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FLEX LTD (FLEX) Stock Fundamental Analysis

NASDAQ:FLEX - Nasdaq - SG9999000020 - Common Stock

44.27  +1.55 (+3.63%)

After market: 44.3 +0.03 (+0.07%)

Fundamental Rating

5

Overall FLEX gets a fundamental rating of 5 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. FLEX is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

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.
Of the past 5 years FLEX 4 years had a positive operating cash flow.
FLEX Yearly Net Income VS EBIT VS OCF VS FCFFLEX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B -2B -3B -4B

1.2 Ratios

FLEX has a better Return On Assets (8.85%) than 87.50% of its industry peers.
FLEX has a better Return On Equity (31.43%) than 95.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.80%, FLEX belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FLEX is in line with the industry average of 9.03%.
The last Return On Invested Capital (18.80%) for FLEX is above the 3 year average (8.78%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.85%
ROE 31.43%
ROIC 18.8%
ROA(3y)4.69%
ROA(5y)3.71%
ROE(3y)18.79%
ROE(5y)15.47%
ROIC(3y)8.78%
ROIC(5y)8.58%
FLEX Yearly ROA, ROE, ROICFLEX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

FLEX's Profit Margin of 3.32% is fine compared to the rest of the industry. FLEX outperforms 63.33% of its industry peers.
In the last couple of years the Profit Margin of FLEX has grown nicely.
Looking at the Operating Margin, with a value of 4.41%, FLEX is in the better half of the industry, outperforming 60.83% of the companies in the same industry.
In the last couple of years the Operating Margin of FLEX has grown nicely.
Looking at the Gross Margin, with a value of 8.20%, FLEX is doing worse than 83.33% of the companies in the same industry.
FLEX's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 4.41%
PM (TTM) 3.32%
GM 8.2%
OM growth 3Y1.57%
OM growth 5Y11.92%
PM growth 3Y14.44%
PM growth 5Y60.75%
GM growth 3Y1.29%
GM growth 5Y4.39%
FLEX Yearly Profit, Operating, Gross MarginsFLEX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6

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5

2. Health

2.1 Basic Checks

FLEX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, FLEX has less shares outstanding
Compared to 5 years ago, FLEX has less shares outstanding
The debt/assets ratio for FLEX has been reduced compared to a year ago.
FLEX Yearly Shares OutstandingFLEX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
FLEX Yearly Total Debt VS Total AssetsFLEX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

An Altman-Z score of 4.15 indicates that FLEX is not in any danger for bankruptcy at the moment.
FLEX has a better Altman-Z score (4.15) than 66.67% of its industry peers.
The Debt to FCF ratio of FLEX is 2.71, which is a good value as it means it would take FLEX, 2.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.71, FLEX is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that FLEX is somewhat dependend on debt financing.
FLEX has a worse Debt to Equity ratio (0.53) than 76.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 2.71
Altman-Z 4.15
ROIC/WACC1.81
WACC10.41%
FLEX Yearly LT Debt VS Equity VS FCFFLEX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B

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.
Looking at the Current ratio, with a value of 1.40, FLEX is doing worse than 84.17% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that FLEX may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, FLEX is not doing good in the industry: 88.33% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.4
Quick Ratio 0.75
FLEX Yearly Current Assets VS Current LiabilitesFLEX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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4

3. Growth

3.1 Past

The earnings per share for FLEX have decreased by -1.62% in the last year.
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 54.38%.
The Revenue has been growing slightly by 0.16% on average over the past years.
EPS 1Y (TTM)-1.62%
EPS 3Y17.24%
EPS 5Y17.29%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)54.38%
Revenue growth 3Y3.07%
Revenue growth 5Y0.16%
Sales Q2Q%-12.39%

