Overall FLEX gets a fundamental rating of 6 out of 10. We evaluated FLEX against 123 industry peers in the Electronic Equipment, Instruments & Components industry. FLEX has an excellent profitability rating, but there are some minor concerns on its financial health. FLEX has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

FLEX had positive earnings in the past year.
FLEX had a positive operating cash flow in the past year.
FLEX had positive earnings in each of the past 5 years.
In the past 5 years FLEX always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 4.77%, FLEX is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
The Return On Equity of FLEX (17.51%) is better than 87.80% of its industry peers.
The Return On Invested Capital of FLEX (13.09%) is better than 91.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FLEX is in line with the industry average of 8.87%.
The last Return On Invested Capital (13.09%) for FLEX is above the 3 year average (10.04%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	4.77%
ROE	17.51%
ROIC	13.09%

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

FLEX has a Profit Margin of 3.33%. This is in the better half of the industry: FLEX outperforms 64.23% of its industry peers.
In the last couple of years the Profit Margin of FLEX has grown nicely.
FLEX's Operating Margin of 5.18% is fine compared to the rest of the industry. FLEX outperforms 65.85% of its industry peers.
FLEX's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 9.14%, FLEX is not doing good in the industry: 81.30% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of FLEX has grown nicely.

		Industry Rank	Sector Rank
OM	5.18%
PM (TTM)	3.33%
GM	9.14%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FLEX is creating some value.
Compared to 1 year ago, FLEX has less shares outstanding
Compared to 5 years ago, FLEX has less shares outstanding
Compared to 1 year ago, FLEX has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.05 indicates that FLEX is not in any danger for bankruptcy at the moment.
The Altman-Z score of FLEX (3.05) is comparable to the rest of the industry.
FLEX has a debt to FCF ratio of 3.10. This is a good value and a sign of high solvency as FLEX would need 3.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.10, FLEX is in the better half of the industry, outperforming 69.92% 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: 69.92% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.5
Debt/FCF	3.1
Altman-Z	3.05

ROIC/WACC1.56

WACC8.38%

2.3 Liquidity

FLEX has a Current Ratio of 1.30. 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 (1.30) than 79.67% 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 86.18% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.3
Quick Ratio	0.79

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 23.87% over the past year.
Measured over the past years, FLEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.40% on average per year.
FLEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.22%.
The Revenue has been growing slightly by 1.29% on average over the past years.

EPS 1Y (TTM)23.87%

EPS 3Y10.58%

EPS 5Y16.4%

EPS Q2Q%23.44%

Revenue 1Y (TTM)-43.22%

Revenue growth 3Y-0.29%

Revenue growth 5Y1.29%

Sales Q2Q%3.96%

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 15.30% on average per year.
FLEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.15% yearly.

EPS Next Y21.25%

EPS Next 2Y17.19%

EPS Next 3Y15.3%

EPS Next 5YN/A

Revenue Next Year5.77%

Revenue Next 2Y5.96%

Revenue Next 3Y6.15%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.63, the valuation of FLEX can be described as rather expensive.
Based on the Price/Earnings ratio, FLEX is valued a bit cheaper than 78.05% of the companies in the same industry.
FLEX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.89, FLEX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, FLEX is valued a bit cheaper than 78.86% of the companies in the same industry.
FLEX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.

		Industry Rank	Sector Rank
PE	21.63
Fwd PE	17.89

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FLEX is valued a bit cheaper than 78.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FLEX is valued cheaper than 82.93% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	20.21
EV/EBITDA	13.11

4.3 Compensation for Growth

The 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.
FLEX's earnings are expected to grow with 15.30% in the coming years. This may justify a more expensive valuation.