Want to see GB:VLX full AI Analyst Report?
Top Page
Volex plc
(LSE:VLX)
Select Model
Select Model
Rating:62Neutral
Price Target:
572.00 p
▲(1.78% Upside)
Action:Downgraded
Date:06/28/26
The score is supported by solid financial performance (growth and improving margins with improving leverage) and a constructive earnings outlook (strong organic growth and margin delivery). These positives are tempered by weak technicals (price below key moving averages and negative MACD, despite oversold RSI) and only moderate valuation support (P/E ~23 with a low dividend yield).
Positive Factors
End-market exposure (EVs & data centers)
Durable exposure to rapidly expanding EV and data-center markets increases secular demand for engineered cable assemblies and higher-margin programs. Strong data-center growth (80% uplift) signals successful design-ins and creates recurring program revenue less sensitive to short-term consumer cycles.
Negative Factors
Uneven free cash flow conversion
Positive but inconsistent cash conversion reduces financial optionality. A 24.6% FCF decline and ~55% conversion show working-capital or capex pressure, meaning earnings gains may not fully translate into deleveraging, buybacks, or higher capex without tighter cash discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
End-market exposure (EVs & data centers)
Durable exposure to rapidly expanding EV and data-center markets increases secular demand for engineered cable assemblies and higher-margin programs. Strong data-center growth (80% uplift) signals successful design-ins and creates recurring program revenue less sensitive to short-term consumer cycles.
Read all positive factors
Volex plc (VLX) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.03B
Dividend Yield1.11%
Average Volume (3M)449.87K
Price to Earnings (P/E)21.3
Beta (1Y)1.40
Revenue Growth8.85%
EPS Growth29.67%
CountryUK
Employees13,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.35
Shares Outstanding185,097,530
10 Day Avg. Volume636,800
30 Day Avg. Volume449,866
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)2.53
Price to Sales (P/S)0.92
P/FCF Ratio29.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£665.00Price Target Upside18.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.44
Revenue Forecast (FY)£1.28B
Volex plc Business Overview & Revenue Model
Company Description
Volex plc manufactures and sells power and connectivity in North America, Europe, and Asia. It provides integrated manufacturing services, such as PCB assembly, box build, and complex cable assemblies; electric vehicle charging solutions; consumer...
How the Company Makes Money
Volex primarily makes money by manufacturing and selling connectivity and power products, and by providing contract manufacturing/assembly services for original equipment manufacturers (OEMs). Its key revenue streams typically include: (1) Sale of...
Volex plc Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
Volex reported a robust first half with significant revenue growth and strong operating margins. The company saw notable advancements in electric vehicles and data center segments, and strategic expansions in North America. However, challenges were faced in the consumer electricals and medical sectors, primarily due to tariff-related uncertainties. Overall, the positive aspects of the report slightly outweigh the challenges, indicating a stable and growing business environment.Positive Updates
Strong First Half Revenue and Growth
Volex reported first half revenues of $584 million, representing an organic growth of 13% despite challenging macroeconomic conditions.
Negative Updates
Decline in Consumer Electricals Revenue
A 6% organic decline in consumer electricals was reported, attributed to a post-destocking rebound normalization.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong First Half Revenue and Growth
Volex reported first half revenues of $584 million, representing an organic growth of 13% despite challenging macroeconomic conditions.
