Volex plc (VLX) AI Stock Analysis

• Market Cap: £655.31M
• Dividend Yield: 1.17%
• Average Volume (3M): 445.67K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.32
• Revenue Growth: 17.23%
• EPS Growth: 15.46%
• Country: UK
• Employees: 14,000
• Sector: Industrials
• Sector Strength: 75
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.14
• Shares Outstanding: 184,529,940
• 10 Day Avg. Volume: 292,115
• 30 Day Avg. Volume: 445,673
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £421.67
• Price Target Upside: 18.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: 414.00p ▲(16.13% Upside)

Volex plc's overall stock score of 78 reflects its strong financial performance and positive earnings call, highlighting significant growth and strategic milestones. The technical analysis and valuation suggest stability with potential for appreciation. However, insider selling slightly tempers the positive outlook from corporate events.

Positive Factors

Market Position

Volex is well-positioned to meet and potentially exceed FY27F targets, with modest valuation not reflecting opportunities for strong growth.

Sales Growth

Volex continues to exceed expectations, reporting 10% organic sales growth driven by data centres, EVs, and Off-Highway sectors.

Trading Update

Following a surge in data centre demand, Volex has released an impressive trading update with sales/EBITA expected to be ahead of consensus.

Negative Factors

Growth Appreciation

The significant improvement in the quality of the business in recent years continues to be underappreciated.

Market Uncertainty

Despite impressive performance, significant macro uncertainty and concerns around Tesla/EV momentum pose challenges.

Valuation Concerns

Despite recent share price momentum, Volex continues to trade at meaningful discounts to the UK Electricals.

Volex plc Business Overview & Revenue Model

Company Description

Volex plc manufactures and supplies power products and cable assemblies in North America, Europe, and Asia. It provides integrated manufacturing services, such as box builds, wire and cable harnesses, electrical control panels, electromechanical assemblies and systems, printed circuit board assemblies, and ruggedized harness and overmoulding, as well as high mix and low volume manufacturing. The company also offers high-speed copper interconnect/data transfer cables; electric vehicle charging solutions; data centre power cables and power cords; and power cords, plugs, connectors, and receptacles. Its products are used in complex industrial technology, consumer electronics, electric vehicle, and medical markets. The company sells its products through distributors to original equipment manufacturers and electronic manufacturing services companies. Volex plc was incorporated in 1919 and is headquartered in Basingstoke, the United Kingdom.

How the Company Makes Money

Volex generates revenue primarily through the sale of its cable assemblies, connectors, and related products. The company operates on a business-to-business (B2B) model, supplying its products to original equipment manufacturers (OEMs) and other industrial clients. Key revenue streams include custom cable solutions for specific applications, standard product offerings, and ongoing service contracts for maintenance and support. Additionally, Volex benefits from significant partnerships with leading companies in various sectors, allowing it to expand its market reach and capitalize on industry trends such as the increasing demand for electric vehicles and renewable energy solutions. The company's focus on innovation and high-quality manufacturing enables it to command premium pricing for its products, further contributing to its earnings.

Volex plc Financial Statement Overview

Summary

Volex plc exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is stable with moderate leverage, and cash flow generation is solid, though there is potential for improvement in free cash flow conversion. The company is well-positioned for future growth in the electrical equipment and parts industry.

Income Statement

Volex plc has demonstrated consistent revenue growth with a 5.13% increase in the latest year, supported by a stable gross profit margin of 21.43%. The net profit margin has slightly improved to 4.41%, indicating effective cost management. EBIT and EBITDA margins are healthy at 7.89% and 11.45% respectively, showcasing operational efficiency. Overall, the income statement reflects strong growth and profitability trends.

Balance Sheet

The company's debt-to-equity ratio stands at 0.59, indicating moderate leverage, which is manageable given the industry standards. Return on equity is robust at 13.27%, reflecting effective utilization of shareholder funds. The equity ratio of 39.38% suggests a solid capital structure. The balance sheet is stable, with a good balance between debt and equity.

Cash Flow

Operating cash flow to net income ratio is 0.77, indicating strong cash generation relative to net income. Free cash flow growth of 11.43% is positive, although the free cash flow to net income ratio of 0.40 suggests room for improvement in cash conversion. Overall, cash flow is healthy but could benefit from enhanced free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	1.09B	912.80M	722.80M	614.60M	443.31M
Gross Profit	224.70M	232.80M	202.80M	157.00M	125.80M	103.88M
EBITDA	107.90M	124.40M	103.70M	77.80M	60.60M	44.20M
Net Income	43.50M	47.90M	39.30M	36.80M	30.40M	38.90M
Balance Sheet
Total Assets	917.60M	916.60M	839.10M	535.20M	503.30M	410.05M
Cash, Cash Equivalents and Short-Term Investments	18.40M	37.70M	29.80M	22.50M	29.10M	36.55M
Total Debt	222.90M	212.50M	183.80M	126.20M	124.40M	63.81M
Total Liabilities	565.00M	546.40M	503.50M	302.50M	294.80M	226.13M
Stockholders Equity	343.80M	361.00M	327.20M	225.30M	201.10M	183.92M
Cash Flow
Free Cash Flow	28.00M	31.20M	46.70M	37.40M	3.50M	30.88M
Operating Cash Flow	65.50M	77.30M	78.30M	55.70M	18.50M	38.70M
Investing Cash Flow	-43.30M	-55.10M	-167.30M	-29.80M	-69.30M	-49.57M
Financing Cash Flow	-52.20M	-15.00M	95.50M	-31.40M	40.40M	14.51M

