FLEX LTD (FLEX) Stock Fundamental Analysis
NASDAQ:FLEX - SG9999000020 - Common Stock
52.98 USD
+1.06 (+2.04%)
52.98 USD
0 (0%)
FLEX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 124 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on FLEX.
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
FLEX has a Return On Assets of 4.56%. This is in the better half of the industry: FLEX outperforms 70.97% of its industry peers.
With an excellent Return On Equity value of 16.75%, FLEX belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
The Return On Invested Capital of FLEX (12.05%) is better than 87.10% of its industry peers.
FLEX had an Average Return On Invested Capital over the past 3 years of 10.04%. This is in line with the industry average of 9.67%.
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 63.71% of the companies in the same industry.
In the last couple of years the Profit Margin of FLEX has grown nicely.
The Operating Margin of FLEX (4.86%) is better than 63.71% of its industry peers.
FLEX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 8.64%, FLEX is doing worse than 83.87% of the companies in the same industry.
FLEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.86% | ||
| 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.
Compared to 1 year ago, FLEX has less shares outstanding
FLEX has less shares outstanding than it did 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.
FLEX has a Altman-Z score (2.80) which is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 3.46, FLEX is doing good in the industry, outperforming 69.35% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that FLEX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.50, FLEX is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.27
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.30 indicates that FLEX should not have too much problems paying 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 82.26% 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.
Looking at the Quick ratio, with a value of 0.79, FLEX is doing worse than 87.10% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 16.40% on average over the past years. This is quite good.
FLEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -44.88%.
The Revenue has been growing slightly by 1.29% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.42% 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 4.71% yearly.
EPS Next Y16.4%
EPS Next 2Y13.12%
EPS Next 3Y11.42%
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
The Price/Earnings ratio is 18.52, which indicates a rather expensive current 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 85.48% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, FLEX is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.62 indicates a correct valuation of FLEX.
Based on the Price/Forward Earnings ratio, FLEX is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
FLEX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
80.65% of the companies in the same industry are more expensive than FLEX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FLEX is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | 11.64 |
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.
PEG (NY)1.13
PEG (5Y)1.13
EPS Next 2Y13.12%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
No dividends for FLEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.98
+1.06 (+2.04%)
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 Change3.5%
Market Cap19.88B
Analysts84.44
Price Target58.2 (9.85%)
Short Float %2.39%
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)6.57%
PT rev (3m)32.59%
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)2.03%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 15.62 | ||
| P/S | 0.77 | ||
| P/FCF | 18.64 | ||
| P/OCF | 13.21 | ||
| P/B | 3.98 | ||
| P/tB | 5.99 | ||
| EV/EBITDA | 11.64 |
EPS(TTM)2.86
EY5.4%
EPS(NY)3.39
Fwd EY6.4%
FCF(TTM)2.84
FCFY5.37%
OCF(TTM)4.01
OCFY7.57%
SpS68.78
BVpS13.33
TBVpS8.84
PEG (NY)1.13
PEG (5Y)1.13
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
WACC9.49%
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)15.79%
EPS 3Y10.58%
EPS 5Y16.4%
EPS Q2Q%41.18%
EPS Next Y16.4%
EPS Next 2Y13.12%
EPS Next 3Y11.42%
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