Plexus Corp. Common Stock (PLXS)

FairStock Score: 43/100 — MIXED

Key Financials

Strengths

• Generates $32 million in annual free cash flow (0.5% yield on market cap)
• Solid return on equity of 12.6% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.13, providing financial flexibility
• Established organization with 20,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($90) with negative 180% margin of safety—limited downside protection
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Plexus Corp. Common Stock is a small-cap technology company valued at $6.7 billion. The business generates $4.1 billion in annual revenue with a 1.0% net margin and $32 million in free cash flow. From a quality standpoint, Plexus shows healthy Altman Z-Score of 4.0 and adequate 13% ROE. On valuation, the stock is trading at a premium 38.9x earnings, with trades far above its Graham Number ($90) with no margin of safety. Growth dynamics show revenue growing at 9.6% and profit growth of 10.5%. Our composite FairStock Score of 43/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $32 million in annual free cash flow (0.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 39x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer