Vishay Intertechnology
VSH
$33.18
-14.59%
Vishay Intertechnology, Inc. is a leading manufacturer of discrete semiconductors and passive electronic components, serving original equipment manufacturers and distributors across industrial, automotive, computing, consumer, telecommunications, military, aerospace, and medical markets. The company's product portfolio includes MOSFETs, diodes, optoelectronic components, resistors, inductors, and capacitors, with resistors being its largest revenue contributor. Vishay is recognized as a niche player in the broad-line component space, competing with larger semiconductor firms by offering a diverse range of essential components. The current investor narrative centers on a dramatic stock rally driven by strong earnings and a broadening semiconductor market, where gains are spreading from AI leaders to smaller companies in electric vehicles, industrial automation, and power management. However, recent volatility and a sharp pullback from highs have raised questions about sustainability, while the company's thin margins and negative free cash flow add to the debate.…
VSH
Vishay Intertechnology
$33.18
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Investment Opinion: Should I buy VSH Today?
Based on the analysis, I rate VSH as a Hold. The stock has shown strong momentum and a cyclical recovery, but the fundamental picture is mixed. The average analyst target of $34.00 is essentially in line with the current price, implying no upside, and the consensus recommendation is 'none' due to bearish ratings. The thesis is that Vishay's low PS ratio and forward PE suggest potential for earnings recovery, but the company must prove it can sustain growth and improve profitability.
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VSH 12-Month Price Forecast
The AI model assesses VSH as neutral with medium confidence. The stock offers a compelling valuation on sales, but the lack of profitability and negative free cash flow are major red flags. The recent rally appears driven by cyclical momentum rather than fundamental improvement. If the company can demonstrate sustained earnings growth and positive cash flow, the stance would upgrade to bullish. Conversely, if the cyclical upturn fades, the stock could face significant downside. The model would downgrade to bearish if revenue growth falls below 10% or if free cash flow deteriorates further.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Vishay Intertechnology's 12-month outlook, with a consensus price target around $38.25 and implied upside of +15.3% versus the current price.
Average Target
$38.25
0 analysts
Implied Upside
+15.3%
vs. current price
Analyst Count
—
covering this stock
Price Range
$28 - $45
Analyst target range
Analyst coverage is limited, with only 2 analysts providing targets, and the consensus recommendation is 'none' due to mixed actions (one Underperform and one Neutral). The average target price is $34.00, which is essentially in line with the current price of $34.22, implying a negligible downside of -0.6%. This suggests that analysts see the stock as fairly valued at current levels, with limited upside potential. The low target of $28.00 and high target of $40.00 reflect a wide range, indicating high uncertainty about the company's future performance. The low target likely assumes continued margin pressure and competitive challenges, while the high target may factor in a successful recovery in earnings and multiple expansion. Given the sparse coverage and bearish-leaning ratings, investors should be cautious, as limited analyst attention can lead to higher volatility and less efficient price discovery.
Bulls vs Bears: VSH Investment Factors
Vishay presents a classic high-risk, high-reward turnaround story. The bull case rests on a strong cyclical recovery, accelerating revenue growth, and a deeply discounted valuation on sales. However, the bear case is equally compelling: negative free cash flow, razor-thin margins, extreme volatility, and a lack of analyst conviction. Currently, the bearish evidence is slightly stronger given the recent 33% one-month plunge and the stock's inability to hold gains. The central tension is whether Vishay can convert its revenue rebound into sustainable profitability and positive cash flow. If it does, the low PS ratio could lead to significant upside; if not, the stock could retest its 52-week low. Investors must weigh the potential for a cyclical earnings recovery against the company's structural profitability challenges.
Bullish
- Revenue growth accelerating: Q1 2026 revenue grew 17.34% YoY to $839.24M, up from $715.24M in Q1 2025, marking the third consecutive quarter of sequential growth. This indicates a strong cyclical recovery in Vishay's core markets.
- Massive 1-year stock outperformance: VSH returned +108.79% over the past year versus +18.19% for the S&P 500, demonstrating strong momentum and investor enthusiasm for the semiconductor upcycle. The stock is up 123.8% YTD, reflecting a broadening market rally.
- Attractive valuation on sales: The price-to-sales ratio is 0.64x, well below the industry average of 3.0x, suggesting the market is pricing in limited growth. If Vishay delivers on earnings recovery, this discount could compress, offering upside.
