FLEX LTD (FLEX) Stock Fundamental Analysis
NASDAQ:FLEX - Nasdaq - SG9999000020 - Common Stock - Currency: USD
FLEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. While FLEX has a great profitability rating, there are quite some concerns on its financial health. FLEX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
FLEX had positive earnings in the past year.
In the past year FLEX had a positive cash flow from operations.
Each year in the past 5 years FLEX has been profitable.
Each year in the past 5 years FLEX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FLEX (4.72%) is better than 72.80% of its industry peers.
Looking at the Return On Equity, with a value of 16.77%, FLEX belongs to the top of the industry, outperforming 85.60% of the companies in the same industry.
FLEX has a Return On Invested Capital of 11.72%. This is amongst the best in the industry. FLEX outperforms 86.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 16.77% | ||
| ROIC | 11.73% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
FLEX has a better Profit Margin (3.25%) than 66.40% of its industry peers.
In the last couple of years the Profit Margin of FLEX has grown nicely.
The Operating Margin of FLEX (4.86%) is better than 66.40% of its industry peers.
FLEX's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 8.64%, FLEX is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
FLEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.86% | ||
| PM (TTM) | 3.25% | ||
| GM | 8.64% |
OM growth 3Y9.25%
OM growth 5Y13.24%
PM growth 3Y-3.34%
PM growth 5Y54.95%
GM growth 3Y4.92%
GM growth 5Y6.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FLEX is still creating some value.
FLEX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.74 indicates that FLEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FLEX has a Altman-Z score (2.74) which is in line with its industry peers.
The Debt to FCF ratio of FLEX is 3.01, which is a good value as it means it would take FLEX, 3.01 years of fcf income to pay off all of its debts.
FLEX has a better Debt to FCF ratio (3.01) than 68.80% of its industry peers.
FLEX has a Debt/Equity ratio of 0.53. This is a neutral value indicating FLEX is somewhat dependend on debt financing.
FLEX's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. FLEX is outperformed by 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.27
WACC9.21%
2.3 Liquidity
A Current Ratio of 1.40 indicates that FLEX should not have too much problems paying its short term obligations.
The Current ratio of FLEX (1.40) is worse than 78.40% of its industry peers.
A Quick Ratio of 0.75 indicates that FLEX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, FLEX is doing worse than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.74% over the past year.
Measured over the past years, FLEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.40% on average per year.
FLEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -46.58%.
Measured over the past years, FLEX shows a small growth in Revenue. The Revenue has been growing by 1.29% on average per year.
EPS 1Y (TTM)4.74%
EPS 3Y10.58%
EPS 5Y16.4%
EPS Q2Q%28.07%
Revenue 1Y (TTM)-46.58%
Revenue growth 3Y-0.29%
Revenue growth 5Y1.29%
Sales Q2Q%3.71%
3.2 Future
The Earnings Per Share is expected to grow by 9.38% on average over the next years. This is quite good.
Based on estimates for the next years, FLEX will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
EPS Next Y12.09%
EPS Next 2Y12.28%
EPS Next 3Y9.38%
EPS Next 5YN/A
Revenue Next Year1.6%
Revenue Next 2Y3.14%
Revenue Next 3Y4.28%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.87, the valuation of FLEX can be described as correct.
FLEX's Price/Earnings ratio is rather cheap when compared to the industry. FLEX is cheaper than 83.20% of the companies in the same industry.
When comparing the Price/Earnings ratio of FLEX to the average of the S&P500 Index (26.60), we can say FLEX is valued slightly cheaper.
FLEX is valuated correctly with a Price/Forward Earnings ratio of 14.15.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLEX indicates a rather cheap valuation: FLEX is cheaper than 80.80% of the companies listed in the same industry.
FLEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 14.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLEX is valued cheaper than 85.60% of the companies in the same industry.
