NasdaqGS:FLEX

Stock Analysis Report

Executive Summary

Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers worldwide.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-1.4%

FLEX

1.0%

US Electronic

1.0%

US Market


1 Year Return

-17.8%

FLEX

11.0%

US Electronic

6.7%

US Market

Return vs Industry: FLEX underperformed the US Electronic industry which returned 11% over the past year.

Return vs Market: FLEX underperformed the US Market which returned 6.7% over the past year.


Share holder returns

FLEXIndustryMarket
7 Day-1.4%1.0%1.0%
30 Day-9.6%-2.1%-1.8%
90 Day1.8%0.5%-1.8%
1 Year-17.8%-17.8%12.1%11.0%9.1%6.7%
3 Year-28.9%-28.9%53.2%48.9%46.1%36.6%
5 Year9.7%9.7%84.0%74.9%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: FLEX ($9.82) is trading below our estimate of fair value ($18.91)

Significantly Undervalued: FLEX is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: FLEX is poor value based on its PE Ratio (230.9x) compared to the Electronic industry average (19x).

PE vs Market: FLEX is poor value based on its PE Ratio (230.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: FLEX is poor value based on its PEG Ratio (3.4x)


Price Based on Value of Assets

PB vs Industry: FLEX is good value based on its PB Ratio (1.7x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

68.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: FLEX's forecast earnings growth (68.4% per year) is above the savings rate (2.7%).

Earnings vs Market: FLEX's earnings (68.4% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: FLEX's revenue (3.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FLEX's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: FLEX's Return on Equity is forecast to be high in 3 years time (22.4%)


Next Steps

Past Performance

How has Flex performed over the past 5 years?

-18.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FLEX's earnings have declined by -18.8% per year over the past 5 years.

Accelerating Growth: FLEX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FLEX had negative earnings growth (-94.7%) over the past year, making it difficult to compare to the Electronic industry average (58.6%).


Return on Equity

High ROE: FLEX's Return on Equity (0.7%) is considered low.


Return on Assets

ROA vs Industry: FLEX's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: FLEX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Flex's financial position?


Financial Position Analysis

Short Term Liabilities: FLEX's short term assets ($9.4B) exceeds its short term liabilities ($7.4B)

Long Term Liabilities: FLEX's short term assets (9.4B) exceeds its long term liabilities (4.0B)


Debt to Equity History and Analysis

Debt Level: FLEX's debt to equity ratio (107.9%) is considered high

Reducing Debt: FLEX's debt to equity ratio has increased from 103.2% to 107.9% 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 (5.1x coverage).


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 2.899100x debt).


Next Steps

Dividend

What is Flex's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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

What is the CEO of Flex's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Revathi Advaithi (51yo)

0.7yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Revathi's compensation with company performance.


Management Age and Tenure

6.5yrs

Average Tenure

54yo

Average Age

Experienced Management: FLEX's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

