Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers in Asia, the Americas, and Europe.
Reasonable growth potential and fair value.
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.
7 Day Return
1 Year Return
Return vs Industry: FLEX exceeded the US Electronic industry which returned -1.6% over the past year.
Return vs Market: FLEX underperformed the US Market which returned 6% over the past year.
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
4 months ago | Simply Wall StHere's Why Flex (NASDAQ:FLEX) Has A Meaningful Debt Burden
5 months ago | Simply Wall StWhen Should You Buy Flex Ltd. (NASDAQ:FLEX)?
6 months ago | Simply Wall StAn Intrinsic Calculation For Flex Ltd. (NASDAQ:FLEX) Suggests It's 50% Undervalued
Is Flex undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FLEX ($9.88) is trading below our estimate of fair value ($18.95)
Significantly Below Fair Value: FLEX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FLEX is poor value based on its PE Ratio (57.4x) compared to the Electronic industry average (20.2x).
PE vs Market: FLEX is poor value based on its PE Ratio (57.4x) compared to the US market (16.1x).
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 is good value based on its PB Ratio (1.7x) compared to the US Electronic industry average (1.8x).
How is Flex forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FLEX's forecast earnings growth (45.6% per year) is above the savings rate (2.2%).
Earnings vs Market: FLEX's earnings (45.6% per year) are forecast to grow faster than the US market (22.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FLEX's revenue is expected to decline over the next 3 years (-0.1% per year).
High Growth Revenue: FLEX's revenue is forecast to decline over the next 3 years (-0.1% 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 (21.2%)
How has Flex performed over the past 5 years?
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 (0.4%).
Past Earnings Growth Analysis
Earnings Trend: FLEX's earnings have declined by -34% 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 (-5.4%) over the past year, making it difficult to compare to the Electronic industry average (-6.6%).
Return on Equity
High ROE: FLEX's Return on Equity (3.1%) is considered low.
How is Flex's financial position?
Financial Position Analysis
Short Term Liabilities: FLEX's short term assets ($9.1B) exceed its short term liabilities ($7.2B).
Long Term Liabilities: FLEX's short term assets ($9.1B) exceed its long term liabilities ($3.6B).
Debt to Equity History and Analysis
Debt Level: FLEX's debt to equity ratio (100.3%) is considered high.
Reducing Debt: FLEX's debt to equity ratio has increased from 89.3% to 100.3% over the past 5 years.
Debt Coverage: FLEX's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: FLEX's interest payments on its debt are well covered by EBIT (5.3x coverage).
What is Flex current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FLEX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FLEX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FLEX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FLEX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of FLEX's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Revathi Advaithi (52yo)
Ms. Revathi Advaithi has been Chief Executive Officer and Director Flex Ltd. since February 11, 2019. Ms. Advaithi has been Independent Director of Uber Technologies, Inc. since July 1, 2020. She served as ...
CEO Compensation Analysis
Compensation vs Market: Revathi's total compensation ($USD10.81M) is above average for companies of similar size in the US market ($USD7.31M).
Compensation vs Earnings: Revathi's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO & Director||1.42yrs||US$10.81m||0.019% $925.6k|
|Chief Financial Officer||7.17yrs||US$4.65m||0.093% $4.6m|
|President of Global Operations & Components||8.42yrs||US$4.02m||0.032% $1.6m|
|President of High Reliability Solutions||9.25yrs||US$3.67m||0.086% $4.2m|
|Senior VP & Chief Accounting Officer||7yrs||no data||0.0039% $193.8k|
|Chief Technology Officer and Senior Vice President of the Cloud Business Unit||3.17yrs||no data||no data|
|Chief Information Officer||7.25yrs||no data||no data|
|Vice President of Investor Relations||no data||no data||no data|
|Executive VP & General Counsel||3.83yrs||US$5.46m||0.016% $777.0k|
|Senior Director of Corporate Communications||no data||no data||no data|
Experienced Management: FLEX's management team is seasoned and experienced (7.1 years average tenure).
|CEO & Director||1.42yrs||US$10.81m||0.019% $925.6k|
|Independent Non-Executive Chairman||3.08yrs||US$483.30k||0.045% $2.2m|
|Independent Director||12.5yrs||US$291.25k||0.039% $1.9m|
|Independent Director||11.25yrs||US$338.00k||0.0094% $460.3k|
|Independent Director||8.33yrs||US$328.15k||0.032% $1.6m|
|Independent Director||7.75yrs||US$338.00k||0.021% $1.0m|
|Independent Director||1.67yrs||US$280.00k||0.0035% $173.6k|
|Independent Director||6.5yrs||US$290.00k||0.018% $897.0k|
|Independent Director||2.5yrs||US$291.25k||0.0059% $292.1k|
|Independent Director||1.67yrs||US$290.00k||0.0035% $173.6k|
Experienced Board: FLEX's board of directors are considered experienced (4.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Flex Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Flex Ltd.
- Ticker: FLEX
- Exchange: NasdaqGS
- Founded: 1990
- Industry: Electronic Manufacturing Services
- Sector: Tech
- Market Cap: US$4.918b
- Shares outstanding: 497.77m
- Website: https://www.flex.com
Number of Employees
- Flex Ltd.
- 2 Changi South Lane
|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|
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 Solutions, Industrial and Emerging Industries, Communications & Enterprise Compute, and Consumer Technologies Group segments. 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. It also designs and integrates advanced data center servers, storage and networking equipment, and data center appliances. In addition, the company 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. Further, it 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. Additionally, the company provides after-market and forward supply chain logistics services comprising supplier-managed inventory, inbound freight management, product postponement, build/configure to order, order fulfillment and distribution, asset tracking, and supply chain network design; 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||2020/07/08 23:52|
|End of Day Share Price||2020/07/08 00:00|
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.