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 9.09% on average per year.
FLEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.16% yearly.
EPS Next Y-1.31%
EPS Next 2Y5.98%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue Next Year-9.23%
Revenue Next 2Y-2.2%
Revenue Next 3Y0.16%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
FLEX Yearly Revenue VS EstimatesFLEX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 10B 20B 30B
FLEX Yearly EPS VS EstimatesFLEX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 18.22, FLEX is valued on the expensive side.
FLEX's Price/Earnings ratio is rather cheap when compared to the industry. FLEX is cheaper than 82.50% of the companies in the same industry.
FLEX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.58, the valuation of FLEX can be described as correct.
Based on the Price/Forward Earnings ratio, FLEX is valued cheaply inside the industry as 84.17% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FLEX to the average of the S&P500 Index (24.44), we can say FLEX is valued slightly cheaper.
Industry RankSector Rank
PE 18.22
Fwd PE 15.58
FLEX Price Earnings VS Forward Price EarningsFLEX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FLEX is valued cheaply inside the industry as 92.50% of the companies are valued more expensively.
85.00% of the companies in the same industry are more expensive than FLEX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 14.47
EV/EBITDA 6.93
FLEX Per share dataFLEX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

The excellent profitability rating of FLEX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y5.98%
EPS Next 3Y9.09%

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0

5. Dividend

5.1 Amount

No dividends for FLEX!.
Industry RankSector Rank
Dividend Yield N/A

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FLEX LTD

NASDAQ:FLEX (1/21/2025, 8:00:23 PM)

After market: 44.3 +0.03 (+0.07%)

44.27

+1.55 (+3.63%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)01-29 2025-01-29/amc
Inst Owners100.65%
Inst Owner Change-0.01%
Ins Owners0.59%
Ins Owner Change-4.9%
Market Cap17.17B
Analysts83.33
Price Target45.46 (2.69%)
Short Float %3.99%
Short Ratio3.29
Dividend
Industry RankSector 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)11.13%
Min EPS beat(2)0.69%
Max EPS beat(2)21.58%
EPS beat(4)4
Avg EPS beat(4)12.8%
Min EPS beat(4)0.69%
Max EPS beat(4)21.58%
EPS beat(8)8
Avg EPS beat(8)12.25%
EPS beat(12)12
Avg EPS beat(12)13.14%
EPS beat(16)16
Avg EPS beat(16)16.9%
Revenue beat(2)1
Avg Revenue beat(2)2%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)4.85%
Revenue beat(4)2
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)4.85%
Revenue beat(8)5
Avg Revenue beat(8)1.53%
Revenue beat(12)8
Avg Revenue beat(12)1.75%
Revenue beat(16)12
Avg Revenue beat(16)2.44%
PT rev (1m)3.35%
PT rev (3m)18.08%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-0.73%
EPS NY rev (1m)0%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.87%
Valuation
Industry RankSector Rank
PE 18.22
Fwd PE 15.58
P/S 0.36
P/FCF 14.47
P/OCF 10.34
P/B 3.44
P/tB 4.73
EV/EBITDA 6.93
EPS(TTM)2.43
EY5.49%
EPS(NY)2.84
Fwd EY6.42%
FCF(TTM)3.06
FCFY6.91%
OCF(TTM)4.28
OCFY9.67%
SpS121.98
BVpS12.88
TBVpS9.35
PEG (NY)N/A
PEG (5Y)1.05
Profitability
Industry RankSector Rank
ROA 8.85%
ROE 31.43%
ROCE 23.8%
ROIC 18.8%
ROICexc 25.27%
ROICexgc 31.98%
OM 4.41%
PM (TTM) 3.32%
GM 8.2%
FCFM 2.51%
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-Score8
Asset Turnover2.67
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 2.71
Debt/EBITDA 1.02
Cap/Depr 89.43%
Cap/Sales 1%
Interest Coverage 250
Cash Conversion 63.43%
Profit Quality 75.54%
Current Ratio 1.4
Quick Ratio 0.75
Altman-Z 4.15
F-Score8
WACC10.41%
ROIC/WACC1.81
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)-1.62%
EPS 3Y17.24%
EPS 5Y17.29%
EPS Q2Q%-5.88%
EPS Next Y-1.31%
EPS Next 2Y5.98%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue 1Y (TTM)54.38%
Revenue growth 3Y3.07%
Revenue growth 5Y0.16%
Sales Q2Q%-12.39%
Revenue Next Year-9.23%
Revenue Next 2Y-2.2%
Revenue Next 3Y0.16%
Revenue Next 5YN/A
EBIT growth 1Y66.56%
EBIT growth 3Y4.69%
EBIT growth 5Y12.09%
EBIT Next Year19.58%
EBIT Next 3Y11.71%
EBIT Next 5YN/A
FCF growth 1Y300.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y128.02%
OCF growth 3Y109.6%
OCF growth 5YN/A