income decline in 2020 and 6.2% Revenue decline
02/09/2021 • About Vishay Intertechnology, Inc. (
$VSH) • By InTwits
Vishay Intertechnology, Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vishay Intertechnology, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.2%. At the same time it's in pair with industry average of 3.5%
- CAPEX is quite volatile: $57m in FY2020, $69m in FY2019, $68m in FY2018, $44m in FY2017, $26m in FY2016
- The company has business model with low profitability: ROIC is 9.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Vishay Intertechnology, Inc.'s Revenue decreased on 6.2%. Annual revenue decline showed slowdown in 20Q4 - revenue increased on 9.4%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 0.87 pp from 16.8% to 16.0% in 2020. During 2016-2020 EBITDA Margin topped in 2018 at 21.3% and was declining since that time.
Gross Margin decreased slightly on 1.9 pp from 25.2% to 23.3% in 2020. During the last 5 years Gross Margin topped in 2018 at 29.3% and was declining since that time. SG&A as a % of Revenue showed almost no change in 2020. During the last 5 years SG&A as a % of Revenue bottomed in 2018 at 10.9% and was growing since that time.
Net Income margin decreased slightly on 1.2 pp from 6.1% to 4.9% in 2020.
Investments (CAPEX, working capital and M&A)
Vishay Intertechnology, Inc.'s CAPEX/Revenue was 4.9% in 2020. The company showed small CAPEX/Revenue decline of 1.6 pp from 6.6% in 2017 to 4.9% in 2020. For the last three years the average CAPEX/Revenue was 6.1%. During the last 5 years CAPEX as a % of Revenue topped in 2018 at 7.6% and was declining since that time.
Return on investment
The company operates at low ROIC (9.9%) and ROE (8.0%). ROIC decreased on 3.3 pp from 13.2% to 9.9% in 2020. ROE decreased on 3.4 pp from 11.4% to 8.0% in 2020. During the last 5 years ROIC topped in 2018 at 27.8% and was declining since that time.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 1.3x Debt / EBITDA. Debt dropped on 15.8% while cash dropped on 10.7%.
Vishay Intertechnology, Inc. has no short term refinancing risk: cash is higher than short term debt (2,808.2%).
Valuation and dividends
Vishay Intertechnology, Inc.'s trades at EV/EBITDA 7.5x and P/E 25.3x.
Management team
The company's CEO Gerald Paul has spent 16 years with the company. Lori Lipcaman is a Vishay Intertechnology, Inc.'s CFO. Lori Lipcaman has spent 9 years at the company.
Financial and operational results
FY ended 12/31/2020
Vishay Intertechnology, Inc. ($VSH) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 2,317 | 2,599 | 3,035 | 2,668 | 2,502 | -6.2% |
| Gross Profit | 574 | 703 | 889 | 671 | 582 | -13.3% |
| SG&A | 289 | 301 | 331 | 315 | 301 | -4.5% |
| EBITDA | 356 | 487 | 647 | 449 | 399 | -11.1% |
| EBIT | 197 | 324 | 485 | | | |
| Interest expence | 26 | 28 | 37 | | | |
