Volex plc (VLX) AI Stock Analysis

• Market Cap: £733.28M
• Dividend Yield: 1.16%
• Average Volume (3M): 449.87K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.52
• Revenue Growth: 8.20%
• EPS Growth: 25.85%
• 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: £440.00
• Price Target Upside: 7.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 451.00p ▲(10.54% Upside)

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

Revenue Growth

Strong revenue growth indicates robust demand and effective market penetration, especially in electric vehicles and data centers, supporting long-term business expansion.

Operating Margin

Sustaining high operating margins demonstrates efficient cost management and pricing power, crucial for long-term profitability and competitive positioning.

Strategic Expansion

Expanding manufacturing capacity in North America strengthens Volex's supply chain and market presence, supporting future growth and operational resilience.

Negative Factors

Consumer Electricals Decline

Declining revenue in consumer electricals suggests potential challenges in demand or competition, which could impact future revenue streams in this segment.

Medical Sector Challenges

Challenges in the medical sector due to spending cuts and tariffs may hinder growth, affecting Volex's diversification and revenue stability in this segment.

Tariff-related Uncertainty

Tariff-related uncertainties can disrupt supply chains and increase costs, posing risks to profitability and strategic planning in affected sectors.

Volex plc Business Overview & Revenue Model

Company Description

Volex plc (VLX) is a global provider of power and data transmission solutions, primarily serving the telecommunications, data center, medical, and industrial sectors. The company specializes in the design and manufacture of high-performance cable assemblies, connectors, and power cords, as well as offering custom engineering solutions tailored to meet specific client needs. With a strong emphasis on innovation and quality, Volex operates manufacturing facilities across multiple countries, enabling it to deliver reliable products that support the growing demand for connectivity and power management in various industries.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01B	1.09B	912.80M	740.79M	590.95M	468.36M
Gross Profit	212.31M	232.80M	202.80M	149.22M	110.19M	103.33M
EBITDA	116.69M	124.40M	103.70M	78.61M	57.69M	46.17M
Net Income	50.31M	47.90M	39.30M	36.80M	30.40M	38.90M
Balance Sheet
Total Assets	724.68M	916.60M	839.10M	533.84M	502.02M	412.50M
Cash, Cash Equivalents and Short-Term Investments	20.58M	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	410.84M	546.40M	503.50M	301.73M	294.05M	228.50M
Stockholders Equity	306.56M	361.00M	327.20M	224.73M	200.59M	184.00M
Cash Flow
Free Cash Flow	50.08M	31.20M	46.70M	38.64M	3.46M	32.65M
Operating Cash Flow	82.30M	77.30M	78.30M	57.39M	17.88M	40.89M
Investing Cash Flow	-44.56M	-55.10M	-167.30M	-30.85M	-66.73M	-52.40M
Financing Cash Flow	-27.10M	-15.00M	95.50M	-32.18M	38.85M	15.32M

Volex plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 408.00
• 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:VLX, the sentiment is Positive. The current price of 408 is above the 20-day moving average (MA) of 400.90, above the 50-day MA of 388.65, and above the 200-day MA of 330.38, indicating a bullish trend. The MACD of 3.61 indicates Positive momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 38.40 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	£320.62M	12.89	13.87%	2.55%	-0.33%	4.58%
SUP	75 Outperform	£174.80M	8.02	29.71%	3.36%	9.37%	-8.93%
VLX	75 Outperform	£733.28M	16.79	15.54%	1.16%	8.20%	25.85%
LUCE	69 Neutral	£206.53M	14.24	15.66%	3.81%	18.90%	-20.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
XPP	57 Neutral	£251.54M	-15.86	-8.12%	―	-18.43%	24.86%
EAAS	38 Underperform	£18.39M	-4.36	-36.75%	―	20.98%	17.29%

Volex plc Corporate Events

Volex plc Announces Interim Dividend and Scrip Dividend Scheme

Volex plc has announced an interim dividend of 1.6 pence per share, payable on January 8, 2026, with an option for shareholders to receive this dividend in the form of additional shares through the Scrip Dividend Scheme. The reference price for these new shares is set at 399.0 pence, based on the average mid-market closing price over five days starting from the ex-dividend date. Shareholders must complete the necessary forms or make an election online by December 12, 2025, to participate in the scheme, which offers flexibility in how dividends are received, potentially impacting shareholder value and market perception.

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.

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.

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.

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.

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.

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.