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Vtech Holdings

SEHK:303
Snowflake Description

Flawless balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
303
SEHK
HK$17B
Market Cap
  1. Home
  2. HK
  3. Tech
Company description

Vtech Holdings Limited designs, manufactures, and distributes consumer electronic products in North America, Europe, the Asia Pacific, and internationally. The last earnings update was 5 days ago. More info.


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303 Share Price and Events
7 Day Returns
-1.4%
SEHK:303
-4.1%
HK Communications
-2.4%
HK Market
1 Year Returns
-29.5%
SEHK:303
-31.2%
HK Communications
-16.5%
HK Market
303 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vtech Holdings (303) -1.4% -4.6% -13.4% -29.5% -19.1% -34.3%
HK Communications -4.1% -18.7% -24.6% -31.2% 15.5% -9.6%
HK Market -2.4% -10.2% -8.1% -16.5% 19.3% 4.8%
1 Year Return vs Industry and Market
  • 303 outperformed the Communications industry which returned -31.2% over the past year.
  • 303 underperformed the Market in Hong Kong which returned -16.5% over the past year.
Price Volatility
303
Industry
5yr Volatility vs Market
Related Companies

303 Value

 Is Vtech Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vtech Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vtech Holdings.

SEHK:303 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:303
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.076 (1 + (1- 25%) (0%))
1.051
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.051 * 6.65%)
8.99%

Discounted Cash Flow Calculation for SEHK:303 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vtech Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:303 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.99%)
2019 170.00 Analyst x2 155.97
2020 168.50 Analyst x2 141.84
2021 191.33 Analyst x3 147.77
2022 193.00 Analyst x2 136.76
2023 191.78 Est @ -0.63% 124.69
2024 192.09 Est @ 0.16% 114.58
2025 193.46 Est @ 0.71% 105.88
2026 195.59 Est @ 1.1% 98.21
2027 198.27 Est @ 1.37% 91.34
2028 201.36 Est @ 1.56% 85.11
Present value of next 10 years cash flows $1,202.16
SEHK:303 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $201.36 × (1 + 2%) ÷ (8.99% – 2%)
$2,938.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,938.42 ÷ (1 + 8.99%)10
$1,242.02
SEHK:303 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,202.16 + $1,242.02
$2,444.18
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,444.18 / 251.41
$9.72
SEHK:303 Discount to Share Price
Calculation Result
Exchange Rate USD/HKD
(Reporting currency to currency of SEHK:303)
7.849
Value per Share
(HKD)
= Value per Share in USD x Exchange Rate (USD/HKD)
= $9.72 x 7.849
HK$76.31
Value per share (HKD) From above. HK$76.31
Current discount Discount to share price of HK$68.55
= -1 x (HK$68.55 - HK$76.31) / HK$76.31
10.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vtech Holdings is available for.
Intrinsic value
10%
Share price is HK$68.55 vs Future cash flow value of HK$76.31
Current Discount Checks
For Vtech Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vtech Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Vtech Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vtech Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vtech Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:303 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.68
SEHK:303 Share Price ** SEHK (2019-05-24) in HKD HK$68.55
SEHK:303 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.127 $8.73
Hong Kong Communications Industry PE Ratio Median Figure of 14 Publicly-Listed Communications Companies 12.03x
Hong Kong Market PE Ratio Median Figure of 1,478 Publicly-Listed Companies 10.99x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vtech Holdings.

SEHK:303 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:303 Share Price ÷ EPS (both in USD)

= 8.73 ÷ 0.68

12.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vtech Holdings is overvalued based on earnings compared to the HK Communications industry average.
  • Vtech Holdings is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Vtech Holdings's expected growth come at a high price?
Raw Data
SEHK:303 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.81x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
6.4%per year
Asia Communications Industry PEG Ratio Median Figure of 9 Publicly-Listed Communications Companies 0.84x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

SEHK:303 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.81x ÷ 6.4%

2.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vtech Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Vtech Holdings's assets?
Raw Data
SEHK:303 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $2.42
SEHK:303 Share Price * SEHK (2019-05-24) in HKD HK$68.55
SEHK:303 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.127 $8.73
Hong Kong Communications Industry PB Ratio Median Figure of 25 Publicly-Listed Communications Companies 1.11x
Hong Kong Market PB Ratio Median Figure of 2,157 Publicly-Listed Companies 0.94x
SEHK:303 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:303 Share Price ÷ Book Value per Share (both in USD)

