VIZIO Holding Corp (VZIO, Financial) has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $1.43 billion, the stock is trading at $7.24. Over the past week, VIZIO's shares have seen a decline of 3.12%, indicating some recent market volatility. However, looking at a broader timeframe, the stock has gained an impressive 22.89% over the past three months. This significant uptick in stock price reflects investor confidence and potential growth prospects for the company.
When assessing the stock's valuation, the GF Value is a critical metric. Currently, the GF Value stands at $7.95, which suggests that VIZIO's stock is Fairly Valued in comparison to the company's intrinsic value. It's important to note that the GF Value was not available three months ago, but the recent calculation provides investors with a benchmark for determining whether the stock is trading at a fair price.
Understanding VIZIO Holding Corp
VIZIO Holding Corp operates within the competitive hardware industry, focusing on two primary business segments: Device and Platform+. The Device business includes a range of Smart TVs and soundbars, while the Platform+ business encompasses the SmartCast operating system, offering content and applications. VIZIO generates revenue through device shipments to retailers and direct consumer sales via its website. The company's integrated business model allows it to cater to consumer preferences and deliver a comprehensive entertainment experience.
Profitability Analysis
VIZIO's Profitability Rank is currently at 4/10, which places it in the lower half of its industry peers. The company's Operating Margin stands at 1.53%, outperforming 39.59% of companies in the industry. Its ROE (Return on Equity) is 5.52%, which is better than 52.76% of its competitors. Additionally, VIZIO's ROA (Return on Assets) at 2.42% and ROIC (Return on Invested Capital) at 10.72% both demonstrate the company's ability to generate profits relative to its assets and capital investments, respectively. Despite these figures, VIZIO has only been profitable for 2 out of the past 10 years, which is a concern when compared to industry standards.
Growth Prospects
The company's growth trajectory has been somewhat inconsistent. VIZIO's 3-Year Revenue Growth Rate per Share is -1.20%, which, while not ideal, is still better than 33.26% of the industry. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 1.73%, indicating modest expectations for future revenue increases. However, the company's EPS without NRI Growth Rate (Future 3Y To 5Y Est) is forecasted to be a robust 25.00%, which is a positive sign for potential earnings growth and is better than 85.71% of its peers.
Investor Confidence
Notable investors have taken positions in VIZIO, demonstrating varying levels of confidence in the company's future. Chuck Royce (Trades, Portfolio) holds 684,567 shares, representing 0.35% of the company, while Jim Simons (Trades, Portfolio) has a stake of 673,500 shares, or 0.34%. First Eagle Investment (Trades, Portfolio) owns 593,311 shares, equating to 0.3% of VIZIO. These holdings reflect a belief in the company's value proposition and strategic direction by some of the market's respected investors.
Competitive Landscape
Comparing VIZIO to its competitors provides additional context for its market position. Sonos Inc (SONO, Financial) has a market cap of $2.06 billion, GoPro Inc (GPRO, Financial) is valued at $496.412 million, and VOXX International Corp (VOXX, Financial) has a market cap of $247.964 million. These companies represent the competitive environment in which VIZIO operates, and its market cap suggests that it holds a significant, albeit not leading, position within the industry.
Conclusion
In summary, VIZIO Holding Corp's recent stock performance has been a mix of short-term volatility and medium-term gains. The company's financial health, as indicated by its profitability and growth metrics, presents a nuanced picture. While there are areas of strength, particularly in ROIC and projected EPS growth, there are also aspects that require improvement, such as the consistency of profitability. The presence of significant holders like Chuck Royce (Trades, Portfolio) and Jim Simons (Trades, Portfolio) suggests a level of investor confidence, which may bode well for the stock's future. Finally, when compared to its competitors, VIZIO holds a respectable market position, with room to grow and solidify its standing in the hardware industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
