FLEX LTD (FLEX)
SG9999000020 - Common Stock
FLEX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 126 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 is valued quite cheap, while showing a decent growth score. This is a good combination! This makes FLEX very considerable for value investing!
1. Profitability
1.1 Basic Checks
FLEX had positive earnings in the past year.
FLEX had a positive operating cash flow in the past year.
FLEX had positive earnings in each of the past 5 years.
FLEX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
FLEX has a Return On Assets of 8.85%. This is amongst the best in the industry. FLEX outperforms 89.60% of its industry peers.
With an excellent Return On Equity value of 31.43%, FLEX belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.80%, FLEX belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
FLEX had an Average Return On Invested Capital over the past 3 years of 8.78%. This is in line with the industry average of 9.05%.
The 3 year average ROIC (8.78%) for FLEX is below the current ROIC(18.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.85% | ||
| ROE | 31.43% | ||
| ROIC | 18.8% |
ROA(3y)4.69%
ROA(5y)3.71%
ROE(3y)18.79%
ROE(5y)15.47%
ROIC(3y)8.78%
ROIC(5y)8.58%
1.3 Margins
Looking at the Profit Margin, with a value of 3.32%, FLEX is in the better half of the industry, outperforming 63.20% of the companies in the same industry.
In the last couple of years the Profit Margin of FLEX has grown nicely.
FLEX has a better Operating Margin (4.41%) than 60.80% of its industry peers.
In the last couple of years the Operating Margin of FLEX has grown nicely.
Looking at the Gross Margin, with a value of 8.20%, FLEX is doing worse than 83.20% of the companies in the same industry.
FLEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.41% | ||
| PM (TTM) | 3.32% | ||
| GM | 8.2% |
OM growth 3Y1.57%
OM growth 5Y11.92%
PM growth 3Y14.44%
PM growth 5Y60.75%
GM growth 3Y1.29%
GM growth 5Y4.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FLEX is creating value.
The number of shares outstanding for FLEX has been reduced compared to 1 year ago.
Compared to 5 years ago, FLEX has less shares outstanding
Compared to 1 year ago, FLEX has an improved debt to assets ratio.
2.2 Solvency
FLEX has an Altman-Z score of 4.00. This indicates that FLEX is financially healthy and has little risk of bankruptcy at the moment.
FLEX's Altman-Z score of 4.00 is fine compared to the rest of the industry. FLEX outperforms 69.60% of its industry peers.
FLEX has a debt to FCF ratio of 2.71. This is a good value and a sign of high solvency as FLEX would need 2.71 years to pay back of all of its debts.
FLEX has a better Debt to FCF ratio (2.71) 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.
The Debt to Equity ratio of FLEX (0.53) is worse than 78.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 4 |
ROIC/WACC1.99
WACC9.47%
2.3 Liquidity
A Current Ratio of 1.40 indicates that FLEX should not have too much problems paying its short term obligations.
FLEX has a worse Current ratio (1.40) than 81.60% of its industry peers.
A Quick Ratio of 0.75 indicates that FLEX may have some problems paying its short term obligations.
FLEX's Quick ratio of 0.75 is on the low side compared to the rest of the industry. FLEX is outperformed by 88.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
FLEX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.07%.
FLEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.29% yearly.
The Revenue has grown by 55.94% in the past year. This is a very strong growth!
FLEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.16% yearly.
EPS 1Y (TTM)2.07%
EPS 3Y17.24%
EPS 5Y17.29%
EPS Q2Q%-10.53%
Revenue 1Y (TTM)55.94%
Revenue growth 3Y3.07%
Revenue growth 5Y0.16%
Sales Q2Q%-13.93%
3.2 Future
The Earnings Per Share is expected to grow by 9.43% on average over the next years. This is quite good.
FLEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.93% yearly.
EPS Next Y-2.17%
EPS Next 2Y6.18%
EPS Next 3Y9.43%
EPS Next 5YN/A
Revenue Next Year-6.55%
Revenue Next 2Y-1.03%
Revenue Next 3Y0.93%
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.
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
With a Price/Earnings ratio of 14.21, FLEX is valued correctly.
Based on the Price/Earnings ratio, FLEX is valued cheaper than 85.60% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 31.52. FLEX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.31, the valuation of FLEX can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLEX indicates a rather cheap valuation: FLEX is cheaper than 88.00% of the companies listed in the same industry.
FLEX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLEX is valued cheaper than 93.60% 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 90.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.75 | ||
| EV/EBITDA | 5.7 |
4.3 Compensation for Growth
FLEX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y6.18%
EPS Next 3Y9.43%
5. Dividend
5.1 Amount
No dividends for FLEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FLEX LTD
NASDAQ:FLEX (10/11/2024, 8:00:00 PM)
Premarket: 35.4 +0.29 (+0.83%)35.11
+1.08 (+3.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 12.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.85% | ||
| ROE | 31.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.41% | ||
| PM (TTM) | 3.32% | ||
| GM | 8.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.07%
EPS 3Y17.24%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)55.94%
Revenue growth 3Y3.07%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y