VSH Stock Risk & Deep Value Analysis
Vishay Intertechnology Inc
DVR Score
out of 10
What You Need to Know About VSH Stock
We analyzed Vishay Intertechnology Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran VSH through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
VSH Risk Analysis & Red Flags
What Could Go Wrong
The most significant risk is the extreme valuation disconnect, where the current market price of $51.56 is more than double the median analyst target of $24.0. If market sentiment corrects to align with fundamental valuations, or if the '248.3% overvalued' claim proves accurate, VSH could experience a severe price correction of over 50% from current levels, irrespective of ongoing operational improvements.
Risk Matrix
Overall
Aggressive
Financial
High
Market
Medium
Competitive
Medium
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
Extreme discrepancy between current price ($51.56) and median analyst target ($24.0).
- ⚠
External valuation claim of '248.3% overvalued' at a price near current levels ($52.24).
- ⚠
Expansion of the Long-Term Incentive Plan from 6 million to 12 million shares, representing potential shareholder dilution (up to ~5% of current shares outstanding).
- ⚠
Absence of reported Form 4 insider buying activity despite recent positive earnings and guidance.
Upcoming Risk Events
- 📅
Q2 2026 Guidance Miss (estimated early August 2026): Failure to meet the revenue guidance of $875 million–$905 million or achieve the 22.0% gross margin could trigger a significant stock sell-off.
- 📅
Continued Analyst Downgrades (ongoing, post-earnings): If the 1 sell rating escalates or the median price target is further reduced below $20.0, it would reinforce negative institutional sentiment.
When to Reconsider
- 🚪
Exit if quarterly revenue drops below $800 million for two consecutive quarters.
- 🚪
Sell if gross margin falls below 20.0% for two consecutive quarters, indicating a reversal in the positive trend.
- 🚪
Exit if analyst consensus changes to multiple 'sell' ratings or if price targets are lowered below $20.0.
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Investment Thesis
If Vishay Intertechnology successfully maintains its Q1 2026 operational momentum by consistently exceeding Q2 2026 guidance for revenue ($875M-$905M) and gross margin (~22.0%), and further demonstrates market share gains in higher-growth segments like power semiconductors for EVs, then the market could begin to re-rate the stock, moving its valuation closer to a more sustainable P/S multiple (e.g., 1.8x-2.0x annualized sales) by mid-2027, potentially yielding 30-40% upside from a 'fair value' that acknowledges current overvaluation. This is bullish because the current analyst sentiment ($24.0 median target) appears to severely undervalue the ongoing positive operational turnaround.
Is VSH Stock Undervalued?
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VSH Price Targets & Strategy
12-Month Target
$30.00
Bull Case
$40.00
Bear Case
$20.00
Valuation Basis
Based on a reversion towards the current analyst consensus median target of $24.0, with a modest premium for demonstrated Q1 2026 operational improvements and raised Q2 2026 guidance, implying a forward P/E of approximately 90x on an estimated FY2026 EPS of $0.33.
Entry Strategy
Given the significant disconnect between current price and analyst targets, and the 'overvalued' claim, a cautious entry strategy is advised. Consider accumulating only if the stock falls significantly closer to historical support levels or analyst targets (e.g., below $35), potentially dollar-cost averaging.
Exit Strategy
Consider taking profits if the stock approaches $40-$45 amidst sustained operational improvement. Set a stop-loss order if the stock breaks below $45, given the current high valuation and negative analyst sentiment.
Portfolio Allocation
1-3% for aggressive risk tolerance, considering the inherent market skepticism and valuation risk despite operational improvements. Not suitable for conservative or moderate portfolios given the current price volatility and potential downside.
Price Targets & Strategy
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Is VSH Financially Healthy?
Valuation
P/E Ratio
2694.69
Forward P/E
29.80
Price/Book
1.15
Price/Sales
0.81
Profitability
Gross Margin
19.92%
Operating Margin
2.45%
Net Margin
0.07%
Return on Equity
0.11%
Revenue Growth
9.86%
EPS
$0.02
Balance Sheet
Current Ratio
2.62
Quick Ratio
1.25
Debt/Equity
0.46
Cash Flow
Free Cash Flow
$54.87M
EBITDA
$72.49M
Other
Beta (Volatility)
1.79
Dividend Yield
1.25%
Does VSH Have a Competitive Moat?
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Moat Trend
Stable
Moat Sources
2 Identified
Vishay's moat relies on its entrenched position as a key supplier in the fragmented but essential electronic components market. Switching costs for certain specialized components, along with long-standing customer relationships and a global supply chain, contribute to its durability. However, the industry faces commoditization pressures and competition from larger, diversified players, limiting its ability to build a wider moat.
Moat Erosion Risks
- •Increased commoditization of standard components, leading to price erosion and margin compression.
- •Rapid technological shifts by competitors or new entrants in specialized component segments.
- •Reliance on cyclical end-markets (e.g., automotive, industrial) that can impact demand volatility.
VSH Competitive Moat Analysis
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VSH Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral. No specific positive or negative social media trends or retail investor interest were provided in the research.
