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Vishay Precision (VPG)
:VPG
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Vishay Precision Group
(NYSE:VPG)
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Select Model
Rating:67Neutral
Price Target:
$35.00
▲(9.99% Upside)
VPG's overall stock score is driven by stable financial health and strong technical indicators, despite valuation concerns. The positive sentiment from the earnings call, highlighting revenue growth and strategic initiatives, supports the score. However, the negative P/E ratio and overbought technical signals suggest caution.
Vishay Precision Group (VPG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$430.11M
Dividend YieldN/A
Average Volume (3M)95.93K
Price to Earnings (P/E)112.8
Beta (1Y)1.14
Revenue Growth-11.47%
EPS Growth-106.18%
CountryUS
Employees2,200
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.17
Shares Outstanding12,256,197
10 Day Avg. Volume119,884
30 Day Avg. Volume95,928
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue1.15
Enterprise Value/Gross Profit2.91
Enterprise Value/Ebitda13.87
Forecast
1Y Price Target
$34.00Price Target Upside6.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Vishay Precision Group Business Overview & Revenue Model
Company DescriptionVishay Precision Group, Inc. designs, manufactures, and markets specialized sensors, weighing solutions, and measurement systems in the United States, Israel, the United Kingdom, rest of Europe, Asia, and Canada. It operates through three segments: Sensors, Weighing Solutions, and Measurement Systems. Its product portfolio includes precision resistors, strain gages, load cells, on-board weighing systems, and process weighing products. The company also offers data acquisition systems for avionics; measurement systems for steel production; material testing and simulation systems; and data acquisition systems for auto safety testing. Its products are used in industrial, test and measurement, transportation, steel, medical, agriculture, avionics, military and space, and consumer product applications. The company offers its products under the Alpha Electronics, Powertron, Vishay Foil Resistors, Micro-Measurements, Celtron, Revere, Sensortronics, Tedea-Huntleigh, Stress-tek, Vulcan, BLH Nobel, KELK, and DTS brands. Vishay Precision Group, Inc. was incorporated in 2009 and is headquartered in Malvern, Pennsylvania.
How the Company Makes MoneyVPG generates revenue primarily through the sale of its precision measurement products, which include strain gages, load cells, and related components. The company’s revenue model is heavily reliant on both direct sales to end customers and indirect sales through distributors and partners in various industries. Key revenue streams include the sale of standard products, custom solutions tailored to specific customer needs, and ongoing service and support for its products. VPG also benefits from strategic partnerships with other technology firms and industry leaders, which can lead to joint ventures, co-development opportunities, and expanded market reach. Additionally, the company’s focus on high-growth markets, such as aerospace and medical, contributes to its earnings by tapping into sectors with increasing demand for precision measurement technologies.
Vishay Precision Group Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant revenue and order growth, improved gross margins, and successful cost-reduction initiatives. Despite challenges such as tariff impacts and mixed performance in the Sensors segment, the company has shown resilience and strategic progress.Q2-2025 Updates
Positive Updates
Revenue Growth
Second quarter revenue of $75.2 million grew 4.8% from the first quarter. The consolidated orders grew 7.5% sequentially.
Improved Gross Margin
Adjusted gross margin improved to 41.0%, with the Weighing Solutions segment delivering a record quarterly adjusted gross margin.
Positive Order Trends
Consolidated book-to-bill ratio of 1.06, with Measurement Systems and Sensors segments reporting book-to-bill ratios of 1.2 and 1.12, respectively.
Cash Flow Generation
Generated $6.0 million in cash from operations and $4.7 million in adjusted free cash flow.
Business Development Initiatives
Orders of approximately $17 million in the first half of the year, on track to achieve a goal of $30 million for 2025.
Cost Reduction and Efficiency
On course to reduce fixed costs by about $5 million for 2025 compared to the prior year, excluding inflation.
Measurement Systems Segment Growth
Revenue increased 5.1% sequentially, with an 18.1% increase in orders, resulting in a book-to-bill ratio of 1.2.
Negative Updates
Tariff Impact
Tariff changes impacted gross margin negatively by approximately $500,000.
Sensors Segment Revenue Decrease
Second quarter revenue decreased 1.8% sequentially, reflecting mixed trends across its markets.
Steel Market Weakness
Global steel market remains soft due to slow automotive production and high tariffs.
Increased SG&A Expenses
SG&A expenses increased to $27.7 million, which is 36.9% of revenues, up from 34.5% in the first quarter.
