Latest news with #Volex
Telegraph
3 hours ago
- Business
- Telegraph
This stock is still not expensive despite its 343pc gain
Volex's recently released annual results were extremely well received by investors. Shares in the manufacturer of power cords and cable assemblies, which is a holding in our Aim portfolio, surged 17pc higher on the day of its results last month, with double-digit sales and profit growth highlighting its improving performance versus the prior year. Revenue rose by 19pc year on year, with organic growth (which excludes the impact of acquisitions) amounting to 11.1pc. Operating profit, meanwhile, was up 18.4pc on the prior year, with the company's operating profit margin relatively unchanged at roughly 9.8pc, as it was able to successfully raise prices in order to largely offset the effects of elevated inflation. The company enjoyed strong performance from its electric vehicles and consumer electricals segments during the year, which more than compensated for a weak performance in its medical division that the company expects to only prove temporary in nature. Its operations in North America posted strong growth. Sales in the region rose by 35pc year on year, so they now account for 46pc of total sales, thereby making it the company's largest geographical region. Although the US economy contracted at an annualised rate of 0.5pc in the first quarter of the year, it is widely expected to bounce back over the coming months – and with Voltex's flexible manufacturing footprint, it appears relatively well placed to overcome a prospective rise in US tariffs. Clearly, history suggests that increased protectionism is extremely likely to have a negative impact on global economic growth. This could weigh on the company's financial performance in the short run and may lead to elevated share price volatility as investors pivot from cyclical stocks to defensives. However, a likely end to sticky inflation and the implementation of further interest rate cuts across developed economies mean the long-term outlook for the company's operating environment remains upbeat. While the company's net debt rose by 14pc to around $175m (£129.5m) in the past year, it still has a relatively modest net gearing ratio of 47pc. Net interest costs, meanwhile, were covered nearly five times by operating profits in its latest financial year. These figures suggest Volex has the financial means to not only overcome an uncertain near-term outlook for the world economy but also to engage in M&A activity. Indeed, the company stated in its results that it has an active acquisition pipeline. Trading on a price-to-earnings ratio of 13.6, Volex appears to offer good value for money on a long-term view and scope for an upward rerating. Its relatively modest market valuation is, of course, somewhat surprising given not only its recent share price rise, but also because it has produced a 341pc capital gain since being added to our Aim portfolio in August 2018. Over the same period, the FTSE Aim All-Share index has slumped by 30pc. This means the stock has outperformed the wider index by 371 percentage points in just under seven years. In Questor's view, Volex continues to offer capital growth potential and scope for further index outperformance over the coming years. While its share price could prove to be relatively volatile in the near term due to an ongoing uncertain geopolitical environment, its solid balance sheet and sound competitive position mean it is well placed to benefit from an upbeat long-term economic outlook. Questor says: buy Ticker: VLX Share price at close: 364.5 Update: Totally While Volex has posted exceptionally high returns since being added to our Aim portfolio, another of our holdings, Totally, has recently gone into administration. The healthcare services provider's shares have subsequently been cancelled from trading on Aim. Although Questor previously highlighted that it considered Totally to be at the higher end of the risk spectrum due to its relatively small size and uncertain operating environment, the news is still hugely disappointing. Moreover, it reconfirms the importance of diversification – particularly among smaller companies. In many cases, they lack the breadth of operations of larger businesses that are typically better able to withstand tough operating conditions, periods of economic difficulty and, of course, unforeseen events.
Yahoo
6 days ago
- Business
- Yahoo
Volex (LON:VLX) shareholders have earned a 22% CAGR over the last five years
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term Volex plc (LON:VLX) shareholders would be well aware of this, since the stock is up 158% in five years. It's also good to see the share price up 58% over the last quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over half a decade, Volex managed to grow its earnings per share at 21% a year. This EPS growth is remarkably close to the 21% average annual increase in the share price. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. Rather, the share price has approximately tracked EPS growth. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Volex's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Volex the TSR over the last 5 years was 172%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective Volex shareholders gained a total return of 5.5% during the year. Unfortunately this falls short of the market return. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 22% over five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at. Volex is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
05-07-2025
- Business
- Yahoo
Volex's (LON:VLX) Upcoming Dividend Will Be Larger Than Last Year's
The board of Volex plc (LON:VLX) has announced that it will be paying its dividend of $0.03 on the 5th of September, an increased payment from last year's comparable dividend. This takes the annual payment to 1.2% of the current stock price, which unfortunately is below what the industry is paying. While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that Volex's stock price has increased by 87% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Before making this announcement, Volex was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow. Looking forward, earnings per share is forecast to rise by 12.1% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 18% by next year, which is in a pretty sustainable range. View our latest analysis for Volex It is great to see that Volex has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. Since 2019, the annual payment back then was $0.0241, compared to the most recent full-year payment of $0.0614. This means that it has been growing its distributions at 17% per annum over that time. Volex has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle. The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Volex has grown earnings per share at 21% per year over the past five years. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend. In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Volex stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
