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VAT Group Leaving The Market Breathless As Vacuum Valve Demand Soars

Aug. 02, 2021 1:10 PM ETVAT Group AG (VACNY)6 Comments
Stephen Simpson profile picture
Stephen Simpson


  • VAT Group's second-quarter earnings exceeded expectations, with a 14% beat on the order line as fabs and semiconductor companies scramble to add capacity and reduce record lead times.
  • Not only are fabs scrambling to add chip capacity but leading-edge designs also require even more high-vacuum steps, driving even more sales for VAT Group's core products.
  • Keeping up with demand could be a more significant near-term challenge, with supply chain and labor limitations and the need to add more capacity sooner than expected (2022).
  • Valuation arguments are pretty much moot now with high-end semi capex plays like VAT Group, but embedded expectations are not at all conservative.

manual probe system for RF test
genkur/iStock via Getty Images

When it comes to evaluating the performance of Swiss semi capex component maker VAT Group (OTCPK:VACNY) (VACN.S) since my last update, the closest I can come to criticism is that a very few

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (6)

Hi, I wonder, how is it justifiable that VAT is about 7 times as expensive as MKSI on a P/CF level EVEN THOUGH VAT is spending it all on dividends and MKSI on acquisitions and research?
Both seem very mispriced to me, in other directions!
Stephen Simpson profile picture
@UUII And why should VAT be spending their capital on M&A? They're the best at what they do, and it's unlikely that they'll find much to buy that will be as good or better. Getting bigger doesn't automatically mean getting better.
@Stephen Simpson Well, without investing their growth completely depends on demand and growing acknowledgement of their superiority, no?
Meanwhile others have time to catch up quality wise, and expand into other business fields.
Stephen Simpson profile picture
They've been continually investing, developing new products and new products for adjacent market. As far as others "catching up", they've increased their market share continuously. Their core market is an exceptionally difficult market to enter.
James Hanshaw profile picture
Good article, living in Switzerland I follow Swiss companies closely but I had not heard of VAT Group before. I shall now take a closer look. Thank you
Stephen Simpson profile picture
@James Hanshaw It's a great company. Well worth your time.
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