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Vishay Precision Group (VPG)
NYSE:VPG
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Vishay Precision Group
(NYSE:VPG)
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Rating:55Neutral
Price Target:
$45.00
▼(-5.96% Downside)
Action:ReiteratedDate:02/17/26
Overall score is driven primarily by weakening profitability and cash generation (despite a solid balance sheet), plus a stretched valuation (very high P/E). These are partially offset by constructive earnings-call signals around bookings/backlog (especially Sensors) and planned cost reductions, while technicals are mixed with longer-term trend support but recent softness.
Positive Factors
Sensors backlog & book-to-bill
Sustained sensors booking strength and a multiyear high backlog signal durable demand and production scaling potential. A book-to-bill >1.0 implies order intake exceeds shipments, supporting revenue visibility and capacity investments that can drive multi-quarter top-line expansion once production ramps.
Strong balance sheet / net cash
A materially stronger capitalization and net cash position provide durable financial flexibility for investments, working capital, and M&A without reliance on external financing. Improving leverage reduces refinancing risk and supports executing multi-year product ramp and capex plans.
Business-development diversification
Concrete traction in new end markets (humanoids, semiconductor equipment, autonomous logistics) diversifies revenue sources and reduces dependence on cyclic segments. Meeting BD order targets demonstrates repeatable commercial progress and supports a sustainable multi-year growth runway if conversion continues.
Negative Factors
Profit margin compression
Sharply compressed margins indicate structural pressure on pricing, product mix or cost absorption. Persistently lower margins erode reinvestment capacity and returns, meaning even with revenue growth the firm must restore margins to fund R&D, capex, and shareholder returns sustainably.
Weakened cash generation
Material decline in operating and free cash flow reduces optionality for investment and debt service. Lower cash conversion undermines the ability to self-fund capex and BD initiatives, increasing sensitivity to demand swings and making the firm more reliant on disciplined cost controls or external capital.
Measurement Systems order weakness
Volatility and softness in Measurement Systems orders expose the company to sector-specific cycles and timing risk. If large project-driven demand remains uneven, revenue and margin recovery may be lumpy, complicating forecasting and limiting steady operational leverage across reporting periods.
Vishay Precision Group (VPG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$611.24M
Dividend YieldN/A
Average Volume (3M)115.12K
Price to Earnings (P/E)118.6
Beta (1Y)1.42
Revenue Growth-7.46%
EPS Growth-39.98%
CountryUS
Employees2,200
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.07
Shares Outstanding12,256,197
10 Day Avg. Volume134,686
30 Day Avg. Volume115,116
Financial Highlights & Ratios
PEG Ratio-2.10
Price to Book (P/B)1.52
Price to Sales (P/S)1.66
P/FCF Ratio80.39
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit5.12
Enterprise Value/Ebitda21.66
Forecast
1Y Price Target
$58.50Price Target Upside22.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 through the sale of its precision sensor products and measurement systems, which are used in a variety of applications across multiple industries. The company has established key revenue streams from its core product lines, including load cells, strain gages, and other sensor technologies. Additionally, VPG benefits from partnerships with original equipment manufacturers (OEMs) and distributors, which help expand its market reach and enhance its sales capabilities. The company's focus on innovation and the development of customized solutions for clients further contribute to its earnings, as it allows VPG to meet specific customer needs and command premium pricing for its specialized products.
Vishay Precision Group Key Performance Indicators (KPIs)
Vishay Precision Group Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive tone: bookings and sensor momentum are clear positives (five consecutive quarters of book-to-bill ≥1, sensors backlog at multiyear high, business development initiatives exceeded targets), liquidity is strong, and management has concrete plans for organizational changes and cost savings. Offsetting these positives are meaningful near-term profitability and cash-flow headwinds (gross margin compression from $3M of one-time impacts, Q4 GAAP loss, lower adjusted EBITDA and free cash flow), segment margin pressure, a decline in Measurement Systems orders, FX headwinds, and incremental near-term SG&A to implement the new structure. Management expects many headwinds to be temporary and projects margin and revenue improvement beginning in Q1–Q2 2026.Q4-2025 Updates
Positive Updates
Revenue Growth in Q4 2025
Fourth quarter revenues of $80.6 million, up 11% year-over-year and 1% sequentially, reflecting solid execution across the portfolio.
Sustained Book-to-Bill Strength
Consolidated orders of $81.3 million in Q4 grew 2% sequentially, producing a book-to-bill of 1.01 — the fifth consecutive quarter with book-to-bill at or above one.
