61.5 USD
+1.12 (+1.85%)
61.5 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to FLEX. FLEX was compared to 125 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes FLEX very considerable for value investing!
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.
In the past 5 years FLEX has always been profitable.
FLEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.77%, FLEX is doing good in the industry, outperforming 70.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.51%, FLEX belongs to the top of the industry, outperforming 87.90% of the companies in the same industry.
FLEX's Return On Invested Capital of 13.09% is amongst the best of the industry. FLEX outperforms 91.13% 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 8.82%.
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 has a Profit Margin of 3.33%. This is in the better half of the industry: FLEX outperforms 63.71% of its industry peers.
FLEX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.18%, FLEX is in the better half of the industry, outperforming 65.32% of the companies in the same industry.
In the last couple of years the Operating Margin of FLEX has grown nicely.
FLEX has a worse Gross Margin (9.14%) than 80.65% of its industry peers.
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%
2. Health
2.1 Basic Checks
FLEX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FLEX has been reduced compared to 1 year ago.
The number of shares outstanding for FLEX has been reduced compared to 5 years ago.
The debt/assets ratio for FLEX is higher compared to a year ago.
2.2 Solvency
FLEX has an Altman-Z score of 2.99. This indicates that FLEX is financially healthy and has little risk of bankruptcy at the moment.
FLEX has a Altman-Z score (2.99) which is in line with its industry peers.
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.
FLEX has a better Debt to FCF ratio (3.10) than 70.16% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that FLEX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, FLEX is doing worse than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.41
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.30 indicates that FLEX should not have too much problems paying its short term obligations.
The Current ratio of FLEX (1.30) is worse than 79.84% 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.
The Quick ratio of FLEX (0.79) is worse than 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.87% over the past year.
FLEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.40% yearly.
The Revenue for FLEX has decreased by -43.22% in the past year. This is quite bad
FLEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
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
FLEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.05% yearly.
FLEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.33% yearly.
EPS Next Y21.25%
EPS Next 2Y17.01%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue Next Year5.76%
Revenue Next 2Y5.88%
Revenue Next 3Y6.33%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.43 indicates a rather expensive valuation of FLEX.
Based on the Price/Earnings ratio, FLEX is valued a bit cheaper than 79.84% of the companies in the same industry.
FLEX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.95, which indicates a correct valuation of FLEX.
78.23% of the companies in the same industry are more expensive than FLEX, based on the Price/Forward Earnings ratio.
FLEX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 16.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLEX is valued cheaper than 80.65% of the companies in the same industry.
FLEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLEX is cheaper than 82.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.09 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
FLEX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of FLEX may justify a higher PE ratio.
FLEX's earnings are expected to grow with 15.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)1.25
EPS Next 2Y17.01%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
FLEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
61.5
+1.12 (+1.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners101.06%
Inst Owner Change-0.03%
Ins Owners0.62%
Ins Owner Change-1.69%
Market Cap22.74B
Revenue(TTM)26.33B
Net Income(TTM)876.00M
Analysts84.44
Price Target75.19 (22.26%)
Short Float %2.31%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.7%
Min EPS beat(2)2.69%
Max EPS beat(2)12.72%
EPS beat(4)4
Avg EPS beat(4)9.41%
Min EPS beat(4)2.69%
Max EPS beat(4)19.26%
EPS beat(8)8
Avg EPS beat(8)10.64%
EPS beat(12)12
Avg EPS beat(12)10.5%
EPS beat(16)16
Avg EPS beat(16)11.89%
Revenue beat(2)1
Avg Revenue beat(2)1.35%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)2.91%
Revenue beat(4)3
Avg Revenue beat(4)1.72%
Min Revenue beat(4)-0.21%
Max Revenue beat(4)3.6%
Revenue beat(8)5
Avg Revenue beat(8)1.62%
Revenue beat(12)7
Avg Revenue beat(12)1%
Revenue beat(16)11
Avg Revenue beat(16)1.88%
PT rev (1m)1.07%
PT rev (3m)27.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)0%
EPS NY rev (3m)4.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 16.95 | ||
| P/S | 0.86 | ||
| P/FCF | 19.09 | ||
| P/OCF | 13.39 | ||
| P/B | 4.55 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 12.43 |
EPS(TTM)3.01
EY4.89%
EPS(NY)3.63
Fwd EY5.9%
FCF(TTM)3.22
FCFY5.24%
OCF(TTM)4.59
OCFY7.47%
SpS71.21
BVpS13.53
TBVpS8.97
PEG (NY)0.96
PEG (5Y)1.25
Graham Number30.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 17.51% | ||
| ROCE | 15.98% | ||
| ROIC | 13.09% | ||
| ROICexc | 17.89% | ||
| ROICexgc | 24.5% | ||
| OM | 5.18% | ||
| PM (TTM) | 3.33% | ||
| GM | 9.14% | ||
| FCFM | 4.52% |
ROA(3y)4.59%
ROA(5y)4.5%
ROE(3y)16.82%
ROE(5y)18.19%
ROIC(3y)10.04%
ROIC(5y)9.71%
ROICexc(3y)13.93%
ROICexc(5y)13.91%
ROICexgc(3y)18.22%
ROICexgc(5y)18.63%
ROCE(3y)12.26%
ROCE(5y)11.85%
ROICexgc growth 3Y3.39%
ROICexgc growth 5Y7.06%
ROICexc growth 3Y5.37%
ROICexc growth 5Y7.71%
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%
F-Score6
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.1 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 87.41% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.39% | ||
| Profit Quality | 135.96% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.99 |
F-Score6
WACC9.3%
ROIC/WACC1.41
Cap/Depr(3y)102.24%
Cap/Depr(5y)91.98%
Cap/Sales(3y)1.93%
Cap/Sales(5y)1.79%
Profit Quality(3y)82.06%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.87%
EPS 3Y10.58%
EPS 5Y16.4%
EPS Q2Q%23.44%
EPS Next Y21.25%
EPS Next 2Y17.01%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue 1Y (TTM)-43.22%
Revenue growth 3Y-0.29%
Revenue growth 5Y1.29%
Sales Q2Q%3.96%
Revenue Next Year5.76%
Revenue Next 2Y5.88%
Revenue Next 3Y6.33%
Revenue Next 5YN/A
EBIT growth 1Y-32.62%
EBIT growth 3Y8.93%
EBIT growth 5Y14.71%
EBIT Next Year53.7%
EBIT Next 3Y20.58%
EBIT Next 5YN/A
FCF growth 1Y131.71%
FCF growth 3Y22.46%
FCF growth 5YN/A
OCF growth 1Y44.88%
OCF growth 3Y13.7%
OCF growth 5YN/A
FLEX LTD / FLEX FAQ
Can you provide the ChartMill fundamental rating for FLEX LTD?
ChartMill assigns a fundamental rating of 6 / 10 to FLEX.
What is the valuation status for FLEX stock?
ChartMill assigns a valuation rating of 7 / 10 to FLEX LTD (FLEX). This can be considered as Undervalued.
Can you provide the profitability details for FLEX LTD?
FLEX LTD (FLEX) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for FLEX stock?
The Earnings per Share (EPS) of FLEX LTD (FLEX) is expected to grow by 21.25% in the next year.