63yo

Average Age

Experienced Board: FLEX's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$64,98303 Jul 19
D. Offer
EntityIndividual
Shares6,751
Max PriceUS$9.63
SellUS$95,46403 Jul 19
Paul Humphries
EntityIndividual
Role
Senior Key Executive
President of High Reliability Solutions
Shares9,911
Max PriceUS$9.63
SellUS$102,09403 Jul 19
Christopher Collier
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,606
Max PriceUS$9.63
SellUS$81,70503 Jul 19
Douglas Britt
EntityIndividual
Role
Senior Key Executive
President of Integrated Solutions
Shares8,485
Max PriceUS$9.63
SellUS$18,59103 Jul 19
David Bennett
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares1,932
Max PriceUS$9.62
SellUS$17,46424 Jun 19
David Bennett
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares1,827
Max PriceUS$9.56
SellUS$89,37124 Jun 19
Douglas Britt
EntityIndividual
Role
Senior Key Executive
President of Integrated Solutions
Shares9,343
Max PriceUS$9.57
SellUS$95,64324 Jun 19
Christopher Collier
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares9,996
Max PriceUS$9.57
SellUS$89,33024 Jun 19
Paul Humphries
EntityIndividual
Role
Senior Key Executive
President of High Reliability Solutions
Shares9,342
Max PriceUS$9.56
SellUS$60,88324 Jun 19
D. Offer
EntityIndividual
Shares6,369
Max PriceUS$9.56
SellUS$87,56718 Jun 19
Douglas Britt
EntityIndividual
Role
Senior Key Executive
President of Integrated Solutions
Shares9,762
Max PriceUS$8.97
SellUS$21,90718 Jun 19
David Bennett
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares2,442
Max PriceUS$8.97
SellUS$107,16018 Jun 19
Paul Humphries
EntityIndividual
Role
Senior Key Executive
President of High Reliability Solutions
Shares11,943
Max PriceUS$8.97
SellUS$108,75018 Jun 19
Christopher Collier
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares12,119
Max PriceUS$8.97
SellUS$123,83914 Jun 19
Christopher Collier
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares12,890
Max PriceUS$9.61
SellUS$99,08914 Jun 19
Douglas Britt
EntityIndividual
Role
Senior Key Executive
President of Integrated Solutions
Shares10,313
Max PriceUS$9.61
SellUS$27,13313 Jun 19
David Bennett
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares2,825
Max PriceUS$9.60
SellUS$121,20913 Jun 19
Paul Humphries
EntityIndividual
Role
Senior Key Executive
President of High Reliability Solutions
Shares12,616
Max PriceUS$9.61
SellUS$5,31718 Jan 19
Lay Koon Tan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares672
Max PriceUS$7.91
SellUS$60118 Jan 19
Xin-Zhe Li
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares76
Max PriceUS$7.91
BuyUS$97,63205 Dec 18
Marc Onetto
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,500
Max PriceUS$8.49
BuyUS$202,27302 Nov 18
D. Offer
EntityIndividual
Shares27,027
Max PriceUS$7.48
SellUS$59317 Oct 18
Xin-Zhe Li
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares48
Max PriceUS$12.36
SellUS$5,31517 Oct 18
Lay Koon Tan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares430
Max PriceUS$12.36

Ownership Breakdown


Management Team

  • Chris Collier (50yo)

    Chief Financial Officer

    • Tenure: 6.4yrs
    • Compensation: US$7.03m
  • Doug Britt (54yo)

    President of Integrated Solutions

    • Tenure: 6.9yrs
    • Compensation: US$8.65m
  • Revathi Advaithi (51yo)

    CEO & Director

    • Tenure: 0.7yrs
    • Compensation: US$5.52m
  • Paul Humphries (64yo)

    President of High Reliability Solutions

    • Tenure: 8.5yrs
    • Compensation: US$7.11m
  • Kevin Kettler

    Chief Technology Officer and Senior Vice President of the Cloud Business Unit

    • Tenure: 2.4yrs
  • François Barbier (60yo)

    President of Global Operations & Components

    • Tenure: 7.7yrs
    • Compensation: US$6.89m
  • Kevin Kessel

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 10yrs
  • David Bennett (49yo)

    Chief Accounting Officer

    • Tenure: 6.3yrs
  • Gus Shahin

    Chief Information Officer

    • Tenure: 6.5yrs
  • Scott Offer (54yo)

    Executive VP & General Counsel

    • Tenure: 3.1yrs
    • Compensation: US$5.46m

Board Members

  • Michael Capellas (64yo)

    Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: US$799.77k
  • Willy Shih (68yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$290.00k
  • Bill Watkins (66yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$326.00k
  • Lay Koon Tan (60yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$289.97k
  • Larry Zimmerman (76yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$338.00k
  • Jill Greenthal (62yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$184.75k
  • Marc Onetto (68yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$290.00k
  • Jennifer Li (51yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$270.82k
  • Revathi Advaithi (51yo)

    CEO & Director

    • Tenure: 0.7yrs
    • Compensation: US$5.52m
  • Chuck Stevens (59yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$192.25k

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$5.055b
  • Shares outstanding: 514.73m
  • 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 worldwide. It operates through High Reliability Solutions, Industrial and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:42
End of Day Share Price2019/10/11 00:00
Earnings2019/06/28
Annual Earnings2019/03/31


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.

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