= 8.73 ÷ 2.42

3.61x

* Primary Listing of Vtech Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vtech Holdings is overvalued based on assets compared to the HK Communications industry average.
X
Value checks
We assess Vtech Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Vtech Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

303 Future Performance

 How is Vtech Holdings expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vtech Holdings expected to grow at an attractive rate?
  • Vtech Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Vtech Holdings's earnings growth is positive but not above the Hong Kong market average.
  • Vtech Holdings's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:303 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:303 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 6.4%
SEHK:303 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 2.9%
Hong Kong Communications Industry Earnings Growth Rate Market Cap Weighted Average 6.9%
Hong Kong Communications Industry Revenue Growth Rate Market Cap Weighted Average 8.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.1%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:303 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:303 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 2,347 238 198 2
2021-03-31 2,301 231 206 4
2020-03-31 2,222 209 181 2
SEHK:303 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,162 249 171
2018-12-31 2,128 245 182
2018-09-30 2,094 241 193
2018-06-30 2,112 208 200
2018-03-31 2,130 176 206
2017-12-31 2,133 193 209
2017-09-30 2,136 211 211
2017-06-30 2,108 198 195
2017-03-31 2,079 185 179
2016-12-31 1,995 177 166
2016-09-30 1,911 169 153
2016-06-30 1,884 193 167

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vtech Holdings's earnings are expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
  • Vtech Holdings's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:303 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Vtech Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:303 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 0.79 0.86 0.72 2.00
2021-03-31 0.82 0.96 0.71 4.00
2020-03-31 0.72 0.74 0.70 2.00
SEHK:303 Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.68
2018-12-31 0.72
2018-09-30 0.77
2018-06-30 0.79
2018-03-31 0.82
2017-12-31 0.83
2017-09-30 0.84
2017-06-30 0.78
2017-03-31 0.71
2016-12-31 0.66
2016-09-30 0.61
2016-06-30 0.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Vtech Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Vtech Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vtech Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

303 Past Performance

  How has Vtech Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vtech Holdings's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Vtech Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Vtech Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Vtech Holdings's 1-year earnings growth is negative, it can't be compared to the HK Communications industry average.
Earnings and Revenue History
Vtech Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vtech Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:303 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,161.90 171.30 371.90 77.20
2018-12-31 2,127.90 182.05 375.70 76.95
2018-09-30 2,093.90 192.80 379.50 76.70
2018-06-30 2,112.00 199.55 388.40 77.15
2018-03-31 2,130.10 206.30 397.30 77.60
2017-12-31 2,133.10 208.75 397.15 77.70
2017-09-30 2,136.10 211.20 397.00 77.80
2017-06-30 2,107.70 195.10 404.25 77.50
2017-03-31 2,079.30 179.00 411.50 77.20
2016-12-31 1,995.30 165.85 392.20 71.70
2016-09-30 1,911.30 152.70 372.90 66.20
2016-06-30 1,883.90 167.05 348.10 61.25
2016-03-31 1,856.50 181.40 323.30 56.30
2015-12-31 1,881.80 188.45 327.65 56.35
2015-09-30 1,907.10 195.50 332.00 56.40
2015-06-30 1,893.45 196.80 333.15 56.25
2015-03-31 1,879.80 198.10 334.30 56.10
2014-12-31 1,893.55 204.55 342.95 56.00
2014-09-30 1,907.30 211.00 351.60 55.90
2014-06-30 1,903.10 207.40 350.65 56.95
2014-03-31 1,898.90 203.80 349.70 58.00
2013-12-31 1,886.60 204.85 337.30 58.55
2013-09-30 1,874.30 206.10 324.70 59.10
2013-06-30 1,866.15 203.80 320.75 58.10
2013-03-31 1,858.00 201.50 316.80 57.10
2012-12-31 1,830.25 198.15 311.40 57.25
2012-09-30 1,802.50 194.30 306.50 57.40
2012-06-30 1,793.50 193.10 305.30 57.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Vtech Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Vtech Holdings used its assets more efficiently than the HK Communications industry average last year based on Return on Assets.
  • Vtech Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Vtech Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vtech Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

303 Health

 How is Vtech Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vtech Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vtech Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Vtech Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Vtech Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Vtech Holdings has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vtech Holdings Company Filings, last reported 1 month ago.

