FLEX LTD (FLEX)
SG9999000020 - Common Stock
Taking everything into account, FLEX scores 5 out of 10 in our fundamental rating. FLEX was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. While FLEX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FLEX is valued correctly, but it does not seem to be growing.
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.
FLEX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.85%, FLEX belongs to the best of the industry, outperforming 89.43% of the companies in the same industry.
With an excellent Return On Equity value of 31.43%, FLEX belongs to the best of the industry, outperforming 96.75% 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 97.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FLEX is in line with the industry average of 8.68%.
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
FLEX has a better Profit Margin (3.32%) than 65.85% of its industry peers.
FLEX's Profit Margin has improved in the last couple of years.
FLEX has a better Operating Margin (4.41%) than 62.60% of its industry peers.
In the last couple of years the Operating Margin of FLEX has grown nicely.
FLEX's Gross Margin of 8.20% is on the low side compared to the rest of the industry. FLEX is outperformed by 83.74% of its industry peers.
In the last couple of years the Gross Margin of FLEX has grown nicely.
| 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
FLEX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
FLEX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FLEX has less shares outstanding
The debt/assets ratio for FLEX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.07 indicates that FLEX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.07, FLEX is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
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's Debt to FCF ratio of 2.71 is fine compared to the rest of the industry. FLEX outperforms 70.73% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that FLEX is somewhat dependend on debt financing.
FLEX has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: FLEX underperforms 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.89
WACC9.95%
2.3 Liquidity
FLEX has a Current Ratio of 1.40. This is a normal value and indicates that FLEX is financially healthy and should not expect problems in meeting its short term obligations.
FLEX has a worse Current ratio (1.40) than 83.74% of its industry peers.
A Quick Ratio of 0.75 indicates that FLEX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, FLEX is doing worse than 89.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
FLEX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.62%.
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 54.38%.
The Revenue has been growing slightly by 0.16% on average over the past years.
EPS 1Y (TTM)-1.62%
EPS 3Y17.24%
EPS 5Y17.29%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)54.38%
Revenue growth 3Y3.07%
Revenue growth 5Y0.16%
Sales Q2Q%-12.39%
3.2 Future
Based on estimates for the next years, FLEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.16% on average per year.
Based on estimates for the next years, FLEX will show a decrease in Revenue. The Revenue will decrease by -0.07% on average per year.
EPS Next Y-1.23%
EPS Next 2Y5.92%
EPS Next 3Y9.16%
EPS Next 5YN/A
Revenue Next Year-9.27%
Revenue Next 2Y-2.28%
Revenue Next 3Y-0.07%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FLEX is valuated correctly with a Price/Earnings ratio of 16.68.
Based on the Price/Earnings ratio, FLEX is valued cheaper than 82.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. FLEX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.28 indicates a correct valuation of FLEX.
82.93% of the companies in the same industry are more expensive than FLEX, based on the Price/Forward Earnings ratio.
FLEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 14.28 |
4.2 Price Multiples
93.50% of the companies in the same industry are more expensive than FLEX, based on the Enterprise Value to EBITDA ratio.
87.80% of the companies in the same industry are more expensive than FLEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.25 | ||
| EV/EBITDA | 6.27 |
4.3 Compensation for Growth
FLEX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y5.92%
EPS Next 3Y9.16%
5. Dividend
5.1 Amount
No dividends for FLEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FLEX LTD
NASDAQ:FLEX (11/21/2024, 8:00:00 PM)
After market: 40.95 +0.42 (+1.04%)40.53
+0.7 (+1.76%)
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 Cap15.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 14.28 | ||
| 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)0.96
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)-1.62%
EPS 3Y17.24%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)54.38%
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