Market Cap
US$4.2b
Last Updated
2020/03/31 02:16 UTC
Data Sources
Company Financials +
Executive Summary
Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers worldwide.
Rewards
Risk Analysis
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
| FLEX | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.7% | 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
1 month ago | Simply Wall St
Here's Why Flex (NASDAQ:FLEX) Has A Meaningful Debt Burden1 month ago | Simply Wall St
When Should You Buy Flex Ltd. (NASDAQ:FLEX)?2 months ago | Simply Wall St
An Intrinsic Calculation For Flex Ltd. (NASDAQ:FLEX) Suggests It's 50% UndervaluedValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1yr | US$5.52m | 0.11% $4.7m | |
| Chief Financial Officer | 6.83yrs | US$7.03m | 0.081% $3.4m | |
| President of Global Operations & Components | 8yrs | US$6.89m | 0.023% $953.4k | |
| Executive VP & General Counsel | 3.42yrs | US$5.46m | 0.016% $660.4k | |
| President of High Reliability Solutions | 8.83yrs | US$7.11m | 0.076% $3.2m | |
| President of Integrated Solutions | 7.25yrs | US$8.65m | 0.023% $967.8k | |
| Chief Accounting Officer | 6.67yrs | no data | 0.0021% $87.2k | |
| Chief Technology Officer and Senior Vice President of the Cloud Business Unit | 2.83yrs | no data | no data | |
| Chief Information Officer | 6.83yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1yr | US$5.52m | 0.11% $4.7m | |
| Non-Executive Chairman | 2.67yrs | US$799.77k | 0.021% $899.6k | |
| Independent Director | 12.17yrs | US$290.00k | 0.038% $1.6m | |
| Independent Director | 10.83yrs | US$326.00k | 0.0092% $391.6k | |
| Independent Director | 8yrs | US$289.97k | 0.031% $1.3m | |
| Independent Director | 7.42yrs | US$338.00k | 0.021% $884.8k | |
| Independent Director | 1.25yrs | US$184.75k | 0.0035% $147.3k | |
| Independent Director | 6.17yrs | US$290.00k | 0.018% $762.9k | |
| Independent Director | 2.17yrs | US$270.82k | 0.0055% $234.5k | |
| Independent Director | 1.25yrs | US$192.25k | 0.0035% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FLEX | NasdaqGS (Nasdaq Global Select) | Yes | Ordinary Shares | US | USD | Mar 1994 |
| FXI | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Mar 1994 |
| FLEX N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Mar 1994 |
| FXI | BRSE (Berne Stock Exchange) | Yes | Ordinary Shares | CH | CHF | Mar 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 02:16 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.