Flex
Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers worldwide. The last earnings update was 75 days ago. More info.
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- Flex has significant price volatility in the past 3 months.
FLEX Share Price and Events
7 Day Returns
1 Year Returns
FLEX Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Flex (FLEX) | -1.4% | 8.9% | 35.9% | -34.8% | -8.4% | 23.2% |
| US Electronic | 0.1% | 8.5% | 18% | 10.5% | 68% | 69.3% |
| US Market | -0.8% | 2.7% | 7.5% | 7% | 37.9% | 47% |
1 Year Return vs Industry and Market
- FLEX underperformed the Electronic industry which returned 10.5% over the past year.
- FLEX underperformed the Market in United States of America which returned 7% over the past year.
Value
Is Flex undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Flex
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Flex.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 9 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Electronic Unlevered Beta | Simply Wall St/ S&P Global | 1.07 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.069 (1 + (1- 17%) (50.96%)) |
1.35 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.35 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.35 * 5.96%) |
10.77% |
Discounted Cash Flow Calculation for NasdaqGS:FLEX using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Flex is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 10.77%) |
|
|---|---|---|---|
| 2019 | 589.50 | Analyst x2 | 532.17 |
| 2020 | 705.00 | Analyst x2 | 574.53 |
| 2021 | 741.00 | Analyst x1 | 545.14 |
| 2022 | 732.94 | Est @ -1.09% | 486.77 |
| 2023 | 733.37 | Est @ 0.06% | 439.68 |
| 2024 | 739.67 | Est @ 0.86% | 400.33 |
| 2025 | 750.18 | Est @ 1.42% | 366.53 |
| 2026 | 763.79 | Est @ 1.81% | 336.88 |
| 2027 | 779.74 | Est @ 2.09% | 310.47 |
| 2028 | 797.52 | Est @ 2.28% | 286.67 |
| Present value of next 10 years cash flows | $4,279.17 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $797.52 × (1 + 2.73%) ÷ (10.77% – 2.73%) |
$10,185.53 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $10,185.53 ÷ (1 + 10.77%)10 |
$3,661.13 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $4,279.17 + $3,661.13 |
$7,940.30 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $7,940.30 / 521.42 |
$15.23 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $15.23 |
| Current discount | Discount to share price of
$11.10
= -1 x ($11.10 - $15.23) / $15.23 |
27.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Flex's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Flex's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Flex's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Flex's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $0.26 |
| NasdaqGS:FLEX Share Price ** | NasdaqGS (2019-04-22) in USD | $11.1 |
| United States of America Electronic Industry PE Ratio | Median Figure of 92 Publicly-Listed Electronic Companies | 21.67x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 18.21x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Flex.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:FLEX Share Price ÷ EPS (both in USD) = 11.1 ÷ 0.26 |
42.48x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Flex is overvalued based on earnings compared to the US Electronic industry average.
- Flex is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Flex's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 42.48x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts |
55%per year |
| United States of America Electronic Industry PEG Ratio | Median Figure of 58 Publicly-Listed Electronic Companies | 1.64x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 42.48x ÷ 55% |
0.77x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Flex is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
Flex's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $5.89 |
| NasdaqGS:FLEX Share Price * | NasdaqGS (2019-04-22) in USD | $11.1 |
| United States of America Electronic Industry PB Ratio | Median Figure of 145 Publicly-Listed Electronic Companies | 2.14x |
| United States of America Market PB Ratio | Median Figure of 5,186 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:FLEX Share Price ÷ Book Value per Share (both in USD) = 11.1 ÷ 5.89 |
1.88x |
* Primary Listing of Flex.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Flex is good value based on assets compared to the US Electronic industry average.
Value checks
We assess Flex's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check) Flex has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Flex expected to perform in the next 1 to 3 years based on estimates from 9 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Flex's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Flex's earnings growth is expected to exceed the United States of America market average.
