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Vishay (VSH) Boosts Resistors Offering With Ametherm Buyout
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Vishay Intertechnology (VSH - Free Report) acquired a precision thermistors company, Ametherm, for approximately $31.5 million in cash.
The deal is a part of Vishay's strategy to expand its resistors offering by integrating Ametherm’s small package, high-quality inrush current limiters and NTC temperature sensors into its resistors product line.
Vishay is expected to gain solid traction across automotive, industrial, aerospace and medical markets on the back of its latest move.
Per a Mordor Intelligence report, the resistors market is likely to hit $10.5 billion in 2024 and reach $12.28 billion by 2029, witnessing a CAGR of 3.2% between 2024 and 2029. Vishay is well-poised to capitalize on this growth opportunity on the back of its strengthening resistors product portfolio.
Recently, Vishay introduced the Vishay Draloric AC05 WSZ and AC05-AT WSZ lead form for its AC and AC-AT series of 5 W resistors, improving pick and place, reducing assembly times and lowering costs.
The company expanded its PTCEL series with the launch of new inrush current limiting positive temperature coefficient thermistors, further strengthening its footprint in the resistors market.
Vishay also introduced MCB ISOA, a compact, thick film power resistor designed for mounting on a heatsink, offering a good pulse handling capability and a power dissipation capacity of up to 120W.
Growing Acquisitions Boost Prospects
Strategic acquisitions have been playing an important role in shaping the growth trajectory of Vishay.
The company’s objective behind these acquisitions is to drive its inorganic growth by acquiring technologies that offer opportunities to expand its product portfolio and strengthen its competitive positioning, enabling it to support customers' advanced high-voltage electrification applications.
In this regard, Vishay recently acquired Nexperia's Newport wafer fabrication facility for $177 million, focusing on decarbonization and electrification.
The automotive-certified facility, which is the U.K.'s largest semiconductor fab, produces more than 30,000 wafers per month. The acquisition positions this facility as Vishay’s manufacturing excellence center.
Vishay’s acquisition of MaxPower Semiconductor remains noteworthy. The acquisition expanded Vishay's MOSFETs product segment.
These endeavors will continue aiding the overall financial performance of the company in the near term.
However, growing inventory adjustments, contracting lead times and a softening demand environment across industrial end markets remain major concerns for the company. Vishay’s shares have lost 2.3% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s growth of 16.7%.
The Zacks Consensus Estimate for 2024 revenues is pegged at $3.1 billion, indicating a decline of 10% year over year.
The consensus mark for 2024 earnings is pegged at 87 cents per share, indicating a 64.3% decline from the year-ago figure. The figure has decreased 21.9% in the past 30 days.
Image: Bigstock
Vishay (VSH) Boosts Resistors Offering With Ametherm Buyout
Vishay Intertechnology (VSH - Free Report) acquired a precision thermistors company, Ametherm, for approximately $31.5 million in cash.
The deal is a part of Vishay's strategy to expand its resistors offering by integrating Ametherm’s small package, high-quality inrush current limiters and NTC temperature sensors into its resistors product line.
Vishay is expected to gain solid traction across automotive, industrial, aerospace and medical markets on the back of its latest move.
Vishay Intertechnology, Inc. Price and Consensus
Vishay Intertechnology, Inc. price-consensus-chart | Vishay Intertechnology, Inc. Quote
Growth Prospects
Per a Mordor Intelligence report, the resistors market is likely to hit $10.5 billion in 2024 and reach $12.28 billion by 2029, witnessing a CAGR of 3.2% between 2024 and 2029. Vishay is well-poised to capitalize on this growth opportunity on the back of its strengthening resistors product portfolio.
Recently, Vishay introduced the Vishay Draloric AC05 WSZ and AC05-AT WSZ lead form for its AC and AC-AT series of 5 W resistors, improving pick and place, reducing assembly times and lowering costs.
The company expanded its PTCEL series with the launch of new inrush current limiting positive temperature coefficient thermistors, further strengthening its footprint in the resistors market.
Vishay also introduced MCB ISOA, a compact, thick film power resistor designed for mounting on a heatsink, offering a good pulse handling capability and a power dissipation capacity of up to 120W.
Growing Acquisitions Boost Prospects
Strategic acquisitions have been playing an important role in shaping the growth trajectory of Vishay.
The company’s objective behind these acquisitions is to drive its inorganic growth by acquiring technologies that offer opportunities to expand its product portfolio and strengthen its competitive positioning, enabling it to support customers' advanced high-voltage electrification applications.
In this regard, Vishay recently acquired Nexperia's Newport wafer fabrication facility for $177 million, focusing on decarbonization and electrification.
The automotive-certified facility, which is the U.K.'s largest semiconductor fab, produces more than 30,000 wafers per month. The acquisition positions this facility as Vishay’s manufacturing excellence center.
Vishay’s acquisition of MaxPower Semiconductor remains noteworthy. The acquisition expanded Vishay's MOSFETs product segment.
These endeavors will continue aiding the overall financial performance of the company in the near term.
However, growing inventory adjustments, contracting lead times and a softening demand environment across industrial end markets remain major concerns for the company. Vishay’s shares have lost 2.3% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s growth of 16.7%.
The Zacks Consensus Estimate for 2024 revenues is pegged at $3.1 billion, indicating a decline of 10% year over year.
The consensus mark for 2024 earnings is pegged at 87 cents per share, indicating a 64.3% decline from the year-ago figure. The figure has decreased 21.9% in the past 30 days.
Zacks Rank & Stocks to Consider
Currently, Vishay carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Badger Meter (BMI - Free Report) and Dropbox (DBX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 30.6% in the year-to-date period. The long-term earnings growth rate for ANET is 15.68%.
Badger Meter’s shares have gained 27% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 15.57%.
Shares of Dropbox have declined 22.6% in the year-to-date period. The long-term earnings growth rate for DBX is 11.44%.