FLEX LTD (FLEX) Stock Fundamental Analysis
USA - NASDAQ:FLEX - SG9999000020 - Common Stock
62.92 USD
+1.4 (+2.28%)
62.99 USD
+0.07 (+0.11%)
Taking everything into account, FLEX scores 6 out of 10 in our fundamental rating. FLEX was compared to 123 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.
1. Profitability
1.1 Basic Checks
In the past year FLEX was profitable.
FLEX had a positive operating cash flow in the past year.
Each year in the past 5 years FLEX has 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 69.92% 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 86.99% of the companies in the same industry.
FLEX has a better Return On Invested Capital (13.09%) than 89.43% 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 9.58%.
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
The Profit Margin of FLEX (3.33%) is better than 61.79% of its industry peers.
In the last couple of years the Profit Margin of FLEX has grown nicely.
FLEX has a Operating Margin of 5.18%. This is in the better half of the industry: FLEX outperforms 65.04% of its industry peers.
In the last couple of years the Operating Margin of FLEX has grown nicely.
With a Gross Margin value of 9.14%, FLEX is not doing good in the industry: 82.11% of the companies in the same industry are doing better.
FLEX's Gross Margin has improved in the last couple of years.
| 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 3.03 indicates that FLEX is not in any danger for bankruptcy at the moment.
FLEX has a Altman-Z score (3.03) which is comparable to the rest of the industry.
FLEX has a debt to FCF ratio of 3.10. This is a good value and a sign of high solvency as FLEX would need 3.10 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.10, FLEX is doing good in the industry, outperforming 69.11% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that FLEX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.50, FLEX is not doing good in the industry: 71.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.43
WACC9.15%
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 worse Current ratio (1.30) than 81.30% 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.
The Quick ratio of FLEX (0.79) is worse than 87.80% 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.
FLEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.40% yearly.
FLEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.22%.
The Revenue has been growing slightly by 1.29% on average over the past years.
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.
Based on estimates for the next years, FLEX will show a small growth in Revenue. The Revenue will grow by 6.16% on average per year.
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
Based on the Price/Earnings ratio of 20.90, the valuation of FLEX can be described as rather expensive.
Based on the Price/Earnings ratio, FLEX is valued a bit cheaper than 77.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, FLEX is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.42 indicates a rather expensive valuation of FLEX.
FLEX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLEX is cheaper than 79.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FLEX to the average of the S&P500 Index (34.43), we can say FLEX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 17.42 |
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 78.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FLEX is valued cheaper than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.76 | ||
| EV/EBITDA | 12.83 |
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.
FLEX's earnings are expected to grow with 15.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)1.27
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 |
62.92
+1.4 (+2.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners103.6%
Inst Owner Change0.14%
Ins Owners0.64%
Ins Owner Change-2.1%
Market Cap23.53B
Revenue(TTM)26.33B
Net Income(TTM)876.00M
Analysts84.44
Price Target61.77 (-1.83%)
Short Float %1.47%
Short Ratio1.51
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)4.76%
PT rev (3m)7.07%
EPS NQ rev (1m)2.4%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)4.13%
EPS NY rev (3m)7.07%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 17.42 | ||
| P/S | 0.89 | ||
| P/FCF | 19.76 | ||
| P/OCF | 13.86 | ||
| P/B | 4.7 | ||
| P/tB | 7.09 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)3.01
EY4.78%
EPS(NY)3.61
Fwd EY5.74%
FCF(TTM)3.18
FCFY5.06%
OCF(TTM)4.54
OCFY7.22%
SpS70.42
BVpS13.38
TBVpS8.87
PEG (NY)0.98
PEG (5Y)1.27
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 | 3.03 |
F-Score6
WACC9.15%
ROIC/WACC1.43
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 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 PE and PB ratios for FLEX stock?
The Price/Earnings (PE) ratio for FLEX LTD (FLEX) is 20.9 and the Price/Book (PB) ratio is 4.7.
How financially healthy is FLEX LTD?
The financial health rating of FLEX LTD (FLEX) is 5 / 10.