VSH

Vishay Intertechnology, Inc.

TMT


Presented:03/02/2023
Price:$21.64
Cap:$3.07B
Current Price:$18.11
Cap:$2.48B

Presented

Date03/02/2023
Price$21.64
Market Cap$3.07B
Ent Value$2.79B
P/E Ratio7.27x
Book Value$14.11
Div Yield1.85%
Shares O/S141.67M
Ave Daily Vol893,800
Short Int5.22%

Current

Price$18.11
Market Cap$2.48B
Vishay Intertechnology, Inc. engages in the manufacture and distribution of discrete semiconductors and passive components. It operates through the following segments: MOSFET (metal oxide semiconductor field-effect transistor), Diodes, Optoelectronic Components, Resistors, Inductors, and Capacitors. The MOSFET segment offers semiconductors which function as solid state switches to control power. The Diodes segment produces semiconductors which route, regulate, and block radio frequency, analog, and power signals, protect systems from surges or electrostatic discharge damage, and provide electromagnetic interference filtering. The Optoelectronic Components segment includes components that emit light, detect light, or do both. The Resistors and Inductors segment deals with components that impede electric current. The Capacitors segment provides components which store energy and discharge it when needed. The company was founded by Felix Zandman in 1962 and is headquartered in Malvern, PA.

Publicly traded companies mentioned herein: Kyocera Corp (6971 JP), Vishay Intertechnology Inc (VSH), Yageo Corp (2327 TT)

Highlights

The presenter is long shares of Vishay Intertechnology Inc (VSH), which manufactures and sells discrete semiconductors and passive electronic components. VSH was family run until 2005 when Gerald Paul took over as CEO. Paul was very cash flow-focused until retiring at the end of 2022 making way for new CEO Joel Smejkal to take over. The business has a history of generating mid-teen% ROIC and ROE, strong cash flow, and currently has a net cash position of ~$3 per share. It is clear to the presenter that this is a good business, and there are catalysts to drive growth and multiple rerating in the forms of new leadership and capacity expansion. As such, he sees upside from the current $21 share price to the mid-$30 range with downside limited to $19. 

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Idea Discussion

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