59.11 USD
+0.71 (+1.22%)
59.1495 USD
+0.04 (+0.07%)
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 has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on FLEX.
1. Profitability
1.1 Basic Checks
In the past year FLEX was profitable.
FLEX had a positive operating cash flow in the past year.
In the past 5 years FLEX has always been profitable.
In the past 5 years FLEX always reported a positive cash flow from operatings.
1.2 Ratios
FLEX's Return On Assets of 4.77% is fine compared to the rest of the industry. FLEX outperforms 68.80% 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 87.20% of the companies in the same industry.
FLEX has a better Return On Invested Capital (13.09%) than 90.40% 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 9.11%.
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 61.60% of the companies in the same industry.
In the last couple of years the Profit Margin of FLEX has grown nicely.
Looking at the Operating Margin, with a value of 5.18%, FLEX is in the better half of the industry, outperforming 65.60% of the companies in the same industry.
FLEX's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 9.14%, FLEX is not doing good in the industry: 82.40% of the companies in the same industry are doing better.
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%
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.
The number of shares outstanding for FLEX has been reduced compared to 5 years ago.
The debt/assets ratio for FLEX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.95 indicates that FLEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FLEX has a Altman-Z score (2.95) which is in line with its industry peers.
The Debt to FCF ratio of FLEX is 3.10, which is a good value as it means it would take FLEX, 3.10 years of fcf income to pay off all of its debts.
FLEX's Debt to FCF ratio of 3.10 is fine compared to the rest of the industry. FLEX outperforms 70.40% 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 71.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.42
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.30 indicates that FLEX should not have too much problems paying its short term obligations.
The Current ratio of FLEX (1.30) is worse than 81.60% 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.
FLEX has a Quick ratio of 0.79. This is amonst the worse of the industry: FLEX underperforms 88.00% of its industry peers.
| 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.
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.
The Revenue for FLEX has decreased by -43.22% in the past year. This is quite bad
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.
FLEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.16% yearly.
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
With a Price/Earnings ratio of 19.64, FLEX is valued on the expensive side.
FLEX's Price/Earnings ratio is a bit cheaper when compared to the industry. FLEX is cheaper than 78.40% 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 26.31.
The Price/Forward Earnings ratio is 16.36, which indicates a correct valuation of FLEX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLEX indicates a rather cheap valuation: FLEX is cheaper than 81.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, FLEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 16.36 |
4.2 Price Multiples
FLEX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLEX is cheaper than 80.00% of the companies in the same industry.
FLEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLEX is cheaper than 82.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.35 | ||
| EV/EBITDA | 11.97 |
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.
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)0.92
PEG (5Y)1.2
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 |
59.11
+0.71 (+1.22%)
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-4.77%
Ins Owners0.64%
Ins Owner Change0.16%
Market Cap21.86B
Revenue(TTM)26.33B
Net Income(TTM)876.00M
Analysts84.44
Price Target75.08 (27.02%)
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)21.55%
PT rev (3m)29.01%
EPS NQ rev (1m)2.07%
EPS NQ rev (3m)2.91%
EPS NY rev (1m)3.79%
EPS NY rev (3m)4.17%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 16.36 | ||
| P/S | 0.83 | ||
| P/FCF | 18.35 | ||
| P/OCF | 12.87 | ||
| P/B | 4.37 | ||
| P/tB | 6.59 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)3.01
EY5.09%
EPS(NY)3.61
Fwd EY6.11%
FCF(TTM)3.22
FCFY5.45%
OCF(TTM)4.59
OCFY7.77%
SpS71.21
BVpS13.53
TBVpS8.97
PEG (NY)0.92
PEG (5Y)1.2
Graham Number30.27
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 | 2.95 |
F-Score6
WACC9.22%
ROIC/WACC1.42
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 19.64 and the Price/Book (PB) ratio is 4.37.
How financially healthy is FLEX LTD?
The financial health rating of FLEX LTD (FLEX) is 4 / 10.