Volex plc (VLX) AI Stock Analysis

• Market Cap: £694.58M
• Dividend Yield: 1.12%
• Average Volume (3M): 449.87K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 1.56
• Revenue Growth: 17.23%
• EPS Growth: 15.46%
• Country: UK
• Employees: 14,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.15
• Shares Outstanding: 184,952,960
• 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: £425.00
• Price Target Upside: 0.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: 479.00p ▲(13.51% Upside)

Volex plc's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's strategic growth in key markets like electric vehicles and data centers, coupled with robust financial health, position it well for future growth. Technical indicators suggest a strong upward trend, though caution is advised due to potential overbought conditions. Valuation is fair, with a modest dividend yield.

Positive Factors

Revenue Growth

Achieving over $1 billion in revenue marks a significant milestone, indicating strong market demand and effective strategic execution, supporting long-term growth.

Electric Vehicles Segment Growth

Strong growth in the electric vehicles segment highlights Volex's ability to capitalize on industry trends, positioning it well in a rapidly expanding market.

Manufacturing Capacity Expansion

Increasing manufacturing capacity by 21% enhances Volex's ability to meet growing demand, supporting scalability and future revenue growth.

Negative Factors

Medical Segment Decline

A decline in the medical segment indicates potential challenges in this market, which could impact overall revenue diversification and stability.

Inflationary Pressures in Turkey

Inflationary pressures in Turkey affecting margins could strain profitability, necessitating cost management and operational efficiency improvements.

Tariff Challenges

Increased tariffs affecting 12% of revenue pose a risk to cost structures and competitiveness, requiring strategic mitigation efforts to sustain margins.

Volex plc Business Overview & Revenue Model

Company Description

Volex plc is a leading global provider of power and data cable solutions, serving a wide range of industries including healthcare, telecommunications, automotive, and renewable energy. The company specializes in designing and manufacturing high-performance cable assemblies, connectors, and related components, focusing on innovation and quality to meet the demands of its diverse customer base. Volex operates across several geographic regions, leveraging its engineering expertise and manufacturing capabilities to deliver tailored solutions that enhance connectivity and power distribution.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.10B	1.09B	912.80M	740.79M	590.95M	468.36M
Gross Profit	229.59M	232.80M	202.80M	149.22M	110.19M	103.33M
EBITDA	119.17M	124.40M	103.70M	78.61M	57.69M	46.17M
Net Income	48.37M	47.90M	39.30M	36.80M	30.40M	38.90M
Balance Sheet
Total Assets	916.60M	916.60M	839.10M	533.84M	502.02M	412.50M
Cash, Cash Equivalents and Short-Term Investments	37.70M	37.70M	29.80M	22.44M	29.03M	36.50M
Total Debt	212.50M	212.50M	183.80M	125.88M	124.08M	63.80M
Total Liabilities	546.40M	546.40M	503.50M	301.73M	294.05M	228.50M
Stockholders Equity	361.00M	361.00M	327.20M	224.73M	200.59M	184.00M
Cash Flow
Free Cash Flow	35.37M	31.20M	46.70M	38.64M	3.46M	32.65M
Operating Cash Flow	78.78M	77.30M	78.30M	57.39M	17.88M	40.89M
Investing Cash Flow	-57.82M	-55.10M	-167.30M	-30.85M	-66.73M	-52.40M
Financing Cash Flow	-15.10M	-15.00M	95.50M	-32.18M	38.85M	15.32M

Volex plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 422.00
• 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:VLX, the sentiment is Positive. The current price of 422 is above the 20-day moving average (MA) of 376.47, above the 50-day MA of 362.12, and above the 200-day MA of 314.76, indicating a bullish trend. The MACD of 6.41 indicates Negative momentum. The RSI at 71.37 is Negative, neither overbought nor oversold. The STOCH value of 51.12 is Neutral, 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
TFW	78 Outperform	£329.80M	13.25	13.87%	2.35%	-0.33%	4.58%
VLX	77 Outperform	£694.58M	18.58	15.54%	1.12%	17.23%	15.46%
LUCE	71 Outperform	£206.83M	14.26	15.66%	3.59%	18.90%	-20.79%
SUP	71 Outperform	£204.13M	8.66	35.01%	2.93%	4.44%	4.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
XPP	58 Neutral	£285.16M	-17.98	-8.12%	―	-18.43%	24.86%
EAAS	45 Neutral	£19.94M	-4.68	-36.75%	―	20.98%	17.29%

