FLEX LTD (FLEX) Stock Fundamental Analysis
NASDAQ:FLEX - Nasdaq - SG9999000020 - Common Stock - Currency: USD
FLEX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 124 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 is cheap, but on the other hand it scores bad on growth. These ratings could make FLEX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
FLEX had positive earnings in the past year.
FLEX had a positive operating cash flow in the past year.
In the past 5 years FLEX has always been profitable.
Of the past 5 years FLEX 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.14%, FLEX belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
FLEX's Return On Equity of 32.47% is amongst the best of the industry. FLEX outperforms 94.35% of its industry peers.
FLEX's Return On Invested Capital of 17.54% is amongst the best of the industry. FLEX outperforms 94.35% 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 9.26%.
The 3 year average ROIC (8.78%) for FLEX is below the current ROIC(17.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.14% | ||
| ROE | 32.47% | ||
| ROIC | 17.54% |
ROA(3y)4.69%
ROA(5y)3.71%
ROE(3y)18.79%
ROE(5y)15.47%
ROIC(3y)8.78%
ROIC(5y)8.58%
1.3 Margins
With a decent Profit Margin value of 3.54%, FLEX is doing good in the industry, outperforming 66.13% of the companies in the same industry.
In the last couple of years the Profit Margin of FLEX has grown nicely.
FLEX's Operating Margin of 4.25% is fine compared to the rest of the industry. FLEX outperforms 62.10% of its industry peers.
In the last couple of years the Operating Margin of FLEX has grown nicely.
The Gross Margin of FLEX (7.98%) is worse than 83.06% of its industry peers.
In the last couple of years the Gross Margin of FLEX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.25% | ||
| PM (TTM) | 3.54% | ||
| GM | 7.98% |
OM growth 3Y1.57%
OM growth 5Y11.92%
PM growth 3Y14.44%
PM growth 5Y60.75%
GM growth 3Y1.29%
GM growth 5Y4.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FLEX is creating value.
The number of shares outstanding for FLEX has been reduced compared to 1 year ago.
FLEX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FLEX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.80 indicates that FLEX is not in any danger for bankruptcy at the moment.
FLEX has a better Altman-Z score (3.80) than 69.35% of its industry peers.
The Debt to FCF ratio of FLEX is 2.39, which is a good value as it means it would take FLEX, 2.39 years of fcf income to pay off all of its debts.
FLEX has a Debt to FCF ratio of 2.39. This is in the better half of the industry: FLEX outperforms 71.77% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that FLEX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, FLEX is doing worse than 76.61% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for FLEX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 3.8 |
ROIC/WACC2
WACC8.75%
2.3 Liquidity
FLEX has a Current Ratio of 1.40. This is a normal value and indicates that FLEX is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.40, FLEX is not doing good in the industry: 79.84% of the companies in the same industry are doing better.
FLEX has a Quick Ratio of 1.40. This is a bad value and indicates that FLEX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of FLEX (0.75) is worse than 84.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
FLEX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.73%.
Measured over the past years, FLEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.29% on average per year.
FLEX shows a strong growth in Revenue. In the last year, the Revenue has grown by 55.95%.
Measured over the past years, FLEX shows a small growth in Revenue. The Revenue has been growing by 0.16% on average per year.
EPS 1Y (TTM)-2.73%
EPS 3Y17.24%
EPS 5Y17.29%
EPS Q2Q%8.45%
Revenue 1Y (TTM)55.95%
Revenue growth 3Y3.07%
Revenue growth 5Y0.16%
Sales Q2Q%-7.7%
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 9.90% yearly.
Based on estimates for the next years, FLEX will show a decrease in Revenue. The Revenue will decrease by -0.38% on average per year.
EPS Next Y5.36%
EPS Next 2Y7.71%
EPS Next 3Y9.9%
EPS Next 5YN/A
Revenue Next Year-7.77%
Revenue Next 2Y-2.98%
Revenue Next 3Y-0.38%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FLEX is valuated correctly with a Price/Earnings ratio of 12.67.
Based on the Price/Earnings ratio, FLEX is valued cheaper than 88.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of FLEX to the average of the S&P500 Index (28.29), we can say FLEX is valued rather cheaply.
FLEX is valuated reasonably with a Price/Forward Earnings ratio of 10.74.