- Flex's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:FLEX Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts | 55% |
| NasdaqGS:FLEX Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts | 2.8% |
| United States of America Electronic Industry Earnings Growth Rate | Market Cap Weighted Average | 16.7% |
| United States of America Electronic Industry Revenue Growth Rate | Market Cap Weighted Average | 5.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.5% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 28,188 | 1,241 | 611 | 3 |
| 2020-03-31 | 27,105 | 1,003 | 488 | 9 |
| 2019-03-31 | 26,499 | -1,740 | 260 | 10 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 26,490 | 1,533 | 138 |
| 2018-09-28 | 26,297 | 1,218 | 302 |
| 2018-06-29 | 25,857 | 778 | 420 |
| 2018-03-31 | 25,441 | 754 | 429 |
| 2017-12-31 | 24,893 | -2,971 | 535 |
| 2017-09-29 | 24,256 | -1,566 | 546 |
| 2017-06-30 | 23,994 | 190 | 339 |
| 2017-03-31 | 23,863 | 1,150 | 320 |
| 2016-12-31 | 23,773 | 1,210 | 294 |
| 2016-09-30 | 24,421 | 1,018 | 313 |
| 2016-07-01 | 24,729 | 1,038 | 439 |
| 2016-03-31 | 24,419 | 1,136 | 444 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
All data from Flex Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 1.24 | 1.24 | 1.24 | 1.00 |
| 2020-03-31 | 0.96 | 1.02 | 0.88 | 5.00 |
| 2019-03-31 | 0.49 | 0.50 | 0.48 | 5.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.26 |
| 2018-09-28 | 0.57 |
| 2018-06-29 | 0.79 |
| 2018-03-31 | 0.81 |
| 2017-12-31 | 1.01 |
| 2017-09-29 | 1.02 |
| 2017-06-30 | 0.63 |
| 2017-03-31 | 0.59 |
| 2016-12-31 | 0.54 |
| 2016-09-30 | 0.57 |
| 2016-07-01 | 0.79 |
| 2016-03-31 | 0.80 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Flex's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Flex has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Flex performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Flex's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
- Flex's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Flex's 1-year earnings growth is negative, it can't be compared to the US Electronic industry average.
Earnings and Revenue History
All data from Flex Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 26,490.27 | 138.16 | 969.68 | |
| 2018-09-28 | 26,297.00 | 301.66 | 985.00 | |
| 2018-06-29 | 25,856.82 | 419.86 | 1,031.47 | |
| 2018-03-31 | 25,441.13 | 428.53 | 1,019.40 | |
| 2017-12-31 | 24,892.84 | 535.00 | 994.62 | |
| 2017-09-29 | 24,256.29 | 546.14 | 978.81 | |
| 2017-06-30 | 23,994.39 | 338.55 | 948.60 | |
| 2017-03-31 | 23,862.93 | 319.56 | 937.34 | |
| 2016-12-31 | 23,773.04 | 294.03 | 942.13 | |
| 2016-09-30 | 24,421.21 | 313.48 | 951.19 | |
| 2016-07-01 | 24,729.45 | 438.96 | 924.05 | |
| 2016-03-31 | 24,418.89 | 444.08 | 893.88 | |
| 2015-12-31 | 24,597.79 | 517.85 | 881.41 | |
| 2015-09-25 | 24,859.66 | 521.84 | 856.79 | |
| 2015-06-26 | 25,071.42 | 537.76 | 844.58 | |
| 2015-03-31 | 26,147.92 | 600.80 | 844.47 | |
| 2014-12-31 | 26,920.25 | 508.66 | 843.56 | |
| 2014-09-26 | 27,078.64 | 500.92 | 852.14 | |
| 2014-06-27 | 26,960.23 | 480.22 | 866.05 | |
| 2014-03-31 | 26,108.61 | 365.59 | 874.80 | |
| 2013-12-31 | 24,679.99 | 273.30 | 876.58 | |
| 2013-09-27 | 23,619.87 | 182.74 | 859.23 | |
| 2013-06-28 | 23,384.61 | 224.99 | 832.91 | |
| 2013-03-31 | 23,569.48 | 302.50 | 805.24 | |
| 2012-12-31 | 24,644.12 | 495.13 | 800.29 | |
| 2012-09-28 | 25,990.15 | 546.74 | 837.89 | |
| 2012-06-29 | 27,823.74 | 520.23 | 856.09 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Flex has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Flex used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
- Flex's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Flex's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Flex has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Flex's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Flex's finances.
