Plexus Corp. (PLXS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Advanced Energy Industries, Inc.

Teradyne, Inc.

Vertiv Holdings Co.

Vishay Intertechnology, Inc.

Sonos, Inc.

Flex Ltd.

Littelfuse, Inc.

Plexus Corp.

Universal Display Corp.

Plug Power, Inc.

Veeco Instruments, Inc.

Why is Plexus Corp. ?

High Management Efficiency with a high ROCE of 16.29%

The company is Net-Debt Free

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at USD 171.98 MM
INTEREST COVERAGE RATIO(Q) Lowest at 2,124.84
OPERATING PROFIT MARGIN(Q) Lowest at 6.25 %

With ROCE of 14.71%, it has a fair valuation with a 7.63 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 129.23%, its profits have risen by 21.1% ; the PEG ratio of the company is 2.7

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 129.23% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Plexus Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Plexus Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Plexus Corp.

129.23%

4.87

39.60%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.14%

EBIT Growth (5y)

3.56%

EBIT to Interest (avg)

9.87

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

2.55

Tax Ratio

13.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

16.29%

ROE (avg)

12.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.07

EV to EBIT

51.85

EV to EBITDA

37.34

EV to Capital Employed

7.63

EV to Sales

2.51

PEG Ratio

2.72

Dividend Yield

ROCE (Latest)

14.71%

ROE (Latest)

11.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

ROCE(HY)

Highest at 13.2%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.94 times

NET SALES(Q)

Highest at USD 1,163.76 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.36 times

OPERATING PROFIT(Q)

Highest at USD 72.71 MM

PRE-TAX PROFIT(Q)

Highest at USD 58.48 MM

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 171.98 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 2,124.84

OPERATING PROFIT MARGIN(Q)

Lowest at 6.25 %

RAW MATERIAL COST(Y)

Grown by 5.52% (YoY

INTEREST(Q)

Highest at USD 3.42 MM

Here's what is working for Plexus Corp.

Net Sales

Highest at USD 1,163.76 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Inventory Turnover Ratio

Highest at 2.94 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Profit

Highest at USD 72.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 58.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Debtors Turnover Ratio

Highest at 5.36 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Plexus Corp.

Interest

At USD 3.42 MM has Grown at 18.49%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 2,124.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 6.25 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Cash Flow

Lowest at USD 171.98 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 3.42 MM

in the last five periods and Increased by 18.49% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 5.52% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales