VTech Holdings (0303) AI Stock Analysis

• Market Cap: HK$15.46B
• Dividend Yield: 7.66%
• Average Volume (3M): 854.71K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.42
• Revenue Growth: -0.99%
• EPS Growth: -10.43%
• Country: HK
• Employees: 22,200
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 2.29
• Shares Outstanding: 253,497,470
• 10 Day Avg. Volume: 1,393,378
• 30 Day Avg. Volume: 854,711
• PEG Ratio: 0.78
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 4.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: HK$75.00 ▲(22.95% Upside)

VTech Holdings scores well due to its strong financial performance, positive technical indicators, and attractive valuation. The company's solid cash flow and high dividend yield are significant strengths. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Cash Generation

VTech's strong cash generation capability supports ongoing investments and debt servicing, ensuring long-term financial stability.

Balance Sheet Health

A robust balance sheet with manageable leverage indicates financial stability, allowing VTech to withstand market fluctuations and invest in growth.

Operational Efficiency

Strong operational efficiency through consistent EBIT and EBITDA margins highlights VTech's ability to manage costs and maintain profitability.

Negative Factors

Revenue Growth Decline

A decline in revenue growth suggests potential challenges in market expansion or product demand, impacting long-term growth prospects.

Net Profit Margin Pressure

Decreased net profit margins could affect VTech's ability to generate profits, impacting reinvestment and shareholder returns over time.

Increased Liabilities

Rising liabilities may strain VTech's financial resources, potentially limiting flexibility for future investments and growth initiatives.

VTech Holdings Business Overview & Revenue Model

Company Description

Vtech Holdings Limited designs, manufactures, and distributes electronic products in North America, Europe, the Asia Pacific, and internationally. The company offers electronic learning toys for infancy, toddler, and preschool under the Vtech and LeapFrog brands; platform products; and learning programs. It also provides telecommunication products, such as residential and commercial phones under the VTech; and other telecommunication products, including baby monitors, cordless handsets, and integrated access devices. In addition, the company offers contract manufacturing services for customers in the areas of professional audio equipment, hearables, Internet of Things, and medical and health products. Further, it provides property holding, and group financing and procurement services; develops broadband connectivity software; sells telecommunication and electronic products; and manufactures plastic products. The company was founded in 1976 and is headquartered in Tai Po, Hong Kong.

How the Company Makes Money

VTech generates revenue through several key streams. The Electronic Learning Products division is a significant contributor, where the company sells a wide array of educational toys, gaming devices, and interactive learning tools primarily to children and their parents. This segment benefits from seasonal sales patterns, particularly during holiday seasons. The Telecommunications division provides an additional revenue source, offering a variety of products such as cordless phones and video baby monitors. VTech's revenue model is bolstered through partnerships with major retailers and educational institutions, expanding its market reach. Furthermore, the company invests in research and development to innovate and enhance its product offerings, which helps maintain competitive pricing and fosters brand loyalty among consumers.

VTech Holdings Financial Statement Overview

Summary

VTech Holdings exhibits a solid financial position with stable revenue and operational efficiency. The balance sheet is sound with manageable leverage, and cash flow is strong, supporting investments and debt servicing. However, there is slight pressure on net profit margins and increased liabilities.

Income Statement

VTech Holdings has demonstrated stable revenue performance with a slight increase in the latest year compared to the previous year. Gross profit margin is healthy, consistent with the industry, while net profit margin indicates a slight dip in profitability. EBIT and EBITDA margins remain strong, showcasing efficient operational management despite minor fluctuations over the years.

Balance Sheet

The balance sheet shows a solid equity base with a manageable debt-to-equity ratio, indicating sound financial leverage. Return on Equity is satisfactory, reflecting decent profitability for shareholders. The equity ratio is robust, highlighting financial stability, though there has been a slight increase in liabilities over time.