Volex plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 356.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VLX, the sentiment is Neutral. The current price of 356.5 is below the 20-day moving average (MA) of 363.14, above the 50-day MA of 351.63, and above the 200-day MA of 293.75, indicating a neutral trend. The MACD of 2.08 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 16.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:VLX.

Volex plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUP	81 Outperform	£218.21M	9.25	35.01%	2.69%	4.44%	4.86%
TFW	78 Outperform	£359.83M	14.68	14.53%	1.38%	-0.29%	11.71%
VLX	77 Outperform	£655.31M	17.57	13.95%	1.17%	17.23%	15.46%
Sector *	66 Neutral	£2.67B	12.98	3.30%	3.24%	2.40%	-23.01%
LUCE	65 Neutral	£191.11M	13.01	15.40%	4.03%	16.03%	-11.84%
XPP	54 Neutral	£257.07M	―	-6.40%	―	-21.84%	10.56%
EAAS	41 Neutral	£16.26M	―	-36.75%	―	20.98%	17.29%

Volex plc Corporate Events

Volex plc AGM Resolutions Passed with Strong Shareholder Support

Volex plc announced the successful passing of all resolutions at its Annual General Meeting, reflecting strong shareholder support. This outcome, including the approval of a final dividend and re-election of key directors, signifies stability and confidence in Volex’s strategic direction, potentially strengthening its market position and reassuring stakeholders.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex plc Proposes Final Dividend with Scrip Option

Volex plc has announced a proposed final dividend of 3.0 pence per share, payable on 5 September 2025, with an option for shareholders to receive the dividend in shares under the Scrip Dividend Scheme. The scheme’s reference price for new shares is set at 364.8 pence, and shareholders must elect their preference by 14 August 2025. This initiative allows Volex to manage cash flow while providing shareholders with flexible dividend options, potentially impacting shareholder value and market perception.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex Reports Strong Start to FY2026 with Robust Q1 Performance

Volex plc has reported a strong start to FY2026, with a 10.4% year-on-year increase in constant currency organic revenue for Q1, driven by growth in Electric Vehicles and Complex Industrial Technology markets. The company has successfully integrated Murat Ticaret, enhancing profitability and operational efficiency, and remains confident in meeting its full-year expectations, supported by a robust pipeline of commercial opportunities.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex COO’s Spouse Sells Significant Shareholding

Volex plc announced that Sharon Molloy, the wife of Chief Operating Officer John Molloy, sold 304,561 Ordinary Shares of the company, resulting in her holding no shares. This transaction represents a significant divestment, while John Molloy retains a 1.12% stake in the company. The sale was conducted on the London Stock Exchange, AIM, and could impact perceptions of insider confidence in the company’s future performance.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex plc Publishes 2025 AGM Notice and Annual Report

Volex plc has announced the publication of its Notice of Annual General Meeting (AGM) for 2025 and its Annual Report and Accounts for the financial year. The AGM is scheduled for August 7, 2025, and will be accessible both in-person and online, allowing shareholders to participate via a live webcast. This announcement underscores Volex’s commitment to transparency and shareholder engagement, providing stakeholders with detailed insights into the company’s financial health and strategic direction.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex Reports Robust Growth and Strategic Expansion in FY2025

Volex plc reported strong financial performance for the fiscal year ending March 2025, with a 19% increase in revenue to $1,086.5 million and an 18.4% rise in underlying operating profit. The company’s growth was driven by significant gains in the Electric Vehicles and Consumer Electricals sectors, alongside strategic investments in global manufacturing capacity. Volex maintained its operating margins and proposed a higher dividend, reflecting its robust financial health and strategic execution. The company remains well-positioned for future growth, supported by a diverse market presence and a strong pipeline of opportunities.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex plc to Announce Preliminary Financial Results and Host Investor Presentation

Volex plc has announced that it will release its preliminary financial results for the year ending 30 March 2025 on 26 June 2025. The company will host a live briefing for analysts and an online investor presentation, allowing stakeholders to engage and submit questions. This announcement highlights Volex’s commitment to transparency and engagement with its investors, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.