NYSE:VSH
VISHAY INTERTECHNOLOGY INC
A leading global provider of high-performance passive electronic components with a diversified portfolio across key industries like automotive and telecom.
Key Metrics
Investment Thesis
Bull Case
Vishay benefits from structural tailwinds in the automotive and renewable energy sectors which drive demand for robust passive components; The company maintains a solid balance sheet with $515.0M in cash and equivalents and no current portion of long-term debt providing liquidity for strategic initiatives; Recent revenue stabilization suggests potential bottoming out after a two-year decline, offering value for contrarian investors willing to wait for margin expansion.
Bear Case
Consecutive years of net losses from -$29.8M in 2024 to -$9.0M in 2025 signal deep-seated operational or pricing challenges that are eroding shareholder value; Significant exposure to cyclical industrial demand combined with a massive inventory buildup of $759.2M creates downside risk if sales do not accelerate quickly; High leverage relative to earnings, indicated by the retained earnings deficit of $892.2M and negative cash flow from operations adjusted for non-cash items, limits the ability to weather economic headwinds.
About VISHAY INTERTECHNOLOGY INC
Vishay Intertechnology designs and manufactures passive electronic components such as resistors, capacitors, and inductors primarily serving the telecommunications, automotive, industrial, and consumer electronics markets globally.
Analysis
Management Discussion
Despite a strong operating profit of $56.9M, the company reported a net loss of -$9.0M in 2025, exacerbated by non-cash adjustments totaling -$160.5M and negative cash flow from investing activities of -$257.9M likely due to acquisitions or asset purchases; Revenue contraction continues despite a slight uptick to $3.07B compared to 2024's $2.94B, while cost of revenue remains high at $2.47B against gross profit of only $594.9M; Cash reserves are stable at $515.0M but the company is burning cash with net change of -$75.3M, requiring careful capital allocation to address the retained earnings deficit.
Industry Overview
The passive components industry is characterized by long product lifecycles and high barriers to entry due to stringent quality requirements in automotive and aerospace applications; Competition is intense with consolidation trends favoring players who can offer vertical integration and global supply chain management; Technological shifts toward miniaturization and higher power densities are driving innovation but also increasing R&D expenditures.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.50B | $3.40B | $2.94B | $3.07B |
| Cost of Revenue | $2.44B | $2.43B | $2.31B | $2.47B |
| Gross Profit | $1.06B | $974.5M | $626.3M | $594.9M |
| Operating Expenses | $443.5M | $488.3M | $620.7M | $538.0M |
| Operating Income | $615.5M | $486.1M | $5.6M | $56.9M |
| R&D | $81.2M | $99.5M | $120.1M | $122.4M |
| G&A | $443.5M | $488.3M | $513.6M | $538.0M |
| Stock-Based Comp | $6.5M | $16.5M | $20.9M | $22.4M |
| D&A | $164.0M | $184.4M | $210.6M | $224.7M |
| Depreciation | $155.9M | $174.5M | $199.0M | $211.5M |
| Amortization | $8.1M | $9.9M | $11.7M | $13.2M |
| Other OpEx | $-81.2M | $-99.5M | $-13.0M | $-122.4M |
| Non-Operating Income | $-22.0M | $-18.7M | $-8.0M | $-31.4M |
| Interest Expense | $17.1M | $25.1M | — | — |
| Pre-Tax Income | $593.5M | $467.4M | $-2.4M | $25.5M |
| Income Tax | $163.0M | $141.9M | $27.4M | $34.5M |
| Continuing Ops | $430.5M | $325.5M | $-29.8M | $-9.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $430.5M | $325.5M | $-29.8M | $-9.0M |
| Minority Interest | $1.7M | $1.7M | $1.4M | $0 |