- Forward PE implies earnings recovery: With a forward PE of 22.22x, analysts expect EPS to rebound to $1.64 on average. If achieved, this would represent a significant turnaround from the current negative trailing EPS, supporting a higher valuation.
Bearish
- Negative free cash flow: TTM free cash flow is -$90.5M, indicating the company is spending more than it generates. This could constrain dividends, buybacks, or investment, and raises questions about earnings quality.
- Thin and volatile margins: Gross margin is only 19.4% and operating margin is 1.85%, far below semiconductor peers. Net margin is -0.29%, and the company has struggled to achieve consistent profitability, with negative EPS in recent quarters.
- High volatility and drawdown risk: Beta is 1.78, and the stock has a max drawdown of -53.84%. The recent 1-month decline of -33.2% highlights extreme price swings, which could be unsettling for risk-averse investors.
- Limited analyst support: Only 2 analysts cover VSH, with one Underperform and one Neutral. The average target of $34.00 is essentially flat versus the current price, implying no upside and reflecting bearish sentiment.
VSH Technical Analysis
Vishay's stock has experienced a remarkable 1-year price change of +108.79%, significantly outperforming the S&P 500's +18.19% over the same period. The current price of $34.22 sits at 49.2% of its 52-week range (low $11.77, high $69.47), indicating a substantial retreat from the highs after a massive rally. This positioning suggests the stock is in a correction phase after an overextended move, with the price now closer to the midpoint of its range, offering a potential value opportunity if the long-term uptrend resumes.
Beta
1.83
1.83x market volatility
Max Drawdown
-53.8%
Largest decline past year
52-Week Range
$12-$69
Price range past year
Annual Return
+107.2%
Cumulative gain past year
| Period | VSH Return | S&P 500 |
|---|---|---|
| 1m | -28.1% | +2.5% |
| 3m | +1.8% | +5.2% |
| 6m | +66.3% | +11.5% |
| 1y | +107.2% | +22.6% |
| ytd | +117.0% | +12.9% |
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VSH Fundamental Analysis
Vishay's revenue has shown a positive trajectory, with the most recent quarter (Q1 2026) reporting revenue of $839.24 million, a 17.34% year-over-year increase from $715.24 million in Q1 2025. This growth marks a rebound from the prior year's stagnation, as revenue has climbed from $762.25 million in Q2 2025 to $800.92 million in Q4 2025, and now to $839.24 million in Q1 2026. The growth is broad-based across segments, with resistors leading at $203.74 million, followed by MOSFETs at $173.99 million and diodes at $163.67 million, indicating strength in core product lines. However, the growth rate is modest compared to the semiconductor industry's high-flyers, and the company's reliance on cyclical end-markets like industrial and automotive could pose risks if demand softens.
Quarterly Revenue
$839242000.0B
2026-04
Revenue YoY Growth
+17.3%
YoY Comparison
Gross Margin
21.0%
Latest Quarter
Free Cash Flow
$-90506000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is VSH Overvalued?
Given that Vishay's trailing twelve-month net income is negative (EPS of -$0.0046), the price-to-earnings ratio is not meaningful, so I selected the price-to-sales (PS) ratio as the primary valuation metric. The current PS ratio is 0.64x, which is significantly lower than the industry average of 3.0x for semiconductor companies, indicating a substantial discount. This discount may be justified by Vishay's lower growth prospects and thin margins compared to peers, but it also suggests the market is pricing in limited upside. The forward PE of 22.22x implies that analysts expect earnings to recover strongly, which could support a re-rating if the company delivers on those expectations.
PE
-219.2x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 5x~33x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
9.1x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are significant. Vishay's TTM free cash flow is negative at -$90.5M, indicating cash burn despite revenue growth. The company's net margin is -0.29%, and it has posted losses in several recent quarters, including a -$66.3M net loss in Q4 2024. Debt-to-equity is 0.56x, which is manageable, but interest expense of ~$10M per quarter adds pressure. The company's reliance on cyclical end-markets like industrial and automotive means revenue can be volatile, as seen in the 2024 downturn. If the current recovery stalls, margins could compress further, and the negative cash flow could worsen, potentially forcing cuts to the dividend (yield 2.51%).