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Volex plc
(LSE:VLX)
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Rating:67Neutral
Price Target:
611.00 p
▼(-0.49% Downside)
Action:Downgraded
Date:10/20/26
The score is primarily supported by solid financial performance (growing revenue/profitability and improving leverage) and a strong, clearly articulated earnings-call outlook with margin expansion targets. Offsetting this are softer technicals (trading below key short-term moving averages) and only moderate valuation support (P/E ~24 with a low dividend yield), plus cash-flow consistency concerns.
Positive Factors
Revenue and Profitability Growth
Strong organic growth alongside expanding operating margins indicates that Volex is scaling profitably rather than relying only on acquisitions. Higher earnings and operating leverage can strengthen reinvestment capacity, support customer-program wins, and improve resilience over the next several quarters.
Negative Factors
Data-Center Customer Concentration
Although data-center demand is strong, reliance on one hyperscaler means a customer decision, program change, or slower deployment could affect growth disproportionately. Concentration also reduces the predictability of otherwise attractive high-growth connectivity revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Growth
Strong organic growth alongside expanding operating margins indicates that Volex is scaling profitably rather than relying only on acquisitions. Higher earnings and operating leverage can strengthen reinvestment capacity, support customer-program wins, and improve resilience over the next several quarters.
Read all positive factors
Volex plc (VLX) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.02B
Dividend Yield0.85%
Average Volume (3M)1.22M
Price to Earnings (P/E)21.5
Beta (1Y)1.22
Revenue Growth8.85%
EPS Growth29.67%
CountryUK
Employees12,500
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.35
Shares Outstanding181,892,500
10 Day Avg. Volume1,454,149
30 Day Avg. Volume1,219,405
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
£736.67Price Target Upside19.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.51
Revenue Forecast (FY)£1.40B
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 makes money primarily by selling manufactured connectivity products and assemblies to business customers (typically OEMs and contract manufacturers). Its main revenue streams include: (1) power products—supplying mains power cords, cordsets,...
Volex plc Earnings Call Summary
Earnings Call Date:Jun 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial performance: record revenue, substantial organic growth, margin expansion above guidance, doubled data center revenues, improved returns (ROCE 21%) and reduced leverage (0.8x). Management set an ambitious, clearly articulated medium-term plan to reach $2 billion revenue and 12% operating margin. Key risks were acknowledged—customer concentration in data centers, declines in Consumer Electricals and Medical (destocking), higher working capital, and some macro pressures (freight, inflation, FX), as well as residual selling related to the AIM-to-Main move and elevated acquisition valuations. Overall, the positives (robust growth, margin and cash/return metrics, strategic clarity and momentum) materially outweigh the identifiable challenges.Positive Updates
Record Revenue and Strong Organic Growth
Revenue of $1.243 billion, up 14.4% year-on-year (organic growth 14.2%), delivering the five-year plan a full year early and surpassing the $1.2 billion target.
Negative Updates
Customer Concentration Risk in Data Centers
A material portion of the data center growth was driven by a single hyperscaler customer, creating concentration risk despite management noting diversification outside the two largest customers and that no other customer exceeds ~4% of revenue.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Strong Organic Growth
Revenue of $1.243 billion, up 14.4% year-on-year (organic growth 14.2%), delivering the five-year plan a full year early and surpassing the $1.2 billion target.
