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FLEX

FlexNasdaqGS:FLEX Stock Report

Market Cap

US$7.8b

7D

-3.4%

1Y

4.1%

Updated

02 Dec, 2021

Data

Company Financials +
FLEX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends0/6

FLEX Stock 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

TE Connectivity

NYSE:TEL

US$49.8b

Plexus

NasdaqGS:PLXS

US$2.4b

Kimball Electronics

NasdaqGS:KE

US$526.1m

Key Tronic

NasdaqGM:KTCC

US$67.0m

Price History & Performance

Summary of all time highs, changes and price drops for Flex
Historical stock prices
Current Share PriceUS$17.36
52 Week HighUS$20.04
52 Week LowUS$15.51
Beta1.52
1 Month Change-1.36%
3 Month Change-9.54%
1 Year Change4.08%
3 Year Change104.96%
5 Year Change16.98%
Change since IPO857.79%

Recent News & Updates

Nov 28
Should You Investigate Flex Ltd. (NASDAQ:FLEX) At US$17.56?

Should You Investigate Flex Ltd. (NASDAQ:FLEX) At US$17.56?

Flex Ltd. ( NASDAQ:FLEX ), might not be a large cap stock, but it saw significant share price movement during recent...

Nov 10
Flex's (NASDAQ:FLEX) Returns On Capital Are Heading Higher

Flex's (NASDAQ:FLEX) Returns On Capital Are Heading Higher

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Oct 15
Is Flex (NASDAQ:FLEX) A Risky Investment?

Is Flex (NASDAQ:FLEX) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

FLEXUS ElectronicUS Market
7D-3.4%-2.8%-3.5%
1Y4.1%24.5%19.4%

Return vs Industry: FLEX underperformed the US Electronic industry which returned 22% over the past year.

Return vs Market: FLEX underperformed the US Market which returned 17.8% over the past year.

Price Volatility

Is FLEX's price volatile compared to industry and market?
FLEX volatility
FLEX Average Weekly Movement4.9%
Electronic Industry Average Movement6.9%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: FLEX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FLEX's weekly volatility (5%) 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$7.84b
Earnings (TTM)US$990.00m
Revenue (TTM)US$25.56b

8.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FLEX income statement (TTM)
RevenueUS$25.56b
Cost of RevenueUS$23.57b
Gross ProfitUS$1.99b
ExpensesUS$999.00m
EarningsUS$990.00m

Last Reported Earnings

Oct 01, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.10
Gross Margin7.78%
Net Profit Margin3.87%
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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLEX ($17.36) is trading below our estimate of fair value ($37.05)

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 (8.3x) compared to the US Electronic industry average (17.2x).

PE vs Market: FLEX is good value based on its PE Ratio (8.3x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: FLEX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FLEX is good value based on its PB Ratio (2.3x) compared to the US Electronic industry average (2.5x).


Future Growth

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

-2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLEX's earnings are forecast to decline over the next 3 years (-2.7% per year).

Earnings vs Market: FLEX's earnings are forecast to decline over the next 3 years (-2.7% per year).

High Growth Earnings: FLEX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FLEX's revenue (3.9% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: FLEX's revenue (3.9% 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 (22.5%)


Past Performance

How has Flex performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLEX has high quality earnings.

Growing Profit Margin: FLEX's current net profit margins (3.9%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: FLEX's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: FLEX's earnings growth over the past year (199.1%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: FLEX earnings growth over the past year (199.1%) exceeded the Electronic industry 52.7%.


Return on Equity

High ROE: Whilst FLEX's Return on Equity (28.17%) 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 ($12.2B) exceed its short term liabilities ($8.7B).

Long Term Liabilities: FLEX's short term assets ($12.2B) exceed its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: FLEX's net debt to equity ratio (37.8%) is considered satisfactory.

Reducing Debt: FLEX's debt to equity ratio has reduced from 108.8% to 107.7% over the past 5 years.

Debt Coverage: FLEX's debt is well covered by operating cash flow (27%).

Interest Coverage: FLEX's interest payments on its debt are well covered by EBIT (7.8x 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?

4.0yrs

Average management tenure


CEO

Revathi Advaithi (53 yo)

2.83yrs

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 ($USD11.57M) is above average for companies of similar size in the US market ($USD6.26M).

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 (4 years average tenure).


Board Members

Experienced Board: FLEX's board of directors are considered experienced (3.9 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$7.841b
  • Shares outstanding: 470.62m
  • 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 Analysis2021/12/02 23:29
End of Day Share Price2021/12/02 00:00
Earnings2021/10/01
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.