60.42 USD
-1.25 (-2.03%)
60.05 USD
-0.37 (-0.61%)
Taking everything into account, FLEX scores 6 out of 10 in our fundamental rating. FLEX was compared to 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 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.
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 has a better Return On Assets (4.77%) than 70.16% of its industry peers.
The Return On Equity of FLEX (17.51%) is better than 87.90% of its industry peers.
FLEX has a better Return On Invested Capital (13.09%) than 90.32% 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 9.30%.
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
With a decent Profit Margin value of 3.33%, FLEX is doing good in the industry, outperforming 62.90% of the companies in the same industry.
In the last couple of years the Profit Margin of FLEX has grown nicely.
With a decent Operating Margin value of 5.18%, FLEX is doing good in the industry, outperforming 64.52% of the companies in the same industry.
In the last couple of years the Operating Margin of FLEX has grown nicely.
FLEX's Gross Margin of 9.14% is on the low side compared to the rest of the industry. FLEX is outperformed by 82.26% 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%
2. Health
2.1 Basic Checks
FLEX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
Compared to 1 year ago, FLEX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.99 indicates that FLEX is not in any danger for bankruptcy at the moment.
FLEX's Altman-Z score of 2.99 is in line compared to the rest of the industry. FLEX outperforms 43.55% of 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.
Looking at the Debt to FCF ratio, with a value of 3.10, FLEX is in the better half of the industry, outperforming 70.16% of the companies in the same industry.
FLEX has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
FLEX has a worse Debt to Equity ratio (0.50) than 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.44
WACC9.07%
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.
The Current ratio of FLEX (1.30) is worse than 79.84% of its industry peers.
A Quick Ratio of 0.79 indicates that FLEX may have some problems paying its short term obligations.
FLEX's Quick ratio of 0.79 is on the low side compared to the rest of the industry. FLEX is outperformed by 87.10% 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.
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.
The Revenue is expected to grow by 6.33% on average over the next years.
EPS Next Y21.25%
EPS Next 2Y17.01%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue Next Year5.76%
Revenue Next 2Y5.88%
Revenue Next 3Y6.33%
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.
4. Valuation
4.1 Price/Earnings Ratio
FLEX is valuated rather expensively with a Price/Earnings ratio of 20.07.
FLEX's Price/Earnings ratio is a bit cheaper when compared to the industry. FLEX is cheaper than 79.03% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, FLEX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.65, the valuation of FLEX can be described as correct.
FLEX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLEX is cheaper than 79.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. FLEX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 16.65 |
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 78.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FLEX is valued cheaply inside the industry as 83.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.76 | ||
| EV/EBITDA | 12.46 |
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.
FLEX's earnings are expected to grow with 15.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)1.22
EPS Next 2Y17.01%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
FLEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
60.42
-1.25 (-2.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners100.95%
Inst Owner Change-4.74%
Ins Owners0.62%
Ins Owner Change-1.47%
Market Cap22.34B
Revenue(TTM)26.33B
Net Income(TTM)876.00M
Analysts84.44
Price Target75.19 (24.45%)
Short Float %2.31%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.15%
PT rev (3m)27.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)0%
EPS NY rev (3m)4.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 16.65 | ||
| P/S | 0.85 | ||
| P/FCF | 18.76 | ||
| P/OCF | 13.16 | ||
| P/B | 4.47 | ||
| P/tB | 6.73 | ||
| EV/EBITDA | 12.46 |
EPS(TTM)3.01
EY4.98%
EPS(NY)3.63
Fwd EY6%
FCF(TTM)3.22
FCFY5.33%
OCF(TTM)4.59
OCFY7.6%
SpS71.21
BVpS13.53
TBVpS8.97
PEG (NY)0.94
PEG (5Y)1.22
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 | 2.99 |
F-Score6
WACC9.07%
ROIC/WACC1.44
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 2Y17.01%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue 1Y (TTM)-43.22%
Revenue growth 3Y-0.29%
Revenue growth 5Y1.29%
Sales Q2Q%3.96%
Revenue Next Year5.76%
Revenue Next 2Y5.88%
Revenue Next 3Y6.33%
Revenue Next 5YN/A
EBIT growth 1Y-32.62%
EBIT growth 3Y8.93%
EBIT growth 5Y14.71%
EBIT Next Year53.7%
EBIT Next 3Y20.58%
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 for FLEX stock?
ChartMill assigns a valuation rating of 6 / 10 to FLEX LTD (FLEX). This can be considered as Fairly Valued.
Can you provide the profitability details for FLEX LTD?
FLEX LTD (FLEX) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for FLEX stock?
The Earnings per Share (EPS) of FLEX LTD (FLEX) is expected to grow by 21.25% in the next year.