Education
About Us
Working with TipRanks
Follow Us
Plexus (PLXS)
NASDAQ:PLXS
Top Page
Plexus
(NASDAQ:PLXS)
73Outperform
Positive Factors
Earnings
EPS beat consensus by a wide margin due to better-than-expected gross margin, operating margin, operational expenses, and taxes.
Operational Efficiency
Automation initiatives, including robotic 3D warehousing, provide significant efficiency benefits and footprint reductions.
Program Wins
New programs were won with the firm’s top five Semi Cap customers during the quarter, contributing to modest growth.
Negative Factors
Regional Performance
Regional sales declined significantly year-over-year in the Americas and EMEA, with a sequential decline across all regions.
Sales Decline
Sales in the quarter declined 0.7% quarter over quarter and 7.1% year over year, driven largely by downwardly revised forecasts from a key commercial aerospace customer with Plexus’ A&D segment.
Sector Volatility
The tempered 2Q outlook fell short on the top and bottom line, driven by volatility within market sectors.
Plexus (PLXS) vs. S&P 500 (SPY)
Market Cap
$3.05B
Dividend YieldN/A
Average Volume (3M)211.43K
Price to Earnings (P/E)25.7
Beta (1Y)1.09
Revenue Growth-3.53%
EPS Growth-3.90%
CountryUS
Employees20,000
SectorTechnology
Sector Strength40
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)4.31
Shares Outstanding27,040,157
10 Day Avg. Volume207,975
30 Day Avg. Volume211,428
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.88
Price to Cash Flow (P/CF)16.20
P/FCF Ratio28.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$160.40Price Target Upside44.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Plexus Business Overview & Revenue Model
Company DescriptionPlexus Corp (PLXS) is a global leader in providing comprehensive product realization services to companies in the healthcare, life sciences, industrial, aerospace, defense, and communications sectors. The company's core offerings include design and engineering, supply chain management, new product introduction, manufacturing, and aftermarket services. Plexus partners with customers across the product lifecycle, from concept to production and beyond, ensuring quality and efficiency at every stage.
How the Company Makes MoneyPlexus Corp generates revenue through its end-to-end product realization services, which encompass the entire product lifecycle. The company earns money by providing design and engineering services that help customers develop new products. Additionally, Plexus manages supply chains and offers manufacturing services tailored to customer specifications. This includes both high-mix, low-volume, and low-mix, high-volume production. Another revenue stream comes from aftermarket services, which support product maintenance and lifecycle extension. Plexus collaborates closely with its clients, often forming strategic partnerships, which enhances its ability to secure long-term contracts and repeat business, significantly contributing to its revenue.
Plexus Financial Statement Overview
Summary
Plexus exhibits a balanced financial profile with strong profitability and efficient capital management. While revenue growth poses a challenge, the company's robust cash flow and low leverage offer a stable financial foundation.Income Statement
Plexus demonstrates strong profitability with a consistent gross profit margin around 10% and a net profit margin over 3%. However, revenue growth has been slightly negative, indicating potential challenges in expanding sales.82
Very Positive
Balance Sheet
The company maintains a solid equity position with an equity ratio around 43%. The debt-to-equity ratio is low, indicating prudent financial leverage, while ROE remains stable at approximately 9%, reflecting efficient use of equity.78
Positive
Cash Flow
Cash flow performance is robust, with a strong operating cash flow to net income ratio of 3.7 and consistent free cash flow generation. However, free cash flow growth has been variable, with notable improvements in recent periods.85
Very Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.95B | 3.96B | 4.21B | 3.81B | 3.37B | 3.39B | Gross Profit |
| 389.78M | 378.53M | 394.55M | 347.23M | 323.30M | 312.71M | EBIT |
| 188.46M | 167.73M | 195.82M | 113.49M | 116.92M | 100.87M | EBITDA |
| 226.01M | 158.41M | 288.55M | 243.08M | 240.28M | 216.17M | Net Income Common Stockholders |
| 119.87M | 111.81M | 139.09M | 138.24M | 138.91M | 117.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 188.24M | 345.11M | 256.23M | 274.81M | 270.17M | 385.81M | Total Assets |
| 1.29B | 3.15B | 3.32B | 3.39B | 2.46B | 2.29B | Total Debt |
| 129.88M | 279.59M | 469.61M | 495.38M | 291.32M | 371.58M | Net Debt |
| -58.37M | -65.52M | 213.38M | 220.57M | 21.14M | -14.22M | Total Liabilities |
| 638.52M | 1.83B | 2.11B | 2.30B | 1.43B | 1.31B | Stockholders Equity |
| 651.86M | 1.32B | 1.21B | 1.10B | 1.03B | 977.48M |
| Cash Flow | Free Cash Flow | ||||
| 400.11M | 341.32M | 61.77M | -127.85M | 85.48M | 160.28M | Operating Cash Flow |
| 493.17M | 436.50M | 165.82M | -26.24M | 142.58M | 210.37M | Investing Cash Flow |
| -92.84M | -94.95M | -93.30M | -101.56M | -56.97M | -49.85M | Financing Cash Flow |
| -314.11M | -255.59M | -92.72M | 139.29M | -203.88M | -1.46M |
Plexus Technical Analysis
Negative
110.95
Price Trends
132.07
Negative
146.93
Negative
136.51
Negative
Market Momentum
-1.66
Negative
43.69
Neutral
38.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLXS, the sentiment is Negative. The current price of 110.95 is below the 20-day moving average (MA) of 125.19, below the 50-day MA of 132.07, and below the 200-day MA of 136.51, indicating a bearish trend. The MACD of -1.66 indicates Negative momentum. The RSI at 43.69 is Neutral, neither overbought nor oversold. The STOCH value of 38.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLXS.
