Update shared on 12 Dec 2025
Analysts have nudged their price target on Volex slightly higher to reflect marginally stronger long term growth and profitability assumptions, resulting in a modest increase in the stock's estimated fair value in currency terms.
What's in the News
- The board has declared an increased interim dividend of 1.6 pence per share for the half year ended September 30, 2025, up 6.7% year on year, reaffirming a progressive dividend policy and offering a scrip dividend alternative to cash (Company announcement).
- The interim dividend is scheduled for payment on 8 January 2026 to shareholders on the register as of 28 November 2025, with an ex-dividend date of 27 November 2025 and a reference price for the scrip dividend to be announced on 4 December 2025 (Company announcement).
- Nat Rothschild has been appointed Chief Executive Officer with immediate effect from 12 November 2025, signaling a leadership transition at the top of the group (Company announcement).
- The company guides first half 2025 revenues to exceed $575 million with at least 11% organic growth, supported by strong demand from blue chip customers across five end markets (Company guidance).
- The operating margin for the first half is expected to be in the upper half of the 9 to 10 percent target range, with second half 2026 revenues anticipated to be broadly similar to the first half, indicating stable trading conditions (Company guidance).
Valuation Changes
- Fair Value Estimate: unchanged at £4.56 per share, indicating no material revision to the long term intrinsic value assessment.
- Discount Rate: risen slightly from 10.17% to 10.17%, reflecting a marginally higher implied risk premium in the cash flow discounting model.
- Revenue Growth Assumption: broadly unchanged at around 4.94% per year, suggesting a stable outlook for top line expansion.
- Net Profit Margin: effectively unchanged at approximately 5.76%, indicating no significant shift in long term profitability expectations.
- Future P/E Multiple: risen slightly from 19.47x to 19.74x, modestly increasing the valuation applied to forecast earnings.
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