The net worth of a company is the difference between its assets and liabilities.
- Flex is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Flex's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 3.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Flex Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 3,078.33 | 2,949.50 | 1,503.37 |
| 2018-09-28 | 3,169.55 | 2,925.19 | 1,377.72 |
| 2018-06-29 | 3,109.32 | 2,919.99 | 1,254.64 |
| 2018-03-31 | 3,018.57 | 2,940.64 | 1,472.42 |
| 2017-12-31 | 2,979.98 | 2,944.67 | 1,291.18 |
| 2017-09-29 | 2,872.29 | 2,956.12 | 1,369.50 |
| 2017-06-30 | 2,809.78 | 2,964.53 | 1,582.20 |
| 2017-03-31 | 2,678.28 | 2,952.14 | 1,830.68 |
| 2016-12-31 | 2,641.50 | 2,866.84 | 1,857.10 |
| 2016-09-30 | 2,604.31 | 2,834.68 | 1,537.06 |
| 2016-07-01 | 2,666.59 | 2,855.52 | 1,679.34 |
| 2016-03-31 | 2,605.53 | 2,896.56 | 1,607.57 |
| 2015-12-31 | 2,578.43 | 2,956.41 | 1,634.19 |
| 2015-09-25 | 2,455.58 | 2,827.65 | 1,668.43 |
| 2015-06-26 | 2,487.56 | 2,849.57 | 2,331.41 |
| 2015-03-31 | 2,396.25 | 2,268.70 | 1,628.41 |
| 2014-12-31 | 2,388.85 | 2,354.44 | 1,707.22 |
| 2014-09-26 | 2,342.85 | 2,398.11 | 1,514.35 |
| 2014-06-27 | 2,300.87 | 2,415.69 | 1,347.69 |
| 2014-03-31 | 2,201.68 | 2,398.00 | 1,593.73 |
| 2013-12-31 | 2,254.55 | 2,055.65 | 1,617.25 |
| 2013-09-27 | 2,118.47 | 2,057.13 | 1,127.07 |
| 2013-06-28 | 2,088.61 | 2,060.40 | 1,279.57 |
| 2013-03-31 | 2,246.76 | 2,349.53 | 1,587.09 |
| 2012-12-31 | 2,402.61 | 2,346.05 | 1,706.11 |
| 2012-09-28 | 2,452.94 | 2,095.71 | 1,561.57 |
| 2012-06-29 | 2,245.81 | 2,196.84 | 1,285.05 |
- Flex's level of debt (95.8%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (91.4% vs 95.8% today).
- Debt is well covered by operating cash flow (52%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).
Financial health checks
We assess Flex's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Flex has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Flex's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Flex
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Flex's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Flex's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| United States of America Electronic Industry Average Dividend Yield | Market Cap Weighted Average of 38 Stocks | 1.5% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-03-31 | 0.00 | 3.00 |
| 2020-03-31 | 0.00 | 4.00 |
| 2019-03-31 | 0.00 | 4.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Flex has not reported any payouts.
