Volex plc (VLX) AI Stock Analysis

• Market Cap: £846.66M
• Dividend Yield: 1.11%
• Average Volume (3M): 449.87K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.49
• Revenue Growth: 8.20%
• EPS Growth: 25.85%
• Country: UK
• Employees: 14,000
• Sector: General
• Sector Strength: N/A
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.15
• Shares Outstanding: 185,097,530
• 10 Day Avg. Volume: 636,800
• 30 Day Avg. Volume: 449,866
• PEG Ratio: 0.51
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 18.54
• 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: £475.00
• Price Target Upside: 3.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.38
• Revenue Forecast (FY): £1.17B

• Rating: 75 Outperform
• Price Target: 519.00p ▲(12.58% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

Volex plc's strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The company's strategic focus on growth sectors like electric vehicles and data centers, along with stable financials, positions it well for future success. Technical analysis and valuation are neutral, indicating a balanced risk-reward profile.

Positive Factors

Sustained organic growth & clear targets

Consistent organic growth (13% H1) and an explicit $1.2bn multi-year target provide durable revenue visibility. This reflects program wins and product adoption in higher-growth end-markets, supporting multi-year production ramps, contractual volumes and long-term topline expansion.

Strong margin profile and operational control

Margins at the top of target range and healthy EBIT/EBITDA indicate sustained pricing power, favorable product mix and operational efficiency. These margin dynamics support durable profitability across cycles and enable reinvestment in higher-value engineered assemblies.

Manageable leverage and solid returns

Moderate leverage and double-digit ROE reflect a stable capital structure able to fund expansion while limiting refinancing risk. A solid equity ratio and disciplined balance sheet increase resilience to cyclical downturns and support investment in capacity and technology.

Negative Factors

Tariff-related uncertainty

Tariff exposure is a structural risk for end-markets where Volex has significant exposure. Persistent or expanding tariffs can erode margins, shift sourcing economics, and create multi-period order delays, reducing predictability of revenues and raising supply-chain complexity.

Suboptimal free cash flow conversion

Weak FCF conversion versus net income limits internal funding for capex, capacity builds and shareholder returns without increasing leverage. Over the medium term, improving cash conversion is needed to sustainably finance growth initiatives and absorb working-capital swings.

End-market concentration and cyclicality risk

Heavy reliance on rapid ramps in EV and data-center programs concentrates growth on a few customers and sectors. If those ramps slow or macro demand weakens, revenue and margin volatility could increase given simultaneous declines in medical and consumer 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 power cords, which are critical components in many electronic and electrical applications. The company benefits from a diversified customer base, including leading players in the telecommunications and data center markets, which provides a steady demand for its products. Key revenue streams include long-term contracts with major clients, one-off sales, and custom engineering projects. Additionally, Volex has established strategic partnerships with technology firms, allowing it to co-develop innovative solutions that enhance its product offerings and expand its market reach. The company also leverages its global manufacturing footprint to optimize production costs and improve supply chain efficiency, contributing positively 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.16B	1.09B	912.80M	740.79M	590.95M	468.36M
Gross Profit	245.42M	232.80M	202.80M	149.22M	110.19M	103.33M
EBITDA	134.24M	124.40M	103.70M	78.61M	57.69M	46.17M
Net Income	57.65M	47.90M	39.30M	36.80M	30.40M	38.90M
Balance Sheet
Total Assets	975.60M	916.60M	839.10M	533.84M	502.02M	412.50M
Cash, Cash Equivalents and Short-Term Investments	27.70M	37.70M	29.80M	22.44M	29.03M	36.50M
Total Debt	211.80M	212.50M	183.80M	125.88M	124.08M	63.80M
Total Liabilities	553.10M	546.40M	503.50M	301.73M	294.05M	228.50M
Stockholders Equity	412.70M	361.00M	327.20M	224.73M	200.59M	184.00M
Cash Flow
Free Cash Flow	51.18M	31.20M	46.70M	38.64M	3.46M	32.65M
Operating Cash Flow	87.93M	77.30M	78.30M	57.39M	17.88M	40.89M
Investing Cash Flow	-49.69M	-55.10M	-167.30M	-30.85M	-66.73M	-52.40M
Financing Cash Flow	-29.81M	-15.00M	95.50M	-32.18M	38.85M	15.32M

Volex plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 461.00
• 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 Positive. The current price of 461 is below the 20-day moving average (MA) of 477.92, above the 50-day MA of 451.71, and above the 200-day MA of 382.04, indicating a neutral trend. The MACD of 4.00 indicates Positive momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 19.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:VLX.

