FLEX LTD (FLEX) Stock Fundamental Analysis
USA - NASDAQ:FLEX - SG9999000020 - Common Stock
58.65 USD
+0.52 (+0.89%)
58.65 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FLEX. FLEX was compared to 125 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FLEX was profitable.
In the past year FLEX had a positive cash flow from operations.
FLEX had positive earnings in each of the past 5 years.
Each year in the past 5 years FLEX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.56%, FLEX is doing good in the industry, outperforming 70.40% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.75%, FLEX belongs to the top of the industry, outperforming 87.20% of the companies in the same industry.
FLEX has a Return On Invested Capital of 12.05%. This is amongst the best in the industry. FLEX outperforms 87.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FLEX is in line with the industry average of 9.48%.
The 3 year average ROIC (10.04%) for FLEX is below the current ROIC(12.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 16.75% | ||
| ROIC | 12.05% |
ROA(3y)4.59%
ROA(5y)4.5%
ROE(3y)16.82%
ROE(5y)18.19%
ROIC(3y)10.04%
ROIC(5y)9.71%
1.3 Margins
The Profit Margin of FLEX (3.25%) is better than 63.20% of its industry peers.
In the last couple of years the Profit Margin of FLEX has grown nicely.
FLEX's Operating Margin of 4.86% is fine compared to the rest of the industry. FLEX outperforms 63.20% of its industry peers.
In the last couple of years the Operating Margin of FLEX has grown nicely.
The Gross Margin of FLEX (8.64%) is worse than 84.00% of its industry peers.
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for FLEX has been reduced compared to 5 years ago.
The debt/assets ratio for FLEX is higher compared to a year ago.
2.2 Solvency
FLEX has an Altman-Z score of 2.90. This is not the best score and indicates that FLEX is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.90, FLEX is in line with its industry, outperforming 41.60% of the companies in the same industry.
FLEX has a debt to FCF ratio of 3.46. This is a good value and a sign of high solvency as FLEX would need 3.46 years to pay back of all of its debts.
The Debt to FCF ratio of FLEX (3.46) is better than 68.80% of its industry peers.
FLEX has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
FLEX's Debt to Equity ratio of 0.50 is on the low side compared to the rest of the industry. FLEX is outperformed by 70.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.9 |
ROIC/WACC1.28
WACC9.39%
2.3 Liquidity
FLEX has a Current Ratio of 1.30. This is a normal value and indicates that FLEX is financially healthy and should not expect problems in meeting its short term obligations.
FLEX's Current ratio of 1.30 is on the low side compared to the rest of the industry. FLEX is outperformed by 81.60% of its industry peers.
FLEX has a Quick Ratio of 1.30. This is a bad value and indicates that FLEX is not financially healthy enough and could expect problems in meeting its short term obligations.
FLEX has a worse Quick ratio (0.79) than 87.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.79% 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 -44.88%.
FLEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
EPS 1Y (TTM)15.79%
EPS 3Y10.58%
EPS 5Y16.4%
EPS Q2Q%41.18%
Revenue 1Y (TTM)-44.88%
Revenue growth 3Y-0.29%
Revenue growth 5Y1.29%
Sales Q2Q%4.13%
3.2 Future
Based on estimates for the next years, FLEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.03% on average per year.
Based on estimates for the next years, FLEX will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y16.4%
EPS Next 2Y13.12%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue Next Year4.03%
Revenue Next 2Y4.07%
Revenue Next 3Y4.71%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
A Price/Earnings ratio of 20.51 indicates a rather expensive valuation of FLEX.
Compared to the rest of the industry, the Price/Earnings ratio of FLEX indicates a rather cheap valuation: FLEX is cheaper than 81.60% of the companies listed in the same industry.
FLEX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
FLEX is valuated rather expensively with a Price/Forward Earnings ratio of 17.30.
81.60% of the companies in the same industry are more expensive than FLEX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.86. FLEX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
FLEX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLEX is cheaper than 78.40% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLEX indicates a rather cheap valuation: FLEX is cheaper than 83.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.56 | ||
| EV/EBITDA | 12.9 |
4.3 Compensation for Growth
FLEX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FLEX has an outstanding profitability rating, which may justify a higher PE ratio.
FLEX's earnings are expected to grow with 13.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)1.25
EPS Next 2Y13.12%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
No dividends for FLEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.65
+0.52 (+0.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.34%
Inst Owner Change1.14%
Ins Owners0.64%
Ins Owner Change3.45%
Market Cap21.93B
Analysts82.22
Price Target58.83 (0.31%)
Short Float %2.36%
Short Ratio2.32
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)1.99%
PT rev (3m)23.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)2.79%
EPS NY rev (3m)3.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 17.3 | ||
| P/S | 0.85 | ||
| P/FCF | 20.56 | ||
| P/OCF | 14.57 | ||
| P/B | 4.38 | ||
| P/tB | 6.61 | ||
| EV/EBITDA | 12.9 |
EPS(TTM)2.86
EY4.88%
EPS(NY)3.39
Fwd EY5.78%
FCF(TTM)2.85
FCFY4.86%
OCF(TTM)4.02
OCFY6.86%
SpS69.03
BVpS13.38
TBVpS8.87
PEG (NY)1.25
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 16.75% | ||
| ROCE | 14.71% | ||
| ROIC | 12.05% | ||
| ROICexc | 16.47% | ||
| ROICexgc | 22.55% | ||
| OM | 4.86% | ||
| PM (TTM) | 3.25% | ||
| GM | 8.64% | ||
| FCFM | 4.13% |
ROA(3y)4.59%
ROA(5y)4.5%
ROE(3y)16.82%
ROE(5y)18.19%
ROIC(3y)10.04%
ROIC(5y)9.71%
ROICexc(3y)13.93%
ROICexc(5y)13.91%
ROICexgc(3y)18.22%
ROICexgc(5y)18.63%
ROCE(3y)12.26%
ROCE(5y)11.85%
ROICexcg growth 3Y3.39%
ROICexcg growth 5Y7.06%
ROICexc growth 3Y5.37%
ROICexc growth 5Y7.71%
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 Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.46 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 81.26% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 5.86 | ||
| Cash Conversion | 83.89% | ||
| Profit Quality | 127.33% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.9 |
F-Score6
WACC9.39%
ROIC/WACC1.28
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)15.79%
EPS 3Y10.58%
EPS 5Y16.4%
EPS Q2Q%41.18%
EPS Next Y16.4%
EPS Next 2Y13.12%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-44.88%
Revenue growth 3Y-0.29%
Revenue growth 5Y1.29%
Sales Q2Q%4.13%
Revenue Next Year4.03%
Revenue Next 2Y4.07%
Revenue Next 3Y4.71%
Revenue Next 5YN/A
EBIT growth 1Y-41.44%
EBIT growth 3Y8.93%
EBIT growth 5Y14.71%
EBIT Next Year48.49%
EBIT Next 3Y18.94%
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