NasdaqGS:PLXS

Stock Analysis Report

Executive Summary

Plexus Corp., together with its subsidiaries, provides electronic manufacturing services in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

PLXS

2.4%

US Electronic

0.07%

US Market


1 Year Return

20.8%

PLXS

16.3%

US Electronic

8.9%

US Market

Return vs Industry: PLXS matched the US Electronic industry which returned 16.3% over the past year.

Return vs Market: PLXS exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

PLXSIndustryMarket
7 Day3.7%2.4%0.07%
30 Day5.9%3.7%-0.3%
90 Day14.7%2.3%-1.6%
1 Year20.8%20.8%17.5%16.3%11.3%8.9%
3 Year45.5%45.5%55.8%51.4%46.3%36.8%
5 Year64.2%64.2%83.7%74.7%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PLXS ($65.83) is trading above our estimate of fair value ($59.25)

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


Price To Earnings Ratio

PE vs Industry: PLXS is good value based on its PE Ratio (14.1x) compared to the Electronic industry average (19.6x).

PE vs Market: PLXS is good value based on its PE Ratio (14.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: PLXS is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: PLXS is overvalued based on its PB Ratio (2.3x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is Plexus forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLXS's forecast earnings growth (8.4% per year) is above the savings rate (2.7%).

Earnings vs Market: PLXS's earnings (8.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: PLXS's revenue (7.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: PLXS's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLXS's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Plexus performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PLXS's earnings have declined by -4.7% per year over the past 5 years.

Accelerating Growth: PLXS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PLXS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (58.6%).


Return on Equity

High ROE: PLXS's Return on Equity (16.8%) is considered low.


Return on Assets

ROA vs Industry: PLXS has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: PLXS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Plexus's financial position?


Financial Position Analysis

Short Term Liabilities: PLXS's short term assets ($1.6B) exceeds its short term liabilities ($875.6M)

Long Term Liabilities: PLXS's short term assets (1.6B) exceeds its long term liabilities (279.8M)


Debt to Equity History and Analysis

Debt Level: PLXS's debt to equity ratio (32.9%) is considered satisfactory

Reducing Debt: PLXS's debt to equity ratio has reduced from 34.6% to 32.9% over the past 5 years.

Debt Coverage: PLXS's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: PLXS's interest payments on its debt are well covered by EBIT (15.6x coverage).


Balance Sheet

Inventory Level: PLXS has a high level of physical assets or inventory.

Debt Coverage by Assets: PLXS's debt is covered by short term assets (assets are 5.5x debt).


Next Steps

Dividend

What is Plexus's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate PLXS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PLXS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if PLXS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PLXS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PLXS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Plexus's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Todd Kelsey (54yo)

3.1yrs

Tenure

US$6,673,723

Compensation

Mr. Todd P. Kelsey has been the Chief Executive Officer and President of Plexus Corp. since September 30, 2016. Mr. Kelsey served as Chief Operating Officer and Executive Vice President at Plexus Corp. sin ...


CEO Compensation Analysis

Compensation vs. Market: Todd's total compensation ($USD6.67M) is about average for companies of similar size in the US market ($USD4.07M).

Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.4yrs

Average Tenure

53yo

Average Age

Experienced Management: PLXS's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: PLXS's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: PLXS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$86,29503 Sep 19
Scott Theune
EntityIndividual
Shares1,503
Max PriceUS$57.42
SellUS$242,87123 Aug 19
Steven Frisch
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares4,161
Max PriceUS$58.37
SellUS$230,92522 Aug 19
Ronald Darroch
EntityIndividual
Role
Senior Key Executive
Executive VP & Regional President of EMEA
Shares4,045
Max PriceUS$57.09
SellUS$87,17805 Aug 19
Patrick Jermain
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,451
Max PriceUS$60.08
SellUS$252,25531 Jul 19
Todd Kelsey
EntityIndividual
Role
Chief Executive Officer
President
Shares4,232
Max PriceUS$59.85
SellUS$261,90325 Apr 19
Ronald Darroch
EntityIndividual
Role
Senior Key Executive
Executive VP & Regional President of EMEA
Shares4,325
Max PriceUS$61.24
SellUS$239,70125 Apr 19
Todd Kelsey
EntityIndividual
Role
Chief Executive Officer
President
Shares3,943
Max PriceUS$60.79
SellUS$194,95305 Feb 19
Ronald Darroch
EntityIndividual
Role
Senior Key Executive
Executive VP & Regional President of EMEA
Shares3,454
Max PriceUS$56.44
SellUS$175,84331 Oct 18
Todd Kelsey
EntityIndividual
Role
Chief Executive Officer
President
Shares3,000
Max PriceUS$59.58

Ownership Breakdown


Management Team

  • Angelo Ninivaggi (52yo)

    Executive VP

    • Tenure: 6.2yrs
    • Compensation: US$1.91m
  • Todd Kelsey (54yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$6.67m
  • YJ Lim (59yo)

    Regional President of APAC

    • Tenure: 12.2yrs
    • Compensation: US$1.80m
  • Steve Frisch (53yo)

    Executive VP & COO

    • Tenure: 3yrs
    • Compensation: US$2.79m
  • Ronnie Darroch (54yo)

    Executive VP & Regional President of EMEA

    • Tenure: 5.7yrs
    • Compensation: US$1.80m
  • Pat Jermain (53yo)

    Executive VP & CFO

    • Tenure: 5.4yrs
    • Compensation: US$2.29m
  • Oliver Mihm (47yo)

    Executive Vice President - Global Supply Chain

    • Tenure: 4.3yrs
  • Steve Gearhart

    Chief Information Officer

    • Tenure: 9.8yrs
  • Mike Running

    Senior Vice President of Global Engineering Solutions & Aftermarket Services

    • Tenure: 3yrs
  • Heather Beresford

    Senior Director of Communications & Investor Relations

    • Tenure: 0yrs

Board Members

  • Dean Foate (61yo)

    Non Executive Chairman

    • Tenure: 6.7yrs
    • Compensation: US$385.49k
  • Paul Rooke (60yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$204.69k
  • Dave Drury (71yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$222.44k
  • Stephen Cortinovis (69yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$207.19k
  • Ralf Böer (71yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$215.69k
  • Mike Schrock (66yo)

    Lead Director

    • Tenure: 6.7yrs
    • Compensation: US$228.44k
  • Peter Kelly (62yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: US$215.44k
  • Rainer Jueckstock (60yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$210.94k
  • Todd Kelsey (54yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$6.67m
  • Jo Eisenhart (60yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$204.69k

Company Information

Plexus Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Plexus Corp.
  • Ticker: PLXS
  • Exchange: NasdaqGS
  • Founded: 1979
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$1.928b
  • Shares outstanding: 29.28m
  • Website: https://www.plexus.com

Number of Employees


Location

  • Plexus Corp.
  • One Plexus Way
  • Neenah
  • Wisconsin
  • 54957
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLXSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1986
PX4DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1986

Biography

Plexus Corp., together with its subsidiaries, provides electronic manufacturing services in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers design and development, supply cha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:39
End of Day Share Price2019/10/23 00:00
Earnings2019/06/29
Annual Earnings2018/09/29


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.