Vishay Precision Group, Inc. CAPEX surged on 105% while Revenue decreased on 5.0%
02/17/2021 • About Vishay Precision Group, Inc. (
$VPG) • By InTwits
Vishay Precision Group, Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vishay Precision Group, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 7.3%
- CAPEX is quite volatile: $23m in 2020, $11m in 2019, $15m in 2018, $7m in 2017, $10m in 2016
- The company has business model with low profitability: ROIC is 7.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 5.0%. Annual revenue decline showed slowdown in 20Q4 - revenue increased on 9.1%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.77 pp from 15.4% to 14.7% in 2020. During 2016-2020 EBITDA Margin topped in 2018 at 16.0% and was declining since that time.
Gross Margin decreased slightly on 0.66 pp from 39.3% to 38.6% in 2020. During the last 5 years Gross Margin topped in 2018 at 40.5% and was declining since that time. SG&A as a % of Revenue increased slightly on 0.96 pp from 28.0% to 29.0% in 2020. During 2016-2020 SG&A as a % of Revenue bottomed in 2018 at 27.0% and was growing since that time.
Net Income margin decreased on 3.8 pp from 7.8% to 4.0% in 2020. During the last 5 years Net Income margin topped in 2018 at 7.9% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Vishay Precision Group, Inc.'s CAPEX/Revenue was 8.5% in 2020. The company showed CAPEX/Revenue growth of 5.8 pp from 2.7% in 2017 to 8.5% in 2020. It's average level of CAPEX/Revenue for the last three years was 5.8%. Vishay Precision Group, Inc. invested a big chunk of EBITDA (58.0%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (7.4%) and ROE (4.3%). ROIC decreased on 3.1 pp from 10.5% to 7.4% in 2020. ROE decreased on 5.3 pp from 9.7% to 4.3% in 2020. During the last 5 years ROIC topped in 2018 at 15.2% and was declining since that time. During the last 5 years ROE topped in 2018 at 11.5% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.9x and Debt / EBITDA is 1.6x. Debt jumped on 20.7% while cash jumped on 13.3%.
Vishay Precision Group, Inc. has no short term refinancing risk: cash is higher than short term debt (2,443.2%).
Valuation and dividends
Vishay Precision Group, Inc.'s trades at EV/EBITDA 9.2x and P/E 37.1x.
Management team
The company's CEO Ziv Shoshani has spent 10 years with the company. The company's CFO William Michael Clancy has spent 10 years with the company.
Financial and operational results
FY ended 12/31/2020
Vishay Precision Group, Inc. ($VPG) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 224.9 | 254.4 | 299.8 | 284.0 | 269.8 | -5.0% |
| Gross Profit | 82.8 | 98.3 | 121.3 | 111.6 | 104.3 | -6.6% |
| SG&A | 68.9 | 73.8 | 80.9 | 79.6 | 78.3 | -1.7% |
| EBITDA | 21.9 | 33.1 | 47.9 | 43.8 | 39.6 | -9.7% |
| Net Income | 6.4 | 14.3 | 23.6 | 22.2 | 10.8 | -51.4% |
Balance Sheet
|
|---|
| Cash | 58.5 | 74.3 | 90.2 | 86.9 | 98.4 | 13.3% |
| Short Term Debt | 2.6 | 3.9 | 4.7 | 47.3 | 4.0 | -91.5% |
| Long Term Debt | 33.5 | 28.5 | 22.4 | 5.8 | 60.1 | 931.7% |
Cash flow
|
|---|
| Capex | 10.4 | 7.0 | 14.5 | 11.2 | 22.9 | 105.0% |
Ratios
|
|---|
| Revenue growth | -3.1% | 13.1% | 17.9% | -5.3% | -5.0% | |
| EBITDA growth | 51.2% | 51.5% | 44.5% | -8.4% | -9.7% | |
|
|---|
| Gross Margin | 36.8% | 38.6% | 40.5% | 39.3% | 38.6% | -0.7% |
| EBITDA Margin | 9.7% | 13.0% | 16.0% | 15.4% | 14.7% | -0.8% |
| SG&A, % of revenue | 30.6% | 29.0% | 27.0% | 28.0% | 29.0% | 1.0% |
| Net Income Margin | 2.8% | 5.6% | 7.9% | 7.8% | 4.0% | -3.8% |
| CAPEX, % of revenue | 4.6% | 2.7% | 4.8% | 3.9% | 8.5% | 4.6% |
|
|---|
| ROIC | 5.0% | 10.0% | 15.2% | 10.5% | 7.4% | -3.1% |
| ROE | 3.7% | 7.9% | 11.5% | 9.7% | 4.3% | -5.3% |
| Net Debt/EBITDA | -1.0x | -1.3x | -1.3x | -0.8x | -0.9x | -0.1x |
Vishay Precision Group, Inc. ($VPG) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 68 | 59 | 68 | 75 | | -11.5% | -16.5% | 0.2% | 9.1% |
| EBITDA | 9 | 8 | 12 | 10 | | -46.5% | -29.6% | 22.2% | 78.1% |
| Net Income | 3 | 2 | 6 | 0 | | -59.8% | -68.4% | 24.2% | -97.0% |
