Vtech Holdings
OTCPK:VTKL.F
VTKL.F
OTCPK
HK$21B
Market Cap
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 111 days ago. More info.
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VTKL.F Share Price and Events
7 Day Returns
0%
OTCPK:VTKL.F
3.5%
US Communications
2.4%
US Market
1 Year Returns
-21.6%
OTCPK:VTKL.F
11.9%
US Communications
1.9%
US Market
VTKL.F Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Vtech Holdings (VTKL.F) | 0% | 6.6% | 21.4% | -21.6% | -7% | -18.4% |
| US Communications | 3.5% | 5.6% | 19% | 11.9% | 76.3% | 88.1% |
| US Market | 2.4% | 1.7% | 11.9% | 1.9% | 38.2% | 42.4% |
1 Year Return vs Industry and Market
- VTKL.F underperformed the Communications industry which returned 11.9% over the past year.
- VTKL.F underperformed the Market in United States of America which returned 1.9% over the past year.
VTKL.F 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
Our intrinsic value calculation method has changed recently, learn more here.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Vtech Holdings.
| 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 | 9.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| 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))
= 1.084 (1 + (1- 25%) (0%)) |
1.056 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.06 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.056 * 6.65%) |
9.75% |
Discounted Cash Flow Calculation for OTCPK:VTKL.F 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.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.75%) |
|
|---|---|---|---|
| 2019 | 182.76 | Analyst x3 | 166.52 |
| 2020 | 190.82 | Analyst x3 | 158.41 |
| 2021 | 203.72 | Analyst x3 | 154.09 |
| 2022 | 207.57 | Est @ 1.89% | 143.05 |
| 2023 | 212.02 | Est @ 2.14% | 133.12 |
| 2024 | 216.93 | Est @ 2.32% | 124.11 |
| 2025 | 222.23 | Est @ 2.44% | 115.84 |
| 2026 | 227.85 | Est @ 2.53% | 108.21 |
| 2027 | 233.75 | Est @ 2.59% | 101.15 |
| 2028 | 239.90 | Est @ 2.63% | 94.58 |
| Present value of next 10 years cash flows | $1,299.06 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $239.90 × (1 + 2.73%) ÷ (9.75% – 2.73%) |
$3,508.42 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $3,508.42 ÷ (1 + 9.75%)10 |
$1,383.22 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $1,299.06 + $1,383.22 |
$2,682.28 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $2,682.28 / 251.41 |
$10.67 |
| Calculation | Result | |
|---|---|---|
| Exchange Rate | USD/HKD
(Reporting currency to currency of SEHK:303) |
7.85 |
| Value per Share (HKD) |
= Value per Share in USD x Exchange Rate (USD/HKD)
= $10.67 x 7.85 |
HK$83.75 |
| Non-primary Listing Adjustment Factor |
1 share in OTCPK:VTKL.F
represents 0.12706x
of
SEHK:303
(This could be a different class, a depositary receipt, a different currency, or all of these things.) |
0.12706x |
| Value per Share (Listing Adjusted, USD) |
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 83.75 x 0.12706 |
$10.64 |
| Value per share (USD) | From above. | $10.64 |
| Current discount | Discount to share price of
$10.40
= -1 x ($10.40 - $10.64) / $10.64 |
2.3% |
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.
2%
Share price is
$10.4
vs Future cash flow value of
$10.64
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
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-09-30) in USD | $0.77 |
| SEHK:303 Share Price ** | SEHK (2019-03-05) in HKD | HK$81.85 |
| SEHK:303 Share Price converted to USD reporting currency | Exchange rate (HKD/ USD) 0.127 | $10.43 |
| United States of America Communications Industry PE Ratio | Median Figure of 33 Publicly-Listed Communications Companies | 30.4x |
| United States of America Market PE Ratio | Median Figure of 3,055 Publicly-Listed Companies | 17.61x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Vtech Holdings.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = SEHK:303 Share Price ÷ EPS (both in USD) = 10.43 ÷ 0.77 |
13.59x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Vtech Holdings is good value based on earnings compared to the US Communications industry average.
