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303

Vtech HoldingsSEHK:303 Stock Report

Market Cap

HK$15.3b

7D

1.3%

1Y

14.4%

Updated

23 Oct, 2021

Data

Company Financials +
303 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends3/6

303 Overview

Vtech Holdings Limited designs, manufactures, and distributes consumer electronic products in North America, Europe, the Asia Pacific, and internationally.

Vtech Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vtech Holdings
Historical stock prices
Current Share PriceHK$60.60
52 Week HighHK$50.70
52 Week LowHK$84.30
Beta0.92
1 Month Change-0.49%
3 Month Change-20.84%
1 Year Change14.45%
3 Year Change-33.95%
5 Year Change-35.36%
Change since IPO985.38%

Recent News & Updates

Sep 13
Returns On Capital Signal Tricky Times Ahead For Vtech Holdings (HKG:303)

Returns On Capital Signal Tricky Times Ahead For Vtech Holdings (HKG:303)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to...

Aug 02
Is There Now An Opportunity In Vtech Holdings Limited (HKG:303)?

Is There Now An Opportunity In Vtech Holdings Limited (HKG:303)?

Vtech Holdings Limited ( HKG:303 ), might not be a large cap stock, but it saw a double-digit share price rise of over...

Jul 19
Is Now The Time To Put Vtech Holdings (HKG:303) On Your Watchlist?

Is Now The Time To Put Vtech Holdings (HKG:303) On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

303HK CommunicationsHK Market
7D1.3%3.1%2.2%
1Y14.4%-15.2%6.0%

Return vs Industry: 303 exceeded the Hong Kong Communications industry which returned -15.2% over the past year.

Return vs Market: 303 exceeded the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 303's price volatile compared to industry and market?
303 volatility
303 Beta0.92
Industry Beta1.25
Market Beta1

Stable Share Price: 303 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 303's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197625,000Allan Wonghttps://www.vtech.com/index.html

Vtech Holdings Limited designs, manufactures, and distributes consumer electronic products in North America, Europe, the Asia Pacific, and internationally. The company offers electronic learning toys for infancy, toddler, and preschool under the Vtech and Leap Frog brands; platform products; and learning programs. It also provides telecommunication products, such as residential and commercial phones under the VTech and AT&T brands; and other telecommunication products, including baby monitors, cordless advanced technology – internet and quality handsets, and integrated access devices.

Vtech Holdings Fundamentals Summary

How do Vtech Holdings's earnings and revenue compare to its market cap?
303 fundamental statistics
Market CapUS$1.96b
Earnings (TTM)US$230.90m
Revenue (TTM)US$2.37b

8.5x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
303 income statement (TTM)
RevenueUS$2.37b
Cost of RevenueUS$1.65b
Gross ProfitUS$726.60m
ExpensesUS$495.70m
EarningsUS$230.90m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.92
Gross Margin30.63%
Net Profit Margin9.73%
Debt/Equity Ratio0%

How did 303 perform over the long term?

See historical performance and comparison

Dividends

11.7%

Current Dividend Yield

99%

Payout Ratio

Valuation

Is Vtech Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 303 (HK$60.6) is trading below our estimate of fair value (HK$154.87)

Significantly Below Fair Value: 303 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 303 is good value based on its PE Ratio (8.5x) compared to the Hong Kong Communications industry average (13.2x).

PE vs Market: 303 is good value based on its PE Ratio (8.5x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 303 is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: 303 is overvalued based on its PB Ratio (2.7x) compared to the HK Communications industry average (1x).


Future Growth

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

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 303's forecast earnings growth (1.3% per year) is below the savings rate (1.5%).

Earnings vs Market: 303's earnings (1.3% per year) are forecast to grow slower than the Hong Kong market (17.6% per year).

High Growth Earnings: 303's earnings are forecast to grow, but not significantly.

Revenue vs Market: 303's revenue (3% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 303's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 303's Return on Equity is forecast to be high in 3 years time (30.5%)


Past Performance

How has Vtech Holdings performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 303 has high quality earnings.

Growing Profit Margin: 303's current net profit margins (9.7%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: 303's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: 303's earnings growth over the past year (21.1%) exceeds its 5-year average (3.6% per year).

Earnings vs Industry: 303 earnings growth over the past year (21.1%) underperformed the Communications industry 21.3%.


Return on Equity

High ROE: 303's Return on Equity (31.6%) is considered high.


Financial Health

How is Vtech Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 303's short term assets ($1.1B) exceed its short term liabilities ($523.0M).

Long Term Liabilities: 303's short term assets ($1.1B) exceed its long term liabilities ($191.5M).


Debt to Equity History and Analysis

Debt Level: 303 is debt free.

Reducing Debt: 303 had no debt 5 years ago.

Debt Coverage: 303 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 303 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

11.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 303's dividend (11.67%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 303's dividend (11.67%) is in the top 25% of dividend payers in the Hong Kong market (6.77%)


Stability and Growth of Payments

Stable Dividend: 303's dividend payments have been volatile in the past 10 years.

Growing Dividend: 303's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.3%), 303's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 303's dividends in 3 years are not forecast to be well covered by earnings (98.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.8yrs

Average board tenure


CEO

Allan Wong (70 yo)

17.75yrs

Tenure

US$4,032,000

Compensation

Dr. Chi-Yun Wong, also known as Allan, GBS, SBS, B.Sc., JP, MBE, MSEE, Hon DTech, JP, has been an Independent Non-Executive Director of Li & Fung Limited since March 30, 1999. Dr. Wong co-founded VTech Hol...


CEO Compensation Analysis

Compensation vs Market: Allan's total compensation ($USD4.03M) is above average for companies of similar size in the Hong Kong market ($USD496.86K).

Compensation vs Earnings: Allan's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: 303's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Vtech Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Vtech Holdings Limited
  • Ticker: 303
  • Exchange: SEHK
  • Founded: 1976
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$15.272b
  • Shares outstanding: 252.01m
  • Website: https://www.vtech.com/index.html

Number of Employees


Location

  • Vtech Holdings Limited
  • Tai Ping Industrial Centre
  • 23rd Floor
  • Tai Po
  • New Territories
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 10:05
End of Day Share Price2021/10/22 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.