VTECH HLDGS Stock Forum

VTech's acquisition of Gigaset's assets is a strategic move to bolster its leadership in residential cordless phones, broaden its global market channels and product portfolios, and boost its European manufacturing footprint. Gigaset's engineering talents are expected to enhance technological development and operational efficiencies.

Vtech Holdings' decreasing ROCE and stagnant sales despite increased capital use may raise concerns. Despite efforts to reduce liabilities, they still make up 44% of total assets, indicating risks. The stock's 7.5% return over five years suggests it may not be ideal for those seeking a multi-bagger.

Vtech's slow growth may be overlooked by investors anticipating a business turnaround. If recent earnings trend persists, it could impact share prices and decrease P/E, bringing the company's strength into question and causing undue risk.

With shrinking earnings per share and Vtech Holdings using a majority of its earnings plus over half of its free cash flow, the stock may not be an appealing dividend pick. Investors should be aware of risks before buying shares.

Market sentiment towards Vtech Holdings' stock has declined, indicated by a current P/E ratio of 9.62. Its recent TSR of 11%, though less than the market return, suggests possible stabilization.