Volex plc (VLX) AI Stock Analysis

• Market Cap: £660.50M
• Dividend Yield: 1.17%
• Average Volume (3M): 325.85K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.40
• Revenue Growth: 17.23%
• EPS Growth: 15.46%
• Country: UK
• Employees: 14,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.14
• Shares Outstanding: 184,952,960
• 10 Day Avg. Volume: 352,398
• 30 Day Avg. Volume: 325,853
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £430.00
• Price Target Upside: 19.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: 382.00p ▲(6.56% Upside)

Volex plc's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting significant growth and strategic execution. Technical analysis indicates some short-term bearish momentum, but longer-term trends remain positive. The valuation is reasonable, providing a balanced outlook for investors.

Positive Factors

Revenue Growth

Achieving over $1 billion in revenue marks a significant milestone, indicating strong market demand and effective execution of growth strategies.

Electric Vehicles Segment Growth

The robust growth in the electric vehicles segment aligns with industry trends and positions Volex as a key player in a rapidly expanding market.

Operational Efficiency

Consistent operating margins demonstrate effective cost management and operational efficiency, supporting sustainable profitability.

Negative Factors

Medical Segment Decline

A decline in the medical segment may indicate challenges in maintaining market share or adapting to changing industry dynamics.

Inflationary Pressures

Inflationary pressures in key regions can erode margins and necessitate cost control measures, impacting profitability.

Tariff Challenges

Increased tariffs pose a risk to revenue and may require strategic adjustments to supply chain and pricing strategies.

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 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: 358.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 358.5 is above the 20-day moving average (MA) of 343.05, above the 50-day MA of 353.40, and above the 200-day MA of 299.74, indicating a bullish trend. The MACD of 1.99 indicates Negative momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 84.92 is Negative, 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	£341.81M	13.95	―	1.45%	-0.29%	11.71%
SUP	75 Outperform	£214.10M	9.08	30.74%	2.85%	4.44%	4.86%
VLX	75 Outperform	£660.50M	17.67	13.95%	1.17%	17.23%	15.46%
LUCE	71 Outperform	£200.36M	13.82	15.24%	3.92%	18.90%	-20.79%
XPP	57 Neutral	£269.47M	-16.99	-6.61%	―	-18.43%	24.86%
EAAS	44 Neutral	£19.36M	-4.55	-154.19%	―	20.98%	17.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Volex plc Corporate Events

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.

Volex plc AGM Resolutions Passed with Strong Shareholder Support

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.

Volex plc Proposes Final Dividend with Scrip Option

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.

Volex Reports Strong Start to FY2026 with Robust Q1 Performance

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.

Volex COO’s Spouse Sells Significant Shareholding

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.

Volex plc Publishes 2025 AGM Notice and Annual Report

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.