Checking the Peter Lynch growth stock criteria for FLEX LTD (NASDAQ:FLEX)

Peter Lynch’s approach focused on identifying undervalued growth stocks with simple, scalable businesses. We examine whether FLEX LTD (NASDAQ:FLEX) fits the characteristics of a Lynch-approved investment.

Is FLEX LTD (NASDAQ:FLEX) the type of stock Peter Lynch would love?

• With a favorable Return on Equity (ROE) of 32.47%, FLEX demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• FLEX maintains a healthy Debt-to-Equity ratio of 0.53. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• Over the past 5 years, FLEX has demonstrated 17.29 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• A PEG ratio of 0.72 suggests that FLEX offers an attractive balance between growth and valuation.
• FLEX maintains a healthy liquidity position with a Current Ratio of 1.4.

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, FLEX scores 6 out of 10 in our fundamental rating. FLEX was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. While FLEX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FLEX is cheap, but on the other hand it scores bad on growth. These ratings could make FLEX a good candidate for value investing.

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.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.