FLEX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 is valued quite cheap, while showing a decent growth score. This is a good combination!

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

1.2 Ratios

FLEX's Return On Assets of 4.77% is fine compared to the rest 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.
The Return On Invested Capital of FLEX (13.09%) is better than 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 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

Looking at the Profit Margin, with a value of 3.33%, FLEX is in the better half of the industry, outperforming 64.23% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of FLEX has grown nicely.
FLEX has a worse Gross Margin (9.14%) than 81.30% of its industry peers.
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

FLEX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FLEX has less shares outstanding than it did 1 year ago.
FLEX has less shares outstanding than it did 5 years ago.
FLEX has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.03 indicates that FLEX is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.03, FLEX perfoms like the industry average, outperforming 41.46% of the companies in the same 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.
FLEX's Debt to FCF ratio of 3.10 is fine compared to the rest of the industry. FLEX outperforms 69.92% of its industry peers.
FLEX has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
FLEX has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: FLEX underperforms 69.92% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.5
Debt/FCF	3.1
Altman-Z	3.03

ROIC/WACC0.91

WACC14.45%

2.3 Liquidity

A Current Ratio of 1.30 indicates that FLEX should not have too much problems paying its short term obligations.
FLEX has a Current ratio of 1.30. This is in the lower half of the industry: FLEX underperforms 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.
FLEX's Quick ratio of 0.79 is on the low side compared to the rest of the industry. FLEX is outperformed by 86.18% of its industry peers.

		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.
Looking at the last year, FLEX shows a very negative growth in Revenue. The Revenue has decreased by -43.22% in the last year.
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

The Earnings Per Share is expected to grow by 15.30% on average over the next years. This is quite good.
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

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.19, the valuation of FLEX can be described as rather expensive.
Based on the Price/Earnings ratio, FLEX is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
FLEX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
With a Price/Forward Earnings ratio of 17.52, FLEX is valued on the expensive side.
FLEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. FLEX is cheaper than 80.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. FLEX is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	21.19
Fwd PE	17.52

4.2 Price Multiples

78.86% 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 83.74% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	19.8
EV/EBITDA	12.86

4.3 Compensation for Growth

The 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.
A more expensive valuation may be justified as FLEX's earnings are expected to grow with 15.30% in the coming years.