Applying Peter Lynch’s stock selection rules to FLEX LTD (NASDAQ:FLEX)

Peter Lynch favored companies with strong earnings growth, reasonable valuations, and solid financials. In this analysis, we’ll determine if FLEX LTD (NASDAQ:FLEX) qualifies as a true Lynch-style investment.

Does FLEX LTD (NASDAQ:FLEX) match Peter Lynch’s “Invest in What You Know” philosophy?

• The Return on Equity(ROE) of FLEX is 32.47%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• With a Debt/Equity ratio of 0.53, FLEX appears to have a manageable debt load relative to its assets.
• FLEX has experienced 17.29 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• A PEG ratio of 0.85 positions FLEX as a well-valued growth stock in today’s market.
• A Current Ratio of 1.4 indicates that FLEX has a comfortable liquidity buffer.

What else is there to say on the fundamentals of FLEX?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, FLEX scores 6 out of 10 in our fundamental rating. FLEX was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. While FLEX has a great profitability rating, there are some minor concerns on its financial health. FLEX has a valuation in line with the averages, but it does not seem to be growing.

For an up to date full fundamental analysis you can check the fundamental report of FLEX

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.