FLEX LTD (FLEX)
SG9999000020 - Common Stock
FLEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 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
FLEX had positive earnings in the past year.
In the past year FLEX had a positive cash flow from operations.
In the past 5 years FLEX has always been profitable.
Of the past 5 years FLEX 4 years had a positive operating cash flow.
1.2 Ratios
FLEX has a better Return On Assets (8.85%) than 89.60% of its industry peers.
FLEX's Return On Equity of 31.43% is amongst the best of the industry. FLEX outperforms 96.00% of its industry peers.
FLEX's Return On Invested Capital of 18.80% is amongst the best of the industry. FLEX outperforms 96.80% 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 8.74%.
The 3 year average ROIC (8.78%) for FLEX is below the current ROIC(18.80%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
FLEX has a better Profit Margin (3.32%) than 64.80% of its industry peers.
FLEX's Profit Margin has improved in the last couple of years.
FLEX has a Operating Margin of 4.41%. This is in the better half of the industry: FLEX outperforms 63.20% of its industry peers.
FLEX's Operating Margin has improved in the last couple of years.
FLEX has a worse Gross Margin (8.20%) than 84.00% of its industry peers.
In the last couple of years the Gross Margin of FLEX has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FLEX is creating 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.
The debt/assets ratio for FLEX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.03 indicates that FLEX is not in any danger for bankruptcy at the moment.
The Altman-Z score of FLEX (4.03) is better than 63.20% 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.
FLEX's Debt to FCF ratio of 2.71 is fine compared to the rest of the industry. FLEX outperforms 72.00% of its industry peers.
FLEX has a Debt/Equity ratio of 0.53. This is a neutral value indicating FLEX is somewhat dependend on debt financing.
FLEX has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: FLEX underperforms 77.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 4.03 |
ROIC/WACC1.82
WACC10.33%
2.3 Liquidity
A Current Ratio of 1.40 indicates that FLEX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.40, FLEX is doing worse than 84.00% of the companies in the same industry.
FLEX has a Quick Ratio of 1.40. 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's Quick ratio of 0.75 is on the low side compared to the rest of the industry. FLEX is outperformed by 88.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 |
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.
The Revenue has grown by 54.38% in the past year. This is a very strong growth!
Measured over the past years, FLEX shows a small growth in Revenue. The Revenue has been growing by 0.16% on average per year.
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
The Earnings Per Share is expected to grow by 9.62% on average over the next years. This is quite good.
Based on estimates for the next years, FLEX will show a small growth in Revenue. The Revenue will grow by 0.09% on average per year.
EPS Next Y-1.23%
EPS Next 2Y5.92%
EPS Next 3Y9.62%
EPS Next 5YN/A
Revenue Next Year-9.23%
Revenue Next 2Y-2.25%
Revenue Next 3Y0.09%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.90, the valuation of FLEX can be described as correct.
88.00% 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 27.73, FLEX is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.61, FLEX is valued correctly.
86.40% of the companies in the same industry are more expensive than FLEX, based on the Price/Forward Earnings ratio.
FLEX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
94.40% of the companies in the same industry are more expensive than FLEX, based on the Enterprise Value to EBITDA ratio.
89.60% of the companies in the same industry are more expensive than FLEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.63 | ||
| EV/EBITDA | 5.95 |
4.3 Compensation for Growth
FLEX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y5.92%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
FLEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FLEX LTD
NASDAQ:FLEX (12/20/2024, 8:11:47 PM)
After market: 38.64 0 (0%)38.64
+0.99 (+2.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners100.65%
Inst Owner Change0.12%
Ins Owners0.59%
Ins Owner Change-7.23%
Market Cap14.98B
Analysts83.33
Price Target43.98 (13.82%)
Short Float %4.81%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)14.25%
PT rev (3m)14.25%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-0.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 13.61 | ||
| P/S | 0.32 | ||
| P/FCF | 12.63 | ||
| P/OCF | 9.03 | ||
| P/B | 3 | ||
| P/tB | 4.13 | ||
| EV/EBITDA | 5.95 |
EPS(TTM)2.43
EY6.29%
EPS(NY)2.84
Fwd EY7.35%
FCF(TTM)3.06
FCFY7.92%
OCF(TTM)4.28
OCFY11.08%
SpS121.98
BVpS12.88
TBVpS9.35
PEG (NY)N/A
PEG (5Y)0.92
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.03 |
F-Score8
WACC10.33%
ROIC/WACC1.82
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-1.23%
EPS Next 2Y5.92%
EPS Next 3Y9.62%
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-2.25%
Revenue Next 3Y0.09%
Revenue Next 5YN/A
EBIT growth 1Y66.56%
EBIT growth 3Y4.69%
EBIT growth 5Y12.09%
EBIT Next Year18.45%
EBIT Next 3Y11.41%
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