- Vtech Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Vtech Holdings's expected growth come at a high price?
Raw Data
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 13.59x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
7.2%per year |
| United States of America Communications Industry PEG Ratio | Median Figure of 21 Publicly-Listed Communications Companies | 1.35x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 13.59x ÷ 7.2% |
1.88x |
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
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-09-30) in USD | $2.23 |
| SEHK:303 Share Price * | SEHK (2019-03-05) in HKD | HK$81.85 |
| SEHK:303 Share Price converted to USD reporting currency | Exchange rate (HKD/ USD) 0.127 | $10.43 |
| United States of America Communications Industry PB Ratio | Median Figure of 67 Publicly-Listed Communications Companies | 1.84x |
| United States of America Market PB Ratio | Median Figure of 5,152 Publicly-Listed Companies | 1.87x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SEHK:303 Share Price ÷ Book Value per Share (both in USD) = 10.43 ÷ 2.23 |
4.69x |
* 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 US Communications industry average.
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Value checks
We assess Vtech Holdings's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check) Vtech Holdings has a total score of 2/6, 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.
VTKL.F Future Performance
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!
7.2%
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 2.7%.
Growth vs Market Checks
- Vtech Holdings's earnings growth is positive but not above the United States of America market average.
- Vtech Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
| Data Point | Source | Value (per year) |
|---|---|---|
| OTCPK:VTKL.F Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts | 7.2% |
| OTCPK:VTKL.F Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | 4% |
| United States of America Communications Industry Earnings Growth Rate | Market Cap Weighted Average | 15.2% |
| United States of America Communications Industry Revenue Growth Rate | Market Cap Weighted Average | 4.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*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
All numbers in USD Millions and using
Trailing twelve months (TTM)
annual period rather than quarterly.
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (5 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 2,313 | 245 | 219 | 4 |
| 2020-03-31 | 2,221 | 230 | 202 | 4 |
| 2019-03-31 | 2,138 | 223 | 186 | 4 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 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 |
| 2016-03-31 | 1,857 | 217 | 181 |
| 2015-12-31 | 1,882 | 229 | 188 |
*GAAP earnings excluding extraordinary items.
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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (5 months 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 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 0.87 | 0.96 | 0.79 | 4.00 |
| 2020-03-31 | 0.80 | 0.86 | 0.76 | 4.00 |
| 2019-03-31 | 0.74 | 0.83 | 0.69 | 4.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 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 |
| 2016-03-31 | 0.72 |
| 2015-12-31 | 0.75 |
*GAAP earnings excluding extraordinary items.
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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.
Future performance checks
We assess Vtech Holdings's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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.
VTKL.F 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 US 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 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 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 |
| 2012-03-31 | 1,784.50 | 191.90 | 304.10 | 57.20 |
*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 US 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).
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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.
Past performance checks
We assess Vtech Holdings's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
VTKL.F 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.
- 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 5 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 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 |
| 2012-03-31 | 556.20 | 0.00 | 326.50 |
- 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.
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Full details on the Health part of the Simply Wall St company analysis model.
Financial health checks
We assess Vtech Holdings's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Vtech Holdings has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
VTKL.F 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
7.67%
Current annual income from
Vtech Holdings
dividends.
Estimated to be
7.18%
next year.
If you bought
$2,000 of
Vtech Holdings
shares you are expected to receive
$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 United States of America (1.45%).
- Vtech Holdings's dividend is above the markets top 25% of dividend payers in United States of America (3.64%).
