FLEX LTD (FLEX) Stock Fundamental Analysis
NASDAQ:FLEX - Nasdaq - SG9999000020 - Common Stock - Currency: USD
Taking everything into account, FLEX scores 5 out of 10 in our fundamental rating. FLEX was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. FLEX scores excellent on profitability, but there are some minor concerns on its financial health. FLEX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FLEX was profitable.
FLEX had a positive operating cash flow in the past year.
In the past 5 years FLEX has always been profitable.
Each year in the past 5 years FLEX had a positive operating cash flow.
1.2 Ratios
FLEX has a Return On Assets of 4.56%. This is in the better half of the industry: FLEX outperforms 69.60% of its industry peers.
With an excellent Return On Equity value of 16.75%, FLEX belongs to the best of the industry, outperforming 86.40% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.05%, FLEX belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FLEX is in line with the industry average of 9.16%.
The last Return On Invested Capital (12.05%) for FLEX is above the 3 year average (10.04%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 3.25%, FLEX is doing good in the industry, outperforming 67.20% of the companies in the same industry.
FLEX's Profit Margin has improved in the last couple of years.
FLEX's Operating Margin of 4.86% is fine compared to the rest of the industry. FLEX outperforms 66.40% of its industry peers.
In the last couple of years the Operating Margin of FLEX has grown nicely.
FLEX has a worse Gross Margin (8.64%) than 81.60% of its industry peers.
In the last couple of years the Gross Margin of FLEX has grown nicely.
| 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.
The number of shares outstanding for FLEX has been reduced compared to 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 2.80. 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.
The Altman-Z score of FLEX (2.80) is worse than 60.80% of its industry peers.
The Debt to FCF ratio of FLEX is 3.46, which is a good value as it means it would take FLEX, 3.46 years of fcf income to pay off all of its debts.
FLEX's Debt to FCF ratio of 3.46 is fine compared to the rest of the industry. FLEX outperforms 66.40% 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 has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: FLEX underperforms 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.27
WACC9.47%
2.3 Liquidity
A Current Ratio of 1.30 indicates that FLEX should not have too much problems paying its short term obligations.
The Current ratio of FLEX (1.30) is worse than 84.00% 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.
With a Quick ratio value of 0.79, FLEX is not doing good in the industry: 87.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.74% over the past year.
FLEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.40% yearly.
The Revenue for FLEX has decreased by -46.58% in the past year. This is quite bad
FLEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
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
FLEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.92% yearly.
The Revenue is expected to grow by 4.52% on average over the next years.
EPS Next Y13.24%
EPS Next 2Y12.59%
EPS Next 3Y9.92%
EPS Next 5YN/A
Revenue Next Year1.96%
Revenue Next 2Y3.29%
Revenue Next 3Y4.52%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.69, which indicates a rather expensive current valuation of FLEX.
Based on the Price/Earnings ratio, FLEX is valued a bit cheaper than the industry average as 79.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.41, FLEX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.39, the valuation of FLEX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLEX indicates a somewhat cheap valuation: FLEX is cheaper than 74.40% of the companies listed in the same industry.
FLEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLEX is valued cheaply inside the industry as 81.60% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLEX indicates a rather cheap valuation: FLEX is cheaper than 84.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.28 | ||
| EV/EBITDA | 11.65 |
4.3 Compensation for Growth
The 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.
PEG (NY)1.49
PEG (5Y)1.2
EPS Next 2Y12.59%
EPS Next 3Y9.92%
5. Dividend
5.1 Amount
No dividends for FLEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.19
+0.26 (+0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners103.5%
Inst Owner Change-0.01%
Ins Owners0.72%
Ins Owner Change2.74%
Market Cap19.50B
Analysts84.44
Price Target49.12 (-5.88%)
Short Float %1.46%
Short Ratio1.19
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)2.7%
PT rev (3m)-1.22%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-1.96%
EPS NY rev (1m)1.02%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 17.39 | ||
| P/S | 0.76 | ||
| P/FCF | 18.28 | ||
| P/OCF | 12.96 | ||
| P/B | 3.9 | ||
| P/tB | 5.88 | ||
| EV/EBITDA | 11.65 |
EPS(TTM)2.65
EY5.08%
EPS(NY)3
Fwd EY5.75%
FCF(TTM)2.86
FCFY5.47%
OCF(TTM)4.03
OCFY7.72%
SpS69.07
BVpS13.39
TBVpS8.88
PEG (NY)1.49
PEG (5Y)1.2
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 | 2.8 |
F-Score6
WACC9.47%
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 Y13.24%
EPS Next 2Y12.59%
EPS Next 3Y9.92%
EPS Next 5YN/A
Revenue 1Y (TTM)-46.58%
Revenue growth 3Y-0.29%
Revenue growth 5Y1.29%
Sales Q2Q%3.71%
Revenue Next Year1.96%
Revenue Next 2Y3.29%
Revenue Next 3Y4.52%
Revenue Next 5YN/A
EBIT growth 1Y-41.44%
EBIT growth 3Y8.93%
EBIT growth 5Y14.71%
EBIT Next Year48.56%
EBIT Next 3Y17.28%
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