72.08 USD
+3.58 (+5.23%)
72 USD
-0.08 (-0.11%)
Taking everything into account, FLEX scores 6 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FLEX was profitable.
In the past year FLEX had a positive cash flow from operations.
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 69.60% of the companies in the same industry.
FLEX has a better Return On Equity (17.51%) than 87.20% of its industry peers.
The Return On Invested Capital of FLEX (13.09%) is better than 90.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FLEX is in line with the industry average of 9.26%.
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's Profit Margin of 3.33% is fine compared to the rest of the industry. FLEX outperforms 62.40% of its industry peers.
In the last couple of years the Profit Margin of FLEX has grown nicely.
FLEX has a Operating Margin of 5.18%. This is in the better half of the industry: FLEX outperforms 64.80% of its industry peers.
In the last couple of years the Operating Margin of FLEX has grown nicely.
FLEX has a Gross Margin of 9.14%. This is amonst the worse of the industry: FLEX underperforms 82.40% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FLEX is still creating some value.
FLEX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FLEX has been reduced compared to 5 years ago.
FLEX has a worse debt/assets ratio than last year.
2.2 Solvency
FLEX has an Altman-Z score of 3.17. This indicates that FLEX is financially healthy and has little risk of bankruptcy at the moment.
FLEX's Altman-Z score of 3.17 is in line compared to the rest of the industry. FLEX outperforms 44.80% of 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 69.60% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that FLEX is not too dependend on debt financing.
FLEX has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: FLEX underperforms 71.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.45
WACC9%
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 Current ratio of 1.30. This is amonst the worse of the industry: FLEX underperforms 81.60% 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.
FLEX has a Quick ratio of 0.79. This is amonst the worse of the industry: FLEX underperforms 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
FLEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.87%, which is quite impressive.
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%.
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
Based on estimates for the next years, FLEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.05% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
FLEX is valuated rather expensively with a Price/Earnings ratio of 23.95.
Based on the Price/Earnings ratio, FLEX is valued a bit cheaper than the industry average as 72.80% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. FLEX is around the same levels.
With a Price/Forward Earnings ratio of 19.87, FLEX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, FLEX is valued a bit cheaper than the industry average as 74.40% of the companies are valued more expensively.
FLEX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.95 | ||
| Fwd PE | 19.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FLEX indicates a somewhat cheap valuation: FLEX is cheaper than 74.40% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FLEX is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.38 | ||
| EV/EBITDA | 14.44 |
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.
A more expensive valuation may be justified as FLEX's earnings are expected to grow with 15.05% in the coming years.
PEG (NY)1.13
PEG (5Y)1.46
EPS Next 2Y17.01%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
No dividends for FLEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
72.08
+3.58 (+5.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners100.95%
Inst Owner Change-4.74%
Ins Owners0.62%
Ins Owner Change-1.84%
Market Cap26.65B
Revenue(TTM)26.33B
Net Income(TTM)876.00M
Analysts84.44
Price Target74.4 (3.22%)
Short Float %1.46%
Short Ratio1.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)20.45%
PT rev (3m)26.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.91%
EPS NY rev (1m)0%
EPS NY rev (3m)4.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.95 | ||
| Fwd PE | 19.87 | ||
| P/S | 1.01 | ||
| P/FCF | 22.38 | ||
| P/OCF | 15.7 | ||
| P/B | 5.33 | ||
| P/tB | 8.03 | ||
| EV/EBITDA | 14.44 |
EPS(TTM)3.01
EY4.18%
EPS(NY)3.63
Fwd EY5.03%
FCF(TTM)3.22
FCFY4.47%
OCF(TTM)4.59
OCFY6.37%
SpS71.21
BVpS13.53
TBVpS8.97
PEG (NY)1.13
PEG (5Y)1.46
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 | 3.17 |
F-Score6
WACC9%
ROIC/WACC1.45
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 of FLEX LTD (FLEX) stock?
ChartMill assigns a valuation rating of 5 / 10 to FLEX LTD (FLEX). This can be considered as Fairly Valued.
Can you provide the profitability details for FLEX LTD?
FLEX LTD (FLEX) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for FLEX stock?
The Price/Earnings (PE) ratio for FLEX LTD (FLEX) is 23.95 and the Price/Book (PB) ratio is 5.33.
How financially healthy is FLEX LTD?
The financial health rating of FLEX LTD (FLEX) is 5 / 10.