Plexus Risk Analysis
Plexus disclosed 21 risk factors in its most recent earnings report. Plexus reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Plexus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.00B | 22.40 | 16.85% | ― | 20.69% | 17.89% | |
74 Outperform | $3.66B | 17.26 | 10.55% | ― | -8.92% | -12.11% | |
73 Outperform | $3.05B | 25.73 | 9.27% | ― | -3.53% | -3.90% | |
62 Neutral | $1.20B | 19.38 | 5.78% | 2.02% | -6.44% | -2.60% | |
61 Neutral | $1.81B | 33.19 | 3.66% | ― | 9.41% | ― | |
61 Neutral | $3.77B | 38.13 | 4.62% | 1.80% | -7.28% | -56.46% | |
57 Neutral | $18.45B | 9.41 | -13.97% | 2.74% | 5.04% | -23.56% |
* Technology Sector Average
Performance Comparison
PLXS
Plexus
110.95
12.82
13.06%
BHE
Benchmark Electronics
32.94
3.59
12.23%
LFUS
Littelfuse
149.72
-88.76
-37.22%
OSIS
OSI Systems
174.22
32.19
22.66%
SANM
Sanmina-Sci
70.52
11.24
18.96%
TTMI
TTM Technologies
17.57
2.88
19.61%
Plexus Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -34.92% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong start to fiscal 2025 with significant program wins, robust financial performance, and positive cash flow. However, there were notable challenges in the Aerospace and Defense, Healthcare/Life Sciences, and Industrial sectors, which are experiencing demand softness.Highlights
Strong Q1 2025 Financial Performance
Fiscal first-quarter revenue of $976 million met guidance. Non-GAAP operating margin of 6.0% was near the high end of the guidance range. Non-GAAP EPS of $1.73 exceeded guidance.
Significant Program Wins
Won 30 manufacturing programs worth $212 million in annual revenue, with a strong contribution from the Healthcare/Life Sciences sector at $130 million.
Improved Free Cash Flow
Delivered $27 million of free cash flow in Q1, significantly better than expectations. Forecasting up to $100 million in free cash flow for fiscal 2025.
Recognition and Awards
Plexus was recognized as one of the best employers in Penang and awarded HR Asia's Best Companies to Work for in Asia for the third consecutive year.
Lowlights
Decline in Aerospace and Defense Revenue
Revenue decreased by 13% sequentially due to near-term commercial aerospace market challenges.
Demand Softening in Healthcare/Life Sciences
Revenue in this sector was down 10% sequentially due to demand softening within the quarter.
Industrial Sector Challenges
Continued softness in broader industrial markets, offsetting semicap growth. Revenue decreased 2% sequentially.
Company Guidance
During the Q1 2025 earnings call for Plexus (PLXS), the company provided guidance indicating continued revenue growth across all market sectors for fiscal 2025, driven by new program ramps and share gains. The fiscal first quarter revenue reached $976 million, aligning with guidance, while non-GAAP operating margin was at 6.0%, near the high end of expectations. Plexus forecasted free cash flow of up to $100 million for the year, aiming to enhance shareholder value through debt reduction and share repurchases. For Q2 2025, the company guided revenue in the range of $960 million to $1 billion, with a non-GAAP operating margin between 5.3% and 5.7%, and non-GAAP EPS between $1.46 and $1.61. Plexus also highlighted robust wins in manufacturing programs worth $212 million annually and a strong funnel of qualified opportunities at $3.6 billion, underscoring optimism for future growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.