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VLX

Volex AIM:VLX Stock Report

Last Price

UK£2.41

Market Cap

UK£382.5m

7D

-6.1%

1Y

-47.3%

Updated

24 Sep, 2022

Data

Company Financials +
VLX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends2/6

VLX Stock Overview

Volex plc manufactures and supplies power products and cable assemblies in North America, Europe, and Asia.

Volex Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Volex
Historical stock prices
Current Share PriceUK£2.41
52 Week HighUK£4.81
52 Week LowUK£2.09
Beta1.09
1 Month Change-16.93%
3 Month Change1.05%
1 Year Change-47.26%
3 Year Change179.65%
5 Year Change273.59%
Change since IPO-7.50%

Recent News & Updates

Shareholder Returns

VLXGB ElectricalGB Market
7D-6.1%-10.2%-3.1%
1Y-47.3%-61.3%-13.8%

Return vs Industry: VLX exceeded the UK Electrical industry which returned -61.3% over the past year.

Return vs Market: VLX underperformed the UK Market which returned -13.8% over the past year.

Price Volatility

Is VLX's price volatile compared to industry and market?
VLX volatility
VLX Average Weekly Movement6.4%
Electrical Industry Average Movement9.5%
Market Average Movement5.2%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: VLX is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VLX's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19197,800n/ahttps://www.volex.com

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.

Volex Fundamentals Summary

How do Volex's earnings and revenue compare to its market cap?
VLX fundamental statistics
Market CapUK£382.50m
Earnings (TTM)UK£27.81m
Revenue (TTM)UK£562.17m

13.8x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VLX income statement (TTM)
RevenueUS$614.60m
Cost of RevenueUS$488.80m
Gross ProfitUS$125.80m
Other ExpensesUS$95.40m
EarningsUS$30.40m

Last Reported Earnings

Apr 03, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.19
Gross Margin20.47%
Net Profit Margin4.95%
Debt/Equity Ratio49.6%

How did VLX perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

24%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is VLX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VLX?

Other financial metrics that can be useful for relative valuation.

VLX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA8.3x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does VLX's PE Ratio compare to its peers?

VLX PE Ratio vs Peers
The above table shows the PE ratio for VLX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.2x
TFW FW Thorpe
25.1xn/aUK£421.9m
LUCE Luceco
7.6x47.1%UK£136.7m
DSCV discoverIE Group
67.8x20.2%UK£657.5m
PPS Proton Motor Power Systems
0.2xn/aUK£147.4m
VLX Volex
13.8x11.4%UK£382.5m

Price-To-Earnings vs Peers: VLX is good value based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (25.2x).


Price to Earnings Ratio vs Industry

How does VLX's PE Ratio compare vs other companies in the European Electrical Industry?

Price-To-Earnings vs Industry: VLX is good value based on its Price-To-Earnings Ratio (13.8x) compared to the European Electrical industry average (20x)


Price to Earnings Ratio vs Fair Ratio

What is VLX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VLX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.8x
Fair PE Ratio21.4x

Price-To-Earnings vs Fair Ratio: VLX is good value based on its Price-To-Earnings Ratio (13.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.4x).


Share Price vs Fair Value

What is the Fair Price of VLX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VLX (£2.41) is trading below our estimate of fair value (£3.42)

Significantly Below Fair Value: VLX is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Volex forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VLX's forecast earnings growth (11.4% per year) is above the savings rate (0.9%).

Earnings vs Market: VLX's earnings (11.4% per year) are forecast to grow faster than the UK market (8.8% per year).

High Growth Earnings: VLX's earnings are forecast to grow, but not significantly.

Revenue vs Market: VLX's revenue (9% per year) is forecast to grow faster than the UK market (4.6% per year).

High Growth Revenue: VLX's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VLX's Return on Equity is forecast to be high in 3 years time (20.3%)


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Past Performance

How has Volex performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


53.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VLX has high quality earnings.

Growing Profit Margin: VLX's current net profit margins (4.9%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: VLX has become profitable over the past 5 years, growing earnings by 53.4% per year.

Accelerating Growth: VLX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VLX had negative earnings growth (-21.7%) over the past year, making it difficult to compare to the Electrical industry average (14.2%).


Return on Equity

High ROE: VLX's Return on Equity (14.6%) is considered low.


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Financial Health

How is Volex's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VLX's short term assets ($286.4M) exceed its short term liabilities ($169.5M).

Long Term Liabilities: VLX's short term assets ($286.4M) exceed its long term liabilities ($125.3M).