| Net to Common | $428.8M | $323.8M | $-31.1M | $-9.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.12B | $2.30B | $1.92B | $1.89B |
| Cash & Equivalents | $610.8M | $972.7M | $590.3M | $515.0M |
| Accounts Receivable | $416.2M | $426.7M | $401.9M | $381.8M |
| Inventory | $618.9M | $647.5M | $689.4M | $759.2M |
| Prepaid Expenses | $170.1M | $214.4M | $217.8M | $231.0M |
| Other Current Assets | $305.3M | $35.8M | $16.1M | $265.0K |
| Long-Term Assets | $1.74B | $1.94B | $2.20B | $2.35B |
| PP&E (Net) | $1.13B | $1.29B | $1.55B | $1.67B |
| Intangibles | $77.9M | $72.3M | $87.2M | $78.5M |
| Goodwill | $201.4M | $201.4M | $179.0M | $180.4M |
| Operating Leases | $131.2M | $126.8M | $118.0M | $119.7M |
| Other LT Assets | $203.5M | $247.5M | $265.3M | $295.1M |
| Total Assets | $3.87B | $4.24B | $4.11B | $4.23B |
| Current Liabilities | $726.3M | $691.9M | $708.3M | $720.4M |
| Accounts Payable | $189.1M | $191.0M | $216.3M | $215.0M |
| Current Debt | $0 | $0 | $0 | $0 |
| Current Leases | $25.3M | $26.5M | $25.9M | $26.5M |
| Taxes Payable | $84.2M | $73.1M | $64.6M | $14.8M |
| Other Current Liab | $427.7M | $401.3M | $401.6M | $464.1M |
| Long-Term Liabilities | $1.09B | $1.35B | $1.37B | $1.43B |
| Long-Term Debt | $500.9M | $818.2M | $905.0M | $950.9M |
| LT Operating Leases | $108.5M | $102.8M | $94.2M | $95.8M |
| Other LT Liab | $479.8M | $426.2M | $374.1M | $378.8M |
| Total Liabilities | $1.82B | $2.04B | $2.08B | $2.15B |
| Shareholders' Equity | $2.05B | $2.20B | $2.03B | $2.09B |
| Retained Earnings | $773.2M | $1.04B | $955.5M | $892.2M |
| AOCI | $-10.8M | $10.3M | $-35.3M | $81.4M |
| Total L&E | $3.87B | $4.24B | $4.11B | $4.23B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $430.5M | $325.5M | $-29.8M | $-9.0M |
| Non-Cash Adjustments | $-586.8M | $-498.2M | $-147.3M | $-160.5M |
| Working Capital Changes | $640.6M | $538.4M | $350.8M | $353.8M |
| Cash from Operations | $484.3M | $365.7M | $173.7M | $184.3M |
| Cash from Investing | $-528.9M | $-72.9M | $-512.5M | $-257.9M |
| Debt Issuances | — | $750.0M | $0 | $0 |
| Share Buybacks | $83.0M | $78.7M | $50.4M | $12.5M |
| Cash from Financing | $-101.0M | $61.1M | $-35.4M | $-19.7M |
| FX Effect | $-17.6M | $8.0M | $-8.3M | $18.0M |
| Net Change in Cash | $-163.3M | $361.9M | $-382.4M | $-75.3M |
| Beginning Cash | $774.1M | $610.8M | $972.7M | $590.3M |
| Ending Cash | $610.8M | $972.7M | $590.3M | $515.0M |
Frequently Asked Questions
How does VISHAY INTERTECHNOLOGY INC make money?
The company generates revenue through its Passive Components segment which includes discrete resistors, capacitors, inductors, and transformers; Power & Sensors segment offering power management solutions and sensors; and RF Devices segment providing radio frequency filters and antennas for wireless applications.
What are the main risks for VSH?
Declining revenue trend from $3.50B to $2.94B over the last two years indicating potential market saturation or demand weakness; Persistent net losses with 2024 at -$29.8M and 2025 at -$9.0M raising concerns about profitability sustainability; High inventory levels of $759.2M coupled with significant changes in inventory suggest potential obsolescence or write-down risks; Substantial long-term debt obligation of $950.9M limiting financial flexibility during downturns.
What is VSH's competitive advantage?
Extensive global manufacturing footprint allowing cost efficiency and supply chain resilience; Strong R&D investment of $122.4M enabling proprietary technologies in high-reliability automotive and aerospace components; Diverse customer base spanning industrial, commercial, and consumer markets reducing single-sector dependency.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.