NasdaqGS:FLEX

Stock Analysis Report

Executive Summary

Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers worldwide.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Flex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FLEX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.7%

FLEX

3.7%

US Electronic

7.2%

US Market


1 Year Return

-19.3%

FLEX

-20.6%

US Electronic

-10.4%

US Market

Return vs Industry: FLEX matched the US Electronic industry which returned -21.6% over the past year.

Return vs Market: FLEX underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

FLEXIndustryMarket
7 Day9.7%3.7%7.2%
30 Day-24.4%-16.7%-12.6%
90 Day-33.4%-28.1%-19.4%
1 Year-19.3%-19.3%-19.7%-20.6%-8.5%-10.4%
3 Year-49.7%-49.7%2.3%-0.6%15.8%8.3%
5 Year-33.1%-33.1%25.9%19.6%35.8%21.0%

Price Volatility Vs. Market

How volatile is Flex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Flex undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLEX ($8.05) is trading below our estimate of fair value ($22.03)

Significantly Below Fair Value: FLEX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FLEX is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: FLEX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FLEX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FLEX is good value based on its PB Ratio (1.4x) compared to the US Electronic industry average (1.5x).


Next Steps

Future Growth

How is Flex forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

88.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLEX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: FLEX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FLEX's is expected to become profitable in the next 3 years.

Revenue vs Market: FLEX's revenue (2.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FLEX's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLEX's Return on Equity is forecast to be high in 3 years time (24.5%)


Next Steps

Past Performance

How has Flex performed over the past 5 years?

-31.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLEX is currently unprofitable.

Growing Profit Margin: FLEX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FLEX is unprofitable, and losses have increased over the past 5 years at a rate of -31.2% per year.

Accelerating Growth: Unable to compare FLEX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FLEX is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (3.2%).


Return on Equity

High ROE: FLEX has a negative Return on Equity (-0.86%), as it is currently unprofitable.


Next Steps

Financial Health

How is Flex's financial position?


Financial Position Analysis

Short Term Liabilities: FLEX's short term assets ($9.4B) exceed its short term liabilities ($7.6B).

Long Term Liabilities: FLEX's short term assets ($9.4B) exceed its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: FLEX's debt to equity ratio (96.2%) is considered high.

Reducing Debt: FLEX's debt to equity ratio has reduced from 97.9% to 96.2% over the past 5 years.


Balance Sheet

Inventory Level: FLEX has a high level of physical assets or inventory.

Debt Coverage by Assets: FLEX's debt is covered by short term assets (assets are 3.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FLEX has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: FLEX has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Flex's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FLEX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FLEX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FLEX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FLEX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FLEX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Revathi Advaithi (51yo)

1

Tenure

US$5,518,765

Compensation

Ms. Revathi Advaithi has been Chief Executive Officer and Director at Flex Ltd. since February 11, 2019. Ms. Advaithi is a Non-executive Director of BAE Systems Plc since January 1, 2018. She served as a C ...


CEO Compensation Analysis

Compensation vs Market: Revathi's total compensation ($USD5.52M) is about average for companies of similar size in the US market ($USD5.55M).

Compensation vs Earnings: Insufficient data to compare Revathi's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Revathi Advaithi
CEO & Director1yrUS$5.52m0.11% $4.7m
Christopher Collier
Chief Financial Officer6.83yrsUS$7.03m0.081% $3.4m
François Barbier
President of Global Operations & Components8yrsUS$6.89m0.023% $953.4k
Scott Offer
Executive VP & General Counsel3.42yrsUS$5.46m0.016% $660.4k
Paul Humphries
President of High Reliability Solutions8.83yrsUS$7.11m0.076% $3.2m
Douglas Britt
President of Integrated Solutions7.25yrsUS$8.65m0.023% $967.8k
David Bennett
Chief Accounting Officer6.67yrsno data0.0021% $87.2k
Kevin Kettler
Chief Technology Officer and Senior Vice President of the Cloud Business Unit2.83yrsno datano data
Gus Shahin
Chief Information Officer6.83yrsno datano data
David Rubin
Vice President of Investor Relationsno datano datano data

6.8yrs

Average Tenure

54yo

Average Age

Experienced Management: FLEX's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Revathi Advaithi
CEO & Director1yrUS$5.52m0.11% $4.7m
Michael Capellas
Non-Executive Chairman2.67yrsUS$799.77k0.021% $899.6k
Willy Shih
Independent Director12.17yrsUS$290.00k0.038% $1.6m
William Watkins
Independent Director10.83yrsUS$326.00k0.0092% $391.6k
Lay Koon Tan
Independent Director8yrsUS$289.97k0.031% $1.3m
Lawrence Zimmerman
Independent Director7.42yrsUS$338.00k0.021% $884.8k
Jill Greenthal
Independent Director1.25yrsUS$184.75k0.0035% $147.3k
Marc Onetto
Independent Director6.17yrsUS$290.00k0.018% $762.9k
Xin-Zhe Li
Independent Director2.17yrsUS$270.82k0.0055% $234.5k
Charles Stevens
Independent Director1.25yrsUS$192.25k0.0035% $147.3k

4.4yrs

Average Tenure

63yo

Average Age

Experienced Board: FLEX's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FLEX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Flex Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Flex Ltd.
  • Ticker: FLEX
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$4.234b
  • Shares outstanding: 503.99m
  • Website: https://www.flex.com

Number of Employees


Location

  • Flex Ltd.
  • 2 Changi South Lane
  • Singapore
  • 486123
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLEXNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDMar 1994
FXIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1994
FLEX NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMar 1994
FXIBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFMar 1994

Biography

Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers worldwide. It operates through High Reliability Solutions, Industrial and Emerging Industries, Communications & Enterprise Compute, and Consumer Technologies Group segments. The company operates Customer Engagement Centers, Innovation and Design Centers, and Centers of Excellence/Competence. It also provides a portfolio of technologies in electrical/electronics, electromechanical, and software; and cross-industry technologies, including human machine interface, audio and video, system in package, miniaturization, IoT platforms, and asset tracking. In addition, the company designs and integrates advanced data center servers, storage and networking equipment, and data center appliances. Further, it provides value-added design and engineering services; and systems assembly and manufacturing services that include enclosures, testing services, and materials procurement and inventory management services. Additionally, the company offers chargers for smartphones and tablets; adapters for notebooks and gaming systems; power supplies for the server, storage, and networking markets; isolated DC/DC converters and non-isolated Point of Load converters for the information and communications technology market; and specialized power module solutions for other markets. It also provides after-market and forward supply chain logistics services; and reverse logistics and repair solutions, including returns management, exchange programs, complex repair, asset recovery, recycling, and e-waste management. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1990 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:16
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.