FLEX LTD (FLEX) Stock Fundamental Analysis
USA - NASDAQ:FLEX - SG9999000020 - Common Stock
57.2 USD
-0.56 (-0.97%)
57 USD
-0.2 (-0.35%)
We assign a fundamental rating of 5 out of 10 to FLEX. FLEX was compared to 125 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 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.
In the past 5 years FLEX has always been profitable.
FLEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.56%, FLEX is doing good in the industry, outperforming 70.40% of the companies in the same industry.
The Return On Equity of FLEX (16.75%) is better than 87.20% of its industry peers.
FLEX's Return On Invested Capital of 12.05% is amongst the best of the industry. FLEX outperforms 87.20% 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 9.48%.
The last Return On Invested Capital (12.05%) for FLEX is above the 3 year average (10.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 16.75% | ||
| ROIC | 12.05% |
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 (3.25%) is better than 63.20% of its industry peers.
In the last couple of years the Profit Margin of FLEX has grown nicely.
The Operating Margin of FLEX (4.86%) is better than 63.20% of its industry peers.
FLEX's Operating Margin has improved in the last couple of years.
FLEX has a worse Gross Margin (8.64%) than 84.00% of its industry peers.
FLEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.86% | ||
| PM (TTM) | 3.25% | ||
| GM | 8.64% |
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.
Compared to 1 year ago, FLEX has less shares outstanding
FLEX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FLEX has a worse debt to assets ratio.
2.2 Solvency
FLEX has an Altman-Z score of 2.88. 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.
FLEX has a Altman-Z score (2.88) which is in line with its industry peers.
The Debt to FCF ratio of FLEX is 3.46, which is a good value as it means it would take FLEX, 3.46 years of fcf income to pay off all of its debts.
FLEX's Debt to FCF ratio of 3.46 is fine compared to the rest of the industry. FLEX outperforms 68.80% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that FLEX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, FLEX is doing worse than 70.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.3
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.30 indicates that FLEX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, FLEX is doing worse than 81.60% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.79, FLEX is doing worse than 87.20% of the companies in the same industry.
| 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 nice 15.79% 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.
FLEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -44.88%.
FLEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
EPS 1Y (TTM)15.79%
EPS 3Y10.58%
EPS 5Y16.4%
EPS Q2Q%41.18%
Revenue 1Y (TTM)-44.88%
Revenue growth 3Y-0.29%
Revenue growth 5Y1.29%
Sales Q2Q%4.13%
3.2 Future
The Earnings Per Share is expected to grow by 13.03% 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 4.71% yearly.
EPS Next Y16.4%
EPS Next 2Y13.12%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue Next Year4.03%
Revenue Next 2Y4.07%
Revenue Next 3Y4.71%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
A Price/Earnings ratio of 20.00 indicates a rather expensive valuation of FLEX.
FLEX's Price/Earnings ratio is rather cheap when compared to the industry. FLEX is cheaper than 81.60% of the companies in the same industry.
FLEX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 16.87 indicates a correct valuation of FLEX.
FLEX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLEX is cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, FLEX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLEX is valued a bit cheaper than the industry average as 77.60% of the companies are valued more expensively.
83.20% of the companies in the same industry are more expensive than FLEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.05 | ||
| EV/EBITDA | 12.71 |
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 13.03% in the coming years.
PEG (NY)1.22
PEG (5Y)1.22
EPS Next 2Y13.12%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
No dividends for FLEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
57.2
-0.56 (-0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.34%
Inst Owner Change1.14%
Ins Owners0.64%
Ins Owner Change3.45%
Market Cap21.39B
Analysts82.22
Price Target58.83 (2.85%)
Short Float %2.36%
Short Ratio2.32
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)11.12%
Min EPS beat(2)2.98%
Max EPS beat(2)19.26%
EPS beat(4)4
Avg EPS beat(4)13.8%
Min EPS beat(4)2.98%
Max EPS beat(4)21.58%
EPS beat(8)8
Avg EPS beat(8)11.83%
EPS beat(12)12
Avg EPS beat(12)11.84%
EPS beat(16)16
Avg EPS beat(16)13.2%
Revenue beat(2)2
Avg Revenue beat(2)2.08%
Min Revenue beat(2)0.57%
Max Revenue beat(2)3.6%
Revenue beat(4)3
Avg Revenue beat(4)1.89%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)4.85%
Revenue beat(8)4
Avg Revenue beat(8)0.81%
Revenue beat(12)8
Avg Revenue beat(12)1.72%
Revenue beat(16)11
Avg Revenue beat(16)1.56%
PT rev (1m)1.99%
PT rev (3m)23.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)2.79%
EPS NY rev (3m)3.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 16.87 | ||
| P/S | 0.83 | ||
| P/FCF | 20.05 | ||
| P/OCF | 14.21 | ||
| P/B | 4.28 | ||
| P/tB | 6.45 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)2.86
EY5%
EPS(NY)3.39
Fwd EY5.93%
FCF(TTM)2.85
FCFY4.99%
OCF(TTM)4.02
OCFY7.04%
SpS69.03
BVpS13.38
TBVpS8.87
PEG (NY)1.22
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 16.75% | ||
| ROCE | 14.71% | ||
| ROIC | 12.05% | ||
| ROICexc | 16.47% | ||
| ROICexgc | 22.55% | ||
| OM | 4.86% | ||
| PM (TTM) | 3.25% | ||
| GM | 8.64% | ||
| FCFM | 4.13% |
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%
ROICexcg growth 3Y3.39%
ROICexcg 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 Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.46 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 81.26% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 5.86 | ||
| Cash Conversion | 83.89% | ||
| Profit Quality | 127.33% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.88 |
F-Score6
WACC9.3%
ROIC/WACC1.3
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)15.79%
EPS 3Y10.58%
EPS 5Y16.4%
EPS Q2Q%41.18%
EPS Next Y16.4%
EPS Next 2Y13.12%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-44.88%
Revenue growth 3Y-0.29%
Revenue growth 5Y1.29%
Sales Q2Q%4.13%
Revenue Next Year4.03%
Revenue Next 2Y4.07%
Revenue Next 3Y4.71%
Revenue Next 5YN/A
EBIT growth 1Y-41.44%
EBIT growth 3Y8.93%
EBIT growth 5Y14.71%
EBIT Next Year48.49%
EBIT Next 3Y18.94%
EBIT Next 5YN/A
FCF growth 1Y34.05%
FCF growth 3Y22.46%
FCF growth 5YN/A
OCF growth 1Y13.5%
OCF growth 3Y13.7%
OCF growth 5YN/A