# Volex (VLX.LSE)

Canonical: https://gigainvestors.com/s/VLX.LSE

Analysis as of: 2026-10-16T07:42:13.759Z. Financial observations: FY2020–FY2026.

Listing currency: GBX. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 634.00 per share; close as of 2026-10-15.

Estimated value: low GBX 283.01 per share, central GBX 320.36 per share, high GBX 370.08 per share. Buy at or below the central value GBX 320.36 per share. Valuation as of 2026-10-16T07:42:13.759Z; scenarios are not confidence intervals.

Expected annual return: 6.4% at the stated quote. About 6.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 7 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2020: 0.04×

- FY2021: 0.07×

- FY2022: 0.08×

- FY2023: 0.09×

- FY2024: 0.09×

- FY2025: 0.09×

- FY2026: 0.10×

### moat: pass

- ROIC, median of available years: 18.9%

- ROIC, second-lowest year: 18.3%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 22.2%

- Recent gross margin (lower of latest and 3-year median): 22.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: 10.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2020: 18.9%

- FY2021: 21.4%

- FY2022: 19.2%

- FY2023: 21.1%

- FY2024: 18.1%

- FY2025: 18.6%

- FY2026: 18.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $211M

- Net income, five-year total: $220M

- Return on incremental invested capital: 29.2%

- Working capital / revenue, annual change: 0.5 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.03×

- FY2023: 0.94×

- FY2024: 0.90×

- FY2025: 0.80×

- FY2026: 1.08×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 19.2% vs 18.3%

- Per-share earnings: 0.19 to 0.26 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 3.0%

- Diluted shares, 5-year annual growth: 3.0%

- Per-share value growth: 7.5%

- Per-share value change: $0.06

- Per-share value, starting three-year median: $0.19

- Per-share value, ending three-year median: $0.26

- Buybacks concentrated in cheaper years (correlation): 0.64

- Average buyback yield: 1.3%

- Buyback history: 7 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 19.2%

- ROIC, last three-year median: 18.3%

Chart: Earnings per share; fiscal year observations.

- FY2020: $0.09

- FY2021: $0.24

- FY2022: $0.19

- FY2023: $0.22

- FY2024: $0.21

- FY2025: $0.26

- FY2026: $0.35

### accounting: pass

- Sloan accruals: -0.4%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 10.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.06×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.53×

Chart: Sloan accruals; fiscal year observations.

- FY2020: -15.3%

- FY2021: 0.0%

- FY2022: 2.4%

- FY2023: -3.5%

- FY2024: -4.3%

- FY2025: -3.2%

- FY2026: -0.4%

## Holders

## Price story

Price needs cash profits to grow 9.7% a year for ten years · "Volex Raises FY27 Profit Outlook After 28% Organic Revenue Growth" (finance.yahoo.com, Aug 2026) · sales +14.4%

Story as of 2026-10-16T10:00:12.279Z; price observation 2026-10-15.

Price needs cash profits to grow 9.7% a year for ten years

- 2026-08-25: Volex Raises FY27 Profit Outlook After 28% Organic Revenue Growth ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/volex-raises-fy27-profit-outlook-140337173.html))

### Sales · FY2025–2026

sales +14.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2020: $391M 

- FY2021: $443M 

- FY2022: $615M 

- FY2023: $723M 

- FY2024: $913M 

- FY2025: $1.1B 

- FY2026: $1.2B 

### Gross margin · FY2026

gross margin 23%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2020: 23.2% 

- FY2021: 23.4% 

- FY2022: 20.5% 

- FY2023: 21.7% 

- FY2024: 22.2% 

- FY2025: 21.4% 

- FY2026: 23.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electrical equipment & parts; annual sales are USD 1.2 billion.

