AIM:VLX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has Volex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VLX is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: VLX's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-3.9%

VLX

0.5%

GB Electrical

-0.4%

GB Market


1 Year Return

112.4%

VLX

1.2%

GB Electrical

-10.0%

GB Market

Return vs Industry: VLX exceeded the UK Electrical industry which returned 1.2% over the past year.

Return vs Market: VLX exceeded the UK Market which returned -10% over the past year.


Shareholder returns

VLXIndustryMarket
7 Day-3.9%0.5%-0.4%
30 Day13.7%29.8%13.7%
90 Day53.1%41.5%6.4%
1 Year117.6%112.4%1.3%1.2%-6.4%-10.0%
3 Year236.7%228.6%17.1%12.3%1.6%-10.9%
5 Year401.3%389.3%238.6%-86.1%27.5%-1.5%

Long-Term Price Volatility Vs. Market

How volatile is Volex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Volex undervalued compared to its fair value and its price relative to the market?

24.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VLX (£2.74) is trading above our estimate of fair value (£2.71)

Significantly Below Fair Value: VLX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VLX is good value based on its PE Ratio (24.6x) compared to the GB Electrical industry average (29.6x).

PE vs Market: VLX is poor value based on its PE Ratio (24.6x) compared to the UK market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VLX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VLX is overvalued based on its PB Ratio (3.7x) compared to the GB Electrical industry average (2.7x).


Next Steps

Future Growth

How is Volex forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if VLX's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if VLX's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VLX's revenue (6.1% per year) is forecast to grow slower than the UK market (6.8% per year).

High Growth Revenue: VLX's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VLX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Volex performed over the past 5 years?

67.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VLX has high quality earnings.

Growing Profit Margin: VLX's current net profit margins (5.6%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: VLX has become profitable over the past 5 years, growing earnings by 67.7% per year.

Accelerating Growth: VLX's earnings growth over the past year (63.6%) is below its 5-year average (67.7% per year).

Earnings vs Industry: VLX earnings growth over the past year (63.6%) exceeded the Electrical industry -13.9%.


Return on Equity

High ROE: VLX's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Volex's financial position?


Financial Position Analysis

Short Term Liabilities: VLX's short term assets ($183.2M) exceed its short term liabilities ($107.3M).

Long Term Liabilities: VLX's short term assets ($183.2M) exceed its long term liabilities ($15.1M).


Debt to Equity History and Analysis

Debt Level: VLX's debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: VLX's debt to equity ratio has reduced from 66.9% to 1.5% over the past 5 years.

Debt Coverage: VLX's debt is well covered by operating cash flow (2221.2%).

Interest Coverage: VLX's interest payments on its debt are well covered by EBIT (20x coverage).


Balance Sheet


Next Steps

Dividend

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

1.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VLX's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: VLX's dividend (1.33%) is low compared to the top 25% of dividend payers in the UK market (4.93%).


Stability and Growth of Payments

Stable Dividend: VLX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VLX's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), VLX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VLX's dividends in 3 years are forecast to be well covered by earnings (19.5% payout ratio).


Next Steps

Management

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

3.9yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
Nathaniel Philip Victor Rothschild
Executive Chairman5yrsUS$1.65m25.04%
$ 104.3m
Dean Moore
Senior Independent Non-Executive Director3.33yrsUS$70.00k0.0099%
$ 41.1k
Adrian Chamberlain
Independent Non-Executive Director4.42yrsUS$60.00k0.016%
$ 68.4k
Peter Westmacott
Independent Non-Executive Directorno datano datano data
Jeffrey Jackson
Independent Non-Executive Director1.33yrsUS$37.50k0.0066%
$ 27.4k

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: VLX's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: VLX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

Volex plc's company bio, 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
  • Market Cap: UK£416.601m
  • Shares outstanding: 152.04m
  • 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

Biography

Volex plc manufactures and supplies power products and cable assemblies in North America, Europe, and Asia. The company’s Power Products division designs, manufactures, and sells power cords, duck heads, a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 20:38
End of Day Share Price2020/11/27 00:00
Earnings2020/10/04
Annual Earnings2020/04/05


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.