Volex Share Discussion Threads

[ymaheru] 02/5/2024 01:16

Dr B is right.
OHV is mainly agriculture and construction vehicles.
MT do more than just that, but OHV is a high growth sector at present.

[pcok] 02/5/2024 00:33

That's what I initially thought Dr Biotech but "a manufacturer of complex wire harnesses for the off road sector" is how they described MT in the acquisition RNS. Can anyone shed any light onto what this definitely means.

[dr biotech] 01/5/2024 21:00

Off road - tractors, diggers, and other vehicles that don't have a primary use on the road. Thats what I took it to mean.

[pcok] 01/5/2024 19:00

Agreed but feel the rabbit in the hat here is the as yet undisclosed contribution made by the acquisition of Murat Ticaret. I don't even know what off road means in this context but they keep hinting of strong cash flow and plans to expand state side. Sounds a splendid addition to Nat's poker hand. I will be adding on any weakness.

Anglo American under siege for the apparently critical copper supply. We are the company that turns the copper into all the uses causing such excitement. This is a cracking LTH.

[tulley1] 01/5/2024 17:48

The play on data centres is far more interesting than tesla

[ayl30] 01/5/2024 16:15

I never said it was!

[igoe104] 01/5/2024 14:29

EV is only 16% of VLX sales, why do folks continue to talk like VLX is a pure EV play.. 🤷

[johndoe23] 01/5/2024 14:26

No but VLX is more than just EV cables

[ayl30] 01/5/2024 13:27

Tesla slowing rate of charger network, won't help EV sales!

[pcok] 24/4/2024 13:33

Same argument as for Tesla. Selling more even with reduced margin helps to maintain profit levels. Historically VLX has been very good at negotiating deals to protect the margin by for example passing on fluctuations in copper pricing.

[foreverbull] 24/4/2024 13:24

But there will be on pressure on margins as well for Volex if they pass that on their supply chain

[ijamlon] 24/4/2024 07:24

Tesla now prioritising volumes over margins - should be a positive for their top cable provider.

[johndoe23] 23/4/2024 14:09

Yep still only 10.5 tines forward earnings, without any possible upgrades

[pcok] 22/4/2024 15:01

Nice little rerate in progress since the TU. About time.

[igoe104] 19/4/2024 14:51

I can only see more and more growth coming VLX way, especially when I read articles like this.. Lots of cables needed for all this datacenter growth..

[z1co] 19/4/2024 07:45

Volex, which makes power cords and charging plugs for electric cars, said annual sales were lifted by contributions from a cable harness maker it bought last June. It charged up 5.2 per cent, or 15p, to 303p.

[z1co] 18/4/2024 20:53

Prior to today's trading update analysts were expecting it to generate earnings per share of 36.5 cents for the year ending 31 March 2025. At today’s share price and exchange rate, that equates to a forward-looking P/E ratio of just 10.5.

That forward P/E will be even less after the expected upgrades.

[z1co] 18/4/2024 18:15

Market & Company News

Volex rises as revenue and profit set to exceed market expectations

18 April 2024, 11:04Source - Alliance News

Volex PLC shares rose on Thursday, after it said it expects its annual performance to be ahead of market expectations.

Volex is a Basingstoke, England-based specialist integrated manufacturer of critical power and data transmission products. Its shares were up 6.0% to 305.39 pence each in London on Thursday morning.

For the financial year ended March 31, revenue is now expected to be at least $900 million, an increase of 25% over $722.8 million the prior year.

Further, underlying operating profit is now expected to be ‘slightly̵7; ahead of analyst expectations, citing $84.2 million. In financial 2023, Volex reported an underlying operating profit of $67.3 million.

‘This performance underscores Volex’s ability to secure additional customer commitments and deliver new projects, whilst maintaining robust financial and operational discipline,’ Volex said.

It added that operating profit margins improved in the second half of the year. Volex said that this was partly a result of product mix, including the contribution of Off-Highway sales, offset by accelerating investment in future strategic growth initiatives to support increased, long-term customer demand.

Executive Chair Nat Rothschild said: ‘Our ability to continue to deliver strong growth in challenging markets is a testament to the quality of the team, our strategy and our ability to respond to the needs of our customers. We enter the new financial year with confidence and optimism thanks to the strong momentum generated in the current financial year, improving market conditions in the Electric Vehicles and Consumer Electricals sectors, as well as an abundance of opportunities in the new Off-Highway sector.’

Volex is scheduled to publish its annual results in late June.

[ali47fish] 18/4/2024 17:39

lombard odier has added to holding

[johndoe23] 18/4/2024 15:55

Downing still selling?

[z1co] 18/4/2024 15:04

$billion revenue for the current year and profits of over $100m.

Debt is not the reason , most likely background seller/s hence the muted reaction.Have bought more this afternoon.

Far too cheap.

[craftyspeculator] 18/4/2024 14:50

Honestly vikeshm1 - leverage of 1.3 is very manageable. Most companies can sustain leverage of up to 2.5x comfortably, and often up to 3.5x for cash generative companies. If you earn £100k a year then you can probably repay a £300k mortgage...it's the same principle. Volex earn £100k a year and have a £130k mortgage to clear - no stress

[ymaheru] 18/4/2024 14:45

@vikeshm1, they say cash flow was very strong, so I’d suspect over $40m off that $173m figure.

Volex’s calculation for net debt includes inventories etc (I think). I’m really only concerned about cash and that appears to have done very well, so if I’m reading it right, it’s very good news.

[johndoe23] 18/4/2024 14:19

What's wrong with that leverage?? More than comfortable.

[vikeshm1] 18/4/2024 14:15

guys the reason shares are in a downtrend and disapponting response today is the massive debt which
no 1 has mentioned including the motley fool which just wants to sell you tips

Debt over 173m dollars at half yr results & over 143m exc leases and this statement
tells us it won't come down much from 1.3 to 1.1 "leverage" - therefore the current price i think is
2 high and will keep declining till debt reduces.

i would be interested buyer if debt went under 120m