- Unable to verify if Flex's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Flex's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Flex afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Flex has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| AGE | 50 |
| TENURE AS CEO | 0.2 years |
CEO Bio
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 Chief Operating Officer of Electrical Sector at Eaton Corporation Plc since September 1, 2015 until February 8, 2019. Ms. Advaithi served as the President of Americas Region - Electrical at Eaton Corporation Plc since April 1, 2012 until August 31, 2015. Ms. Advaithi served as the President of Asia-Pacific Region - Electrical Group at Eaton Corporation from July 1, 2009 to March 31, 2012. She served as a General Manager of IM & C and Vice President of Honeywell Process Solutions. Ms. Advaithi served as a Vice President, Global Sourcing of Aerospace Engines, Systems & Services (ES&S). During that time, she was responsible for vision, strategy and execution of direct and indirect procurement and strategic sourcing at ES&S. She joined and served as Director for Integrated Supply Chain for the Hardware Product Group (HPG) of Honeywell Process Solutions since 2002, where she was responsible for coordinating all HPG supply chain processes from material procurement to distribution and logistics. There she developed and implemented a successful supply chain strategy that enabled the business to get back on a growth and profitability path. She has more than 15 years of diverse business experience. She worked with Eaton Corporation in North America and Europe and Xerox in India in a series of positions with increasing responsibility, building a skill set in operations, sales and marketing, customer service and general management. Ms. Advaithi began her career as a mechanical engineer in her native India, then moved to the US where she started her Eaton career on the factory floor as a plant supervisor in Shawnee, Oklahoma. Over the years, she expanded her engineering role to international markets, adding operational management and supply chain expertise. Ms. Advaithi has deep and highly relevant experience across engineering, operations, supply chain, material procurement, distribution, logistics and international management. Ms. Advaithi has a bachelor's degree in mechanical engineering from the Birla Institute of Technology and Science in Pilani, India and an MBA in International Business from the Thunderbird School of Global Management in Glendale, Arizona. She currently serves as a non-executive director on the BAE Systems board. She also serves on both the executive committee and board of governors of the National Electrical Manufacturers Association, and on the board of the Women’s Center & Shelter of Greater Pittsburgh. She is a strong advocate for STEM education for girls, women’s issues and diversity in the workplace.
CEO Compensation
- Insufficient data for Revathi to compare compensation growth.
- Insufficient data for Revathi to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Flex management team in years:
- The average tenure for the Flex management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Chris Collier
Chief Financial Officer
$4M
49
5.9 yrs
François Barbier
President of Global Operations & Components
$4M
59
7.2 yrs
Scott Offer
Executive VP & General Counsel
$2M
53
2.6 yrs
Paul Humphries
President of High Reliability Solutions
$5M
63
8 yrs
Revathi Advaithi
CEO & Director
50
0.2 yrs
David Bennett
Chief Accounting Officer
48
5.8 yrs
Kevin Kettler
Chief Technology Officer and Senior Vice President of the Cloud Business Unit
1.9 yrs
Gus Shahin
Chief Information Officer
6 yrs
Kevin Kessel
Vice President of Investor Relations & Corporate Communications
9.5 yrs
Paul Baldassari
Chief Human Resources Officer
4.8 yrs
Board of Directors Tenure
Average tenure and age of the Flex board of directors in years:
- The tenure for the Flex board of directors is about average.
