NASDAQ:FLEX, an undervalued stock with good fundamentals.

Last update: Aug 16, 2024

Uncover the potential of FLEX LTD (NASDAQ:FLEX) as our stock screener's choice for an undervalued stock. NASDAQ:FLEX maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Exploring NASDAQ:FLEX's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:FLEX scores a 7 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of FLEX indicates a rather cheap valuation: FLEX is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.34. FLEX is valued rather cheaply when compared to this.
FLEX is valuated reasonably with a Price/Forward Earnings ratio of 11.10.
FLEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. FLEX is cheaper than 88.28% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.80, FLEX is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, FLEX is valued cheaper than 93.75% of the companies in the same industry.
91.41% of the companies in the same industry are more expensive than FLEX, based on the Price/Free Cash Flow ratio.
FLEX has an outstanding profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:FLEX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:FLEX scores a 8 out of 10:

With an excellent Return On Assets value of 8.85%, FLEX belongs to the best of the industry, outperforming 88.28% of the companies in the same industry.
FLEX's Return On Equity of 31.43% is amongst the best of the industry. FLEX outperforms 96.88% of its industry peers.
FLEX's Return On Invested Capital of 18.80% is amongst the best of the industry. FLEX outperforms 97.66% of its industry peers.
The last Return On Invested Capital (18.80%) for FLEX is above the 3 year average (8.78%), which is a sign of increasing profitability.
FLEX's Profit Margin of 3.32% is fine compared to the rest of the industry. FLEX outperforms 63.28% of its industry peers.
FLEX's Profit Margin has improved in the last couple of years.
The Operating Margin of FLEX (4.41%) is better than 60.94% of its industry peers.
In the last couple of years the Operating Margin of FLEX has grown nicely.
FLEX's Gross Margin has improved in the last couple of years.

Understanding NASDAQ:FLEX's Health Score

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:FLEX scores a 5 out of 10:

An Altman-Z score of 3.94 indicates that FLEX is not in any danger for bankruptcy at the moment.
FLEX's Altman-Z score of 3.94 is fine compared to the rest of the industry. FLEX outperforms 68.75% 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.
Looking at the Debt to FCF ratio, with a value of 2.71, FLEX is in the better half of the industry, outperforming 67.97% of the companies in the same industry.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:FLEX has received a 5 out of 10:

The Earnings Per Share has been growing by 17.29% on average over the past years. This is quite good.
The Revenue has grown by 55.94% in the past year. This is a very strong growth!
FLEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.43% yearly.
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.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of FLEX for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.