Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.
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Highlights from the ratings report include:
- VSH's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 5.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- VSH's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.10, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has declined marginally to $85.49 million or 6.18% when compared to the same quarter last year. Despite a decrease in cash flow VISHAY INTERTECHNOLOGY INC is still fairing well by exceeding its industry average cash flow growth rate of -32.51%.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, VISHAY INTERTECHNOLOGY INC's return on equity is below that of both the industry average and the S&P 500.
Vishay Intertechnology Inc. designs, manufactures, and supplies discrete semiconductors and passive components. The company operates in five segments: MOSFETs, Diodes, Optoelectronic Components, Resistors & Inductors, and Capacitors. Vishay Intertechnology has a market cap of $1.64 billion and is part of the technology sector and electronics industry. Shares are up 15.4% year to date as of the close of trading on Friday.
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