Company Overview
Plexus Corp. operates as a provider of comprehensive electronic manufacturing services, delivering solutions across design, development, supply chain management, new product introduction, and sustaining services. The company functions within the Technology sector, specifically targeting the Electronic Components industry, which places it at the intersection of high-tech manufacturing and global supply chain logistics. Its operational scale is significant, supported by a workforce of 20,000 employees and a total market capitalization of $5.40B. The company generates annual revenue of $4.13B, a figure that indicates a substantial market presence and solidifies its position as a major player in global electronic assembly. This revenue base, combined with its global footprint spanning the United States, Asia-Pacific, Europe, the Middle East, and Africa, underscores the breadth of its client base and its capacity to serve diverse industries including aerospace and defense. The valuation metrics suggest that the market assigns a premium to its established manufacturing capabilities, while the employee count reflects the industrial intensity required to execute its complex service offerings.
Financial Health
The company reported a trailing twelve-month revenue of $4.13B, with net income of $176.80M and EBITDA of $287.30M. The substantial gap between the $4.13B revenue and the $176.80M net income reveals a cost structure where operating expenses, including cost of goods sold and overhead, consume approximately 95.7% of total revenue before accounting for interest and taxes. This cost profile is typical for contract manufacturing firms but highlights the importance of margin management in the sector. The free cash flow stands at $31.62M, which indicates a specific level of financial flexibility constrained by high capital expenditures inherent in maintaining electronic manufacturing facilities. Despite the relatively modest free cash flow compared to revenue, the company maintains a cash balance of $248.82M against total debt of $193.25M. The debt-to-equity ratio of 13.05 suggests a balance sheet that is moderately leveraged, utilizing borrowed capital to finance operations while maintaining a current ratio of 1.59. This current ratio indicates strong short-term liquidity, demonstrating that the company possesses sufficient current assets to cover its short-term liabilities with a comfortable safety margin. Regarding return metrics, the Return on Equity is 12.6% while the Return on Assets is 4.2%. These figures reveal that management is generating returns on shareholder capital at a healthy rate, though the lower ROA relative to ROE points to the leverage effect of the company's capital structure.
Valuation Assessment
The trailing twelve-month P/E ratio is 31.33, while the forward P/E ratio is 23.36. The significant difference between these two metrics implies that the market expects earnings growth in the future, as the forward multiple is lower than the trailing multiple, suggesting the stock is priced based on anticipated higher profitability. The price-to-book ratio stands at 3.63, indicating that the market values the company at a substantial premium over its book value, which often reflects intangible assets, brand reputation, or expected growth in the electronic components sector. Additional valuation context is provided by the price-to-sales ratio of 1.31 and an EV/EBITDA of 18.59, which together suggest that investors are willing to pay a premium for revenue and earnings that are currently expanding. The stock has traded within a 52-week range with a high of $211.84 and a low of $103.43. Without a specific current price provided in the data, the valuation assessment relies on these bounds to define the historical volatility envelope within which the stock has operated. The beta value is 0.79, which indicates that the stock price volatility is historically lower than that of the broader market, suggesting a more stable price action relative to general market movements.
Growth & Income
The company demonstrated revenue growth of 9.6% year-over-year and earnings growth of 12.7% year-over-year. Earnings are growing faster than revenue, which implies that the company is improving its profitability through operational efficiencies or margin expansion rather than solely relying on top-line volume increases. Plexus Corp. does not currently pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Consequently, the company reinvests its net income back into the business to fund operations, expansion, or share buybacks rather than distributing cash to shareholders. This strategy aligns with a growth-oriented profile where capital is retained to support the ongoing demands of the electronic manufacturing sector. The overall growth and income profile is characterized by double-digit earnings expansion and a zero-dividend policy, focusing on capital appreciation potential through business scale and operational leverage rather than current income generation.