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Volex PLC (GB:VLX)
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Volex plc (VLX) AI Stock Analysis

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GB:VLX

Volex plc

(LSE:VLX)

Rating:75Outperform
Price Target:
404.00p
▲(18.13% Upside)
Volex plc's strong financial performance, highlighted by consistent revenue growth and profitability, is the primary driver of its stock score. The positive sentiment from the earnings call, with significant milestones achieved and strategic positioning in high-growth markets, further supports the score. While the technical analysis suggests mixed signals, the overall outlook remains positive. The valuation is fair, with a modest dividend yield providing some investor income.
Positive Factors
Market Position
Volex is well-positioned to meet targets and exceed them, with opportunities for further strong organic or inorganic growth.
Sales Growth
Volex continues to exceed expectations, reporting 10% organic sales growth.
Valuation
Despite recent share price momentum, VLX continues to trade at meaningful discounts to the UK Electricals.
Negative Factors
Market Uncertainty
The uncertain backdrop is being managed well, with tariffs continuing to offer opportunities for customers.
Sector Challenges
Momentum is coming from data centres, EVs, and Off-Highway, considering the challenging nature of these markets.
Stock Valuation
The stock continues to trade on undemanding multiples despite further interesting organic growth opportunities.

Volex plc (VLX) vs. iShares MSCI United Kingdom ETF (EWC)

Volex plc Business Overview & Revenue Model

Company DescriptionVolex 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 MoneyVolex 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 Earnings Call Summary

Earnings Call Date:Jun 26, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant milestones achieved in revenue and organic growth. The company demonstrated resilience and strategic execution across key markets, particularly in electric vehicles and data centers. However, challenges such as a decline in the medical segment and inflationary pressures in Turkey were noted. Overall, the positive aspects of growth and strategic positioning outweigh the challenges.
Q4-2025 Updates
Positive Updates
Record Revenue and Operating Profit
Volex plc exceeded $1 billion in revenue and $100 million in underlying operating profit for the first time, marking a milestone in their 5-year plan.
Strong Organic Growth
The company achieved over 11% organic growth, driven by significant progress in executing key elements of their strategy.
Electric Vehicles Segment Growth
Volex reported approximately 40% organic growth in the electric vehicles segment, highlighting a strong recovery and growth trajectory.
Complex Industrial Technology and Data Center Performance
The data center space saw high growth, contributing to 14.5% organic growth in Complex Industrial Technology.
Continued Financial Strength
The company maintained a net debt leverage ratio of 1x, providing flexibility for future growth initiatives.
Negative Updates
Medical Segment Decline
The medical segment saw a decline of approximately 5% year-on-year due to dynamics from the previous year's component availability recovery.
Inflationary Pressures in Turkey
High labor inflation in Turkey impacted margins, necessitating productivity improvements and process reengineering.
Tariff Challenges
Around 12% of group revenue is potentially impacted by increased tariffs, though Volex is working to mitigate these impacts with customers.
Company Guidance
In their FY '25 Full Year Results Presentation, Volex plc reported significant financial progress, achieving over 11% organic growth despite challenging market conditions. The company surpassed $1 billion in revenue for the first time and reached $100 million in underlying operating profit, marking a milestone toward their five-year plan target of $1.2 billion in revenue by FY '27. They maintained operating margins within their target range of 9% to 10% for the fifth consecutive year. The integration of Murat Ticaret was highlighted as a key achievement, enhancing productivity and operational efficiency. Volex's strategic investments increased manufacturing capacity by 21%, positioning them to navigate changing global trade policies and continue growing in high-value markets like electric vehicles, data centers, and off-highway sectors. The company's strong financial performance was supported by a disciplined acquisition strategy, maintaining a net debt leverage ratio of 1x, and delivering an average organic revenue growth of 11% over the past five years.

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
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.10B1.09B912.80M740.79M590.95M468.36M
Gross Profit229.59M232.80M202.80M149.22M110.19M103.33M
EBITDA119.17M124.40M103.70M78.61M57.69M46.17M
Net Income48.37M47.90M39.30M36.80M30.40M38.90M
Balance Sheet
Total Assets916.60M916.60M839.10M533.84M502.02M412.50M
Cash, Cash Equivalents and Short-Term Investments37.70M37.70M29.80M22.44M29.03M36.50M
Total Debt212.50M212.50M183.80M125.88M124.08M63.80M
Total Liabilities546.40M546.40M503.50M301.73M294.05M228.50M
Stockholders Equity361.00M361.00M327.20M224.73M200.59M184.00M
Cash Flow
Free Cash Flow35.37M31.20M46.70M38.64M3.46M32.65M
Operating Cash Flow78.78M77.30M78.30M57.39M17.88M40.89M
Investing Cash Flow-57.82M-55.10M-167.30M-30.85M-66.73M-52.40M
Financing Cash Flow-15.10M-15.00M95.50M-32.18M38.85M15.32M

Volex plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price342.00
Price Trends
50DMA
361.25
Negative
100DMA
317.91
Positive
200DMA
295.31
Positive
Market Momentum
MACD
-5.30
Positive
RSI
43.41
Neutral
STOCH
25.08
Neutral
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 342 is below the 20-day moving average (MA) of 352.20, below the 50-day MA of 361.25, and above the 200-day MA of 295.31, indicating a neutral trend. The MACD of -5.30 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 25.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:VLX.

Volex plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£351.69M14.3514.53%1.41%-0.29%11.71%
75
Outperform
£222.32M9.4335.01%2.84%4.44%4.86%
75
Outperform
£630.10M16.8613.95%1.22%17.23%15.46%
65
Neutral
£181.56M12.3615.40%4.24%16.03%-11.84%
64
Neutral
$10.73B15.747.60%2.01%2.75%-15.09%
57
Neutral
£254.91M-6.40%-21.84%10.56%
44
Neutral
£23.23M-36.75%20.98%17.29%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:VLX
Volex plc
342.00
5.94
1.77%
GB:EAAS
eEnergy Group
6.00
-0.55
-8.40%
GB:LUCE
Luceco plc
117.80
-29.13
-19.83%
GB:TFW
FW Thorpe Plc
302.50
-21.94
-6.76%
GB:XPP
XP Power
910.00
-396.00
-30.32%
GB:SUP
Supreme PLC
183.00
15.98
9.57%

Volex plc Corporate Events

Shareholder MeetingsDividendsBusiness Operations and Strategy
Volex plc AGM Resolutions Passed with Strong Shareholder Support
Positive
Aug 7, 2025

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.

Dividends
Volex plc Proposes Final Dividend with Scrip Option
Neutral
Aug 7, 2025

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.

Business Operations and StrategyFinancial Disclosures
Volex Reports Strong Start to FY2026 with Robust Q1 Performance
Positive
Aug 7, 2025

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.

Other
Volex COO’s Spouse Sells Significant Shareholding
Negative
Jul 7, 2025

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.

Shareholder MeetingsFinancial Disclosures
Volex plc Publishes 2025 AGM Notice and Annual Report
Neutral
Jul 4, 2025

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.

DividendsBusiness Operations and StrategyFinancial Disclosures
Volex Reports Robust Growth and Strategic Expansion in FY2025
Positive
Jun 26, 2025

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.

Financial Disclosures
Volex plc to Announce Preliminary Financial Results and Host Investor Presentation
Neutral
Jun 2, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025