Read all positive updates
Company Guidance
Volex's guidance set a clear medium‑term target to reach $2.0bn of revenue at a 12% underlying operating margin (implying roughly $240m of underlying operating profit), driven by about $500m of organic growth plus ~$300m from disciplined capability‑led acquisitions; this implies ~200bps of margin expansion from FY26's 10.2% (FY26 revenue $1.243bn, organic growth 14.2%, underlying operating profit $127.3m, underlying EBITDA $164m up 22%, ROCE 21%, underlying basic EPS $0.435 up 20%). Capital allocation priorities remain organic first, then selective M&A (post‑acquisition ROCE target ≥15% within two years and ~15% operating margin threshold), with typical capex of 3–4% of revenue (FY26 capex $35m, 2.8% of revenue; projects target <2‑year payback), cash conversion 63.9% (pre‑capex >90%), free cash flow $42m, and covenant leverage 0.8x. Near‑term guidance: trading into FY27 is “strong and in line” with expectations, data‑center demand was sustained into Q1 FY27, Medical should stabilise in FY27, and the company expects further margin improvement from site rationalisation and centres of excellence.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
Negative
614.00
Price Trends
616.56
Negative
579.59
Negative
552.61
Positive
Market Momentum
-19.53
Positive
39.95
Neutral
52.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VLX, the sentiment is Negative. The current price of 614 is below the 20-day moving average (MA) of 616.75, below the 50-day MA of 616.56, and above the 200-day MA of 552.61, indicating a neutral trend. The MACD of -19.53 indicates Positive momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 52.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | £279.03M | 10.44 | 14.19% | 2.80% | -1.30% | 10.28% | |
74 Outperform | £305.94M | 15.07 | 19.62% | 1.06% | 11.48% | 46.33% | |
67 Neutral | £1.02B | 21.50 | 15.29% | 0.85% | 8.85% | 29.67% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | £484.60M | -55.06 | -4.89% | 0.04% | -1.21% | 46.27% | |
53 Neutral | £222.06M | 741.63 | 0.86% | 1.60% | -13.43% | ― | |
48 Neutral | £10.83M | 47.13 | 1.42% | 1.29% | 19.87% | ― |
* Industrials Sector Average
GB:VLX
Volex plc
562.00
191.13
51.54%
GB:DIA
Dialight
554.00
296.00
114.73%
GB:LPA
LPA Group plc
82.00
39.50
92.94%
GB:LUCE
Luceco plc
198.50
70.62
55.22%
GB:TFW
FW Thorpe Plc
249.00
-41.09
-14.16%
GB:XPP
XP Power
1,730.00
718.00
70.95%
Volex plc Corporate Events
Stock BuybackRegulatory Filings and Compliance
Volex Reduces Share Capital Through Ongoing Buyback Programme
Positive
Oct 19, 2026
Volex plc has continued its share buyback programme, purchasing 120,000 ordinary shares between 12 October and 16 October 2026 through Peel Hunt LLP at prices ranging from 618.00p to 629.00p, with a volume-weighted average price of 624.92p. The co...
Business Operations and StrategyFinancial Disclosures
Volex posts record first-half revenue and lifts profit outlook
Positive
Oct 19, 2026
Volex reported a record first-half performance for the six months to 30 September 2026, with expected revenue of at least $710 million and growth across all end-markets, including strong contributions from Complex Industrial Technology, EV Electr...
Dividends
Volex Directors Increase Stakes via Scrip Dividend Allotment
Positive
Sep 22, 2026
Volex plc reported changes in director shareholdings following the operation of its scrip dividend scheme on 18 September 2026, under which shareholders can receive dividends in shares rather than cash. Chief executive Lord Rothschild received 275...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Volex Cancels Newly Repurchased Shares, Tightening Free Float
Positive
Sep 21, 2026
Volex plc has executed a share buyback, purchasing 198,384 ordinary shares between 14 and 18 September 2026 through Peel Hunt LLP at prices ranging from 587p to 602p, with a weighted average of around 591p. The company intends to cancel these shar...
DividendsRegulatory Filings and Compliance
Volex issues new shares under scrip dividend, updates voting rights
Neutral
Sep 16, 2026
Volex plc has issued and allotted 478,139 new ordinary shares under its scrip dividend alternative for the final dividend of 3.2 pence per share for the year ended 31 March 2026, based on a scrip reference price of 549.80 pence. Application has be...
Stock BuybackRegulatory Filings and Compliance
Volex Cancels 50,000 Shares Under Ongoing Buyback Programme
Positive
Sep 14, 2026
Volex plc has repurchased 50,000 of its ordinary shares of 25p each between 7 September and 11 September 2026 through Peel Hunt LLP, at prices ranging from 603p to 607p and a volume-weighted average price of 605p. The transactions formed part of t...
Business Operations and StrategyStock Buyback
Volex Cancels 160,000 Shares After September Buyback
Positive
Sep 7, 2026
Volex plc has repurchased 160,000 of its 25p ordinary shares between 1 and 4 September 2026 through broker Peel Hunt LLP as part of its previously announced share buyback programme. The shares were bought at prices ranging from 581.12p to 607.50p,...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Volex Cancels 100,000 Shares After Targeted Buyback
Positive
Sep 1, 2026
Volex plc has repurchased 100,000 of its 25p ordinary shares on the London Stock Exchange between 24 and 28 August 2026 under its previously announced share buyback programme, at prices between 538p and 542p and a volume-weighted average of 540.18...
