Volex plc
Volex plc Fundamental Analysis
Volex plc (VLXGF) shows moderate financial fundamentals with a PE ratio of 21.01, profit margin of 4.96%, and ROE of 14.89%. The company generates $1.1B in annual revenue with strong year-over-year growth of 23.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VLXGF's fundamental strength across five key dimensions:
Efficiency Score
WeakVLXGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVLXGF trades at attractive valuation levels.
Growth Score
ModerateVLXGF shows steady but slowing expansion.
Financial Health Score
ExcellentVLXGF maintains a strong and stable balance sheet.
Profitability Score
WeakVLXGF struggles to sustain strong margins.
Key Financial Metrics
Is VLXGF Expensive or Cheap?
P/E Ratio
VLXGF trades at 21.01 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VLXGF's PEG of 1.09 indicates fair valuation.
Price to Book
The market values Volex plc at 2.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.52 times EBITDA. This is generally considered low.
How Well Does VLXGF Make Money?
Net Profit Margin
For every $100 in sales, Volex plc keeps $4.96 as profit after all expenses.
Operating Margin
Core operations generate 8.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.89 in profit for every $100 of shareholder equity.
ROA
Volex plc generates $5.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Volex plc generates limited operating cash flow of $86.71M, signaling weaker underlying cash strength.
Free Cash Flow
Volex plc produces free cash flow of $50.48M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.27 in free cash annually.
FCF Yield
VLXGF converts 4.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.007
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How VLXGF Stacks Against Its Sector Peers
| Metric | VLXGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.01 | 26.11 | Better (Cheaper) |
| ROE | 14.89% | 1298.00% | Weak |
| Net Margin | 4.96% | -34100.00% (disorted) | Weak |
| Debt/Equity | 0.51 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.66 | 10.62 | Neutral |
| ROA | 5.91% | -1540438.00% (disorted) | Weak |
VLXGF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Volex plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
212.38%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
957.19%
Industry Style: Cyclical, Value, Infrastructure
High Growth