Buffett Brain · Research note
Score updated 23 Oct 2026
5347.TWO· Technology
Vanguard International Semiconductor
Vanguard International Semiconductor's valuation and declining EPS overshadow its semiconductor industry presence.
Buffett fit
Weak fit
Owner
35
Durability
40
Management
29
Price
2
Score updated 23 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Vanguard International Semiconductor, we'd be concerned about the declining EPS CAGR of -22.18% over the past five years and the high ratio of 38.4, which suggests overvaluation.
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Over the next decade, Vanguard faces significant risks from technological disruption and intense competition within the semiconductor industry.
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Management has increased the share count by a CAGR of 3.17% over five years, which is dilutive to shareholders.
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The current of 38.4 and an earnings yield of 2.61% suggest the stock is priced for significant growth that isn't supported by recent performance.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
4- 1Net margin of 16.3% is in the top quintile for the semiconductor sector.
- 2Interest coverage ratio of 28.2 indicates strong ability to service debt.
- 3Net debt/EBITDA of -0.39 shows a net cash position, enhancing financial stability.
- 4 of 18.3% over five years exceeds the 15% threshold for strong returns on equity.
Concerns
6- 1 ratio of 38.4 suggests overvaluation compared to earnings growth.
- 2 of 8% is below the sector's top-quintile cutoff of 13.4%, indicating weak returns on invested capital.
- 3EPS CAGR of -22.18% over five years reflects declining profitability.
- 4 of 28.1% is significantly below the sector's top-quintile cutoff of 60.6%.
Price history
$161+11.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Vanguard International Semiconductor Corporation engages in the manufacturing, selling, packaging, and testing of integrated circuits and semiconductor devices. The company offers foundry process technologies and multiple project wafer services. It operates primarily in Taiwan and internationally, serving various technology sectors. The business model relies on technology expertise and manufacturing capabilities, but the of 28.1% is significantly below the sector's top-quintile cutoff of 60.6%, indicating weaker unit economics.
How this analysis has moved
The call has held across 3 reviews.
Oct 11, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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Questions about Vanguard International Semiconductor
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