Board of Directors
Michael Capellas
Non-Executive Chairman
$371K
63
1.8 yrs
Revathi Advaithi
CEO & Director
50
0.2 yrs
Bill Watkins
Independent Director
$287K
65
10 yrs
Larry Zimmerman
Independent Director
$333K
75
6.5 yrs
Mike McNamara
Director
$16M
61
13.5 yrs
Willy Shih
Independent Director
$287K
67
11.3 yrs
Lay Koon Tan
Independent Director
$357K
59
7.1 yrs
Marc Onetto
Independent Director
$287K
67
5.3 yrs
Jennifer Li
Director
$150K
50
1.3 yrs
Chuck Stevens
Director
58
0.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 18. Jan 19 | Sell | Lay Koon Tan | Individual | 17. Jan 19 | 17. Jan 19 | -672 | $7.91 | $-5,317 | ||
| 18. Jan 19 | Sell | Xin-Zhe Li | Individual | 17. Jan 19 | 17. Jan 19 | -76 | $7.91 | $-601 | ||
| 05. Dec 18 | Buy | Marc Onetto | Individual | 04. Dec 18 | 04. Dec 18 | 11,500 | $8.49 | $97,632 | ||
| 02. Nov 18 | Buy | D. Offer | Individual | 30. Oct 18 | 30. Oct 18 | 27,027 | $7.48 | $202,273 | ||
| 17. Oct 18 | Sell | Xin-Zhe Li | Individual | 17. Oct 18 | 17. Oct 18 | -48 | $12.36 | $-593 | ||
| 17. Oct 18 | Sell | Lay Koon Tan | Individual | 17. Oct 18 | 17. Oct 18 | -430 | $12.36 | $-5,315 | ||
| 18. Aug 18 | Sell | Lay Koon Tan | Individual | 16. Aug 18 | 16. Aug 18 | -2,298 | $13.46 | $-30,940 | ||
| 18. Aug 18 | Sell | Xin-Zhe Li | Individual | 16. Aug 18 | 16. Aug 18 | -352 | $13.46 | $-4,739 | ||
| 10. Aug 18 | Sell | François Barbier | Individual | 09. Aug 18 | 09. Aug 18 | -70,278 | $14.03 | $-986,148 | ||
| 18. Jul 18 | Sell | Lay Koon Tan | Individual | 18. Jul 18 | 18. Jul 18 | -355 | $15.06 | $-5,345 | ||
| 04. Jul 18 | Sell | Christopher Collier | Individual | 02. Jul 18 | 02. Jul 18 | -10,665 | $13.82 | $-147,364 | ||
| 04. Jul 18 | Sell | Michael McNamara | Individual | 02. Jul 18 | 02. Jul 18 | -42,655 | $13.82 | $-589,385 | ||
| 04. Jul 18 | Sell | Paul Humphries | Individual | 02. Jul 18 | 02. Jul 18 | -9,964 | $13.82 | $-137,678 | ||
| 04. Jul 18 | Sell | David Bennett | Individual | 02. Jul 18 | 02. Jul 18 | -1,939 | $13.82 | $-26,792 | ||
| 03. Jul 18 | Sell | François Barbier | Individual | 02. Jul 18 | 02. Jul 18 | -10,468 | $13.82 | $-144,642 | ||
| 04. Jul 18 | Sell | D. Offer | Individual | 02. Jul 18 | 02. Jul 18 | -6,787 | $13.82 | $-93,779 | ||
| 29. Jun 18 | Sell | François Barbier | Individual | 27. Jun 18 | 27. Jun 18 | -14,493 | $14.33 | $-207,688 | ||
| 29. Jun 18 | Sell | Michael McNamara | Individual | 27. Jun 18 | 27. Jun 18 | -45,269 | $14.33 | $-648,714 | ||
| 29. Jun 18 | Sell | David Bennett | Individual | 27. Jun 18 | 27. Jun 18 | -3,100 | $14.33 | $-44,424 | ||
| 29. Jun 18 | Sell | Christopher Collier | Individual | 27. Jun 18 | 27. Jun 18 | -14,889 | $14.33 | $-213,362 | ||
| 22. Jun 18 | Sell | David Bennett | Individual | 21. Jun 18 | 21. Jun 18 | -10,576 | $14.50 | $-153,309 | ||
| 22. Jun 18 | Sell | François Barbier | Individual | 21. Jun 18 | 21. Jun 18 | -51,029 | $14.50 | $-739,721 | ||
| 22. Jun 18 | Sell | Christopher Collier | Individual | 21. Jun 18 | 21. Jun 18 | -49,217 | $14.50 | $-713,459 | ||
| 22. Jun 18 | Sell | Michael McNamara | Individual | 21. Jun 18 | 21. Jun 18 | -239,288 | $14.50 | $-3,468,480 | ||
Management checks
We assess Flex's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Flex has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Is There An Opportunity With Flex Ltd.'s (NASDAQ:FLEX) 25% Undervaluation?