Balance Sheet
|
|---|
| Cash | 83 | 87 | 90 | 98 | | -11.2% | -11.7% | -11.4% | 13.3% |
| Short Term Debt | 3 | 4 | 4 | 4 | | -62.8% | -46.2% | -45.0% | -91.5% |
| Long Term Debt | 46 | 60 | 59 | 60 | | 60.1% | 127.5% | 136.4% | 931.7% |
Ratios
|
|---|
| Gross Margin | 37.0% | 39.1% | 40.5% | 38.1% | | -6.2% | -1.3% | 2.2% | 3.2% |
| EBITDA Margin | 12.9% | 13.9% | 18.2% | 13.7% | | -8.4% | -2.6% | 3.3% | 5.3% |
| Net Income Margin | 4.9% | 3.0% | 8.3% | 0.2% | | -5.9% | -4.9% | 1.6% | -5.4% |
Peers in Electronic Equipment & Instruments
Below you can find Vishay Precision Group, Inc. benchmarking vs. other companies in Electronic Equipment & Instruments 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 |
|---|
| Intellicheck, Inc. ($IDN) | - | -6.3% | 23.2% | 72.9% | 40.1% |
| nLIGHT, Inc. ($LASR) | - | 36.8% | 38.1% | -7.7% | 26.1% |
| Luna Innovations Incorporated ($LUNA) | - | -21.0% | 29.7% | 64.3% | 17.3% |
| PAR Technology Corporation ($PAR) | - | 1.3% | -13.5% | -7.0% | 14.2% |
| Cognex Corporation ($CGNX) | - | 44.7% | 5.3% | -10.0% | 11.8% |
| |
|---|
| Median (26 companies) | -3.8% | 4.1% | 10.4% | 5.2% | -2.7% |
|---|
| Vishay Precision Group, Inc. ($VPG) | - | 13.1% | 17.9% | -5.3% | -5.0% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Intellicheck, Inc. ($IDN) | 80.0% | 85.5% | 91.3% | 87.0% | 86.7% |
| Cognex Corporation ($CGNX) | 75.2% | 75.6% | 74.4% | 73.8% | 74.5% |
| National Instruments Corporation ($NATI) | 74.5% | 74.5% | 75.4% | 75.1% | 71.2% |
| Coda Octopus Group, Inc. ($CODA) | - | 66.4% | - | 65.6% | 63.5% |
| Applied DNA Sciences Inc ($APDN) | 82.2% | 77.3% | 69.1% | 83.7% | 62.7% |
| |
|---|
| Median (26 companies) | 40.7% | 41.7% | 40.9% | 43.2% | 44.0% |
|---|
| Vishay Precision Group, Inc. ($VPG) | 36.8% | 38.6% | 40.5% | 39.3% | 38.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Keysight Technologies Inc. ($KEYS) | 18.5% | 14.6% | -0.9% | 23.7% | 27.0% |
| Cognex Corporation ($CGNX) | 31.9% | 36.0% | 30.1% | 24.0% | 25.3% |
| National Instruments Corporation ($NATI) | 15.7% | 16.9% | 17.9% | 20.0% | 22.3% |
| FLIR Systems, Inc. ($FLIR) | 21.3% | 20.0% | 21.7% | 20.6% | 22.0% |
| Badger Meter, Inc. ($BMI) | 18.6% | 20.1% | 18.7% | 21.1% | 21.2% |
| |
|---|
| Median (26 companies) | 2.9% | 4.1% | 3.3% | 12.0% | 8.7% |
|---|
| Vishay Precision Group, Inc. ($VPG) | 9.7% | 13.0% | 16.0% | 15.4% | 14.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Know Labs Inc ($KNWN) | 0.4% | 0.0% | 2.3% | 4.4% | 57.5% |
| Applied DNA Sciences Inc ($APDN) | 16.1% | 3.1% | 6.8% | 1.3% | 55.1% |
| nLIGHT, Inc. ($LASR) | 4.0% | 4.0% | 6.1% | 7.7% | 10.9% |
| LightPath Technologies, Inc. ($LPTH) | 6.5% | 7.8% | 7.7% | 5.7% | 7.0% |
| Coherent, Inc. ($COHR) | 5.8% | 3.7% | 4.8% | 5.8% | 5.3% |
| |
|---|
| Median (25 companies) | 2.0% | 1.6% | 2.2% | 1.9% | 2.1% |
|---|
| Vishay Precision Group, Inc. ($VPG) | 4.6% | 2.7% | 4.8% | 3.9% | 8.5% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Zebra Technologies Corporation ($ZBRA) | 2.2% | 10.2% | 20.8% | 23.2% | 20.0% |
| Badger Meter, Inc. ($BMI) | 16.9% | 18.2% | 17.6% | 18.7% | 18.5% |
| Keysight Technologies Inc. ($KEYS) | 16.9% | 6.8% | -8.0% | 15.6% | 15.1% |
| National Instruments Corporation ($NATI) | 10.3% | 12.5% | 14.2% | 13.9% | 14.8% |
| Cognex Corporation ($CGNX) | 17.7% | 25.6% | 20.1% | 11.9% | 13.9% |
| |
|---|
| Median (26 companies) | 2.1% | 2.6% | 0.9% | 7.8% | 3.4% |
|---|
| Vishay Precision Group, Inc. ($VPG) | 5.0% | 10.0% | 15.2% | 10.5% | 7.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Identiv, Inc. ($INVE) | - | - | 2.1x | 1.9x | 9.0x |
| Itron, Inc. ($ITRI) | 1.0x | 2.0x | 12.3x | 3.2x | 7.3x |
| Track Group Inc ($TRCK) | - | - | 12.2x | 5.2x | 3.5x |
| Trimble Inc. ($TRMB) | 1.1x | 1.3x | 3.4x | 2.9x | 2.2x |
| Luna Innovations Incorporated ($LUNA) | -6.9x | -108.1x | -19.9x | -2.9x | 1.8x |
| |
|---|
| Median (16 companies) | -0.8x | -0.7x | -0.9x | 0.5x | 0.7x |
|---|
| Vishay Precision Group, Inc. ($VPG) | -1.0x | -1.3x | -1.3x | -0.8x | -0.9x |
