55.29 USD
+0.78 (+1.44%)
55.36 USD
+0.07 (+0.13%)
We assign a fundamental rating of 6 out of 10 to FLEX. FLEX was compared to 123 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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 68.55% of its industry peers.
The Return On Equity of FLEX (17.51%) is better than 87.10% of its industry peers.
FLEX's Return On Invested Capital of 13.09% is amongst the best of the industry. FLEX outperforms 90.32% of its industry peers.
FLEX had an Average Return On Invested Capital over the past 3 years of 10.04%. This is in line with the industry average of 9.10%.
The 3 year average ROIC (10.04%) for FLEX is below the current ROIC(13.09%), indicating increased profibility in the last year.
| 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
FLEX's Profit Margin of 3.33% is fine compared to the rest of the industry. FLEX outperforms 62.10% of its industry peers.
FLEX's Profit Margin has improved in the last couple of years.
The Operating Margin of FLEX (5.18%) is better than 66.13% 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 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.
FLEX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FLEX has less shares outstanding
The debt/assets ratio for FLEX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.90 indicates that FLEX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of FLEX (2.90) is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 3.10, FLEX is doing good in 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's Debt to Equity ratio of 0.50 is on the low side compared to the rest of the industry. FLEX is outperformed by 71.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 2.9 |
ROIC/WACC1.44
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.30 indicates that FLEX should not have too much problems paying its short term obligations.
FLEX has a Current ratio of 1.30. This is amonst the worse of the industry: FLEX underperforms 81.45% 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 87.90% of its industry peers.
| 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 23.87%, which is quite impressive.
The Earnings Per Share has been growing by 16.40% on average over the past years. This is quite good.
FLEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.22%.
FLEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
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 15.99% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.16% on average over the next years.
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 18.37, FLEX is valued on the expensive side.
82.26% of the companies in the same industry are more expensive than FLEX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.45, FLEX is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.30 indicates a correct valuation of FLEX.
FLEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. FLEX is cheaper than 83.06% of the companies in the same industry.
FLEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLEX is valued a bit cheaper than the industry average as 79.84% of the companies are valued more expensively.
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 | 17.36 | ||
| EV/EBITDA | 11.36 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as FLEX's earnings are expected to grow with 15.99% in the coming years.
PEG (NY)0.86
PEG (5Y)1.12
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 |
55.29
+0.78 (+1.44%)
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-4.4%
Ins Owners0.64%
Ins Owner Change1.42%
Market Cap20.68B
Revenue(TTM)26.33B
Net Income(TTM)876.00M
Analysts84.44
Price Target75.08 (35.79%)
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)27.33%
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 | 18.37 | ||
| Fwd PE | 15.3 | ||
| P/S | 0.79 | ||
| P/FCF | 17.36 | ||
| P/OCF | 12.18 | ||
| P/B | 4.13 | ||
| P/tB | 6.23 | ||
| EV/EBITDA | 11.36 |
EPS(TTM)3.01
EY5.44%
EPS(NY)3.61
Fwd EY6.53%
FCF(TTM)3.18
FCFY5.76%
OCF(TTM)4.54
OCFY8.21%
SpS70.42
BVpS13.38
TBVpS8.87
PEG (NY)0.86
PEG (5Y)1.12
Graham Number30.1
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 | 2.9 |
F-Score6
WACC9.09%
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 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 18.37 and the Price/Book (PB) ratio is 4.13.
How financially healthy is FLEX LTD?
The financial health rating of FLEX LTD (FLEX) is 4 / 10.