Regulatory Filings and Compliance
Volex Confirms Total Voting Share Capital for Regulatory Disclosure
Neutral
Sep 1, 2026
Volex plc reported that its total issued share capital as of 31 August 2026 stands at 182,340,336 ordinary shares of 25 pence each, all of which carry voting rights and with no shares held in treasury. This share count will serve as the reference ...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Volex AGM Backs All Resolutions Amid Shareholder Dissent on Pay and Board
Neutral
Aug 25, 2026
Volex plc reported that all resolutions at its Annual General Meeting on 25 August 2026 were approved, including the receipt of its 2026 accounts, a final dividend of 3.2p per share, board elections and re‑elections, and authorities to allot...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresM&A Transactions
Volex upgrades profit outlook after strong start to FY2027 and Main Market move
Positive
Aug 25, 2026
Volex has reported a very strong start to its 2027 financial year, posting 28% constant-currency organic revenue growth in the four months to 31 July, driven by broad-based demand across all five end-markets. Growth was led by Complex Industrial T...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Volex Cancels 385,000 Shares in Ongoing Buyback Programme
Positive
Aug 24, 2026
Volex plc has continued executing its share buyback programme, purchasing 385,000 ordinary shares between 17 and 21 August 2026 at prices ranging from 533p to 561p, with a weighted average price of 543.76p. The company intends to cancel these shar...
Business Operations and StrategyDividendsShareholder Meetings
Volex Sets Terms for Final Dividend and Scrip Share Election
Positive
Aug 20, 2026
Volex plc has proposed a final dividend of 3.2 pence per share for the year ended 31 March 2026, to be paid on 18 September 2026 to shareholders on the register as of 14 August 2026, subject to approval at the annual general meeting on 25 August. ...
Business Operations and StrategyStock Buyback
Volex Cancels 175,000 Shares After Latest Buyback Tranche
Positive
Aug 17, 2026
Volex plc has repurchased 175,000 of its 25p ordinary shares between 10 and 14 August 2026 through Peel Hunt LLP as part of its ongoing share buyback programme. The shares were bought at prices ranging from 555p to 569p, with a weighted average pu...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Volex Cancels 185,000 Shares Under Ongoing Buyback Programme
Positive
Aug 10, 2026
Volex plc has repurchased 185,000 of its own ordinary shares between 3 and 7 August 2026 through broker Peel Hunt, paying prices between 501p and 526.5p and a volume-weighted average of 511.16p per share. The company plans to cancel these shares, ...
Regulatory Filings and Compliance
Volex Confirms Current Share Capital and Voting Rights
Neutral
Aug 3, 2026
Volex plc has confirmed that, as of 31 July 2026, its total issued share capital stands at 183,185,336 ordinary shares of 25 pence each, all of which carry voting rights and none of which are held in treasury. This clarification ensures investors ...
Stock BuybackRegulatory Filings and Compliance
Volex Cancels 662,000 Shares in Ongoing Buyback Programme
Positive
Aug 3, 2026
Volex plc has repurchased 662,304 of its 25p ordinary shares on the London Stock Exchange between 27 and 31 July 2026, at prices ranging from 502p to 538p and a weighted average price of 517.88p. The company plans to cancel these shares, leaving 1...
Business Operations and StrategyStock Buyback
Volex Cancels 530,000 Shares After July Buyback
Positive
Jul 27, 2026
Volex plc has repurchased 530,000 of its ordinary shares between 20 and 24 July 2026 under its previously announced share buyback programme, at prices ranging from 506p to 545p and a weighted average of 518.17p. The company intends to cancel these...
Business Operations and StrategyDelistings and Listing Changes
Volex shifts from AIM to London Stock Exchange Main Market
Positive
Jul 24, 2026
Volex plc, a specialist in critical power and data transmission products, has moved its listing from AIM to the Main Market of the London Stock Exchange, with its ordinary shares now admitted to the FCA’s Official List. The company’s s...
Business Operations and StrategyDelistings and Listing Changes
Volex to Shift Listing from AIM to London Stock Exchange Main Market
Positive
Jul 20, 2026
Volex plc, a specialist in critical power and data transmission products, plans to move its ordinary shares from AIM to the Main Market of the London Stock Exchange. The company’s stock will be admitted to the Equity Shares (Commercial Compa...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Volex advances buyback programme with cancellation of 719,894 shares
Positive
Jul 20, 2026
Volex plc has continued its previously announced share buyback programme, repurchasing 719,894 ordinary shares between 14 July and 17 July 2026 at prices ranging from 516p to 531p, with a weighted average of 524.05p. The company plans to cancel th...
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.