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.

Rewards

PE ratio (18.8x) is below the Electronic industry average (19.7x)

Earnings are forecast to grow 11.46% per year

Risk Analysis

No risks detected for PLXS from our risk checks.


Snowflake Analysis

Flawless balance sheet with questionable track record.


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

Stable Share Price: PLXS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

PLXS

-0.1%

US Electronic

0.06%

US Market


1 Year Return

23.8%

PLXS

8.5%

US Electronic

19.3%

US Market

Return vs Industry: PLXS exceeded the US Electronic industry which returned 8.5% over the past year.

Return vs Market: PLXS exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

PLXSIndustryMarket
7 Day-0.9%-0.1%0.06%
30 Day-5.1%-3.8%1.7%
90 Day-1.5%3.0%9.0%
1 Year23.8%23.8%9.6%8.5%21.8%19.3%
3 Year28.4%28.4%37.4%33.7%49.5%39.9%
5 Year82.5%82.5%70.5%62.2%73.1%54.1%

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?

18.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PLXS ($74.44) is trading above our estimate of fair value ($69.28)

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 (18.8x) compared to the Electronic industry average (19.7x).

PE vs Market: PLXS is poor value based on its PE Ratio (18.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PLXS is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: PLXS is overvalued based on its PB Ratio (2.4x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLXS's forecast earnings growth (11.5% per year) is above the savings rate (1.7%).

Earnings vs Market: PLXS's earnings (11.5% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: PLXS's revenue (6.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: PLXS's revenue (6.9% 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 (13.4%).


Next Steps

Past Performance

How has Plexus performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLXS has high quality earnings.

Growing Profit Margin: PLXS's current net profit margins (3.6%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: PLXS's earnings have grown by 0.5% per year over the past 5 years.

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

Earnings vs Industry: PLXS had negative earnings growth (-12.8%) over the past year, making it difficult to compare to the Electronic industry average (14.6%).


Return on Equity

High ROE: PLXS's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Plexus's financial position?


Financial Position Analysis

Short Term Liabilities: PLXS's short term assets ($1.6B) exceed its short term liabilities ($889.9M).

Long Term Liabilities: PLXS's short term assets ($1.6B) exceed its long term liabilities ($311.9M).


Debt to Equity History and Analysis

Debt Level: PLXS's debt to equity ratio (23.7%) is considered satisfactory.

Reducing Debt: PLXS's debt to equity ratio has reduced from 32.6% to 23.7% over the past 5 years.

Debt Coverage: PLXS's debt is well covered by operating cash flow (103.9%).

Interest Coverage: PLXS's interest payments on its debt are well covered by EBIT (11.6x 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 7.4x 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%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

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

5.8yrs

Average management tenure


CEO

Todd Kelsey (54yo)

3.4yrs

Tenure

US$6,519,481

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 ($USD6.52M) is above average for companies of similar size in the US market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Todd Kelsey
President3.4yrsUS$6.52m0.43% $9.5m
Patrick Jermain
Executive VP & CFO5.8yrsUS$2.20m0.15% $3.3m
Steven Frisch
Executive VP & COO3.3yrsUS$2.73m0.16% $3.6m
Angelo Ninivaggi
Executive VP6.5yrsUS$1.86m0.15% $3.2m
Ronald Darroch
Executive VP & Regional President of EMEA6yrsUS$1.68m0.032% $708.0k
Steve Gearhart
Chief Information Officer10.1yrsno datano data
Heather Beresford
Senior Director of Communications & Investor Relations0yrsno datano data
Yong Lim
Regional President of APAC12.5yrsUS$1.80m0.27% $5.8m
Oliver Mihm
Executive Vice President - Global Supply Chain4.6yrsno data0.056% $1.2m
Mike Running
Senior Vice President of Global Engineering Solutions & Aftermarket Services3.3yrsno datano data

5.8yrs

Average Tenure

53yo

Average Age

Experienced Management: PLXS's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Todd Kelsey
President3.4yrsUS$6.52m0.43% $9.5m
Dean Foate
Non-Executive Chairman7yrsUS$403.20k0.65% $14.2m
Paul Rooke
Independent Director2.9yrsUS$218.66k0.016% $343.7k
David Drury
Independent Director22.1yrsUS$236.41k0.054% $1.2m
Stephen Cortinovis
Independent Director17.1yrsUS$221.16k0.10% $2.2m
Ralf Böer
Independent Director15.4yrsUS$229.66k0.11% $2.4m
Michael Schrock
Lead Director7yrsUS$242.41k0.11% $2.5m
Peter Kelly
Independent Director14.8yrsUS$229.41k0.11% $2.3m
Rainer Jueckstock
Independent Director7.1yrsUS$224.91k0.063% $1.4m
Joann Eisenhart
Independent Director5yrsUS$218.66k0.035% $769.2k

7.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: PLXS's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$2.185b
  • Shares outstanding: 29.36m
  • Website: https://www.plexus.com

Number of Employees


Location

  • Plexus Corp.
  • One Plexus Way
  • PO Box 156
  • Neenah
  • Wisconsin
  • 54956
  • 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 chain, new product introduction, and manufacturing solutions, as well as aftermarket services. The company provides its solutions to companies in the healthcare and life sciences, industrial and commercial, communications, and aerospace and defense sectors. Plexus Corp. was founded in 1979 and is headquartered in Neenah, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:45
End of Day Share Price2020/02/20 00:00
Earnings2020/01/04
Annual Earnings2019/09/28


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.