- Source: https://eodhd.com/api/fundamentals/64K.F.json#2026-03-31 (filed 2026-10-16T07:42:13.759Z); FY2026: revenue 1242600000; grossProfit 286300000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VLX.LSE: Volex plc manufactures and sells power and connectivity in North America, Europe, and Asia. It provides integrated manufacturing services, such as high level assembly, box build, electromechanical assemblies and systems, wiring harness and cable assembly, printed circuit board assembly, video display systems, and embedded systems; electric vehicle charging solutions; copper interconnect cables and data transfer cables; and data center power cables and power cords. The company also offers power cords, plugs, connectors, receptacles, as well as custom wiring harness and cable assemblies, including battery cables, busbars, commercial wiring harnesses, consumer wiring harnesses, fuse boxes, wiring harnesses, and wires and cables. Its products are used in complex industrial technology, consumer electricals, electric vehicle, medical, and off-highway. The company sells its products to original equipment manufacturers, contract equipment manufacturers, and distributors. Volex plc was founded in 1892 and is headquartered in Basingstoke, the United Kingdom.

### Why customers stay

Margins ranged from 21.4% to 23% during 2024–26; it earns 18.9% on its capital.

- Source: https://eodhd.com/api/fundamentals/64K.F.json#2024-03-31 (filed 2026-10-16T07:42:13.759Z); FY2024: grossProfit / revenue = 22.2%.

- Source: https://eodhd.com/api/fundamentals/64K.F.json#2025-03-31 (filed 2026-10-16T07:42:13.759Z); FY2025: grossProfit / revenue = 21.4%.

- Source: https://eodhd.com/api/fundamentals/64K.F.json#2026-03-31 (filed 2026-10-16T07:42:13.759Z); FY2026: grossProfit / revenue = 23%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:13.759Z); 7-year return on capital observations [[2020,0.18941189070681025],[2021,0.21447425640720283],[2022,0.19167213114754098],[2023,0.21052035338078354],[2024,0.18058482102460024],[2025,0.1855624426525685],[2026,0.18293007291876248]]; median 0.18941189070681025. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 7 of 7 years; bought back USD 700000 of shares.

- Source: https://www.volex.com/media/xwmac1y5/volex-ar21-web.pdf (filed 2026-10-16T07:42:13.759Z); FY2020: growth capex 0; upkeep 4950000; owner earnings 19389860. Growth capex / owner earnings = 0.

- Source: https://www.volex.com/media/xwmac1y5/volex-ar21-web.pdf (filed 2026-10-16T07:42:13.759Z); FY2021: growth capex 0; upkeep 7817000; owner earnings 40906497. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/64K.F.json#2022-03-31 (filed 2026-10-16T07:42:13.759Z); FY2022: growth capex 0; upkeep 15000000; owner earnings 31420000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/64K.F.json#2023-03-31 (filed 2026-10-16T07:42:13.759Z); FY2023: growth capex 0; upkeep 18300000; cash acquisitions 12200000; owner earnings 34740000. Growth capex plus acquisitions / owner earnings = 0.3511801957397812.

- Source: https://eodhd.com/api/fundamentals/64K.F.json#2024-03-31 (filed 2026-10-16T07:42:13.759Z); FY2024: growth capex 0; upkeep 31600000; cash acquisitions 138800000; owner earnings 35520000. Growth capex plus acquisitions / owner earnings = 3.9076576576576576.

- Source: https://eodhd.com/api/fundamentals/64K.F.json#2025-03-31 (filed 2026-10-16T07:42:13.759Z); FY2025: growth capex 7400000; upkeep 38700000; cash acquisitions 10900000; owner earnings 38100000. Growth capex plus acquisitions / owner earnings = 0.48031496062992124.

- Source: https://eodhd.com/api/fundamentals/64K.F.json#2026-03-31 (filed 2026-10-16T07:42:13.759Z); FY2026: growth capex 0; upkeep 34800000; cash acquisitions 0; owner earnings 70940000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:13.759Z); Dividend observations: [[2020,1956000],[2021,6016000],[2022,7200000],[2023,5700000],[2024,6700000],[2025,9700000],[2026,8500000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/64K.F.json#2026-03-31 (filed 2026-10-16T07:42:13.759Z); FY2026: cash repurchases 700000 USD.