Cash Flow

Cash flow analysis reveals strong operating cash flow, surpassing net income, which signifies excellent cash generation capabilities. Free cash flow is positive and consistent, although there was a decrease in free cash flow growth rate recently. This stability in cash flow supports ongoing investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.83B	2.15B	2.18B	2.24B	2.37B	2.37B
Gross Profit	2.81B	634.90M	686.80M	633.70M	669.10M	726.60M
EBITDA	1.04B	230.70M	243.80M	237.00M	268.80M	325.90M
Net Income	653.03M	166.60M	156.80M	149.20M	172.70M	230.90M
Balance Sheet
Total Assets	1.40B	1.26B	1.32B	1.32B	1.49B	1.45B
Cash, Cash Equivalents and Short-Term Investments	147.90M	322.10M	335.60M	198.50M	195.80M	343.80M
Total Debt	134.00M	158.70M	142.10M	179.90M	197.10M	206.10M
Total Liabilities	779.60M	617.10M	674.80M	683.70M	807.90M	714.50M
Stockholders Equity	616.80M	645.20M	644.40M	634.70M	678.80M	731.10M
Cash Flow
Free Cash Flow	-334.83M	322.80M	195.80M	210.90M	103.70M	232.30M
Operating Cash Flow	-187.84M	355.20M	225.30M	238.80M	139.60M	280.30M
Investing Cash Flow	-146.58M	-54.40M	-29.10M	-27.50M	-32.00M	-47.80M
Financing Cash Flow	-1.01B	-171.10M	-188.30M	-191.20M	-249.80M	-155.70M

VTech Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0303, the sentiment is Negative. The current price of 61 is below the 20-day moving average (MA) of 61.67, below the 50-day MA of 61.87, and above the 200-day MA of 56.51, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 45.89 is Neutral, neither overbought nor oversold. The STOCH value of 32.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0303.

VTech Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0303	79 Outperform	HK$15.46B	13.73	23.17%	7.66%	-0.99%	-10.43%
1523	72 Outperform	HK$7.09B	22.36	78.00%	5.41%	14.08%	15.81%
6869	71 Outperform	HK$71.48B	60.02	4.79%	0.54%	14.38%	-41.96%
2018	63 Neutral	HK$45.51B	19.50	9.39%	0.63%	30.73%	90.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2038	56 Neutral	HK$14.54B	113.40	1.16%	―	3.21%	―
2342	46 Neutral	HK$7.08B	-17.89	-10.70%	0.24%	-13.99%	-32.74%

VTech Holdings Corporate Events

VTech Holdings Announces Interim Dividend for 2025

VTech Holdings Limited announced an interim dividend of USD 0.17 per share for the six months ended 30 September 2025, payable on 19 December 2025. Shareholders in Hong Kong will receive the equivalent amount in Hong Kong dollars, calculated at the exchange rate provided by The Hongkong and Shanghai Banking Corporation Limited. This announcement reflects VTech’s continued commitment to returning value to its shareholders and may influence investor sentiment positively.

The most recent analyst rating on (HK:0303) stock is a Buy with a HK$75.00 price target. To see the full list of analyst forecasts on VTech Holdings stock, see the HK:0303 Stock Forecast page.

VTech Holdings Declares Interim Dividend for 2025

VTech Holdings Limited has announced an interim dividend of USD 0.17 per share for the six months ending 30 September 2025, with payment scheduled for 19 December 2025. This announcement reflects the company’s ongoing commitment to returning value to shareholders and may enhance its market position by reinforcing investor confidence.

The most recent analyst rating on (HK:0303) stock is a Buy with a HK$69.00 price target. To see the full list of analyst forecasts on VTech Holdings stock, see the HK:0303 Stock Forecast page.

VTech Holdings Reports Revenue Decline Amid Strong Financial Position

VTech Holdings Limited reported a 9.0% decline in group revenue to US$991.1 million for the six months ended 30 September 2025, with a 14.5% decrease in profit attributable to shareholders. Despite the revenue drop, the company maintained a strong financial position with an improved gross profit margin of 31.9% and an unchanged interim dividend of US17.0 cents per ordinary share. These results reflect challenges in the market but also highlight VTech’s resilience and commitment to shareholder returns.

The most recent analyst rating on (HK:0303) stock is a Buy with a HK$69.00 price target. To see the full list of analyst forecasts on VTech Holdings stock, see the HK:0303 Stock Forecast page.

VTech Holdings Schedules Board Meeting for Interim Results

VTech Holdings Limited has announced that its board of directors will meet on November 13, 2025, to approve the publication of the company’s interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This announcement signals a routine financial update, which may impact investor expectations and provide insights into the company’s financial health and strategic direction.

The most recent analyst rating on (HK:0303) stock is a Buy with a HK$69.00 price target. To see the full list of analyst forecasts on VTech Holdings stock, see the HK:0303 Stock Forecast page.