| Tax | 45 | 299 | 70 | | | |
| Net Income | 49 | -20 | 346 | 164 | 123 | -25.0% |
Balance Sheet
|
|---|
| Cash | 472 | 748 | 686 | 694 | 620 | -10.7% |
| Accounts Receivable | 274 | 340 | 397 | | | |
| Inventory | 381 | 430 | 480 | | | |
| Accounts Payable | 174 | 222 | 218 | | | |
| Short Term Debt | 0 | 0 | 0 | 20 | 22 | 9.2% |
| Long Term Debt | 357 | 370 | 495 | 578 | 481 | -16.7% |
Cash flow
|
|---|
| Capex | 135 | 170 | 230 | 157 | 124 | -21.1% |
| Dividends | 37 | 37 | 47 | | | |
| Acquisitions | | | 15 | | | |
Ratios
|
|---|
| Revenue growth | 0.7% | 12.2% | 16.7% | -12.1% | -6.2% | |
| EBITDA growth | 30.1% | 36.7% | 32.8% | -30.6% | -11.1% | |
|
|---|
| Gross Margin | 24.8% | 27.0% | 29.3% | 25.2% | 23.3% | -1.9% |
| EBITDA Margin | 15.4% | 18.7% | 21.3% | 16.8% | 16.0% | -0.9% |
| EBIT Margin | 8.5% | 12.5% | 16.0% | | |
| SG&A, % of revenue | 12.5% | 11.6% | 10.9% | 11.8% | 12.0% | 0.2% |
| Net Income Margin | 2.1% | -0.8% | 11.4% | 6.1% | 4.9% | -1.2% |
| CAPEX, % of revenue | 5.8% | 6.6% | 7.6% | 5.9% | 4.9% | -0.9% |
|
|---|
| ROIC | 9.8% | 18.4% | 27.8% | 13.2% | 9.9% | -3.3% |
| ROE | 3.1% | -1.4% | 24.6% | 11.4% | 8.0% | -3.4% |
| Net Debt/EBITDA | -0.3x | -0.8x | -0.3x | -0.2x | -0.3x | -0.1x |
| Interest expence / Average debt | 7.2% | 7.7% | 8.5% | | | |
People
|
|---|
| Insider ownership | 0.9% | 0.9% | 0.9% | | | |
| Employees | 22,100 | 23,000 | 24,100 | | | |
| Revenue/Employee, th. $ | 105 | 113 | 126 | | | |
Vishay Intertechnology, Inc. ($VSH) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 613 | 582 | 640 | 667 | | -17.8% | -15.1% | 1.9% | 9.4% |
| EBITDA | 95 | 87 | 109 | 109 | | -38.5% | -30.8% | 11.8% | 51.0% |
| Net Income | 27 | 25 | 33 | 38 | | -63.9% | -44.6% | 11.5% | 169.1% |
Balance Sheet
|
|---|
| Cash | 681 | 600 | 682 | 620 | | -9.2% | -24.1% | -6.7% | -10.7% |
| Short Term Debt | 21 | 21 | 22 | 22 | | 43.7% | 39.6% | 29.5% | 9.2% |
| Long Term Debt | 636 | 524 | 478 | 481 | | 9.7% | -13.5% | -17.1% | -16.7% |
Ratios
|
|---|
| Gross Margin | 24.0% | 22.5% | 23.7% | 22.8% | | -4.3% | -3.0% | -0.2% | 0.6% |
| EBITDA Margin | 15.4% | 15.0% | 17.0% | 16.3% | | -5.2% | -3.4% | 1.5% | 4.5% |
| Net Income Margin | 4.4% | 4.2% | 5.2% | 5.6% | | -5.7% | -2.3% | 0.4% | 3.3% |
Peers in Electronic Components
Below you can find Vishay Intertechnology, Inc. benchmarking vs. other companies in Electronic Components industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cavitation Technologies Inc ($CVAT) | - | -40.9% | 22.6% | -16.3% | 52.6% |
| IEH Corp ($IEHC) | - | 4.0% | 16.6% | 21.0% | 13.2% |
| Amphenol Corporation ($APH) | - | 11.5% | 17.0% | 0.3% | 4.5% |
| Corning Incorporated ($GLW) | - | 7.7% | 11.6% | 1.9% | -1.7% |
| CPS Technologies Corp. ($CPSH) | - | -5.0% | 48.0% | -0.5% | -2.8% |
| |
|---|
