FLEX LTD (FLEX) Stock Fundamental Analysis
USA - NASDAQ:FLEX - SG9999000020 - Common Stock
58.28 USD
+0.71 (+1.23%)
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. While FLEX belongs to the best of the industry regarding profitability, 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!
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 better Return On Assets (4.77%) than 69.92% 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 87.80% of the companies in the same industry.
FLEX has a Return On Invested Capital of 13.09%. This is amongst the best in the industry. FLEX outperforms 90.24% 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 9.10%.
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
Looking at the Profit Margin, with a value of 3.33%, FLEX is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
In the last couple of years the Profit Margin of FLEX has grown nicely.
FLEX has a better Operating Margin (5.18%) than 65.85% of its industry peers.
FLEX's Operating Margin has improved in the last couple of years.
The Gross Margin of FLEX (9.14%) is worse than 82.93% 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%
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.
FLEX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FLEX has less shares outstanding
FLEX has a worse debt/assets ratio than last year.
2.2 Solvency
FLEX has an Altman-Z score of 2.94. This is not the best score and indicates that FLEX is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.94, FLEX is in line with its industry, outperforming 43.90% 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.
The Debt to FCF ratio of FLEX (3.10) is better than 70.73% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that FLEX is not too dependend on debt financing.
The Debt to Equity ratio of FLEX (0.50) is worse than 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.43
WACC9.14%
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 81.30% 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: 87.80% 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
The Earnings Per Share has grown by an impressive 23.87% over the past year.
The Earnings Per Share has been growing by 16.40% on average over the past years. This is quite good.
FLEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.22%.
Measured over the past years, FLEX shows a small growth in Revenue. The Revenue has been growing by 1.29% on average per year.
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 15.99% on average per year.
The Revenue is expected to grow by 6.16% on average over the next years.
EPS Next Y21.25%
EPS Next 2Y16.76%
EPS Next 3Y15.99%
EPS Next 5YN/A
Revenue Next Year5.45%
Revenue Next 2Y5.62%
Revenue Next 3Y6.16%
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
A Price/Earnings ratio of 19.36 indicates a rather expensive valuation of FLEX.
Based on the Price/Earnings ratio, FLEX is valued a bit cheaper than the industry average as 78.86% 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 25.46.
With a Price/Forward Earnings ratio of 16.13, FLEX is valued correctly.
82.11% of the companies in the same industry are more expensive than FLEX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FLEX to the average of the S&P500 Index (35.39), we can say FLEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.36 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLEX is valued a bit cheaper than 78.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FLEX is valued cheaper than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.3 | ||
| EV/EBITDA | 11.8 |
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.
FLEX's earnings are expected to grow with 15.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)1.18
EPS Next 2Y16.76%
EPS Next 3Y15.99%
5. Dividend
5.1 Amount
FLEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:FLEX (11/19/2025, 2:58:32 PM)
58.28
+0.71 (+1.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners103.6%
Inst Owner Change-4.4%
Ins Owners0.64%
Ins Owner Change1.42%
Market Cap21.79B
Revenue(TTM)26.33B
Net Income(TTM)876.00M
Analysts84.44
Price Target61.77 (5.99%)
Short Float %1.36%
Short Ratio1.33
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)4.76%
PT rev (3m)7.07%
EPS NQ rev (1m)2.07%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)4.13%
EPS NY rev (3m)7.07%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.36 | ||
| Fwd PE | 16.13 | ||
| P/S | 0.83 | ||
| P/FCF | 18.3 | ||
| P/OCF | 12.84 | ||
| P/B | 4.36 | ||
| P/tB | 6.57 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)3.01
EY5.16%
EPS(NY)3.61
Fwd EY6.2%
FCF(TTM)3.18
FCFY5.46%
OCF(TTM)4.54
OCFY7.79%
SpS70.42
BVpS13.38
TBVpS8.87
PEG (NY)0.91
PEG (5Y)1.18
Graham Number30.1
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 | 2.94 |
F-Score6
WACC9.14%
ROIC/WACC1.43
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 2Y16.76%
EPS Next 3Y15.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-43.22%
Revenue growth 3Y-0.29%
Revenue growth 5Y1.29%
Sales Q2Q%3.96%
Revenue Next Year5.45%
Revenue Next 2Y5.62%
Revenue Next 3Y6.16%
Revenue Next 5YN/A
EBIT growth 1Y-32.62%
EBIT growth 3Y8.93%
EBIT growth 5Y14.71%
EBIT Next Year48.77%
EBIT Next 3Y21.76%
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 19.36 and the Price/Book (PB) ratio is 4.36.
How financially healthy is FLEX LTD?
The financial health rating of FLEX LTD (FLEX) is 4 / 10.