85.60% of the companies in the same industry are more expensive than FLEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.1 | ||
| EV/EBITDA | 9.57 |
4.3 Compensation for Growth
FLEX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FLEX may justify a higher PE ratio.
PEG (NY)1.31
PEG (5Y)0.97
EPS Next 2Y12.28%
EPS Next 3Y9.38%
5. Dividend
5.1 Amount
No dividends for FLEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:FLEX (5/21/2025, 12:42:01 PM)
42.045
-0.23 (-0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners105.84%
Inst Owner Change-3.72%
Ins Owners0.61%
Ins Owner Change2.69%
Market Cap16.11B
Analysts83.53
Price Target43.89 (4.39%)
Short Float %2.23%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.12%
Min EPS beat(2)2.98%
Max EPS beat(2)19.26%
EPS beat(4)4
Avg EPS beat(4)13.8%
Min EPS beat(4)2.98%
Max EPS beat(4)21.58%
EPS beat(8)8
Avg EPS beat(8)11.83%
EPS beat(12)12
Avg EPS beat(12)11.84%
EPS beat(16)16
Avg EPS beat(16)13.2%
Revenue beat(2)2
Avg Revenue beat(2)2.08%
Min Revenue beat(2)0.57%
Max Revenue beat(2)3.6%
Revenue beat(4)3
Avg Revenue beat(4)1.89%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)4.85%
Revenue beat(8)4
Avg Revenue beat(8)0.81%
Revenue beat(12)8
Avg Revenue beat(12)1.72%
Revenue beat(16)11
Avg Revenue beat(16)1.56%
PT rev (1m)-11.72%
PT rev (3m)-2.97%
EPS NQ rev (1m)-2.15%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)2.38%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)-1.7%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 14.15 | ||
| P/S | 0.62 | ||
| P/FCF | 15.1 | ||
| P/OCF | 10.7 | ||
| P/B | 3.22 | ||
| P/tB | 4.44 | ||
| EV/EBITDA | 9.57 |
EPS(TTM)2.65
EY6.3%
EPS(NY)2.97
Fwd EY7.06%
FCF(TTM)2.79
FCFY6.62%
OCF(TTM)3.93
OCFY9.34%
SpS67.38
BVpS13.04
TBVpS9.47
PEG (NY)1.31
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 16.77% | ||
| ROCE | 14.31% | ||
| ROIC | 11.73% | ||
| ROICexc | 15.76% | ||
| ROICexgc | 19.94% | ||
| OM | 4.86% | ||
| PM (TTM) | 3.25% | ||
| GM | 8.64% | ||
| FCFM | 4.13% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y9.25%
OM growth 5Y13.24%
PM growth 3Y-3.34%
PM growth 5Y54.95%
GM growth 3Y4.92%
GM growth 5Y6.46%
F-Score6
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 81.26% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.89% | ||
| Profit Quality | 127.33% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.74 |
F-Score6
WACC9.21%
ROIC/WACC1.27
Cap/Depr(3y)102.24%
Cap/Depr(5y)91.98%
Cap/Sales(3y)1.93%
Cap/Sales(5y)1.79%
Profit Quality(3y)82.06%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.74%
EPS 3Y10.58%
EPS 5Y16.4%
EPS Q2Q%28.07%
EPS Next Y12.09%
EPS Next 2Y12.28%
EPS Next 3Y9.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-46.58%
Revenue growth 3Y-0.29%
Revenue growth 5Y1.29%
Sales Q2Q%3.71%
Revenue Next Year1.6%
Revenue Next 2Y3.14%
Revenue Next 3Y4.28%
Revenue Next 5YN/A
EBIT growth 1Y-41.44%
EBIT growth 3Y8.93%
EBIT growth 5Y14.71%
EBIT Next Year46.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y34.05%
FCF growth 3Y22.46%
FCF growth 5YN/A
OCF growth 1Y13.5%
OCF growth 3Y13.7%
OCF growth 5YN/A