AIM:VLX

Stock Analysis Report

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Market Cap

UK£552.0m

Last Updated

2021/08/01 17:36 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Outstanding track record with flawless balance sheet.

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 +/- 5% a week.

Volatility Over Time: VLX's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.2%

VLX

1.9%

GB Electrical

0.3%

GB Market


1 Year Return

156.8%

VLX

78.2%

GB Electrical

22.5%

GB Market

Return vs Industry: VLX exceeded the UK Electrical industry which returned 78.2% over the past year.

Return vs Market: VLX exceeded the UK Market which returned 22.5% over the past year.


Shareholder returns

VLXIndustryMarket
7 Day2.2%1.9%0.3%
30 Day-4.8%-6.9%-0.8%
90 Day2.9%-11.1%1.5%
1 Year159.4%156.8%79.5%78.2%27.8%22.5%
3 Year356.2%342.6%248.0%236.4%13.3%0.9%
5 Year685.4%662.0%353.9%333.6%39.6%13.2%

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?

19.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VLX (£3.51) is trading above our estimate of fair value (£2.63)

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 (19.1x) compared to the UK Electrical industry average (31.5x).

PE vs Market: VLX is good value based on its PE Ratio (19.1x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: VLX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: VLX is overvalued based on its PB Ratio (4.1x) compared to the GB Electrical industry average (3.9x).


Future Growth

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

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VLX's earnings are forecast to decline over the next 3 years (-0.3% per year).

Earnings vs Market: VLX's earnings are forecast to decline over the next 3 years (-0.3% per year).

High Growth Earnings: VLX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VLX's revenue (10.2% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: VLX's revenue (10.2% 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 (21.2%)


Past Performance

How has Volex performed over the past 5 years?

69.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VLX has high quality earnings.

Growing Profit Margin: VLX's current net profit margins (8.8%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: VLX has become profitable over the past 5 years, growing earnings by 69% per year.

Accelerating Growth: VLX's earnings growth over the past year (164.7%) exceeds its 5-year average (69% per year).

Earnings vs Industry: VLX earnings growth over the past year (164.7%) exceeded the Electrical industry 54.4%.


Return on Equity

High ROE: VLX's Return on Equity (21.1%) is considered high.


Financial Health

How is Volex's financial position?


Financial Position Analysis

Short Term Liabilities: VLX's short term assets ($227.3M) exceed its short term liabilities ($155.1M).

Long Term Liabilities: VLX's short term assets ($227.3M) exceed its long term liabilities ($71.0M).


Debt to Equity History and Analysis

Debt Level: VLX's debt to equity ratio (23.8%) is considered satisfactory.

Reducing Debt: VLX's debt to equity ratio has reduced from 66.1% to 23.8% over the past 5 years.

Debt Coverage: VLX's debt is well covered by operating cash flow (88.4%).

Interest Coverage: VLX's interest payments on its debt are well covered by EBIT (15.2x coverage).


Balance Sheet


Dividend

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

0.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VLX's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: VLX's dividend (0.92%) is low compared to the top 25% of dividend payers in the UK market (3.94%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.9%), 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 (17.7% payout ratio).


Next Steps

Management

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

0.7yrs

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 ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: VLX's board of directors are not considered experienced ( 1.3 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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


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£551.992m
  • Shares outstanding: 157.49m
  • Website: https://www.volex.com

Number of Employees


Location

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

Listings


Biography

Volex plc manufactures and supplies power products and cable assemblies in North America, Europe, and Asia. The company designs, manufactures, and sells power cords, duck heads, and related products to man...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 17:36
End of Day Share Price2021/07/30 00:00
Earnings2021/04/04
Annual Earnings2021/04/04


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.