WEBULL
WebtradeDownload

Plexus (PLXS) Starts A $100 Million Buyback, Is The Stock Still Undervalued?

Simply Wall St · 2d ago

What Plexus’ New Buyback Could Mean For Shareholders

Plexus (PLXS) has announced a new share repurchase program of up to US$100 million. This move puts capital allocation decisions in focus for investors tracking the stock after a strong multi year run.

Over the past few months Plexus’ share price has pulled back, with a 30 day share price return of down 12.5% and a 90 day return of down 11.3%. The year to date share price return of 59% and one year total shareholder return of 75.7% suggest longer term momentum has been strong, and this new US$100 million buyback lands against that backdrop of cooling short term sentiment after a strong multi year climb.

Compare Plexus’ buyback story with other companies returning cash to shareholders by scanning our hand picked list of 11 dividend fortresses.

The recent pullback in Plexus’ share price, set against a new US$100 million buyback, raises a simple tension. Is the board signaling confidence in the underlying business, or is this mostly a response to softer sentiment that the current valuation already reflects?

Most Popular Narrative: 20.8% Undervalued

The most followed Plexus narrative places fair value at $305.75, compared with the last close at $242.07. That gap reflects a view that Plexus’ earnings power and cash generation justify a higher valuation than the share price currently implies.

The company's increasing success in winning programs in high-margin, complex sectors such as healthcare/life sciences, aerospace, and defense (including strong defense pipeline in Europe and record sector wins), is shifting the revenue mix toward segments with higher pricing power and more stable, long-term contracts. This should positively impact both revenue consistency and net margin expansion.

Read the complete narrative.

Want to see what is baked into that story for Plexus? The narrative leans on faster revenue growth, higher margins, and a richer earnings multiple. Curious which assumptions really drive that $305.75 fair value and how they connect to the new buyback plan?

Result: Fair Value of $305.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still clear risks to the Plexus story, including exposure to customer demand pushouts and pressure on margins from rising costs and global competition.

Find out about the key risks to this Plexus narrative.

Another View On Plexus’ Valuation

The Simply Wall St DCF model places Plexus’ value at $267.08 per share, compared with the current $242.07 price. That still points to undervaluation, but by a much smaller 9.4% margin than the $305.75 narrative fair value. Which set of assumptions do you trust more?

Look into how the SWS DCF model arrives at its fair value.

PLXS Discounted Cash Flow as at Sep 2026
PLXS Discounted Cash Flow as at Sep 2026

Next Steps

With all this in mind, how comfortable are you with the current optimism around Plexus and its new buyback? If you want to see why some investors are positive, take a closer look at the 4 key rewards.

Looking For More Ideas Beyond Plexus?

If Plexus has your attention, do not stop there. The Simply Wall St screener can surface other opportunities that might suit your goals and risk comfort.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.