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Plexus (PLXS)
NASDAQ:PLXS
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Plexus
(NASDAQ:PLXS)
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Rating:78Outperform
Price Target:
$171.00
▲(13.76% Upside)
Plexus' strong financial performance and positive earnings call are the most significant factors driving the score. The technical indicators support a positive trend, while the valuation suggests some caution due to a high P/E ratio. The absence of a dividend yield is a minor drawback.
Positive Factors
Strong Financial Performance
Plexus' ability to achieve record revenue and high operating margins indicates robust financial health and operational efficiency, supporting long-term growth and profitability.
New Program Wins
Winning new programs and expanding market opportunities, especially in defense and industrial sectors, strengthens Plexus' market position and revenue base.
Customer Satisfaction
High customer satisfaction enhances client retention and attracts new business, contributing to sustained revenue growth and competitive advantage.
Negative Factors
Decline in Free Cash Flow Growth
A decline in free cash flow growth can limit Plexus' ability to invest in new opportunities and manage debt, potentially impacting long-term financial flexibility.
Production Delays
Production delays can disrupt supply chains and delay revenue realization, affecting Plexus' growth in key sectors like healthcare.
Revenue Pushouts
Revenue pushouts in critical subsectors can lead to short-term revenue volatility and impact Plexus' ability to meet financial targets.
Plexus (PLXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.06B
Dividend YieldN/A
Average Volume (3M)207.60K
Price to Earnings (P/E)25.6
Beta (1Y)1.08
Revenue Growth2.31%
EPS Growth48.63%
CountryUS
Employees20,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)1.90
Shares Outstanding26,986,727
10 Day Avg. Volume211,167
30 Day Avg. Volume207,596
Financial Highlights & Ratios
PEG Ratio-1.76
Price to Book (P/B)2.82
Price to Sales (P/S)0.94
P/FCF Ratio10.95
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit8.97
Enterprise Value/Ebitda13.29
Forecast
1Y Price Target
$158.17Price Target Upside5.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Plexus Business Overview & Revenue Model
Company DescriptionPlexus Corp., together with its subsidiaries, provides electronic manufacturing services in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers design and development, supply chain, new product introduction, and manufacturing solutions, as well as aftermarket services to companies in the healthcare/life sciences, industrial/commercial, aerospace/defense, and communications market sectors. Plexus Corp. was founded in 1979 and is headquartered in Neenah, Wisconsin.
How the Company Makes MoneyPlexus generates revenue through a combination of contract manufacturing services, engineering services, and product development. The company's primary revenue streams include the manufacturing of electronic assemblies and systems for original equipment manufacturers (OEMs), which account for a significant portion of its earnings. Plexus also earns money by providing design and engineering services that help clients optimize product performance and manufacturability. Key partnerships with major technology companies and consistent investments in advanced manufacturing technologies enhance its competitive position and contribute to its revenue growth. Additionally, Plexus benefits from long-term contracts and relationships with clients that ensure a steady stream of business, particularly in the high-growth sectors of healthcare and industrial automation.
Plexus Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Plexus' strong financial performance, including record revenue and operating margin, robust free cash flow, and significant new program wins across various sectors. While there were some challenges, such as a temporary production delay in the Healthcare/Life Sciences segment and revenue pushouts in the semiconductor capital equipment subsector, the company's achievements and positive outlook for future growth significantly outweigh these issues.Q3-2025 Updates
Positive Updates
Record Revenue and Operating Margin
Plexus achieved revenue of $1.018 billion, meeting guidance, and a non-GAAP operating margin of 6.0%, which is near the high end of guidance and an increase of 30 basis points sequentially.
Strong Free Cash Flow and Shareholder Returns
Generated $13.2 million of free cash flow, significantly better than expectations, and reduced debt while increasing share repurchase authorization.
New Program Wins and Market Expansion
Secured 41 new manufacturing programs, expected to generate $250 million in annual revenue. Expanded opportunities in European defense sector and industrial market.
High Customer Satisfaction
Achieved a 7-year high in customer satisfaction score from the Net Promoter Survey.
Positive Recognition and Sustainability Initiatives
Received recognition as one of America's greatest workplaces and released a Sustainability Report highlighting environmental initiatives.
Negative Updates
Temporary Production Delays in Healthcare/Life Sciences
A customer design update resulted in a temporary production delay, impacting the expected growth in this segment.
Pushouts in Semiconductor Capital Equipment
Experienced revenue pushouts in the semi-cap subsector, impacting the expected performance in the industrial market.
Company Guidance
During the Q3 2025 earnings call, Plexus provided guidance indicating strong financial performance, with revenue reaching $1.018 billion, which met their guidance. The company achieved a non-GAAP operating margin of 6%, which was at the high end of their guidance and a non-GAAP EPS of $1.90, exceeding expectations due to strong operating performance and favorable tax rates. For Q4 2025, Plexus forecasts revenue between $1.025 billion and $1.065 billion, a non-GAAP operating margin of 5.7% to 6.1%, and non-GAAP EPS of $1.82 to $1.97. The company also anticipates generating approximately $100 million in free cash flow for fiscal 2025 and reported $13.2 million of free cash flow in Q3, surpassing expectations. Additionally, Plexus highlighted their strategic investments that are driving organizational and operational efficiency, contributing to sustained profitability and long-term shareholder value.Plexus Financial Statement Overview
Summary
Plexus shows strong profitability with improving margins and a solid balance sheet. The company has reduced leverage and improved its financial stability. However, the decline in free cash flow growth is a concern that needs addressing.Income Statement
Plexus demonstrates strong profitability with improving margins. The TTM gross profit margin is 10.18%, and the net profit margin has increased to 4.04% from 2.82% in the previous year. Revenue growth is positive at 1.45% TTM, indicating a recovery from the previous year's decline. The EBIT and EBITDA margins have also improved, reflecting operational efficiency.85
Very Positive
Balance Sheet
The balance sheet shows a healthy financial position with a low debt-to-equity ratio of 0.12 TTM, down from 0.21 the previous year, indicating reduced leverage. Return on equity is strong at 12.02%, reflecting effective use of equity to generate profits. The equity ratio is stable, suggesting a solid capital structure.78
Positive
Cash Flow
Cash flow analysis reveals some challenges, with a significant decline in free cash flow growth at -28.74% TTM. However, the operating cash flow to net income ratio is 0.22, indicating reasonable cash generation relative to net income. The free cash flow to net income ratio remains robust at 0.74, suggesting good cash conversion.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2019 | Dec 2018 | Dec 2017 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.03B | 3.96B | 4.21B | 3.16B | 2.87B | 2.53B |
| Gross Profit | 409.64M | 378.53M | 394.55M | 291.84M | 257.60M | 255.85M |
| EBITDA | 276.64M | 236.25M | 288.55M | 196.11M | 165.96M | 175.24M |
| Net Income | 162.68M | 111.81M | 139.09M | 108.62M | 13.04M | 112.06M |
Balance Sheet | ||||||
| Total Assets | 3.11B | 3.15B | 3.32B | 2.00B | 1.93B | 1.98B |
| Cash, Cash Equivalents and Short-Term Investments | 237.57M | 345.11M | 256.23M | 223.76M | 297.27M | 568.86M |
| Total Debt | 174.09M | 279.59M | 469.61M | 287.98M | 188.62M | 313.11M |
| Total Liabilities | 1.69B | 1.83B | 2.11B | 1.14B | 1.01B | 950.24M |
| Stockholders Equity | 1.42B | 1.32B | 1.21B | 865.58M | 921.14M | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | 250.59M | 341.32M | 61.77M | 24.70M | 4.05M | 133.20M |
| Operating Cash Flow | 337.34M | 436.50M | 165.82M | 115.30M | 66.83M | 171.73M |
| Investing Cash Flow | -87.06M | -94.95M | -93.30M | -89.36M | -74.62M | -37.83M |
| Financing Cash Flow | -289.56M | -255.59M | -92.72M | -97.22M | -265.46M | 1.30M |
Plexus Technical Analysis
Positive
150.32
Price Trends
138.88
Positive
135.72
Positive
135.39
Positive
Market Momentum
1.77
Negative
59.46
Neutral
75.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLXS, the sentiment is Positive. The current price of 150.32 is above the 20-day moving average (MA) of 144.20, above the 50-day MA of 138.88, and above the 200-day MA of 135.39, indicating a bullish trend. The MACD of 1.77 indicates Negative momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 75.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLXS.
Plexus Risk Analysis
Plexus disclosed 21 risk factors in its most recent earnings report. Plexus reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Plexus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.09B | 28.50 | 11.58% | ― | 5.87% | 20.66% | |
78 Outperform | $4.06B | 25.58 | 12.12% | ― | 2.31% | 48.63% | |
77 Outperform | $683.81M | 28.29 | 11.21% | 0.88% | 22.09% | -5.26% | |
74 Outperform | $4.32B | 29.51 | 16.49% | ― | 11.33% | 18.47% | |
68 Neutral | $968.66M | 4,536.36 | 4.36% | ― | -7.67% | 7.66% | |
67 Neutral | $1.48B | 39.43 | 3.49% | 1.64% | -5.95% | -43.46% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
PLXS
Plexus
148.52
10.34
7.48%
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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.