### Are managers owners

Insiders own 28.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VLX.LSE SharesStats.PercentInsiders = 28.177999999999997 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.volex.com/media/ttzdljjr/volex_annual_report_2026-interactive.pdf (filed ); of
 our supply chain, and we do not have
 any material customer exposure in the
ahead of schedule, range for the first time. This improvement
 reflects a combination of volume growth,
 operating lease liabilities. The reduction
 in operating lease liabilities reflects the
 affected region. We have experienced
 higher freight costs as a result, although
alongside record a favourable shift in product mix and
 continued efficiency gains that more than
 Group's exercise of its option to purchase
 previously leased properties in Türkiye. The
 these are generally passed through to
 customers. While tariff-related uncertainty
underlying operating offset cost headwinds. Return on capital
 employed improved to 21.0% (FY2025:
 Group's covenant net debt to adjusted
 EBITDA ratio stood at 0.8 times (FY2025:
 has created some near term headwinds
 in certain end-markets, notably Medical,
profit and a continued 19.7%), reflecting the strong returns
 generated by disciplined investment in
 1.0 times), providing substantial headroom
 and financial flexibility.
 where some customers adjusted inve

), reflecting the strong returns
 generated by disciplined investment in
 1.0 times), providing substantial headroom
 and financial flexibility.
 where some customers adjusted inventory

expansion of margins. customer-backed growth opportunities.
 Impact of the
 levels in response to policy changes, we
 believe the structural advantages of our
 Statutory operating profit increased to global model will continue to outweigh
 $121.0 million (FY2025: $82.9 million), after macroeconomic the transitional impacts.
 a net adjusting items credit of $0.7 million
 and share-based payments of $7.0 million environment In Türkiye, despite continuing labour cost
 (FY2025: adjusting items charge of The macroeconomic environment in inflation, the devaluation of the Turkish lira
 $18.3 million and share-based payments FY2026 was shaped by significant changes has broadly offset this headwind leaving
 of $5.0 million). The substantial reduction to the global tariff landscape, which our labour cost base, measured in euros,
 in adjusting items year-on-year principally created both operational complexity and stable year-on-year. We have accelerated
 reflects the release of contingent strategic opportunity. Volex's performance productivity and efficiency programmes
 consideration relating to a previous this year demonstrates the effectiveness of across our Türkiye operations, and for
 acquisition. our

h revenue domestically-focused customers we
 and profitability despite the introduction retain contractual rights to pass through
 The Group’s underlying operating inflationary cost increases. Export pricing
 margin increased to 10.2%, reflecting of new tariffs across multiple jurisdictions.
 This validated our policy of passing tariff- is addressed through periodic commercial
 operating leverage f

### What the price says

The price assumes cash profits grow 9.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:13.759Z); Ten-year compound average after fade. Initial solved rate 0.12684506708774956. Price 634; FX 75.34943299551671; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 38.88 per share

