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VTech Holdings (VTech Holdings) Profitability Rank : 8 (As of Sep. 2023)


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What is VTech Holdings Profitability Rank?

VTech Holdings has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

VTech Holdings's Operating Margin % for the quarter that ended in Sep. 2023 was 9.70%. As of today, VTech Holdings's Piotroski F-Score is 6.


Competitive Comparison of VTech Holdings's Profitability Rank

For the Communication Equipment subindustry, VTech Holdings's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


VTech Holdings's Profitability Rank Distribution in the Hardware Industry

For the Hardware industry and Technology sector, VTech Holdings's Profitability Rank distribution charts can be found below:

* The bar in red indicates where VTech Holdings's Profitability Rank falls into.



VTech Holdings Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

VTech Holdings has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

VTech Holdings's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=110.7 / 1140.9
=9.70 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

VTech Holdings has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

VTech Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.8%.

4. Consistency of the profitability

5. Predictability Rank


VTech Holdings Profitability Rank Related Terms

Thank you for viewing the detailed overview of VTech Holdings's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


VTech Holdings (VTech Holdings) Business Description

Traded in Other Exchanges
Address
Block 1, 57 Ting Kok Road, Tai Po, 23rd Floor, Tai Ping Industrial Centre, New Territories, Hong Kong, HKG
VTech Holdings Ltd is engaged in designing, manufacturing, and distribution of consumer electronic products. It also provides contract manufacturing services. VTech's diverse collection of products include Telephone Products, Business Phones, Electronic Learning Toys, Baby Monitors and Hospitality Products. It offers turnkey services to customers in a number of product categories. The company operates through four geographical segments, North America including the United States and Canada, Europe, Asia Pacific and Others, which covers sales of electronic products to the rest of the world. VTech generates a majority of its revenue from North America and Europe.

VTech Holdings (VTech Holdings) Headlines

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