Volex plc Corporate Events

Volex plc Reports Robust Half-Year Growth and Strategic Advancements

Volex plc reported strong half-year results for the period ending 30 September 2025, with a 12.7% increase in revenue to $583.9 million and a 20.2% rise in underlying operating profit. The company maintained its operating margins at the upper end of its target range, driven by operational efficiencies and productivity improvements. Notable growth was seen in the Data Centres sector with an 80% increase in sales. The company’s strategic focus on long-term investments and expansion of production capabilities has positioned it well against its five-year plan. The appointment of Dave Webster as Non-Executive Chairman is expected to further strengthen the company’s leadership. Volex remains confident in meeting full-year market expectations and delivering sustained shareholder value.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £430.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex plc Announces New Leadership Appointments

Volex plc has announced the appointment of Dave Webster as Non-Executive Chair and Nat Rothschild as Chief Executive Officer, effective immediately. This leadership change is expected to drive further growth and enhance shareholder value as the company continues to implement its strategic priorities, focusing on strengthening customer relationships and expanding its market presence.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £430.00 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 Interim Results and Host Investor Presentation

Volex plc announced it will release its interim results for the six months ending 30 September 2025 on 12 November 2025. Following the results, Volex will conduct an analyst briefing and an investor presentation. The analyst briefing is scheduled for 9.00 am GMT on 12 November 2025, while the investor presentation will be held online at 1.00 pm GMT on 14 November 2025. This announcement is significant for stakeholders as it provides insights into Volex’s financial performance and strategic positioning in the industry.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £430.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex Reports Strong Half-Year Performance with Revenue Growth and Margin Resilience

Volex plc reported strong performance in its half-year trading update, with revenues expected to exceed $575 million, driven by organic growth and robust demand in Electric Vehicles and Complex Industrial Technology. Despite subdued medical demand and challenges in consumer electricals, Volex maintained a resilient operating profit margin, reflecting its ability to manage regional cost pressures while investing in growth. The company is well-positioned for future acquisitions, supported by a strong balance sheet and diversified customer base, with stable trading expected in the second half.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £382.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex plc Reports Strong First Half Performance with Revenue Growth and Margin Resilience

Volex plc reported a strong performance for the first half of 2025, with revenues expected to exceed $575 million, driven by an 11% organic growth. The company maintained its operating profit margin within the upper half of its target range, demonstrating resilience amidst regional cost pressures. While Electric Vehicles showed strong growth, Medical demand was subdued. Volex is strategically reconfiguring its global production footprint to strengthen customer relationships and improve competitive positioning. The company remains confident in its five-year plan targets, supported by a strong balance sheet and investment in capability expansion, despite a challenging macro-economic environment.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £382.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex Director Increases Stake Through Dividend Reinvestment

Volex plc announced that John Wilson, a Non-Executive Director, acquired 89 ordinary shares of the company by reinvesting his dividend proceeds. This transaction, conducted on the London Stock Exchange, reflects a minor increase in Wilson’s stake in the company, now holding 10,089 shares, representing 0.01% of the company’s ordinary issued share capital.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £377.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex plc Issues Shares to NR Holdings, Boosting Lord Rothschild’s Stake

Volex plc has announced a transaction involving the issuance of 342,539 ordinary shares to NR Holdings Ltd as part of a scrip dividend. This transaction increases Lord Rothschild’s interest in the company to 25.55% of the ordinary issued share capital, potentially strengthening his influence within the company.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £404.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex plc Issues New Shares for Scrip Dividend

Volex plc has announced the issuance of 423,012 new ordinary shares as part of its scrip dividend alternative for the final dividend of 3.0 pence per share for the year ending 30 March 2025. These shares will be admitted to AIM on the London Stock Exchange, increasing the total voting rights to 184,952,950. This move is expected to enhance shareholder value and provide flexibility in dividend payments, potentially strengthening Volex’s market position.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £404.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.