Plexus Holdings (POS) AI Stock Analysis

• Market Cap: £15.37M
• Dividend Yield: N/A
• Average Volume (3M): 189.56K
• Price to Earnings (P/E): 3.3
• Beta (1Y): 2.03
• Revenue Growth: 79.18%
• EPS Growth: -319.23%
• Country: UK
• Employees: 40
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.01
• Shares Outstanding: 172,691,360
• 10 Day Avg. Volume: 73,665
• 30 Day Avg. Volume: 189,557
• PEG Ratio: 0.13
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.58
• 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: £8.00
• Price Target Upside: -10.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: 9.50p ▲(6.74%Upside)

Plexus Holdings shows strong financial recovery and positive corporate events, enhancing its growth outlook. However, a negative P/E ratio and the absence of dividends weigh on the valuation score. Technical indicators support a cautiously optimistic view, but volatility in revenue and cash flows should be monitored.

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. The gross profit margin improved significantly, and the net profit margin turned positive. Revenue growth was exceptional at 756%, and operational efficiency improved. However, historical volatility in revenue and cash flows suggests caution.

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

Plexus Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 8.9 is above the 20-day moving average (MA) of 8.76, above the 50-day MA of 8.11, and above the 200-day MA of 8.61, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 59.52 is Neutral, neither overbought nor oversold. The STOCH value of 59.28 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	69 Neutral	£15.37M	3.28	-4.17%	―	79.18%	-319.23%
Sector *	56 Neutral	C$4.06B	-0.40	0.29%	6.55%	8.42%	-64.58%
SNDA	―	£7.88M	―	-23.32%	―	―	―
NTQ	―	$508.68K	―		―	―	―
GTC	54 Neutral	£3.13M	―	-36.06%	―	15.88%	78.27%
CSC	51 Neutral	£12.57M	―		―	―	―
PFC	―	£20.59M	―		―	―	―

Plexus Holdings Corporate Events

Plexus Holdings Strengthens Board with New Appointment

Plexus Holdings PLC has announced the appointment of Dr Stuart Paton as a Non-Executive Director, bringing over 30 years of energy industry experience to the board. This strategic move is expected to enhance Plexus’s growth and scaling efforts, particularly in public markets, while also marking the departure of Ms Kunming Liu after a decade of service. The board changes reflect Plexus’s ongoing commitment to strengthening its leadership team to support its innovative offerings in the oil equipment and services sector.

Plexus Holdings Expands Wellhead Fleet and Secures Strategic Contracts

Plexus Holdings PLC announced an operational update for the year ending June 30, 2025, highlighting financial results in line with market expectations and successful fundraising of £3.5 million to expand its Exact-Ex wellhead equipment rental fleet. The company is progressing with a Middle East contract expected to generate $1 million in revenue and has secured a new rental contract in the USA, positioning itself for growth in key markets. The expansion and strategic contracts underscore Plexus’s commitment to meeting global demand and enhancing its market position.