Taking everything into account, FLEX scores 6 out of 10 in our fundamental rating. FLEX was compared to 123 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 not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year FLEX was profitable.
FLEX had a positive operating cash flow in the past year.
Each year in the past 5 years FLEX has been profitable.
In the past 5 years FLEX always reported a positive cash flow from operatings.

1.2 Ratios

FLEX has a Return On Assets of 4.77%. This is in the better half of the industry: FLEX outperforms 70.73% of its industry peers.
FLEX's Return On Equity of 17.51% is amongst the best of the industry. FLEX outperforms 87.80% of its industry peers.
FLEX has a Return On Invested Capital of 13.09%. This is amongst the best in the industry. FLEX outperforms 91.06% of its industry peers.
FLEX had an Average Return On Invested Capital over the past 3 years of 10.04%. This is in line with the industry average of 8.87%.
The 3 year average ROIC (10.04%) for FLEX is below the current ROIC(13.09%), indicating increased profibility in the last year.

		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's Profit Margin of 3.33% is fine compared to the rest of the industry. FLEX outperforms 64.23% of its industry peers.
FLEX's Profit Margin has improved in the last couple of years.
FLEX has a Operating Margin of 5.18%. This is in the better half of the industry: FLEX outperforms 65.85% of its industry peers.
In the last couple of years the Operating Margin of FLEX has grown nicely.
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.
FLEX's Gross Margin has improved in the last couple of years.

		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.
The number of shares outstanding for FLEX has been reduced compared to 1 year ago.
Compared to 5 years ago, FLEX has less shares outstanding
FLEX has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.07 indicates that FLEX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.07, FLEX is in line with its industry, outperforming 43.90% of the companies in the same industry.
The Debt to FCF ratio of FLEX is 3.10, which is a good value as it means it would take FLEX, 3.10 years of fcf income to pay off 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 70.73% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that FLEX is not too dependend on debt financing.
FLEX has a worse Debt to Equity ratio (0.50) than 69.11% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.5
Debt/FCF	3.1
Altman-Z	3.07

ROIC/WACC1.55

WACC8.42%

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's Current ratio of 1.30 is on the low side compared to the rest of the industry. FLEX is outperformed by 79.67% of its industry peers.
A Quick Ratio of 0.79 indicates that FLEX may have some problems paying its short term obligations.
With a Quick ratio value of 0.79, FLEX is not doing good in the industry: 86.18% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.3
Quick Ratio	0.79

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WACC

Debt/Equity

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 23.87% over the past year.
The Earnings Per Share has been growing by 16.40% on average over the past years. This is quite good.
The Revenue for FLEX has decreased by -43.22% in the past year. This is quite bad
Measured over the past years, FLEX shows a small growth in Revenue. The Revenue has been growing by 1.29% on average per year.

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.
The Revenue is expected to grow by 6.15% on average over the next years.

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 21.75, the valuation of FLEX can be described as rather expensive.
Based on the Price/Earnings ratio, FLEX is valued a bit cheaper than 77.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of FLEX to the average of the S&P500 Index (28.60), we can say FLEX is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.99, which indicates a rather expensive current valuation of FLEX.
FLEX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLEX is cheaper than 78.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.83. FLEX is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	21.75
Fwd PE	17.99

4.2 Price Multiples

78.05% of the companies in the same industry are more expensive than FLEX, based on the Enterprise Value to EBITDA ratio.
FLEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLEX is cheaper than 82.11% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	20.33
EV/EBITDA	13.33

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FLEX 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.