62.41 USD
+1.22 (+1.99%)
63.25 USD
+0.84 (+1.35%)
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. FLEX scores excellent on profitability, but there are some minor concerns on its financial health. FLEX is not valued too expensively and it also shows a decent growth rate.
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.
FLEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FLEX has a Return On Assets of 4.77%. This is in the better half of the industry: FLEX outperforms 69.60% of its industry peers.
Looking at the Return On Equity, with a value of 17.51%, FLEX belongs to the top of the industry, outperforming 87.20% 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 90.40% 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 9.17%.
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
The Profit Margin of FLEX (3.33%) is better than 62.40% of its industry peers.
FLEX's Profit Margin has improved in the last couple of years.
FLEX's Operating Margin of 5.18% is fine compared to the rest of the industry. FLEX outperforms 64.80% 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: 82.40% 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%
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.
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
An Altman-Z score of 3.01 indicates that FLEX is not in any danger for bankruptcy at the moment.
FLEX has a Altman-Z score (3.01) which is comparable to the rest of the 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.
FLEX has a better Debt to FCF ratio (3.10) than 69.60% 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.
Looking at the Debt to Equity ratio, with a value of 0.50, FLEX is doing worse than 71.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.47
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.30 indicates that FLEX should not have too much problems paying 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 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.
With a Quick ratio value of 0.79, FLEX is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
| 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.
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
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.73, FLEX is valued on the expensive side.
77.60% of the companies in the same industry are more expensive than FLEX, based on the Price/Earnings ratio.
FLEX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.46.
With a Price/Forward Earnings ratio of 17.20, FLEX is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLEX indicates a somewhat cheap valuation: FLEX is cheaper than 79.20% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FLEX to the average of the S&P500 Index (36.10), we can say FLEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 17.2 |
4.2 Price Multiples
77.60% of the companies in the same industry are more expensive than FLEX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FLEX is valued cheaper than 81.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.38 | ||
| EV/EBITDA | 12.6 |
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.
FLEX has an outstanding profitability rating, which 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)0.98
PEG (5Y)1.26
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 |
62.41
+1.22 (+1.99%)
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 Cap23.08B
Revenue(TTM)26.33B
Net Income(TTM)876.00M
Analysts84.44
Price Target74.4 (19.21%)
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 | 20.73 | ||
| Fwd PE | 17.2 | ||
| P/S | 0.88 | ||
| P/FCF | 19.38 | ||
| P/OCF | 13.59 | ||
| P/B | 4.61 | ||
| P/tB | 6.96 | ||
| EV/EBITDA | 12.6 |
EPS(TTM)3.01
EY4.82%
EPS(NY)3.63
Fwd EY5.81%
FCF(TTM)3.22
FCFY5.16%
OCF(TTM)4.59
OCFY7.36%
SpS71.21
BVpS13.53
TBVpS8.97
PEG (NY)0.98
PEG (5Y)1.26
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 | 3.01 |
F-Score6
WACC8.93%
ROIC/WACC1.47
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 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 PE and PB ratios for FLEX stock?
The Price/Earnings (PE) ratio for FLEX LTD (FLEX) is 20.73 and the Price/Book (PB) ratio is 4.61.
How financially healthy is FLEX LTD?
The financial health rating of FLEX LTD (FLEX) is 4 / 10.