SEHK:303 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 607.00 0.00 237.00
2018-12-31 607.00 0.00 237.00
2018-09-30 559.40 0.00 74.30
2018-06-30 559.40 0.00 74.30
2018-03-31 646.60 0.00 254.40
2017-12-31 646.60 0.00 254.40
2017-09-30 565.80 1.60 91.30
2017-06-30 565.80 1.60 91.30
2017-03-31 584.70 1.70 268.80
2016-12-31 584.70 1.70 268.80
2016-09-30 522.90 0.00 104.40
2016-06-30 522.90 0.00 104.40
2016-03-31 525.00 0.00 273.00
2015-12-31 525.00 0.00 273.00
2015-09-30 486.10 0.00 104.90
2015-06-30 486.10 0.00 104.90
2015-03-31 540.80 0.00 294.20
2014-12-31 540.80 0.00 294.20
2014-09-30 512.10 0.00 106.40
2014-06-30 512.10 0.00 106.40
2014-03-31 562.40 0.00 322.90
2013-12-31 575.60 0.00 322.90
2013-09-30 517.10 0.00 94.70
2013-06-30 517.10 0.00 94.70
2013-03-31 564.30 0.00 308.60
2012-12-31 572.30 0.00 308.60
2012-09-30 504.00 0.00 108.90
2012-06-30 504.00 0.00 108.90
  • Vtech Holdings has no debt.
  • Vtech Holdings had no debt 5 years ago.
  • Vtech Holdings has no debt, it does not need to be covered by operating cash flow.
  • Vtech Holdings has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Vtech Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vtech Holdings has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

303 Dividends

 What is Vtech Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.67%
Current annual income from Vtech Holdings dividends. Estimated to be 8.29% next year.
If you bought HK$2,000 of Vtech Holdings shares you are expected to receive HK$153 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Vtech Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.1%).
  • Vtech Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (5.83%).
Upcoming dividend payment

Purchase Vtech Holdings before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:303 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Hong Kong Communications Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:303 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.75 3.00
2021-03-31 0.72 4.00
2020-03-31 0.70 3.00
SEHK:303 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-20 0.670 7.632
2018-11-12 0.800 8.486
2018-05-17 0.800 6.970
2017-11-09 0.700 5.270
2017-07-27 0.700 4.918
2016-11-10 0.420 3.207
2016-06-08 0.420 3.734
2016-05-17 0.420 3.894
2015-11-12 0.780 7.260
2015-06-09 0.780 6.314
2015-05-19 0.780 5.820
2014-11-11 0.810 5.779
2014-06-11 0.800 6.382
2014-05-22 0.800 5.898
2013-06-03 0.800 5.936
2013-05-15 0.800 5.401
2012-11-14 0.760 6.413
2012-05-23 0.760 6.399
2011-11-16 0.780 7.125
2011-05-31 0.780 7.364
2010-11-17 0.780 6.942
2010-06-14 0.780 7.428
2009-11-25 0.570 5.528
2009-07-03 0.820 10.214

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Vtech Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Vtech Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vtech Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vtech Holdings has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

303 Management

 What is the CEO of Vtech Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Allan Wong
COMPENSATION $3,400,000
AGE 67
TENURE AS CEO 15.3 years
CEO Bio

Dr. Chi-yun Wong, also known as Allan, GBS, SBS, B.Sc., MBE, MSEE, Hon DTech, JP, has been an Independent Non-Executive Director of Li & Fung Limited since March 30, 1999. He co-founded VTech Holdings Ltd. in 1976 and has been its Group Chief Executive Officer since January 1, 2004 and serves as its Chairman. Dr. Wong serves as the Chairman of The Hong Kong Applied Science and Technology Research Institute Company Limited. He has been Deputy Chairman of The Bank of East Asia, Limited since 2009 and has been its Independent Non-Executive Director since 1995. He has been an Independent Non-Executive Director at MTR Corporation Limited since August 11, 2015. He serves as an Independent Non-Executive Director at China-Hongkong Photo Products Holdings Ltd. He serves as an Executive Director of Vtech Holdings Ltd. He serves as an Independent Non-Executive Director of The Bank of East Asia (China) Ltd. He serves as Independent Non-Executive Director of Li & Fung Limited. Dr. Wong serves as a Director of Oasis Airlines Hong Kong Limited. He served as a Director of Airport Authority Hong Kong from January 2010 to December 31, 2012. He serves on the Hong Kong Trade Development Council and serves as a Member of the Council of Advisors on Innovation and Technology. He serves as a Council Member of the University of Hong Kong. He was an Unofficial Justice of Peace in 1995 and awarded an MBE in 1997. He was Awarded the Silver Bauhinia Star and the Gold Bauhinia Star in 2003 and 2008 respectively. Dr. Wong holds a Bachelor of Science Degree in Electrical Engineering from the University of Hong Kong, a Master of Science Degree in Electrical and Computer Engineering from the University of Wisconsin and an Honorary Degree of Doctor of Technology from the Hong Kong Polytechnic University.

