Volex plc (VLX) AI Stock Analysis

• Market Cap: £797.07M
• Dividend Yield: 1.11%
• Average Volume (3M): 449.87K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.54
• 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: 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: £470.00
• Price Target Upside: 8.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 498.00p ▲(14.75% 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 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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	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	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	-30.28M	-15.00M	95.50M	-32.18M	38.85M	15.32M

Volex plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 434.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 434 is above the 20-day moving average (MA) of 421.50, above the 50-day MA of 408.27, and above the 200-day MA of 344.62, indicating a bullish trend. The MACD of 8.97 indicates Negative momentum. The RSI at 62.01 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 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
VLX	75 Outperform	£797.07M	18.30	15.54%	1.11%	8.20%	25.85%
LUCE	69 Neutral	£205.29M	14.16	15.66%	3.92%	18.90%	-20.79%
TFW	64 Neutral	£310.63M	12.66	13.87%	2.58%	-0.33%	4.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DIA	63 Neutral	£132.84M	23.83	15.77%	―	-5.73%	―
XPP	57 Neutral	£253.50M	-15.98	-8.12%	―	-18.43%	24.86%
LPA	45 Neutral	£6.28M	-28.27	-1.39%	―	-10.88%	-122.05%

Volex plc Corporate Events

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.

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.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £473.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Volex plc Reports 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.