FLEX LTD (FLEX) Stock Fundamental Analysis
USA - NASDAQ:FLEX - SG9999000020 - Common Stock
62.32 USD
-0.43 (-0.69%)
62.011 USD
-0.31 (-0.5%)
Overall FLEX gets a fundamental rating of 5 out of 10. We evaluated FLEX against 123 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FLEX was profitable.
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
FLEX's Return On Assets of 4.56% is fine compared to the rest of the industry. FLEX outperforms 68.29% of its industry peers.
FLEX's Return On Equity of 16.75% is amongst the best of the industry. FLEX outperforms 86.18% of its industry peers.
FLEX has a Return On Invested Capital of 12.05%. This is amongst the best in the industry. FLEX outperforms 87.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FLEX is in line with the industry average of 9.33%.
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
With a decent Profit Margin value of 3.25%, FLEX is doing good in the industry, outperforming 61.79% 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 (4.86%) is better than 62.60% of its industry peers.
FLEX's Operating Margin has improved in the last couple of years.
The Gross Margin of FLEX (8.64%) is worse than 83.74% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FLEX is still creating some value.
FLEX has less shares outstanding than it did 1 year ago.
FLEX has less shares outstanding than it did 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 2.97. 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.
The Altman-Z score of FLEX (2.97) is worse than 61.79% of its industry peers.
FLEX has a debt to FCF ratio of 3.46. This is a good value and a sign of high solvency as FLEX would need 3.46 years to pay back of all of its debts.
FLEX has a better Debt to FCF ratio (3.46) than 68.29% 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 71.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.32
WACC9.12%
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 81.30% 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.
Looking at the Quick ratio, with a value of 0.79, FLEX is doing worse than 87.80% of the companies in the same industry.
| 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 15.79%, which is quite good.
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.
Looking at the last year, FLEX shows a very negative growth in Revenue. The Revenue has decreased by -44.88% in the last year.
The Revenue has been growing slightly by 1.29% on average over the past years.
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
Based on estimates for the next years, FLEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.03% on average per year.
FLEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y16.43%
EPS Next 2Y13.14%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue Next Year4.1%
Revenue Next 2Y4.12%
Revenue Next 3Y4.48%
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
The Price/Earnings ratio is 21.79, which indicates a rather expensive current valuation of FLEX.
FLEX's Price/Earnings ratio is a bit cheaper when compared to the industry. FLEX is cheaper than 78.05% 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 27.77.
A Price/Forward Earnings ratio of 18.37 indicates a rather expensive valuation of FLEX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLEX indicates a somewhat cheap valuation: FLEX is cheaper than 78.86% of the companies listed in the same industry.
FLEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.79 | ||
| Fwd PE | 18.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLEX is valued a bit cheaper than 76.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FLEX is valued a bit cheaper than 78.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.84 | ||
| EV/EBITDA | 13.77 |
4.3 Compensation for Growth
FLEX's 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)1.33
PEG (5Y)1.33
EPS Next 2Y13.14%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
FLEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
62.32
-0.43 (-0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners103.6%
Inst Owner Change0.29%
Ins Owners0.64%
Ins Owner Change3.02%
Market Cap23.31B
Analysts82.22
Price Target58.96 (-5.39%)
Short Float %2.27%
Short Ratio2.16
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)0.22%
PT rev (3m)7.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.79 | ||
| Fwd PE | 18.37 | ||
| P/S | 0.9 | ||
| P/FCF | 21.84 | ||
| P/OCF | 15.49 | ||
| P/B | 4.66 | ||
| P/tB | 7.02 | ||
| EV/EBITDA | 13.77 |
EPS(TTM)2.86
EY4.59%
EPS(NY)3.39
Fwd EY5.44%
FCF(TTM)2.85
FCFY4.58%
OCF(TTM)4.02
OCFY6.46%
SpS69.03
BVpS13.38
TBVpS8.87
PEG (NY)1.33
PEG (5Y)1.33
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 | 2.97 |
F-Score6
WACC9.12%
ROIC/WACC1.32
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 Y16.43%
EPS Next 2Y13.14%
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 Year4.1%
Revenue Next 2Y4.12%
Revenue Next 3Y4.48%
Revenue Next 5YN/A
EBIT growth 1Y-41.44%
EBIT growth 3Y8.93%
EBIT growth 5Y14.71%
EBIT Next Year48.77%
EBIT Next 3Y19.13%
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