05-07-2025
- Business
- Yahoo
Volex's (LON:VLX) Upcoming Dividend Will Be Larger Than Last Year's
The board of Volex plc (LON:VLX) has announced that it will be paying its dividend of $0.03 on the 5th of September, an increased payment from last year's comparable dividend. This takes the annual payment to 1.2% of the current stock price, which unfortunately is below what the industry is paying. While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that Volex's stock price has increased by 87% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Before making this announcement, Volex was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow. Looking forward, earnings per share is forecast to rise by 12.1% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 18% by next year, which is in a pretty sustainable range. View our latest analysis for Volex It is great to see that Volex has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. Since 2019, the annual payment back then was $0.0241, compared to the most recent full-year payment of $0.0614. This means that it has been growing its distributions at 17% per annum over that time. Volex has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle. The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Volex has grown earnings per share at 21% per year over the past five years. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend. In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Volex stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
Undiscovered Gems in the United Kingdom for July 2025
As the United Kingdom's FTSE 100 index experiences a downturn due to weak trade data from China, investors are closely monitoring how global economic shifts impact domestic markets. In this environment, identifying promising stocks requires a keen eye for companies with strong fundamentals and resilience to external pressures, making them potential hidden gems in the current market landscape. Name Debt To Equity Revenue Growth Earnings Growth Health Rating B.P. Marsh & Partners NA 38.21% 41.39% ★★★★★★ BioPharma Credit NA 7.22% 7.91% ★★★★★★ Rights and Issues Investment Trust NA -7.87% -8.41% ★★★★★★ Bioventix NA 7.39% 5.15% ★★★★★★ Andrews Sykes Group NA 2.08% 5.03% ★★★★★★ Nationwide Building Society 277.32% 10.61% 23.42% ★★★★★☆ Goodwin 37.02% 9.75% 15.68% ★★★★★☆ FW Thorpe 2.95% 11.79% 13.49% ★★★★★☆ AltynGold 73.21% 26.90% 31.85% ★★★★☆☆ Law Debenture 17.80% 11.81% 7.59% ★★★★☆☆ Click here to see the full list of 59 stocks from our UK Undiscovered Gems With Strong Fundamentals screener. Below we spotlight a couple of our favorites from our exclusive screener. Simply Wall St Value Rating: ★★★★★☆ Overview: Volex plc is a company that manufactures and sells power and data cables across North America, Europe, and Asia, with a market capitalization of £698.05 million. Operations: Volex generates revenue primarily from the sale of power and data cables across North America, Europe, and Asia. The company operates with a market capitalization of £698.05 million. Volex, a nimble player in the electrical industry, has demonstrated impressive growth with earnings surging by 21.9% over the past year. The company's strategic expansions into electric vehicles and medical technology have bolstered its position, achieving a net profit margin of 9.2%. Volex's debt to equity ratio climbed from 0.2% to 44.2% in five years, yet remains satisfactory at a net debt to equity ratio of 34%. Recent partnerships and manufacturing enhancements are likely driving factors for future revenue streams, while their dividend increase reflects financial confidence despite potential acquisition integration risks like Murat Ticaret. Volex is poised for growth through strategic expansions in EVs and medical technology. Click here to explore the full narrative on Volex's investment potential. Simply Wall St Value Rating: ★★★★☆☆ Overview: McBride plc, with a market cap of £265.96 million, manufactures and sells private label household and personal care products to retailers and brand owners across the United Kingdom, Europe, Asia-Pacific, and other international markets. Operations: The primary revenue streams for McBride plc are derived from its Liquids segment (£535.30 million) and Unit Dosing segment (£235.20 million), with additional contributions from Powders, Aerosols, and Asia Pacific segments. With a keen eye on McBride, this small player in the UK market is showing potential despite its challenges. The company's earnings soared by 122% last year, outpacing the Household Products industry growth of 22.5%. However, it carries a high net debt to equity ratio of 135.8%, though this has improved from 209% over five years. Interest payments are well covered with an EBIT coverage of 7.8 times, indicating robust financial management. While trading at a good value compared to peers and industry benchmarks, future earnings might see a dip averaging 1.2% annually over the next three years. Click here and access our complete health analysis report to understand the dynamics of McBride. Review our historical performance report to gain insights into McBride's's past performance. Simply Wall St Value Rating: ★★★★★★ Overview: Pinewood Technologies Group PLC is a cloud-based dealer management software provider with operations spanning the United Kingdom, Europe, Africa, Asia, and the Middle East, holding a market capitalization of £463.47 million. Operations: Pinewood Technologies Group generates revenue primarily through its cloud-based dealer management software, with significant operations across multiple regions. The company's financials indicate a focus on maintaining robust revenue streams from diverse geographical markets. Pinewood Technologies Group, a nimble player in the automotive software sector, has shown robust earnings growth of 53.1% over the past year, outpacing the industry average of 17.6%. The company's financial health appears strong with free cash flow positivity and a debt-to-equity ratio dropping from 103.8% to just 0.5% over five years. Despite a £2.4M one-off loss impacting recent results, Pinewood's strategic acquisition of Seez AI is set to enhance its market reach and revenue potential through AI-driven solutions for major auto retailers like Lithia. However, shareholder dilution remains a concern amid expansion efforts into North America and Japan's Volkswagen dealerships. Pinewood Technologies' acquisition of AI platform Seez enhances cross-selling opportunities within its client base. Click here to explore the full narrative on Pinewood Technologies Group's strategic growth initiatives. Access the full spectrum of 59 UK Undiscovered Gems With Strong Fundamentals by clicking on this link. Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly. Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. 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. Companies discussed in this article include AIM:VLX LSE:MCB and LSE:PINE. 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