This is done using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows
Simply Wall St - – Full articleThe Flex Share Price Is Down 45% So Some Shareholders Are Getting Worried
(NASDAQ:FLEX) share price has gained 21% in the last three months. … But that is minimal compensation for the share price under-performance over the last year. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Simply Wall St - – Full articleWhat Does Flex Ltd.'s (NASDAQ:FLEX) P/E Ratio Tell You?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Flex Ltd.'s (NASDAQ:FLEX) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhat Investors Should Know About Flex Ltd.'s (NASDAQ:FLEX) Financial Strength
Help shape the future of investing tools and receive a $60 prize! … Today we will look at FLEX’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of Flex’s financial health, so you should conduct further analysis.
Simply Wall St - – Full articleHere’s why Flex Ltd.’s (NASDAQ:FLEX) Returns On Capital Matters So Much
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Simply Wall St - – Full articleHow Many Insiders Sold Flex Ltd. (NASDAQ:FLEX) Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in Flex Ltd. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'.
Simply Wall St - – Full articleWhy Flex Ltd (NASDAQ:FLEX) Is An Attractive Investment To Consider
Flex Ltd (NASDAQ:FLEX) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of FLEX, it
Simply Wall St - – Full articleHow Good Is Flex Ltd (NASDAQ:FLEX), When It Comes To ROE?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.095 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIs Flex Ltd's (NASDAQ:FLEX) P/E Ratio Really That Good?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll show how you can use Flex Ltd's (NASDAQ:FLEX) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhat Investors Should Know About Flex Ltd's (NASDAQ:FLEX) Financial Strength
Stocks with market capitalization between $2B and $10B, such as Flex Ltd (NASDAQ:FLEX) with a size of US$6.3b, do not attract as much attention from the investing community as do the small-caps and large-caps. … Today we will look at FLEX’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of Flex’s financial health, so you should conduct further analysis.
Simply Wall St - – Full articleCompany Info
Description
Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers worldwide. It operates through Communications & Enterprise Compute, Consumer Technologies Group, Industrial and Emerging Industries, and High Reliability Solutions segments. The company offers various services, including innovations labs for supporting customer design and product development services from early concept stages; collective innovation platform, an ecosystem of technology solutions; Lab IX, a startup accelerator program; centers of excellence solutions in critical areas; interconnect technology center for printed circuits; and CloudLabs that enable customers to accelerate a spectrum of cloud, converged infrastructure, and datacenter strategies. It also provides design and engineering services, such as contract design and joint development manufacturing services, which cover various technical competencies comprising system architecture, user interface and industrial design, mechanical engineering, technology, enclosure systems, thermal and tooling design, electronic system design, reliability and failure analysis, and component level development engineering; and systems assembly and manufacturing services. In addition, the company offers component product solutions that include rigid and flexible printed circuit board fabrication, and power supplies; after-market and forward supply chain logistics services; and reverse logistics and repair services, which comprise returns management, exchange programs, complex repair, asset recovery, recycling, and e-waste management for consumer and midrange products, printers, smart phones, consumer medical devices, notebook personal computers, set-top boxes, game consoles, infrastructure products. 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.
Details
| Name: | Flex Ltd. |
| FLEX | |
| Exchange: | NasdaqGS |
| Founded: | 1990 |
| $5,787,734,571 | |
| 521,417,529 | |
| Website: | http://www.flex.com |
| Address: |
Flex Ltd. 2 Changi South Lane, Singapore, 486123, Singapore |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | FLEX | Ordinary Shares | Nasdaq Global Select | US | USD | 18. Mar 1994 | |
| DB | FXI | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 18. Mar 1994 | |
| BMV | FLEX N | Ordinary Shares | Bolsa Mexicana de Valores | MX | MXN | 18. Mar 1994 |
Number of employees
Current staff
Industry
| Electronic Manufacturing Services | |
| Tech |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/22 23:49 |
| End of day share price update: | 2019/04/22 00:00 |
| Last estimates confirmation: | 2019/04/11 |
| Last earnings filing: | 2019/02/06 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
