In a market where value is scarce, NASDAQ:FLEX offers a refreshing opportunity with its solid fundamentals.

Last update: Sep 9, 2024

FLEX LTD (NASDAQ:FLEX) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:FLEX showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Valuation Assessment of NASDAQ:FLEX

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 8 out of 10:

Based on the Price/Earnings ratio of 11.76, the valuation of FLEX can be described as reasonable.
Based on the Price/Earnings ratio, FLEX is valued cheaper than 88.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.65. FLEX is valued rather cheaply when compared to this.
FLEX is valuated reasonably with a Price/Forward Earnings ratio of 10.18.
Based on the Price/Forward Earnings ratio, FLEX is valued cheaper than 92.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, FLEX is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, FLEX is valued cheaper than 96.83% of the companies in the same industry.
91.27% 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.

Profitability Assessment of NASDAQ:FLEX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:FLEX, the assigned 8 is a significant indicator of profitability:

FLEX has a Return On Assets of 8.85%. This is amongst the best in the industry. FLEX outperforms 89.68% of its industry peers.
FLEX has a better Return On Equity (31.43%) than 96.83% of its industry peers.
FLEX has a Return On Invested Capital of 18.80%. This is amongst the best in the industry. FLEX outperforms 98.41% of its industry peers.
The 3 year average ROIC (8.78%) for FLEX is below the current ROIC(18.80%), indicating increased profibility in the last year.
FLEX has a better Profit Margin (3.32%) than 63.49% of its industry peers.
In the last couple of years the Profit Margin of FLEX has grown nicely.
The Operating Margin of FLEX (4.41%) is better than 60.32% of its industry peers.
FLEX's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of FLEX has grown nicely.

A Closer Look at Health for NASDAQ:FLEX

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:FLEX, the assigned 5 reflects its health status:

An Altman-Z score of 3.89 indicates that FLEX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.89, FLEX is doing good in the industry, outperforming 69.05% of the companies in the same industry.
The Debt to FCF ratio of FLEX is 2.71, which is a good value as it means it would take FLEX, 2.71 years of fcf income to pay off all of its debts.
FLEX has a Debt to FCF ratio of 2.71. This is in the better half of the industry: FLEX outperforms 69.05% of its industry peers.

Analyzing Growth Metrics

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:

Measured over the past years, FLEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.29% on average per year.
Looking at the last year, FLEX shows a very strong growth in Revenue. The Revenue has grown by 55.94%.
Based on estimates for the next years, FLEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.43% on average per year.
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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of FLEX

Disclaimer

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.