Volex plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLX	75 Outperform	£846.66M	7.96	15.54%	1.11%	8.20%	25.85%
LUCE	69 Neutral	£266.94M	8.70	15.66%	3.92%	18.90%	-20.79%
TFW	64 Neutral	£303.27M	14.78	13.87%	2.58%	-0.33%	4.58%
DIA	63 Neutral	£120.84M	-3.44	15.77%	―	-5.73%	―
XPP	56 Neutral	£382.64M	-21.41	-8.12%	―	-18.43%	24.86%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
LPA	50 Neutral	£7.40M	-16.65	-1.39%	―	-10.88%	-122.05%

Volex plc Corporate Events

Volex COO John Molloy Increases Stake with Purchase of 31,620 Shares

Volex plc has disclosed that its Chief Operating Officer, John Molloy, has purchased 31,620 ordinary shares in the company at a price of 455.13 pence per share on 28 January 2026, increasing his total holding to 2,104,074 shares, or approximately 1.14% of the company’s issued share capital. The director dealing, conducted on the London Stock Exchange’s AIM market, modestly raises insider ownership and may be viewed by investors as a signal of confidence in the company’s prospects and alignment of management interests with shareholders.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £497.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex Grants Long-Term Incentive Share Options to Top Executives Ahead of New Five-Year Plan

Volex plc has granted nil-cost share options under its Long Term Incentive Plan to chief executive Nat Rothschild, chief operating officer John Molloy and chief financial officer Jon Boaden, alongside a limited group of senior leaders, with an aggregate potential award of up to 1.55 million shares. The awards, structured as a single five-year grant rather than annual grants through at least FY2029, are tied to delivery of a new five-year corporate plan to be unveiled in April 2026 and vest in two tranches in 2030 and 2031 subject to performance conditions on operating profit, return on capital employed and relative total shareholder return, with an additional uplift of up to 50% for strong TSR performance; the company said the scheme is intended to tightly align management incentives with long-term shareholder value while keeping total share issuance from employee plans within 10% of existing capital.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £501.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex Lifts Full-Year Outlook After Strong Q3 Driven by AI-Led Data Centre Demand

Volex plc reported a strong third quarter, with group revenue reaching $902.7 million for the nine months to 31 December 2025, representing 14.8% year-on-year organic constant currency growth. The performance was driven in particular by robust demand in Complex Industrial Technology, notably from data centre customers investing in AI and digital infrastructure, while electric vehicles and off-highway also delivered organic growth. Medical and consumer electricals remained weaker versus the prior year due to customer destocking and softer European appliance demand, but overall underlying operating margins held at the upper end of the company’s 9–10% target range, supported by pricing discipline, efficiency gains and tight cost control. Net debt continued to fall, bringing covenant leverage to around 1.0x and leaving the balance sheet strong enough to support further investment in capacity, automation, vertical integration and selective M&A. On the back of this momentum and good visibility into year-end, the board now expects full-year revenue and underlying operating profit to come in ahead of market expectations, reinforcing Volex’s positioning in structurally attractive sectors and underpinning management’s confidence in its five-year growth plan and long-term value creation for shareholders.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £498.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex Discloses Minor Share Increase for Senior Non-Executive Director via Scrip Dividend

Volex plc has disclosed that senior non-executive director Sir Peter Westmacott received 31 ordinary shares in the company via a scrip dividend on 8 January 2026, at a reference price of 399.0 pence per share. Following this routine transaction, his total holding has increased to 7,890 shares, representing approximately 0.004% of the company’s issued ordinary share capital, a minor change that signals ongoing director participation in Volex’s equity-linked remuneration but does not materially alter the company’s ownership structure.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £451.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex CEO Nathaniel Rothschild Increases Stake to Over 25% via Scrip Dividend

Volex plc has disclosed that NR Holdings Ltd received 95,000 ordinary shares via a scrip dividend at a reference price of 399.0 pence per share, resulting in an increased shareholding for Chief Executive Officer Nathaniel (Lord) Rothschild, who is a beneficiary of NR Holdings. Following this transaction, Lord Rothschild’s total interest in Volex stands at 47,349,061 ordinary shares, representing 25.58% of the company’s issued share capital, reinforcing his significant strategic and governance influence over the business and underscoring a continued alignment of management interests with shareholders.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £451.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex Increases Share Capital Through Scrip Dividend Issue

Volex plc has elected to satisfy part of its interim dividend for the six months to 30 September 2025 via a scrip dividend, issuing 144,584 new ordinary shares at a reference price of 399.0 pence each in respect of elections covering 36,062,212 existing shares. The new shares, which will rank pari passu with existing stock, are expected to begin trading on AIM on 8 January 2026 and will increase Volex’s total issued share capital and voting rights to 185,097,534 ordinary shares, a figure that shareholders must now use when assessing disclosure obligations under UK transparency rules.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £451.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex Chair Increases Stake with Share Purchase

Volex plc announced that Dave Webster, the Non-Executive Chair, has purchased 39,321 ordinary shares of the company at an average price of 407.16 pence per share. This transaction increases his total holding to 152,417 shares, representing approximately 0.08% of the company’s issued share capital, potentially signaling confidence in the company’s future performance.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £451.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex Chair Increases Stake with Significant Share Purchase

Volex plc announced that its Non-Executive Chair, Dave Webster, has acquired 113,096 ordinary shares in the company, representing approximately 0.06% of the company’s issued share capital. This transaction, conducted on the London Stock Exchange’s AIM, reflects a significant personal investment by a key company figure, potentially signaling confidence in the company’s future performance and stability, which could positively influence stakeholder sentiment.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £451.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.