Institutional Sentiment
Negative. Analyst consensus shows 0 buy ratings and 1 sell rating, with a median target of $24.0, indicating significant institutional skepticism despite recent positive earnings. Woodline Partners' 13G/A is a passive institutional stake, not a sentiment indicator.
Insider Activity (Form 4)
No specific Form 4 insider transactions (CEO/CFO buying or selling) were reported in the last 90 days. The Woodline Partners' Schedule 13G/A filing (4.0% ownership) represents institutional/passive ownership, not insider trading.
Options Flow
Normal options activity. No specific unusual put/call ratio or large block trades were provided in the research.
Earnings Intelligence
Next Earnings
Estimated early-August 2026 (for Q2 2026).
Surprise Probability
Medium. Vishay beat Q1 estimates and raised Q2 guidance, suggesting operational momentum that could lead to another beat, but analyst estimates were not provided for Q2 for a direct comparison.
Historical Earnings Pattern
Not enough historical data provided in the research to discern a consistent stock price reaction pattern to past earnings reports.
Key Metrics to Watch
Competitive Position
Top Competitor
Not specified in the research.
Market Share Trend
Not available in the provided research.
Valuation vs Peers
Cannot provide a direct peer-to-peer valuation comparison without specific competitor data. However, VSH's current market price ($51.56) is significantly above analyst targets ($24.0 median) and an external claim of '248.3% overvalued' exists, suggesting it may be trading at a substantial premium compared to its fundamental value or typical sector multiples.
Competitive Advantages
- •Broad portfolio of discrete semiconductors and passive electronic components.
- •Established global manufacturing and distribution network.
- •Scale advantages in component production.
Market Intelligence
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What Could Drive VSH Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings Report (estimated early August 2026): A significant beat on revenue (above $905M) and gross margin (above 22.5%) combined with further raised guidance could challenge analyst bearishness.
- •Analyst Target Revisions Post-Q2 (Q3 2026): If BofA Securities or JPMorgan or other analysts revise their price targets upwards to above $35.0, it could signal a shift in institutional perception.
Medium-Term (6-18 months)
- •Major Design Wins for EV/Industrial (FY2027): Announcement of specific large-volume, high-margin component supply contracts with a tier-1 EV manufacturer or a significant industrial automation client could add >$100M in new annualized revenue.
- •Strategic Product Portfolio Expansion (late FY2027/early FY2028): Successful integration and revenue contribution from a new component line targeting AI hardware or advanced computing, adding an estimated 5-10% to total revenue.
Long-Term (18+ months)
- •Market Share Leadership in Key Niche (FY2029-2031): If Vishay captures 20%+ market share in a high-growth discrete semiconductor segment (e.g., SiC MOSFETs for 800V EV systems), potentially driving annual revenue above $5.0B with sustained 25%+ gross margins.
- •Significant M&A for Diversification (FY2030): An accretive acquisition of a company with disruptive intellectual property in an adjacent high-growth component space, allowing for total revenue generation approaching $7.5B.
Catalysts & Growth Drivers
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What's the Bull Case for VSH?
- ✓
Quarterly gross margin consistently exceeding 22.5% for two consecutive quarters.
- ✓
YoY revenue growth sustained above 15% for two consecutive quarters, particularly with organic growth in core segments.
- ✓
Analyst upgrades or target revisions moving above $35.0, signaling improving institutional confidence.
Bull Case Analysis
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How Vishay Intertechnology Inc Makes Money
Vishay Intertechnology manufactures and supplies a broad portfolio of discrete semiconductors and passive electronic components globally. These essential components, including resistors, capacitors, inductors, diodes, MOSFETs, and optoelectronic products, are vital for virtually all types of electronic devices across various end markets such as industrial, automotive, computing, consumer, and medical. The company primarily generates revenue through direct sales to original equipment manufacturers (OEMs) and through distribution channels, with its business model relying on scale, manufacturing efficiency, and consistent product innovation to serve the ever-evolving electronics industry.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Vishay Intertechnology Inc (VSH)?
As of May 29, 2026, Vishay Intertechnology Inc has a DVR Score of 3.5 out of 10, placing it in the "Risk Trap" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Vishay Intertechnology Inc?
Vishay Intertechnology Inc's market capitalization is approximately $6.1B..
What is the risk level for VSH stock?
Our analysis rates Vishay Intertechnology Inc's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of VSH?
Vishay Intertechnology Inc currently has a price-to-earnings (P/E) ratio of 2694.7. This is above the market average, suggesting the stock may be priced for high growth expectations.
Does Vishay Intertechnology Inc pay a dividend?
Yes, Vishay Intertechnology Inc pays a dividend with a current yield of approximately 1.25%.
Is Vishay Intertechnology Inc's revenue growing?
Vishay Intertechnology Inc has reported revenue growth of 9.9%. The company is growing at a moderate pace.
Is VSH stock profitable?
Vishay Intertechnology Inc has a profit margin of 0.1%. The company is profitable but margins are modest.
How often is the VSH DVR analysis updated?
Our AI-powered analysis of Vishay Intertechnology Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 29, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for VSH (Vishay Intertechnology Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.