Company Guidance
During VPG's second-quarter 2025 earnings call, the company reported a revenue increase of 4.8% from the first quarter, totaling $75.2 million, and a consolidated book-to-bill ratio of 1.06. The company highlighted positive trends in bookings, which grew 7.5% sequentially, marking the third consecutive quarter of growth. The Measurement Systems and Sensors segments reported book-to-bill ratios of 1.2 and 1.12, respectively. VPG achieved an adjusted gross margin of 41.0%, with the Weighing Solutions segment delivering a record quarterly margin. Cash from operations was $6.0 million, and adjusted free cash flow was $4.7 million. The impact of tariffs negatively affected the gross margin by approximately $500,000, but VPG expects this to narrow in the third quarter as price adjustments take effect. The company continues to pursue business development initiatives, achieving $17 million in orders in the first half of 2025, and aims for $30 million by year's end. VPG also maintains a focus on cost reduction, targeting $5 million in fixed cost reductions for 2025. Third-quarter revenue is forecasted to be between $73 million and $81 million.Vishay Precision Group Financial Statement Overview
Summary
Vishay Precision Group shows stable financial health with strong equity ratios and low leverage. However, declining revenue and profit margins, alongside reduced free cash flow, warrant attention. The company remains financially stable with a robust cash position but needs to address operational efficiency and growth trajectory to enhance profitability.Income Statement
The gross profit margin for the TTM is 39.49%, indicating healthy profitability. However, the net profit margin is only 1.03%, showing a significant drop from previous levels. Revenue has decreased compared to last year, with a negative revenue growth rate of -2.95% from 2023 to 2024. EBIT and EBITDA margins have also decreased to 3.32% and 8.28%, respectively, indicating reduced operational efficiency.63
Positive
Balance Sheet
The debt-to-equity ratio is 0.17, indicating low leverage and financial stability. Return on equity for TTM stands at 0.95%, reflecting decreased shareholder returns. The equity ratio is a strong 71.60%, indicating a robust equity position compared to total assets, suggesting financial resilience.72
Positive
Cash Flow
Free cash flow has decreased year-over-year, with a free cash flow growth rate of -6.70%. Operating cash flow to net income ratio is 5.88, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 3.25, showing efficient cash conversion despite the drop in free cash flow.66
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 297.48M | 306.52M | 355.05M | 362.58M | 317.92M | 269.81M |
| Gross Profit | 117.48M | 125.53M | 150.34M | 149.60M | 125.14M | 104.27M |
| EBITDA | 24.63M | 35.88M | 57.96M | 62.71M | 42.14M | 32.18M |
| Net Income | 3.08M | 9.91M | 25.71M | 36.06M | 20.22M | 10.79M |
Balance Sheet | ||||||
| Total Assets | 453.84M | 450.94M | 471.57M | 476.74M | 461.89M | 401.89M |
| Cash, Cash Equivalents and Short-Term Investments | 83.89M | 79.27M | 83.97M | 88.56M | 84.33M | 98.44M |
| Total Debt | 54.73M | 55.37M | 58.48M | 85.05M | 90.46M | 64.16M |
| Total Liabilities | 128.83M | 129.07M | 141.64M | 170.22M | 184.85M | 144.03M |
| Stockholders Equity | 324.99M | 321.97M | 329.84M | 306.55M | 277.10M | 257.82M |
Cash Flow | ||||||
| Free Cash Flow | 9.99M | 10.65M | 30.74M | 11.74M | 16.48M | 12.36M |
| Operating Cash Flow | 18.09M | 19.82M | 45.89M | 33.03M | 33.54M | 35.31M |
| Investing Cash Flow | -12.18M | -12.90M | -15.10M | -20.84M | -64.05M | -21.81M |
| Financing Cash Flow | -5.29M | -9.40M | -35.94M | -3.63M | 18.82M | -5.03M |
Vishay Precision Group Technical Analysis
Positive
31.82
Price Trends
28.88
Positive
27.79
Positive
25.43
Positive
Market Momentum
1.16
Negative
59.43
Neutral
47.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VPG, the sentiment is Positive. The current price of 31.82 is above the 20-day moving average (MA) of 30.90, above the 50-day MA of 28.88, and above the 200-day MA of 25.43, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 47.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VPG.
Vishay Precision Group Risk Analysis
Vishay Precision Group disclosed 44 risk factors in its most recent earnings report. Vishay Precision Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vishay Precision Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | 1.20B | 19.30 | 6.05% | 0.40% | 1.16% | 19.81% | |
76 Outperform | 1.75B | 29.28 | 12.60% | 0.20% | 6.08% | -23.93% | |
67 Neutral | $430.11M | 112.76 | -0.39% | ― | -11.47% | -106.18% | |
54 Neutral | 272.93M | -4.89 | -7.93% | 6.52% | -4.91% | 61.77% | |
45 Neutral | 406.30M | -3.29 | -116.31% | ― | -71.30% | 17.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
VPG
Vishay Precision Group
31.82
6.33
24.83%
CTS
CTS
39.69
-8.56
-17.74%
MEI
Methode Electronics
7.51
-3.76
-33.36%
MVIS
Microvision
1.29
0.13
11.21%
BELFA
Bel Fuse
119.69
21.50
21.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.