VSH

Vishay is a broad-line maker of discrete semiconductors and passive components, a deeply cyclical business now working through a downturn. After earning $429M in FY2022, net income swung to losses (-$31.1M in FY2024, -$8.98M in FY2025), and gross margin compressed to 19.4% from prior-cycle highs. The encouraging sign is that operating income recovered to $56.9M in FY2025 (up from near-zero) on a 4.5% revenue rebound to $3.07B — consistent with the early stage of a components-cycle recovery — and the net loss narrowed sharply.

The balance sheet is adequate but not pristine: $2.09B equity against $2.15B liabilities (1.03x), $951M long-term debt, and $515M cash (down 12.8%). Notably, Vishay is investing through the trough — capex of $273M exceeds operating cash flow of $184M, so the company is consuming cash to expand capacity (a deliberate, multi-year footprint expansion). That is defensible if the cycle turns and the new capacity earns a return, but it pressures near-term free cash flow and the cash balance, and buybacks were cut 75% to just $12.5M.