NASDAQ:FLEX is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Consider FLEX LTD (NASDAQ:FLEX) as a top value stock, identified by our stock screening tool. NASDAQ:FLEX shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

How do we evaluate the Valuation for NASDAQ:FLEX?

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:FLEX boasts a 7 out of 10:

• With a Price/Earnings ratio of 11.72, the valuation of FLEX can be described as very reasonable.
• FLEX's Price/Earnings ratio is rather cheap when compared to the industry. FLEX is cheaper than 88.10% of the companies in the same industry.
• FLEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.16.
• Based on the Price/Forward Earnings ratio, FLEX is valued cheaply inside the industry as 84.92% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.02, FLEX is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, FLEX is valued cheaper than 96.03% of the companies in the same industry.
• 83.33% of the companies in the same industry are more expensive than FLEX, based on the Price/Free Cash Flow ratio.
• The excellent profitability rating of FLEX may justify a higher PE ratio.

Evaluating Profitability: NASDAQ:FLEX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:FLEX has achieved a 8:

• With an excellent Return On Assets value of 8.86%, FLEX belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
• With an excellent Return On Equity value of 30.37%, FLEX belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 17.42%, FLEX belongs to the best of the industry, outperforming 96.03% of the companies in the same industry.
• The 3 year average ROIC (8.78%) for FLEX is below the current ROIC(17.42%), indicating increased profibility in the last year.
• With a decent Profit Margin value of 3.35%, FLEX is doing good in the industry, outperforming 64.29% of the companies in the same industry.
• FLEX's Profit Margin has improved in the last couple of years.
• With a decent Operating Margin value of 4.43%, FLEX is doing good in the industry, outperforming 61.90% of the companies in the same industry.
• In the last couple of years the Operating Margin of FLEX has grown nicely.
• In the last couple of years the Gross Margin of FLEX has grown nicely.

Evaluating Health: NASDAQ:FLEX

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:FLEX has received a 5 out of 10:

• An Altman-Z score of 3.91 indicates that FLEX is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.91, FLEX is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
• The Debt to FCF ratio of FLEX (4.10) is better than 61.11% of its industry peers.

Understanding NASDAQ:FLEX's Growth Score

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:FLEX, the assigned 5 reflects its growth potential:

• FLEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.29% yearly.
• FLEX shows a strong growth in Revenue. In the last year, the Revenue has grown by 59.25%.
• The Earnings Per Share is expected to grow by 8.90% on average over the next years. This is quite good.
• 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of FLEX contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.