Overall FLEX gets a fundamental rating of 6 out of 10. We evaluated FLEX against 124 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!

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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.
FLEX had positive earnings in each of the past 5 years.
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 70.97% of its industry peers.
With an excellent Return On Equity value of 17.51%, FLEX belongs to the best of the industry, outperforming 87.90% 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 91.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FLEX is in line with the industry average of 8.83%.
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 63.71% of the companies in the same industry.
In the last couple of years the Profit Margin of FLEX has grown nicely.
The Operating Margin of FLEX (5.18%) is better than 65.32% 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 81.45% of its industry peers.
In the last couple of years the Gross Margin of FLEX has grown nicely.

		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.
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.
Compared to 1 year ago, FLEX has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.04 indicates that FLEX is not in any danger for bankruptcy at the moment.
FLEX has a Altman-Z score of 3.04. This is comparable to the rest of the industry: FLEX outperforms 42.74% of its industry peers.
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 has a better Debt to FCF ratio (3.10) than 70.16% 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 70.16% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.5
Debt/FCF	3.1
Altman-Z	3.04

ROIC/WACC0.91

WACC14.45%

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 worse Current ratio (1.30) than 79.03% of its industry peers.
A Quick Ratio of 0.79 indicates that FLEX may have some problems paying its short term obligations.
FLEX has a Quick ratio of 0.79. This is amonst the worse of the industry: FLEX underperforms 86.29% 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.
The Earnings Per Share has been growing by 16.40% on average over the past years. This is quite good.
Looking at the last year, FLEX shows a very negative growth in Revenue. The Revenue has decreased by -43.22% in the last year.
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

The Earnings Per Share is expected to grow by 15.05% 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 6.34% yearly.

EPS Next Y21.25%

EPS Next 2Y17.01%

EPS Next 3Y15.05%

EPS Next 5YN/A

Revenue Next Year5.77%

Revenue Next 2Y5.89%

Revenue Next 3Y6.34%

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.

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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 80.65% of the companies are valued more expensively.
FLEX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.58, which indicates a rather expensive current valuation of FLEX.
81.45% of the companies in the same industry are more expensive than FLEX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.26. FLEX is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	21.19
Fwd PE	17.58

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FLEX indicates a somewhat cheap valuation: FLEX is cheaper than 79.03% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLEX indicates a rather cheap valuation: FLEX is cheaper than 83.87% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	19.8
EV/EBITDA	13.04

4.3 Compensation for Growth

FLEX's 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.
A more expensive valuation may be justified as FLEX's earnings are expected to grow with 15.05% in the coming years.