Debt to Equity History and Analysis

Debt Level: VLX's net debt to equity ratio (35.7%) is considered satisfactory.

Reducing Debt: VLX's debt to equity ratio has increased from 39.3% to 49.6% over the past 5 years.

Debt Coverage: VLX's debt is not well covered by operating cash flow (17.9%).

Interest Coverage: VLX's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet


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Dividend

What is Volex current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VLX's dividend (1.5%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.05%).

High Dividend: VLX's dividend (1.5%) is low compared to the top 25% of dividend payers in the UK market (5.77%).


Stability and Growth of Payments

Stable Dividend: VLX's dividend payments have been volatile in the past 10 years.

Growing Dividend: VLX's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (24.4%), VLX's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (178.8%), VLX's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Volex has no CEO, or we have no data on them.


Leadership Team

Experienced Management: VLX's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: VLX's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

AIM:VLX Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
18 May 22BuyUK£7,500Nathaniel Philip Victor RothschildIndividual30,000UK£0.25
17 May 22BuyUK£12,240Nathaniel Philip Victor RothschildIndividual5,000UK£2.45
14 Mar 22BuyUK£248,879Dom MolloyIndividual95,000UK£2.62
24 Feb 22BuyUK£6,381Jeffrey JacksonIndividual2,500UK£2.55
15 Feb 22BuyUK£4,986Jonathan BoadenIndividual1,788UK£2.79
11 Oct 21BuyUK£251,040Nathaniel Philip Victor RothschildIndividual60,000UK£4.18

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 70.67% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
24.5%
Nathaniel Philip Victor Rothschild
38,964,581$93.7m0%no data
6.55%
Ruffer LLP
10,410,970$25.0m-7.54%0.32%
5.2%
Investec Wealth & Investment Limited
8,264,244$19.9m4.1%0.2%
3.75%
Hargreave Hale Limited, Asset Management Arm
5,963,021$14.3m0%0.43%
3.17%
Herald Investment Management Limited
5,038,020$12.1m0%1.44%
2.09%
Türkiye Is Bankasi A.S., Asset Management Arm
3,320,000$8.0m0%47.19%
1.94%
Raymond James Financial Inc., Asset Management Arm
3,084,938$7.4m0%0.01%
1.89%
Allianz Asset Management AG
3,002,590$7.2m0%0.01%
1.73%
A J Bell Holdings Limited, Asset Management Arm
2,756,492$6.6m6.27%0.1%
1.73%
Chelverton Asset Management Limited
2,750,000$6.6m0%0.43%
1.57%
Downing Ventures
2,494,918$6.0m-16.93%2.81%
1.54%
Barclays Bank PLC, Wealth and Investment Management Division
2,457,121$5.9m-3.95%0.08%
1.47%
Charles Stanley & Co. Ltd, Asset Management Arm
2,334,906$5.6m-1.61%0.06%
1.46%
Schroder Investment Management Limited
2,321,497$5.6m0%0.01%
1.44%
Dom Molloy
2,295,700$5.5m0%no data
1.44%
HBOS Investment Fund Managers Limited
2,295,549$5.5m5.28%0.06%
1.41%
Premier Fund Managers Limited
2,250,000$5.4m2.27%0.08%
1.12%
Janus Henderson Group plc
1,785,233$4.3m1.37%no data
1.11%
London Wealth Management Limited
1,769,767$4.3m3.54%0.3%
1.08%
Vontobel Asset Management AG
1,720,354$4.1m-27.88%0.05%
1.04%
Santander Asset Management, S.A., S.G.I.I.C.
1,647,116$4.0m0%0.02%
0.97%
BlackRock, Inc.
1,541,115$3.7m-4.42%no data
0.93%
Lupus Alpha Asset Management GmbH
1,482,000$3.6m14%0.43%
0.77%
Volex Group plc, Employee Share Trust
1,231,577$3.0m0%no data
0.76%
REYL & Cie SA
1,215,446$2.9m0%64.41%

Company Information

Volex plc's employee growth, exchange listings and data sources


Key Information

  • Name: Volex plc
  • Ticker: VLX
  • Exchange: AIM
  • Founded: 1919
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Implied Market Cap: UK£382.499m
  • Shares outstanding: 159.04m
  • Website: https://www.volex.com

Number of Employees


Location

  • Volex plc
  • Unit C1 Antura
  • Bond Close
  • Basingstoke
  • Hampshire
  • RG24 8PZ
  • United Kingdom


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VLXAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992
VLXG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
64KDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/04/03
Annual Earnings2022/04/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.