Plexus (PLXS): Evaluating Valuation After Strong Q4 Earnings Beat and Renewed Analyst Focus

Plexus (PLXS) just surpassed expectations with its fourth-quarter earnings, reporting an earnings per share of $2.14. This clear beat has quickly put the company on investors’ radar and has prompted discussion about its future growth prospects.

See our latest analysis for Plexus.

Plexus’s standout quarterly results have come amid a year of mixed share price momentum. Despite a recent 3.04% gain over the past week and a steady 5.41% share price return for the quarter, its year-to-date share price remains down 8.24%. Looking at a broader timeframe, the total shareholder return over the past year sits at -14.43%. The stock’s three- and five-year total shareholder returns of 31.78% and 80.43% indicate meaningful long-term value for patient investors.

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With shares trading below analysts’ targets and recent results exceeding expectations, the big question is whether Plexus is currently undervalued or if the market is already pricing in most of its growth potential.

Most Popular Narrative: 10% Undervalued

Plexus’s narrative consensus places fair value notably above the latest close. This suggests investors could be overlooking some key drivers of future value compared to the current price.

The company's increasing success in winning programs in high-margin, complex sectors such as healthcare/life sciences, aerospace, and defense (including strong defense pipeline in Europe and record sector wins) is shifting the revenue mix toward segments with higher pricing power and more stable, long-term contracts. This should positively impact both revenue consistency and net margin expansion.

Read the complete narrative.

Want to know the method behind this bold valuation call? Discover the crucial trajectory for revenue mix, margins, and long-term contracts that sets this price target apart. The underlying assumptions could change your perspective on Plexus. Uncover the details that analysts are betting on and decide if the numbers stack up.

Result: Fair Value of $159 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing tariff uncertainties and customer concentration could disrupt revenue momentum if large clients delay orders or if global trade tensions worsen.

Find out about the key risks to this Plexus narrative.

Another View: Market Ratios Tell a Different Story

Our SWS DCF model says Plexus is trading well above its estimate of fair value. The current price of $142.43 is compared to a DCF value of $63.95. This suggests the market’s optimism may be running ahead of fundamental cash flows. Will investors keep paying up, or is caution warranted?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Plexus Narrative

If you want to dig deeper or come to your own conclusion, it only takes a few minutes to shape your own perspective from the data. Do it your way

A great starting point for your Plexus research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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