One-glance verdict
Within fair range
$180.87 our estimate vs market $234.94
Wall Street consensus: $304.60 (68.4% higher than our fair-value estimate)
30% above our estimate
Fundamentals snapshot
Plexus Corp.
PLXS · NMS · Technology · Electronic Components
Current price
$234.94
52-week range
$132.03 - $307.06
Market cap
$6.26B
Balance sheet
Healthy
17.84x Strong cushion
Net cash $7.09M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 0.0% last year.
- Reward Returns 12.6% on equity, ahead of 33% of its peers.
- Risk Stock trades 47.7% above its 5-year average P/E.
- Risk Operating margin compressed from 4.7% to 4.7% over 3 years.
What this company does
Plexus Corp.
Plexus Corp. helps other companies design and build electronic parts, sort of like a custom factory for electronics. Their business really shines when they handle the whole process for clients in industries like aerospace, healthcare, and industrial equipment, which means their money mainly comes from these long-term customer relationships rather than just selling individual products. This approach matters because it creates a more stable income stream for Plexus, making it easier for them to plan and invest in their operations and services.
How the company got here
Plexus Corp. was founded in 1979 by a group of entrepreneurs in Neenah, Wisconsin, with the initial goal of designing and building computer circuit boards for local industrial clients. Over the years, the company grew and expanded its services beyond just circuit boards. A key turning point was its strategic decision to focus on lower-volume, higher-complexity projects that require strict quality control and specialized expertise, particularly in regulated industries. This focus allowed Plexus to differentiate itself from larger, more generalized electronics manufacturers and build strong relationships with companies in demanding sectors. The company has also expanded its global footprint, establishing facilities across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region to serve its international customer base.
What it actually does
Plexus acts as an electronic manufacturing services (EMS) provider. Think of them as a behind-the-scenes partner for companies that need complex electronic products designed, built, and supported. Instead of a company making its own electronic components or devices from scratch, they hire Plexus to handle the intricate process of bringing their ideas to life. This includes everything from the initial design and engineering to sourcing materials, manufacturing the products, and even providing services to keep them running after they're sold.
Healthcare/Life Sciences
This is a major part of Plexus' business, where they help create sophisticated electronic devices used in the medical field. This could include anything from life-saving medical equipment and diagnostic tools to complex devices used in scientific research. Companies in this sector rely on Plexus for their expertise in meeting strict regulatory requirements and ensuring the highest levels of quality and reliability for products that directly impact people's health. This segment represents a significant portion of Plexus' overall revenue.
Aerospace/Defense
In this segment, Plexus manufactures highly complex electronic systems for the aerospace and defense industries. These products often require advanced engineering, rigorous testing, and adherence to stringent safety and performance standards. Examples include electronic components for aircraft, defense systems, and related technologies. This business line is crucial for national security and technological advancement, and it contributes substantially to Plexus's income.
Industrial/Commercial
Plexus also serves the industrial and commercial sectors by providing electronic manufacturing services for a variety of applications. This can range from automation systems used in factories to electronic components for various commercial products. The company's ability to handle complex designs and ensure reliable manufacturing makes them a valuable partner for businesses looking to innovate and improve their operational efficiency through advanced electronics. This segment is a key revenue generator for the company.
What management is betting on now
Plexus's leadership is focused on driving revenue growth and expanding their market share by continuing to specialize in high-complexity, lower-volume projects. They are also prioritizing improvements in profitability and aim to deliver consistent returns to their shareholders. A significant strategic initiative involves investing in digital transformation and advanced manufacturing technologies to enhance efficiency and capabilities. Furthermore, Plexus is committed to sustainability, with a goal to significantly reduce its absolute greenhouse gas emissions by 2033, demonstrating a focus on responsible operations and long-term value creation.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$27.11M
FY2025 Q2
$16.50M
FY2025 Q3
$13.17M
FY2025 Q4
$97.19M
FY2026 Q2
$-50.58M
FY2026 Q3
$16.01M
FY2026 Q4
$-754.00K
Revenue
$1.30M
Net income
$42.99M
Diluted EPS
1.58
Operating cash flow
$25.91M
Free cash flow
$-754.00K
Fetching…
Sources
Revenue
$1.16M
Net income
$49.81M
Diluted EPS
1.82
Operating cash flow
$28.46M
Free cash flow
$16.01M
Fetching…
Sources
Revenue
$1.07M
Net income
$41.18M
Diluted EPS
1.51
Operating cash flow
$-15.38M
Free cash flow
$-50.58M
Fetching…
Sources
Revenue
$4.03B
Net income
$51.43M
Diluted EPS
1.87
Operating cash flow
$132.02M
Free cash flow
$97.19M
Fetching…
Sources
Revenue
$1.02M
Net income
$45.12M
Diluted EPS
1.64
Operating cash flow
$26.88M
Free cash flow
$13.17M
Fetching…
Sources
Revenue
$980.17K
Net income
$39.07M
Diluted EPS
1.41
Operating cash flow
$36.69M
Free cash flow
$16.50M
Fetching…
Sources
Revenue
$976.12K
Net income
$37.27M
Diluted EPS
1.34
Operating cash flow
$53.64M
Free cash flow
$27.11M
Fetching…
Sources
Is it cheap or expensive?
Fair value $180.87 vs current price $234.94
Wall Street consensus is the average analyst price target: $304.60 (68.4% higher than our fair-value estimate).
Our most-likely fair value is $180.87 a share — about 23.0% away from today's price of $234.94, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $7.1M - more cash than debt. Interest coverage 17.8x.
Net debt
$-7.09M
Interest coverage
17.84x
Plexus Corp.'s profit covers its interest bill about 17.8 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
PLXS
BASELINE
Plexus Corp.
Total debt $306.96M Interest coverage 17.84x This is the baseline the peer rows are being compared against.
Total debt $4.02B Interest coverage 9.77x -45% vs PLXS Carries about 1.8x less debt cushion than PLXS.
Total debt $5.93B Interest coverage 6.73x -62% vs PLXS Carries about 2.7x less debt cushion than PLXS.
Total debt $2.43B Interest coverage 19.60x +10% vs PLXS Has roughly the same debt cushion as PLXS.
Total debt $981.20M Interest coverage 20.35x +14% vs PLXS Has roughly the same debt cushion as PLXS.
Total debt $291.82M Interest coverage 5.24x -71% vs PLXS Carries about 3.4x less debt cushion than PLXS.
What you should know
The case for and against PLXS
3 Rewards
2 Risks
Rewards
-
Revenue grew 0.0% last year.
-
Returns 12.6% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 47.7% above its 5-year average P/E.
-
Operating margin compressed from 4.7% to 4.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
34.70x
Forward P/E
23.22x
P/B
4.10x
P/S
1.36x
EV/EBITDA
20.43x
PEG ratio
2.09x
Profitability
How much profit each dollar creates
Gross margin
10.0%
Operating margin
4.7%
Net margin
4.0%
ROE
12.6%
ROA
4.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.20x
Current ratio
1.49x
Quick ratio
0.67x
Total debt
$306.96M
Total cash
$314.05M
Growth
How the business has been compounding
Revenue TTM
$4.03B
Revenue 5Y CAGR
3.8%
EPS TTM
6.77
EPS 5Y CAGR
8.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$171.01M
Free CF TTM
$153.97M
FCF margin
3.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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