Sensors Segment Momentum and Backlog
Sensors revenue rose 18% year-over-year and ~4% sequentially; sensor bookings increased 4% sequentially and 30% year-over-year, yielding a book-to-bill of 1.15. Sensors backlog reached a multiyear high and management is hiring to ramp production with higher shipments expected beginning in Q2.
Humanoid and New Markets Traction
Business development initiatives (humanoids, semiconductor equipment, autonomous logistics/physical AI) generated $11.8 million in Q4 orders and $37.8 million for full-year 2025, exceeding the $30 million goal. Company set a $45 million target for 2026 (20% increase).
Weighing Solutions Improvement
Weighing Solutions sales grew 7.8% year-over-year in Q4 with orders up 14.9% sequentially to $28.2 million and a book-to-bill of 1.02; strength noted in precision ag, medical, construction, e-bike, and onboard transport markets.
Measurement Systems Quarter Revenue Increase
Measurement Systems revenue was $22.4 million in Q4, up 9% sequentially and 6% year-over-year, including record sales for a DSI R&D tool and higher AMS sales for new avionics testing.
Cost Efficiency and Organizational Changes
Delivered $4.5 million of targeted cost reductions in 2025 and expect $6 million of cost reduction to be realized in 2026. Company created two cross-divisional centers (Chief Business & Product Officer, Chief Operating Officer) and is implementing unified processes and new IT/BI tools to support scalable growth.
Healthy Liquidity and Capital Position
Cash of $87.4 million and long-term debt of $20.6 million produced a net cash position of $66.8 million; ample unused credit facility cited to support operations, M&A, and investments. CapEx was $8.5 million for 2025 with a planned increase for 2026 ($14–$16 million) to support growth.
Negative Updates
Gross Margin Compression in Q4
Adjusted gross margin declined to 37.0% in Q4 from 40.5% in Q3 and was impacted by approximately $3 million of one-time headwinds (unfavorable product mix ~$1M, inventory reductions ~$1M, discrete inventory/manufacturing impacts ~$1M) plus ~$0.4M of FX; management expects gross margin improvement in Q1 as one-offs subside.
Segment Gross Margin Pressure
Sensors adjusted gross margin fell to 28.5% sequentially due to lower volume, unfavorable product mix and FX; Weighing Solutions margin dropped to 33% due to one-time manufacturing fixed costs, inventory reductions and higher logistics.
Measurement Systems Order Weakness
Measurement Systems orders fell 16% sequentially to $18.1 million in Q4, producing a book-to-bill of 0.81; weakness largely tied to timing of projects amid a soft global steel market, particularly in China.
Profitability and Cash Flow Declines
GAAP net loss of $1.9 million ($0.14 per diluted share) in Q4. Adjusted EBITDA fell to $6.0 million (7.5% of revenue) from $9.2 million (11.5%) in Q3. Adjusted free cash flow dropped to $1.3 million in Q4 from $7.4 million in Q3.
Elevated Operating Expense and FX Headwinds
Selling, general & administrative expense was $27.9 million (34.7% of revenues), modestly higher than Q3 due to hiring for the new organization and higher travel/commissions. Unfavorable foreign exchange impacted adjusted operating margin by ~$600,000 in Q4 and ~$4.7 million for full-year 2025.
Near-term Incremental Costs to Implement New Organization
Company expects an incremental ~$3 million of SG&A to implement new processes and IT in early 2026, with net near-term incremental cost of ~$1 million after anticipated $2 million savings; this indicates near-term investment before full run-rate benefits.
Guidance Ambiguity and Near-term Revenue Range
Management reiterated a target to grow top line mid- to high-single digits in 2026 but provided a revenue range for 2026 of $74 million to $80 million (assuming constant Q4 2025 FX), which may appear conservative relative to some of the positive order/backlog signals and requires clarification on timeframe and assumptions.
Company Guidance
The company guided 2026 net revenues of $74–$80 million and set an internal goal to grow the top line in the mid‑ to high‑single digits, backed by a $45 million target for business‑development orders (a 20% increase from $37.8M in 2025) and $6 million of cost reductions expected to be realized in 2026; they reiterated that Q1 gross margin should improve from Q4’s adjusted 37% (which was hit by $3M of one‑time headwinds), that Sensors production is ramping with higher shipments expected beginning in Q2 and book‑to‑bill above 1.0 anticipated in Q2 (consolidated Q4 orders were $81.3M with book‑to‑bill 1.01 and backlog at a multiyear high), and they forecast 2026 capital expenditures of $14–16M, an operational tax rate of ~26%, incremental SG&A of $3M offset in part by $2M of savings (net $1M), while ending Q4 with $87.4M cash, $20.6M long‑term debt (net cash $66.8M).Vishay Precision Group Financial Statement Overview
Summary
Balance sheet is relatively solid with moderate and improving leverage, but operating performance has deteriorated: net margins have compressed sharply since 2022–2023 and operating/free cash flow fell materially in 2025, weakening earnings quality despite remaining profitable and FCF-positive.Income Statement
Revenue has been relatively flat over the last several years (2025 up ~2.6% after a small decline in 2024 and 2023), but profitability has weakened materially. Net margin declined from ~9.9% (2022) and ~7.2% (2023) to ~3.2% (2024) and ~1.7% (2025), alongside lower gross margin (~41–42% range historically to ~38.9% in 2025). The company remains profitable, but the sharp compression in operating earnings and margins is a key near-term concern.54
Neutral
Balance Sheet
Leverage appears moderate and improving, with total debt down to ~$64M in 2025 from ~$90M in 2021, while equity has grown to ~$336M. Assets have been broadly stable (~$456M in 2025). The main drawback is reduced profitability translating into weaker returns for shareholders versus 2021–2022 levels, which limits balance-sheet “earnings power” despite the relatively solid capitalization.72
Positive
Cash Flow
Cash generation has become more pressured. Operating cash flow fell to ~$14.4M in 2025 from ~$45.9M in 2023, and free cash flow declined to ~$6.4M with a large negative growth rate in 2025 (about -33.7%). Free cash flow covered less than half of net income in 2025 (~44%), suggesting earnings quality is weaker than in stronger years like 2023 (~67%). Positively, free cash flow remains positive, but the downtrend reduces flexibility.49
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 307.20M | 306.52M | 355.05M | 362.58M | 317.92M |
| Gross Profit | 119.43M | 125.53M | 150.34M | 149.60M | 125.14M |
| EBITDA | 25.71M | 35.88M | 57.96M | 62.71M | 42.14M |
| Net Income | 5.29M | 9.91M | 25.71M | 36.06M | 20.22M |
Balance Sheet | |||||
| Total Assets | 455.89M | 450.94M | 471.57M | 476.74M | 461.89M |
| Cash, Cash Equivalents and Short-Term Investments | 87.37M | 79.27M | 83.97M | 88.56M | 84.33M |
| Total Debt | 64.02M | 55.37M | 58.48M | 85.05M | 90.46M |
| Total Liabilities | 119.66M | 129.07M | 141.64M | 170.22M | 184.85M |
| Stockholders Equity | 336.37M | 321.97M | 329.84M | 306.55M | 277.10M |
Cash Flow | |||||
| Free Cash Flow | 6.35M | 10.65M | 30.74M | 11.74M | 16.48M |
| Operating Cash Flow | 14.38M | 19.82M | 45.89M | 33.03M | 33.54M |
| Investing Cash Flow | 2.90M | -12.90M | -15.10M | -20.84M | -64.05M |
| Financing Cash Flow | -11.40M | -9.40M | -35.94M | -3.63M | 18.82M |
Vishay Precision Group Technical Analysis
Positive
47.85
Price Trends
43.69
Positive
38.95
Positive
33.40
Positive
Market Momentum
0.91
Positive
52.33
Neutral
23.86
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 47.85 is below the 20-day moving average (MA) of 48.72, above the 50-day MA of 43.69, and above the 200-day MA of 33.40, indicating a neutral trend. The MACD of 0.91 indicates Positive momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 23.86 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.58B | 24.79 | 10.98% | 0.36% | 3.70% | 1.68% | |
68 Neutral | $1.93B | -33.22 | -5.34% | ― | -4.87% | -235.48% | |
64 Neutral | $2.05B | 84.31 | 3.37% | 1.44% | -2.93% | -40.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $1.01B | 82,936.51 | 4.85% | ― | 10.76% | ― | |
56 Neutral | $306.64M | -4.84 | -8.87% | 5.93% | -9.51% | 29.57% | |
55 Neutral | $611.24M | 118.61 | 2.37% | ― | -7.46% | -39.98% |
* Technology Sector Average
VPG
Vishay Precision Group
47.85
23.09
93.26%
BHE
Benchmark Electronics
58.38
18.59
46.72%
CTS
CTS
53.75
8.85
19.71%
MEI
Methode Electronics
8.76
-1.23
-12.33%
ROG
Rogers
107.49
21.52
25.03%
PENG
Penguin Solutions
19.12
-1.76
-8.43%
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.