CEO Compensation
  • Allan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Allan's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Vtech Holdings management team in years:

15.3
Average Tenure
58
Average Age
  • The average tenure for the Vtech Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Allan Wong

TITLE
Co-Founder
COMPENSATION
$3M
AGE
67
TENURE
15.3 yrs

King Pang

TITLE
President & Executive Director
COMPENSATION
$2M
AGE
62
TENURE
10.3 yrs

Andy Leung

TITLE
CEO of Contract Manufacturing Services & Executive Director
COMPENSATION
$3M
AGE
59
TENURE
17.1 yrs

Shereen Tong

TITLE
Group Chief Financial Officer
AGE
49

Hillson Cheung

TITLE
GM of Operations & President of Telecommunication Products
AGE
50

Chorng Chu

TITLE
Group Chief Technology Officer
AGE
58

Yu Chang

TITLE
Group Chief Compliance Officer & Company Secretary
AGE
58

Corinna Chan

TITLE
Senior Corporate Communications Manager

Kent Wong

TITLE
Chief Executive Officer of the Branded Business
AGE
55

Gilles Sautier

TITLE
International President of Europe
AGE
62
Board of Directors Tenure

Average tenure and age of the Vtech Holdings board of directors in years:

11.2
Average Tenure
67
Average Age
  • The average tenure for the Vtech Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Allan Wong

TITLE
Co-Founder
COMPENSATION
$3M
AGE
67

King Pang

TITLE
President & Executive Director
COMPENSATION
$2M
AGE
62
TENURE
12.1 yrs

Andy Leung

TITLE
CEO of Contract Manufacturing Services & Executive Director
COMPENSATION
$3M
AGE
59
TENURE
10.3 yrs

Patrick Wang

TITLE
Independent Non Executive Director
AGE
67
TENURE
17.5 yrs

William Fung

TITLE
Independent Non Executive Director
AGE
69
TENURE
17.5 yrs

Kai-Man Wong

TITLE
Independent Non-Executive Director
AGE
68
TENURE
6.7 yrs

Ping Keung Ko

TITLE
Independent Non-Executive Director
AGE
67
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
14. May 19 Sell Capital Research and Management Company Company 10. May 19 10. May 19 -72,900 HK$69.65 HK$-5,077,820
01. Mar 19 Buy Capital Group International Inc. Company 27. Feb 19 27. Feb 19 1,544,697 HK$82.50 HK$127,436,581
01. Mar 19 Sell Capital Research and Management Company Company 27. Feb 19 27. Feb 19 -609,100 HK$82.50 HK$-50,250,386
14. Feb 19 Sell Capital Research and Management Company Company 12. Feb 19 12. Feb 19 -251,150 HK$73.94 HK$-18,570,182
11. Jan 19 Sell Capital Research and Management Company Company 09. Jan 19 09. Jan 19 -1,374,570 HK$66.66 HK$-91,632,681
15. Dec 18 Sell Capital Research and Management Company Company 04. Dec 18 04. Dec 18 -216,424 HK$74.05 HK$-16,026,175
20. Dec 18 Sell Capital Research and Management Company Company 18. Dec 18 18. Dec 18 -375,516 HK$67.61 HK$-25,390,288
15. Dec 18 Buy Capital Research and Management Company Company 13. Dec 18 13. Dec 18 442,400 HK$70.10 HK$31,011,533
21. Nov 18 Sell Capital Research and Management Company Company 19. Nov 18 19. Nov 18 -1,208,354 HK$79.22 HK$-95,727,129
17. Jul 18 Buy Kwok-Lun Fung Individual 12. Jul 18 12. Jul 18 5,000 HK$90.00 HK$450,000
X
Management checks
We assess Vtech Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vtech Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

303 News

Simply Wall St News

Do Insiders Own Lots Of Shares In Vtech Holdings Limited (HKG:303)?