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
| 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 |
| United States of America Communications Industry Average Dividend Yield | Market Cap Weighted Average of 13 Stocks | 2.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-03-31 | 0.79 | 4.00 |
| 2020-03-31 | 0.73 | 4.00 |
| 2019-03-31 | 0.73 | 4.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-11-12 | 0.800 | 8.505 |
| 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 |
| 2009-03-19 | 0.630 | 12.843 |
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 increased over the past 10 years.
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Full details on the Dividends part of the Simply Wall St company analysis model.
Income/ dividend checks
We assess Vtech Holdings's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) Vtech Holdings has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
VTKL.F Management
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 | 15.2 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.
- Allan's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Vtech Holdings management team in years:
15.2
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
15.2 yrs
King Pang
TITLE
President & Executive Director
COMPENSATION
$2M
AGE
62
TENURE
10.2 yrs
Andy Leung
TITLE
CEO of Contract Manufacturing Services & Executive Director
COMPENSATION
$3M
AGE
59
TENURE
16.9 yrs
Shereen Tong
TITLE
Group Chief Financial Officer
AGE
49
Hillson Cheung
TITLE
General Manager of Operations
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
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
11.9 yrs
Andy Leung
TITLE
CEO of Contract Manufacturing Services & Executive Director
COMPENSATION
$3M
AGE
59
TENURE
10.2 yrs
Patrick Wang
TITLE
Independent Non Executive Director
AGE
67
TENURE
17.3 yrs
William Fung
TITLE
Independent Non Executive Director
AGE
69
TENURE
17.3 yrs
Kai-Man Wong
TITLE
Independent Non-Executive Director
AGE
68
TENURE
6.5 yrs
Ping Keung Ko
TITLE
Independent Non-Executive Director
AGE
67
TENURE
1.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 01. Mar 19 | Buy | Capital Group International Inc. | Company | 27. Feb 19 | 27. Feb 19 | 1,544,697 | $10.51 | $16,235,283 | ||
| 01. Mar 19 | Sell | Capital Research and Management Company | Company | 27. Feb 19 | 27. Feb 19 | -609,100 | $10.51 | $-6,401,845 | ||
| 14. Feb 19 | Sell | Capital Research and Management Company | Company | 12. Feb 19 | 12. Feb 19 | -251,150 | $9.42 | $-2,366,020 | ||
| 11. Jan 19 | Sell | Capital Research and Management Company | Company | 09. Jan 19 | 09. Jan 19 | -1,374,570 | $8.50 | $-11,689,974 | ||
| 15. Dec 18 | Sell | Capital Research and Management Company | Company | 04. Dec 18 | 04. Dec 18 | -216,424 | $9.49 | $-2,053,443 | ||
| 20. Dec 18 | Sell | Capital Research and Management Company | Company | 18. Dec 18 | 18. Dec 18 | -375,516 | $8.65 | $-3,247,101 | ||
| 15. Dec 18 | Buy | Capital Research and Management Company | Company | 13. Dec 18 | 13. Dec 18 | 442,400 | $8.97 | $3,969,451 | ||
| 21. Nov 18 | Sell | Capital Research and Management Company | Company | 19. Nov 18 | 19. Nov 18 | -1,208,354 | $10.12 | $-12,222,783 | ||
| 17. Jul 18 | Buy | Kwok-Lun Fung | Individual | 12. Jul 18 | 12. Jul 18 | 5,000 | $11.47 | $57,334 | ||
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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.
Management checks
We assess Vtech Holdings's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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.
VTKL.F 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 |
| VTKL.F | |
| Exchange: | OTCPK |
| Founded: | 1976 |
| HK$2,621,448,155 | |
| 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
26,000
Vtech Holdings
employees.
Industry
| Communications Equipment | |
| Tech |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/18 23:50 |
| End of day share price update: | 2019/03/05 00:00 |
| Last estimates confirmation: | 2019/03/15 |
| Last earnings filing: | 2018/11/27 |
| Last earnings reported: | 2018/09/30 |
| Last annual earnings reported: | 2018/03/31 |
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.
