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FLEX

FlexNasdaqGS:FLEX Stock Report

Market Cap

US$9.2b

7D

6.4%

1Y

73.1%

Updated

27 Sep, 2021

Data

Company Financials +
FLEX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends0/6

FLEX Overview

Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers in Asia, the Americas, and Europe.

Flex Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Flex
Historical stock prices
Current Share PriceUS$18.92
52 Week HighUS$10.72
52 Week LowUS$20.04
Beta1.58
1 Month Change1.07%
3 Month Change4.59%
1 Year Change73.10%
3 Year Change46.55%
5 Year Change39.43%
Change since IPO943.86%

Recent News & Updates

Shareholder Returns

FLEXUS ElectronicUS Market
7D6.4%2.6%2.0%
1Y73.1%48.1%32.8%

Return vs Industry: FLEX exceeded the US Electronic industry which returned 48.1% over the past year.

Return vs Market: FLEX exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is FLEX's price volatile compared to industry and market?
FLEX volatility
FLEX Beta1.58
Industry Beta1.32
Market Beta1

Stable Share Price: FLEX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FLEX's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1990167,201Revathi Advaithihttps://www.flex.com

Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers in Asia, the Americas, and Europe. It operates through two segments, Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). The company 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 power management.

Flex Fundamentals Summary

How do Flex's earnings and revenue compare to its market cap?
FLEX fundamental statistics
Market CapUS$9.24b
Earnings (TTM)US$767.00m
Revenue (TTM)US$25.31b

12.0x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FLEX income statement (TTM)
RevenueUS$25.31b
Cost of RevenueUS$23.38b
Gross ProfitUS$1.93b
ExpensesUS$1.17b
EarningsUS$767.00m

Last Reported Earnings

Jul 02, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.57
Gross Margin7.63%
Net Profit Margin3.03%
Debt/Equity Ratio107.7%

How did FLEX perform over the long term?

See historical performance and comparison

Valuation

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

40.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLEX ($18.92) is trading below our estimate of fair value ($31.8)

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


Price To Earnings Ratio

PE vs Industry: FLEX is good value based on its PE Ratio (12x) compared to the US Electronic industry average (21.8x).

PE vs Market: FLEX is good value based on its PE Ratio (12x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: FLEX is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: FLEX's PB Ratio (2.6x) is in line with the US Electronic industry average.


Future Growth

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

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLEX's forecast earnings growth (8.1% per year) is above the savings rate (2%).

Earnings vs Market: FLEX's earnings (8.1% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: FLEX's earnings are forecast to grow, but not significantly.

Revenue vs Market: FLEX's revenue (3.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: FLEX's revenue (3.6% 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 (21.7%)


Past Performance

How has Flex performed over the past 5 years?

-2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLEX has high quality earnings.

Growing Profit Margin: FLEX's current net profit margins (3%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: FLEX's earnings have declined by 2.8% per year over the past 5 years.

Accelerating Growth: FLEX's earnings growth over the past year (595.5%) exceeds its 5-year average (-2.8% per year).

Earnings vs Industry: FLEX earnings growth over the past year (595.5%) exceeded the Electronic industry 40.3%.


Return on Equity

High ROE: Whilst FLEX's Return on Equity (21.86%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Flex's financial position?


Financial Position Analysis

Short Term Liabilities: FLEX's short term assets ($11.7B) exceed its short term liabilities ($8.1B).

Long Term Liabilities: FLEX's short term assets ($11.7B) exceed its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: FLEX's debt to equity ratio (107.7%) is considered high.

Reducing Debt: FLEX's debt to equity ratio has increased from 107.1% to 107.7% over the past 5 years.

Debt Coverage: FLEX's debt is well covered by operating cash flow (29.3%).

Interest Coverage: FLEX's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


Dividend

What is Flex 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 recent payouts.

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

3.7yrs

Average management tenure


CEO

Revathi Advaithi (53 yo)

2.58yrs

Tenure

US$11,570,250

Compensation

Ms. Revathi Advaithi has been Chief Executive Officer and Director Flex Ltd. since February 11, 2019. Ms. Advaithi has been Independent Director of Uber Technologies, Inc. since July 1, 2020.She served as...


CEO Compensation Analysis

Compensation vs Market: Revathi's total compensation ($USD11.57M) is above average for companies of similar size in the US market ($USD6.38M).

Compensation vs Earnings: Revathi's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FLEX's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: FLEX's board of directors are considered experienced (3.7 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 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$9.237b
  • Shares outstanding: 488.23m
  • Website: https://www.flex.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:53
End of Day Share Price2021/09/27 00:00
Earnings2021/07/02
Annual Earnings2021/03/31


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.