- 2016-11: GBX 42.88 per share

- 2016-12: GBX 48.25 per share

- 2017-01: GBX 45.38 per share

- 2017-02: GBX 44.00 per share

- 2017-03: GBX 40.75 per share

- 2017-04: GBX 41.50 per share

- 2017-05: GBX 42.00 per share

- 2017-06: GBX 60.13 per share

- 2017-07: GBX 61.13 per share

- 2017-08: GBX 64.75 per share

- 2017-09: GBX 64.38 per share

- 2017-10: GBX 72.13 per share

- 2017-11: GBX 81.50 per share

- 2017-12: GBX 84.63 per share

- 2018-01: GBX 71.50 per share

- 2018-02: GBX 69.00 per share

- 2018-03: GBX 64.30 per share

- 2018-04: GBX 76.20 per share

- 2018-05: GBX 78.60 per share

- 2018-06: GBX 74.80 per share

- 2018-07: GBX 79.10 per share

- 2018-08: GBX 86.50 per share

- 2018-09: GBX 84.40 per share

- 2018-10: GBX 77.80 per share

- 2018-11: GBX 89.70 per share

- 2018-12: GBX 87.80 per share

- 2019-01: GBX 92.20 per share

- 2019-02: GBX 86.20 per share

- 2019-03: GBX 91.50 per share

- 2019-04: GBX 93.90 per share

- 2019-05: GBX 97.40 per share

- 2019-06: GBX 96.20 per share

- 2019-07: GBX 93.00 per share

- 2019-08: GBX 88.00 per share

- 2019-09: GBX 86.60 per share

- 2019-10: GBX 97.00 per share

- 2019-11: GBX 129.00 per share

- 2019-12: GBX 154.00 per share

- 2020-01: GBX 164.50 per share

- 2020-02: GBX 116.00 per share

- 2020-03: GBX 113.00 per share

- 2020-04: GBX 135.00 per share

- 2020-05: GBX 142.00 per share

- 2020-06: GBX 153.50 per share

- 2020-07: GBX 136.50 per share

- 2020-08: GBX 179.00 per share

- 2020-09: GBX 187.00 per share

- 2020-10: GBX 241.00 per share

- 2020-11: GBX 263.00 per share

- 2020-12: GBX 308.00 per share

- 2021-01: GBX 323.00 per share

- 2021-02: GBX 303.00 per share

- 2021-03: GBX 337.00 per share

- 2021-04: GBX 340.50 per share

- 2021-05: GBX 341.50 per share

- 2021-06: GBX 372.50 per share

- 2021-07: GBX 350.50 per share

- 2021-08: GBX 415.00 per share

- 2021-09: GBX 435.50 per share

- 2021-10: GBX 450.00 per share

- 2021-11: GBX 364.50 per share

- 2021-12: GBX 344.50 per share

- 2022-01: GBX 299.00 per share

- 2022-02: GBX 289.00 per share

- 2022-03: GBX 266.00 per share

- 2022-04: GBX 260.00 per share

- 2022-05: GBX 274.00 per share

- 2022-06: GBX 240.50 per share

- 2022-07: GBX 314.50 per share

- 2022-08: GBX 267.50 per share

- 2022-09: GBX 244.00 per share

- 2022-10: GBX 247.50 per share

- 2022-11: GBX 263.00 per share

- 2022-12: GBX 250.50 per share

- 2023-01: GBX 255.00 per share

- 2023-02: GBX 225.00 per share

- 2023-03: GBX 216.00 per share

- 2023-04: GBX 255.50 per share

- 2023-05: GBX 263.00 per share

- 2023-06: GBX 283.50 per share

- 2023-07: GBX 289.00 per share

- 2023-08: GBX 325.00 per share

- 2023-09: GBX 314.50 per share

- 2023-10: GBX 282.50 per share

- 2023-11: GBX 303.50 per share

- 2023-12: GBX 319.00 per share

- 2024-01: GBX 317.00 per share

- 2024-02: GBX 285.00 per share

- 2024-03: GBX 288.00 per share

- 2024-04: GBX 321.00 per share

- 2024-05: GBX 351.50 per share

- 2024-06: GBX 322.00 per share

- 2024-07: GBX 354.50 per share

- 2024-08: GBX 364.00 per share

- 2024-09: GBX 333.00 per share

- 2024-10: GBX 325.00 per share

- 2024-11: GBX 289.00 per share

- 2024-12: GBX 282.00 per share

- 2025-01: GBX 290.00 per share

- 2025-02: GBX 270.00 per share

- 2025-03: GBX 242.00 per share

- 2025-04: GBX 254.00 per share

- 2025-05: GBX 289.00 per share

- 2025-06: GBX 382.50 per share

- 2025-07: GBX 372.50 per share

- 2025-08: GBX 347.50 per share

- 2025-09: GBX 363.50 per share

- 2025-10: GBX 374.50 per share

- 2025-11: GBX 395.50 per share

- 2025-12: GBX 418.00 per share

- 2026-01: GBX 441.50 per share

- 2026-02: GBX 483.00 per share

- 2026-03: GBX 453.00 per share

- 2026-04: GBX 597.00 per share

- 2026-05: GBX 695.00 per share

- 2026-06: GBX 563.00 per share

- 2026-07: GBX 511.00 per share

- 2026-08: GBX 624.00 per share

- 2026-09: GBX 648.00 per share

- 2026-10: GBX 634.00 per share

## Annual estimated value (GBX per share)

- FY2024: low GBX 207.91 per share, central GBX 235.92 per share, high GBX 273.22 per share

- FY2025: low GBX 235.89 per share, central GBX 267.53 per share, high GBX 309.65 per share

- FY2026: low GBX 272.96 per share, central GBX 308.98 per share, high GBX 356.94 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.