The big shareholder groups in Vtech Holdings Limited (HKG:303) have power over the company. … Vtech Holdings isn't enormous, but it's not particularly small either. … institutions are noticeable on the share registry

Simply Wall St -

Who Has Been Buying Vtech Holdings Limited (HKG:303) Shares?

Vtech Holdings Insider Transactions Over The Last Year. … Over the last year, we can see that the biggest insider purchase was by Independent Non Executive Director Kwok-Lun Fung for HK$450k worth of shares, at about HK$90.00 per share. … It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels

Simply Wall St -

What You Must Know About Vtech Holdings Limited's (HKG:303) Financial Health

Mid-caps stocks, like Vtech Holdings Limited (HKG:303) with a market capitalization of HK$19b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … Let’s take a look at 303’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … View our latest analysis for Vtech Holdings

Simply Wall St -

Despite Its High P/E Ratio, Is Vtech Holdings Limited (HKG:303) Still Undervalued?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 13.32 = $10.22 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.77

Simply Wall St -

Should You Be Concerned With Vtech Holdings Limited's (HKG:303) -8.7% Earnings Drop?

For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. … 303's trailing twelve-month earnings (from 30 September 2018) of US$193m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -1.3%, indicating the rate at which 303 is growing has slowed down

Simply Wall St -

Introducing Vtech Holdings (HKG:303), The Stock That Dropped 23% In The Last Year

Vtech Holdings Limited (HKG:303) shareholders should be happy to see the share price up 15% in the last quarter. … After all, the share price is down 23% in the last year, significantly under-performing the market. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business.

Simply Wall St -

Boasting A 34% Return On Equity, Is Vtech Holdings Limited (HKG:303) A Top Quality Stock?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.34 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Vtech Holdings Limited (HKG:303): Exploring Free Cash Flows

If you are currently a shareholder in Vtech Holdings Limited (HKG:303), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … Today we will examine Vtech Holdings’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Vtech Holdings’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure

Simply Wall St -

Should You Worry About Vtech Holdings Limited's (HKG:303) CEO Pay?

Allan Wong became the CEO of Vtech Holdings Limited (HKG:303) in 2004. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Allan Wong's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Vtech Holdings Limited (HKG:303) Earns Among The Best Returns In Its Industry

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

303 Company Info

Description

Vtech Holdings Limited designs, manufactures, and distributes consumer electronic products in North America, Europe, the Asia Pacific, and internationally. The company offers telecommunication products, such as residential phones, such as cordless phone system and connect to cell phone system; commercial phones comprising SIP phones, SMB phones, SIP-DECT cordless handsets, hotel phones, cordless headsets, and ErisStation; and other telecommunication products, including wireless monitoring systems, baby monitors, handsets, and integrated access devices, as well as CareLine and baby soother. It also provides electronic learning toys for infancy, toddler, and preschool; and platform products. In addition, the company offers contract electronic manufacturing services for customers in the areas of professional audio equipment, hearables, medical and health products, and industrial products. Further, it is involved in the property holding activities; development of broadband connectivity software; sale of electronic and telecommunication products; and manufacture of plastic products. The company was founded in 1976 and is headquartered in Tai Po, Hong Kong.

Details
Name: Vtech Holdings Limited
303
Exchange: SEHK
Founded: 1976
HK$17,234,452,527
251,414,333
Website: http://www.vtech.com
Address: Vtech Holdings Limited
Tai Ping Industrial Centre,
23rd Floor,
Tai Po,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 303 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
OTCPK VTKL.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB VTCB Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SHSC 303 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 02. Jan 1992
SZSC 303 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 02. Jan 1992
OTCPK VTKL.Y ADR Pink Sheets LLC US USD 03. Mar 2011
Number of employees
Current staff
Staff numbers
26,000
Vtech Holdings employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 12:42
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/05/20
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.