Vtech Holdings
Market Cap
US$2.2b
Last Updated
2020/02/26 00:18 UTC
Data Sources
Company Financials +
Executive Summary
Vtech Holdings Limited designs, manufactures, and distributes consumer electronic products in North America, Europe, the Asia Pacific, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and good value.
Similar Companies
Share Price & News
How has Vtech Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VTKL.F has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
VTKL.F
-7.5%
US Communications
-7.4%
US Market
1 Year Return
0.9%
VTKL.F
-16.4%
US Communications
10.5%
US Market
Return vs Industry: VTKL.F exceeded the US Communications industry which returned -16.4% over the past year.
Return vs Market: VTKL.F underperformed the US Market which returned 10.5% over the past year.
Shareholder returns
| VTKL.F | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | -7.5% | -7.4% |
| 30 Day | 0% | -11.4% | -3.6% |
| 90 Day | 1.1% | -5.1% | -0.6% |
| 1 Year | 0.9%0.9% | -14.7%-16.4% | 12.8%10.5% |
| 3 Year | -22.0%-22.0% | 21.7%14.0% | 37.4%28.6% |
| 5 Year | -28.1%-31.5% | 47.0%30.4% | 61.3%43.6% |
Price Volatility Vs. Market
How volatile is Vtech Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Vtech Holdings undervalued compared to its fair value and its price relative to the market?
35.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VTKL.F ($9.6) is trading below our estimate of fair value ($14.91)
Significantly Below Fair Value: VTKL.F is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VTKL.F is good value based on its PE Ratio (11.3x) compared to the Communications industry average (22.9x).
PE vs Market: VTKL.F is good value based on its PE Ratio (11.3x) compared to the US market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: VTKL.F is poor value based on its PEG Ratio (11.3x)
Price to Book Ratio
PB vs Industry: VTKL.F is overvalued based on its PB Ratio (4x) compared to the US Communications industry average (1.8x).
Next Steps
Future Growth
How is Vtech Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
1.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VTKL.F's forecast earnings growth (1% per year) is below the savings rate (1.7%).
Earnings vs Market: VTKL.F's earnings (1% per year) are forecast to grow slower than the US market (13.2% per year).
High Growth Earnings: VTKL.F's earnings are forecast to grow, but not significantly.
Revenue vs Market: VTKL.F's revenue (2.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: VTKL.F's revenue (2.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VTKL.F's Return on Equity is forecast to be high in 3 years time (33%)
Next Steps
Past Performance
How has Vtech Holdings performed over the past 5 years?
-0.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VTKL.F has high quality earnings.
Growing Profit Margin: VTKL.F's current net profit margins (8.7%) are lower than last year (9.2%).
Past Earnings Growth Analysis
Earnings Trend: VTKL.F's earnings have declined by -0.5% per year over the past 5 years.
Accelerating Growth: VTKL.F's earnings growth over the past year (3.3%) exceeds its 5-year average (-0.5% per year).
Earnings vs Industry: VTKL.F earnings growth over the past year (3.3%) exceeded the Communications industry -19.9%.
Return on Equity
High ROE: VTKL.F's Return on Equity (35.1%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Vtech Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: VTKL.F's short term assets ($1.1B) exceed its short term liabilities ($699.8M).
Long Term Liabilities: VTKL.F's short term assets ($1.1B) exceed its long term liabilities ($123.4M).
Debt to Equity History and Analysis
Debt Level: VTKL.F is debt free.
Reducing Debt: VTKL.F had no debt 5 years ago.
Debt Coverage: VTKL.F has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: VTKL.F has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: VTKL.F has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if VTKL.F's debt is covered by short term assets.
Next Steps
Dividend
What is Vtech Holdings's current dividend yield, its reliability and sustainability?
7.49%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: VTKL.F's dividend (7.49%) is higher than the bottom 25% of dividend payers in the US market (1.52%).
High Dividend: VTKL.F's dividend (7.49%) is in the top 25% of dividend payers in the US market (3.9%)
Stability and Growth of Payments
Stable Dividend: VTKL.F's dividend payments have been volatile in the past 10 years.
Growing Dividend: VTKL.F's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (84.6%), VTKL.F's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VTKL.F's dividends in 3 years are not forecast to be well covered by earnings (91.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.1yrs
Average board tenure
CEO
Allan Wong (68yo)
16.1yrs
Tenure
US$2,932,000
Compensation
Dr. Chi-Yun Wong, also known as Allan, GBS, SBS, B.Sc., JP, MBE, MSEE, Hon DTech, JP, has been an Independent Non-Executive Director of Li & Fung Limited since March 30, 1999. He co-founded VTech Holdings ...
CEO Compensation Analysis
Compensation vs Market: Allan's total compensation ($USD2.93M) is about average for companies of similar size in the US market ($USD3.92M).
Compensation vs Earnings: Allan's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 16.1yrs | US$2.93m | 26.6% $598.3m | |
| President & Executive Director | 12.8yrs | US$1.73m | 0.11% $2.4m | |
| CEO of Contract Manufacturing Services & Executive Director | 11.1yrs | US$2.83m | 0.16% $3.5m | |
| Independent Non-Executive Director | 2.1yrs | US$37.00k | no data | |
| Independent Non Executive Director | 18.3yrs | US$38.00k | 0.064% $1.4m | |
| Independent Non Executive Director | 18.3yrs | US$38.00k | 0.42% $9.4m | |
| Independent Non-Executive Director | 7.4yrs | US$39.00k | no data | |
| Non-Executive Director | 0.3yrs | no data | no data |
11.1yrs
Average Tenure
68yo
Average Age
Experienced Board: VTKL.F's board of directors are seasoned and experienced ( 11.1 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Vtech Holdings Limited
- Ticker: VTKL.F
- Exchange: OTCPK
- Founded: 1976
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: HK$17.532b
- Listing Market Cap: HK$2.249b
- Shares outstanding: 251.54m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VTKL.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| 303 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| VTCB | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| 303 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| 303 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| VTKL.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Mar 2011 |
Biography
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; and other telecommunication products, including integrated access devices, baby monitors, handsets, wireless monitoring systems, and baby soothers. 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/26 00:18 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.