68.8 USD
-2.21 (-3.11%)
69 USD
+0.2 (+0.29%)
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 correct valuation and a medium growth rate.
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
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.
The Return On Equity of FLEX (17.51%) is better than 87.20% of its industry peers.
FLEX has a better Return On Invested Capital (13.09%) than 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 9.26%.
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 62.40% 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 64.80% of its industry peers.
In the last couple of years the Operating Margin of FLEX has grown nicely.
Looking at the Gross Margin, with a value of 9.14%, FLEX is doing worse than 82.40% of the companies in the same industry.
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
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.
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 3.15. This indicates that FLEX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.15, FLEX is in line with its industry, outperforming 44.00% 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 69.60% 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 71.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.46
WACC8.97%
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.
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: 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.
FLEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.40% yearly.
FLEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.22%.
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
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.
The Revenue is expected to grow by 6.33% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 22.86, the valuation of FLEX can be described as rather expensive.
72.80% of the companies in the same industry are more expensive than FLEX, based on the Price/Earnings ratio.
FLEX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.96, the valuation of FLEX can be described as rather expensive.
74.40% of the companies in the same industry are more expensive than FLEX, based on the Price/Forward Earnings ratio.
FLEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 18.96 |
4.2 Price Multiples
74.40% 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 a bit cheaper when compared to the industry. FLEX is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.36 | ||
| EV/EBITDA | 14.24 |
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 15.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)1.39
EPS Next 2Y17.01%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
No dividends for FLEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
68.8
-2.21 (-3.11%)
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 Cap25.44B
Revenue(TTM)26.33B
Net Income(TTM)876.00M
Analysts84.44
Price Target74.4 (8.14%)
Short Float %1.46%
Short Ratio1.25
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)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 | 22.86 | ||
| Fwd PE | 18.96 | ||
| P/S | 0.97 | ||
| P/FCF | 21.36 | ||
| P/OCF | 14.98 | ||
| P/B | 5.09 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 14.24 |
EPS(TTM)3.01
EY4.38%
EPS(NY)3.63
Fwd EY5.27%
FCF(TTM)3.22
FCFY4.68%
OCF(TTM)4.59
OCFY6.67%
SpS71.21
BVpS13.53
TBVpS8.97
PEG (NY)1.08
PEG (5Y)1.39
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 | 3.15 |
F-Score6
WACC8.97%
ROIC/WACC1.46
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 22.86 and the Price/Book (PB) ratio is 5.09.
How financially healthy is FLEX LTD?
The financial health rating of FLEX LTD (FLEX) is 5 / 10.