Plexus Holdings (POS) AI Stock Analysis

• Market Cap: £15.54M
• Dividend Yield: N/A
• Average Volume (3M): 174.99K
• Price to Earnings (P/E): 3.3
• Beta (1Y): 1.84
• Revenue Growth: 79.18%
• EPS Growth: -319.23%
• Country: UK
• Employees: 40
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): >-0.01
• Shares Outstanding: 172,691,360
• 10 Day Avg. Volume: 275,978
• 30 Day Avg. Volume: 174,989
• PEG Ratio: 0.02
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: 9.50p ▲(2.70%Upside)

The overall stock score is primarily driven by strong financial performance and positive technical indicators, despite being tempered by a weak valuation due to lack of profitability and dividend yield. The absence of earnings call and corporate events data did not impact the scoring.

Plexus Holdings Business Overview & Revenue Model

Company Description

Plexus Holdings plc, together with its subsidiaries, provides equipment and services for the oil and gas industry in the United Kingdom, Europe, and internationally. The company principally markets POS-GRIP technology, a patented friction grip method of engineering for oil and gas field wellheads, connectors, and metal-to-metal sealings, which includes squeezing one tubular member against another in the elastic range to effect gripping and sealing. It also provides commercial exploitation of subsea applications; and designs, fabricates, and manufactures valve-related products. Plexus Holdings plc was founded in 1985 and is based in Worthing, the United Kingdom.

How the Company Makes Money

Plexus Holdings generates revenue primarily through the sale and rental of its proprietary wellhead equipment and related services. The company's key revenue streams include sales of its POS-GRIP wellhead systems to oil and gas operators, rental income from equipment provided for drilling operations, and engineering services related to wellhead installation and maintenance. Additionally, Plexus Holdings may earn income from licensing its technology to other equipment manufacturers. Strategic partnerships with major oil and gas companies and service providers also play a significant role in Plexus's business model, as they help the company expand its market reach and enhance its technological offerings.

Plexus Holdings Financial Statement Overview

Summary

Plexus Holdings has shown a commendable recovery in financial performance, particularly in profitability and efficiency, with strong margins and low leverage. However, historical volatility in revenue and cash flows suggests cautious optimism for future performance.

Income Statement

Plexus Holdings has demonstrated a remarkable turnaround in its income statement. The gross profit margin improved significantly to 57.7%, and the net profit margin turned positive at 23.1% as of the latest report. The revenue growth rate was exceptional at 756% from the previous year. EBIT and EBITDA margins also showed strong recovery at 28.3% and 38%, respectively, indicating improved operational efficiency. However, the company has experienced significant volatility in profitability over the years.

Balance Sheet

The balance sheet of Plexus Holdings shows a solid equity ratio of 77.4%, reflecting a strong capital base. The debt-to-equity ratio is low at 0.08, indicating low leverage, which reduces financial risk. The return on equity is healthy at 19%, showcasing efficient use of equity to generate profits. While these are positive indicators, the total assets have decreased over time, which could suggest potential constraints in future growth.

Cash Flow

Plexus Holdings has shown a positive trend in cash flow management, with free cash flow turning positive to 460,000. The operating cash flow to net income ratio is robust at 1.39, indicating healthy cash flow generation relative to net income. However, free cash flow growth has been highly volatile, and financing cash flows have fluctuated, which presents potential risks in maintaining consistent cash flow stability.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	10.51M	12.72M	1.49M	2.31M	2.02M	525.00K
Gross Profit	3.72M	7.34M	1.09M	1.49M	955.00K	300.00K
EBITDA	1.37M	4.67M	-2.65M	-3.93M	-2.55M	-3.37M
Net Income	-600.00K	2.93M	-4.01M	-7.46M	-4.50M	-6.61M
Balance Sheet
Total Assets	17.45M	19.91M	18.63M	21.82M	27.08M	29.95M
Cash, Cash Equivalents and Short-Term Investments	1.30M	2.49M	1.45M	5.84M	5.17M	4.09M
Total Debt	1.13M	1.28M	2.46M	5.04M	3.44M	1.68M
Total Liabilities	3.36M	4.50M	7.11M	6.29M	4.09M	2.46M
Stockholders Equity	14.10M	15.41M	11.52M	15.54M	22.99M	27.49M
Cash Flow
Free Cash Flow	2.39M	460.00K	-2.84M	-3.52M	-3.06M	-5.29M
Operating Cash Flow	4.39M	4.08M	-1.44M	-2.63M	-2.65M	-4.79M
Investing Cash Flow	-2.55M	-2.63M	-195.00K	1.83M	2.08M	4.18M
Financing Cash Flow	-1.38M	-410.00K	-2.76M	1.47M	1.66M	-455.00K

Plexus Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:POS, the sentiment is Positive. The current price of 9.25 is above the 20-day moving average (MA) of 7.87, above the 50-day MA of 7.60, and above the 200-day MA of 8.99, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 70.89 is Negative, neither overbought nor oversold. The STOCH value of 79.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:POS.

Plexus Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POS	63 Neutral	£15.54M	3.28	-4.17%	―	79.18%	-319.23%
Sector *	52 Neutral	C$2.91B	-1.09	-3.26%	6.12%	5.32%	-43.41%
SNDA		£7.02M	―	-23.32%	―	―	―
NTQ		$508.68K	―		―	―	―
GTC		£2.90M	―	-36.06%	―	―	―
CSC	53 Neutral	£13.92M	―		―	―	―
PFC		£20.59M	―		―	―	―

Plexus Holdings Corporate Events

Plexus Holdings Announces Successful General Meeting Resolutions and Share Capital Expansion

Plexus Holdings PLC announced that all resolutions proposed at their General Meeting were passed, leading to the release of security granted over the company’s assets following the conversion of Convertible Loan Notes. The admission and dealings in new ordinary shares are set to commence, increasing the company’s total voting rights, which may impact shareholder interests and company operations.