Read all positive updates
Company Guidance
During the call, Volex plc provided guidance for the first half of the fiscal year 2026, reporting revenues of $584 million with an operating margin of 9.8%. The company achieved strong organic growth of 13%, driven by significant performances in electric vehicles and data centers. The results align with Volex's 5-year plan, aiming for $1.2 billion in revenue by the end of FY '27. Operating profit rose to $57.2 million, with basic earnings per share increasing by 30% to $0.197. Volex maintained a return on capital employed at 20% and improved its covenant net debt ratio to 1.1x. The guidance highlights the company's strategic focus on organic growth, disciplined reinvestment, and consistent margin expansion, positioning Volex for continued success in dynamic market conditions.Volex plc Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.22B | 1.09B | 912.80M | 740.79M | 590.95M |
| Gross Profit | 269.12M | 232.80M | 202.80M | 149.22M | 110.19M |
| EBITDA | 153.11M | 124.40M | 103.70M | 78.61M | 57.69M |
| Net Income | 64.75M | 47.90M | 39.30M | 36.80M | 30.40M |
Balance Sheet | |||||
| Total Assets | 1.04B | 916.60M | 839.10M | 533.84M | 502.02M |
| Cash, Cash Equivalents and Short-Term Investments | 54.10M | 37.70M | 29.80M | 22.44M | 29.03M |
| Total Debt | 206.39M | 212.50M | 183.80M | 125.88M | 124.08M |
| Total Liabilities | 586.67M | 546.40M | 503.50M | 301.73M | 294.05M |
| Stockholders Equity | 441.48M | 361.00M | 327.20M | 224.73M | 200.59M |
Cash Flow | |||||
| Free Cash Flow | 38.57M | 31.20M | 46.70M | 38.64M | 3.46M |
| Operating Cash Flow | 69.57M | 77.30M | 78.30M | 57.39M | 17.88M |
| Investing Cash Flow | -32.37M | -55.10M | -167.30M | -30.85M | -66.73M |
| Financing Cash Flow | -21.25M | -15.00M | 95.50M | -32.18M | 38.85M |
Volex plc Technical Analysis
Neutral
562.00
Price Trends
618.84
Negative
546.33
Positive
471.32
Positive
Market Momentum
-17.31
Positive
28.40
Positive
23.62
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 562 is below the 20-day moving average (MA) of 594.40, below the 50-day MA of 618.84, and above the 200-day MA of 471.32, indicating a neutral trend. The MACD of -17.31 indicates Positive momentum. The RSI at 28.40 is Positive, neither overbought nor oversold. The STOCH value of 23.62 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | £419.22M | 21.10 | 20.71% | 3.92% | 11.92% | 41.55% | |
64 Neutral | £283.64M | 11.57 | 13.58% | 2.58% | -2.13% | 3.94% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £1.03B | 21.32 | 14.90% | 1.11% | 8.85% | 29.67% | |
61 Neutral | £169.95M | -37.57 | -33.79% | ― | -13.43% | ― | |
54 Neutral | £543.99M | -46.02 | -6.50% | ― | -6.96% | -1.58% | |
50 Neutral | £8.39M | 36.49 | -2.20% | ― | 19.87% | ― |
* Industrials Sector Average
GB:VLX
Volex plc
563.00
200.89
55.48%
GB:DIA
Dialight
425.00
229.00
116.84%
GB:LPA
LPA Group plc
63.50
13.50
27.00%
GB:LUCE
Luceco plc
272.00
126.70
87.20%
GB:TFW
FW Thorpe Plc
253.00
-67.14
-20.97%
GB:XPP
XP Power
1,942.00
1,012.00
108.82%
Volex plc Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Volex Sets July Date to Shift Listing from AIM to London Main Market
Positive
Jun 25, 2026
Volex plc, a specialist manufacturer of critical power and data transmission products, is transitioning its share listing from London’s AIM market to the Main Market of the London Stock Exchange. The move reflects the company’s positio...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesFinancial Disclosures
Volex Delivers Record Results and Fast-Tracks Growth Plans as It Targets Main Market Move
Positive
Jun 25, 2026
Volex reported record annual revenues of $1.24 billion and a double-digit underlying operating margin of 10.2%, completing its five-year growth plan a year early and lifting profitability across key metrics. Strong demand from data centres and off...
Business Operations and StrategyFinancial Disclosures
Volex schedules June release of preliminary annual results and investor briefing
Neutral
May 26, 2026
Volex plc, a UK-based manufacturer of complex power and data connectivity systems for mission-critical uses, serves international blue-chip customers across electric vehicle, consumer electrical, medical, industrial technology and off-highway mark...
Business Operations and StrategyFinancial Disclosures
Volex sets new medium-term growth targets at Capital Markets Event
Positive
Apr 22, 2026
Volex plc will today host a Capital Markets Event in London for institutional investors and analysts, where senior management will showcase how the group has evolved into a complexity-led manufacturer of integrated systems. The company will highli...
Business Operations and StrategyStock BuybackDelistings and Listing Changes
Volex Targets Main Market Listing and £40m Share Buyback
Positive
Apr 7, 2026
Volex plc confirmed it intends to move its listing from London’s AIM to the Main Market, targeting admission before 4 August 2026, which would allow potential inclusion in the FTSE 250 index. The shift, which does not require shareholder app...
Business Operations and StrategyStock Buyback
Volex launches £40m share buyback to return surplus capital
Positive
Apr 7, 2026
Volex plc, a global supplier of power and data connectivity products to OEMs and EMS companies, focuses on mission-critical applications across sectors including electric vehicles, consumer electronics, medical equipment, complex industrial techno...
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.