NasdaqGS:FLEX

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with acceptable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

FLEX

1.9%

US Electronic

2.5%

US Market


1 Year Return

12.3%

FLEX

13.4%

US Electronic

16.3%

US Market

Return vs Industry: FLEX underperformed the US Electronic industry which returned 13.4% over the past year.

Return vs Market: FLEX underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

FLEXIndustryMarket
7 Day1.6%1.9%2.5%
30 Day18.0%9.9%5.3%
90 Day18.1%17.8%16.3%
1 Year12.3%12.3%14.6%13.4%18.8%16.3%
3 Year-25.6%-25.6%29.6%25.8%45.0%35.7%
5 Year4.5%4.5%76.0%67.9%75.8%56.8%

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?

62.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FLEX ($11.67) is trading above our estimate of fair value ($11.39)

Significantly Below Fair Value: FLEX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FLEX is poor value based on its PE Ratio (62.3x) compared to the US Electronic industry average (23.7x).

PE vs Market: FLEX is poor value based on its PE Ratio (62.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FLEX is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: FLEX's PB Ratio (2x) is in line with the US Electronic industry average.


Next Steps

Future Growth

How is Flex forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

46.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLEX's forecast earnings growth (46.9% per year) is above the savings rate (2.2%).

Earnings vs Market: FLEX's earnings (46.9% per year) are forecast to grow faster than the US market (23.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FLEX's revenue (3.6% per year) is forecast to grow slower than the US market (9.4% 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 (20.4%)


Next Steps

Past Performance

How has Flex performed over the past 5 years?

-35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLEX has a high level of non-cash earnings.

Growing Profit Margin: FLEX's current net profit margins (0.4%) are higher than last year (0.09%).


Past Earnings Growth Analysis

Earnings Trend: FLEX's earnings have declined by 35.2% per year over the past 5 years.

Accelerating Growth: FLEX's earnings growth over the past year (310.4%) exceeds its 5-year average (-35.2% per year).

Earnings vs Industry: FLEX earnings growth over the past year (310.4%) exceeded the Electronic industry -9.6%.


Return on Equity

High ROE: FLEX's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Flex's financial position?


Financial Position Analysis

Short Term Liabilities: FLEX's short term assets ($9.6B) exceed its short term liabilities ($6.8B).

Long Term Liabilities: FLEX's short term assets ($9.6B) exceed its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: FLEX's debt to equity ratio (122%) is considered high.

Reducing Debt: FLEX's debt to equity ratio has increased from 107.7% to 122% over the past 5 years.

Debt Coverage: FLEX's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: FLEX's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

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?

7.2yrs

Average management tenure


CEO

Revathi Advaithi (52 yo)

1.5yrs

Tenure

US$10,812,931

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 ($USD10.81M) is above average for companies of similar size in the US market ($USD7.26M).

Compensation vs Earnings: Revathi's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Revathi Advaithi
CEO & Director1.5yrsUS$10.81m0.019%
$ 1.1m
Christopher E. Collier
Chief Financial Officer7.25yrsUS$4.65m0.092%
$ 5.4m
François Barbier
President of Global Operations & Components8.5yrsUS$4.02m0.031%
$ 1.8m
Paul Humphries
President of High Reliability Solutions9.33yrsUS$3.67m0.086%
$ 5.0m
David Bennett
Senior VP & Chief Accounting Officer7.08yrsno data0.0039%
$ 228.9k
Kevin Kettler
Chief Technology Officer and Senior Vice President of the Cloud Business Unit3.25yrsno datano data
Gus Shahin
Chief Information Officer7.33yrsno datano data
David Rubin
Vice President of Investor Relationsno datano datano data
Scott Offer
Executive VP & General Counsel3.92yrsUS$5.46m0.016%
$ 916.9k
Silvia Gianelli
Senior Director of Corporate Communicationsno datano datano data
Phil Ulrich
Chief Human Resources Officer1.25yrsno datano data
Thomas Linton
Chief Procurement & Supply Chain Officer and Senior VP8.67yrsno datano data

7.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: FLEX's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Revathi Advaithi
CEO & Director1.5yrsUS$10.81m0.019%
$ 1.1m
Michael Capellas
Independent Non-Executive Chairman3.17yrsUS$483.30k0.045%
$ 2.6m
Willy Shih
Independent Director12.58yrsUS$291.25k0.039%
$ 2.3m
William Watkins
Independent Director11.33yrsUS$338.00k0.0093%
$ 543.2k
Lay Koon Tan
Independent Director8.42yrsUS$328.15k0.032%
$ 1.9m
Lawrence Zimmerman
Independent Director7.83yrsUS$338.00k0.021%
$ 1.2m
Jill Greenthal
Independent Director1.75yrsUS$280.00k0.0035%
$ 205.0k
Marc Onetto
Independent Director6.58yrsUS$290.00k0.018%
$ 1.1m
Xin-Zhe Li
Independent Director2.58yrsUS$291.25k0.0061%
$ 354.5k
Charles Stevens
Independent Director1.75yrsUS$290.00k0.0035%
$ 205.0k
Erin L. McSweeney
Independent Director0.17yrno datano data

3.2yrs

Average Tenure

63yo

Average Age

Experienced Board: FLEX's board of directors are considered experienced (3.2 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$5.840b
  • Shares outstanding: 500.89m
  • 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

Biography

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 High Reliability So ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 23:46
End of Day Share Price2020/08/07 00:00
Earnings2020/06/26
Annual Earnings2020/03/31


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.