| Median (12 companies) | -10.4% | 7.7% | 14.1% | -0.1% | -4.6% |
|---|
| Vishay Intertechnology, Inc. ($VSH) | - | 12.2% | 16.7% | -12.1% | -6.2% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cavitation Technologies Inc ($CVAT) | 93.2% | 93.5% | 90.6% | 93.7% | 97.6% |
| Dolby Laboratories ($DLB) | 89.4% | 89.1% | 87.9% | 87.0% | 87.4% |
| Airgain, Inc. ($AIRG) | 44.4% | 47.1% | 43.7% | 45.4% | 46.6% |
| Rogers Corporation ($ROG) | 38.0% | 38.8% | 35.4% | 35.0% | 36.4% |
| Belden Inc ($BDC) | 41.6% | 39.1% | 39.0% | 37.2% | 35.6% |
| |
|---|
| Median (12 companies) | 33.7% | 38.3% | 37.6% | 36.6% | 35.1% |
|---|
| Vishay Intertechnology, Inc. ($VSH) | 24.8% | 27.0% | 29.3% | 25.2% | 23.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dolby Laboratories ($DLB) | 30.9% | 30.8% | 25.1% | 27.6% | 28.7% |
| Amphenol Corporation ($APH) | 22.6% | 23.6% | 24.2% | 24.7% | 22.6% |
| Littelfuse, Inc. ($LFUS) | 17.4% | 23.0% | 19.1% | 19.5% | 18.5% |
| Corning Incorporated ($GLW) | 27.9% | 27.3% | 25.4% | 25.7% | 18.0% |
| Rogers Corporation ($ROG) | 18.5% | 21.3% | 18.5% | 18.1% | 17.7% |
| |
|---|
| Median (12 companies) | 13.6% | 8.7% | 9.3% | 17.5% | 14.4% |
|---|
| Vishay Intertechnology, Inc. ($VSH) | 15.4% | 18.7% | 21.3% | 16.8% | 16.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Corning Incorporated ($GLW) | 12.0% | 17.8% | 19.9% | 17.2% | 12.2% |
| Dolby Laboratories ($DLB) | 9.8% | 9.2% | 6.9% | 7.8% | 5.7% |
| Rogers Corporation ($ROG) | 2.8% | 3.3% | 5.4% | 5.7% | 5.0% |
| Belden Inc ($BDC) | 2.3% | 2.7% | 3.8% | 5.2% | 4.8% |
| Knowles Corporation ($KN) | 4.5% | 6.9% | 9.7% | 4.8% | 4.2% |
| |
|---|
| Median (12 companies) | 3.0% | 4.2% | 3.8% | 4.5% | 3.6% |
|---|
| Vishay Intertechnology, Inc. ($VSH) | 5.8% | 6.6% | 7.6% | 5.9% | 4.9% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Amphenol Corporation ($APH) | 18.3% | 19.2% | 21.1% | 19.4% | 18.0% |
| CPS Technologies Corp. ($CPSH) | -10.8% | -19.4% | -11.9% | -9.3% | 13.8% |
| IEH Corp ($IEHC) | 24.2% | 19.2% | 26.1% | 36.6% | 12.8% |
| Dolby Laboratories ($DLB) | 12.2% | 12.0% | 8.4% | 11.4% | 9.6% |
| Littelfuse, Inc. ($LFUS) | 11.7% | 15.8% | 12.1% | 8.5% | 6.9% |
| |
|---|
| Median (12 companies) | 4.7% | 6.0% | 7.8% | 7.9% | 6.4% |
|---|
| Vishay Intertechnology, Inc. ($VSH) | 9.8% | 18.4% | 27.8% | 13.2% | 9.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Belden Inc ($BDC) | 2.1x | 2.6x | 2.3x | 3.1x | 4.6x |
| Corning Incorporated ($GLW) | -0.5x | 0.3x | 1.3x | 2.1x | 2.6x |
| Amphenol Corporation ($APH) | 1.4x | 1.1x | 1.2x | 1.4x | 1.1x |
| Bel Fuse Inc. ($BELFA) | - | 1.4x | 1.3x | 3.7x | 1.1x |
| Knowles Corporation ($KN) | 2.0x | 1.0x | 0.7x | 0.9x | 0.6x |
| |
|---|
| Median (11 companies) | -0.5x | -0.0x | 0.7x | 0.9x | 0.1x |
|---|
| Vishay Intertechnology, Inc. ($VSH) | -0.3x | -0.8x | -0.3x | -0.2x | -0.3x |