86.29% of the companies in the same industry are more expensive than FLEX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, FLEX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLEX is valued cheaply inside the industry as 95.16% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FLEX is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.99 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FLEX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.36
PEG (5Y)0.73
EPS Next 2Y7.71%
EPS Next 3Y9.9%
5. Dividend
5.1 Amount
No dividends for FLEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.54
+0.61 (+1.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners105.84%
Inst Owner Change0%
Ins Owners0.61%
Ins Owner Change0.59%
Market Cap12.08B
Analysts83.53
Price Target49.72 (57.64%)
Short Float %2.55%
Short Ratio2.61
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)15.32%
Min EPS beat(2)11.38%
Max EPS beat(2)19.26%
EPS beat(4)4
Avg EPS beat(4)13.23%
Min EPS beat(4)0.69%
Max EPS beat(4)21.58%
EPS beat(8)8
Avg EPS beat(8)13.3%
EPS beat(12)12
Avg EPS beat(12)12.85%
EPS beat(16)16
Avg EPS beat(16)15.11%
Revenue beat(2)1
Avg Revenue beat(2)1.07%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)3.6%
Revenue beat(4)2
Avg Revenue beat(4)1.53%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)4.85%
Revenue beat(8)4
Avg Revenue beat(8)0.93%
Revenue beat(12)8
Avg Revenue beat(12)2.03%
Revenue beat(16)11
Avg Revenue beat(16)1.86%
PT rev (1m)0%
PT rev (3m)9.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.3%
EPS NY rev (1m)0.73%
EPS NY rev (3m)6.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 10.74 | ||
| P/S | 0.26 | ||
| P/FCF | 8.99 | ||
| P/OCF | 6.9 | ||
| P/B | 2.42 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)2.49
EY7.89%
EPS(NY)2.94
Fwd EY9.31%
FCF(TTM)3.51
FCFY11.12%
OCF(TTM)4.57
OCFY14.49%
SpS119.63
BVpS13.04
TBVpS9.47
PEG (NY)2.36
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.14% | ||
| ROE | 32.47% | ||
| ROCE | 22.21% | ||
| ROIC | 17.54% | ||
| ROICexc | 23.57% | ||
| ROICexgc | 29.83% | ||
| OM | 4.25% | ||
| PM (TTM) | 3.54% | ||
| GM | 7.98% | ||
| FCFM | 2.93% |
ROA(3y)4.69%
ROA(5y)3.71%
ROE(3y)18.79%
ROE(5y)15.47%
ROIC(3y)8.78%
ROIC(5y)8.58%
ROICexc(3y)12.66%
ROICexc(5y)12.43%
ROICexgc(3y)16.89%
ROICexgc(5y)16.71%
ROCE(3y)11.11%
ROCE(5y)10.86%
ROICexcg growth 3Y-7.37%
ROICexcg growth 5Y-3.32%
ROICexc growth 3Y-5.28%
ROICexc growth 5Y0.53%
OM growth 3Y1.57%
OM growth 5Y11.92%
PM growth 3Y14.44%
PM growth 5Y60.75%
GM growth 3Y1.29%
GM growth 5Y4.39%
F-Score7
Asset Turnover2.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 74.27% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.18% | ||
| Profit Quality | 82.86% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 3.8 |
F-Score7
WACC8.75%
ROIC/WACC2
Cap/Depr(3y)105.66%
Cap/Depr(5y)88.08%
Cap/Sales(3y)1.93%
Cap/Sales(5y)1.83%
Profit Quality(3y)60.31%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.73%
EPS 3Y17.24%
EPS 5Y17.29%
EPS Q2Q%8.45%
EPS Next Y5.36%
EPS Next 2Y7.71%
EPS Next 3Y9.9%
EPS Next 5YN/A
Revenue 1Y (TTM)55.95%
Revenue growth 3Y3.07%
Revenue growth 5Y0.16%
Sales Q2Q%-7.7%
Revenue Next Year-7.77%
Revenue Next 2Y-2.98%
Revenue Next 3Y-0.38%
Revenue Next 5YN/A
EBIT growth 1Y38.77%
EBIT growth 3Y4.69%
EBIT growth 5Y12.09%
EBIT Next Year24.37%
EBIT Next 3Y13.55%
EBIT Next 5YN/A
FCF growth 1Y355.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y103.61%
OCF growth 3Y109.6%
OCF growth 5YN/A