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

-3.5%

FLEX

-2.3%

US Electronic

-0.6%

US Market


1 Year Return

-21.5%

FLEX

-2.9%

US Electronic

0.6%

US Market

FLEX underperformed the Electronic industry which returned -1.9% over the past year.

FLEX underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

FLEXIndustryMarket
7 Day-3.5%-2.3%-0.6%
30 Day4.9%4.4%2.2%
90 Day11.1%0.2%1.1%
1 Year-21.5%-21.5%-1.9%-2.9%2.9%0.6%
3 Year-22.8%-22.8%49.3%45.2%44.6%35.2%
5 Year-0.3%-0.3%69.8%61.4%61.9%44.2%

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

1 month ago | Simply Wall St

Imagine Owning Flex (NASDAQ:FLEX) And Wondering If The 20% Share Price Slide Is Justified

Valuation

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

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Flex's share price is below the future cash flow value, and at a moderate discount (> 20%).

Flex's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Flex is overvalued based on earnings compared to the US Electronic industry average.

Flex is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Flex is poor value based on expected growth next year.


Price Based on Value of Assets

Flex is good value based on assets compared to the US Electronic industry average.


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

Flex's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Flex's earnings are expected to grow significantly at over 20% yearly.

Flex's revenue growth is positive but not above the United States of America market average.

Flex's earnings growth is expected to exceed the United States of America market average.

Flex's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Flex is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Flex's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Flex's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Flex's 1-year earnings growth is negative, it can't be compared to the US Electronic industry average.


Return on Equity

Flex has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Flex used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.


Return on Capital Employed

Flex's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Flex's financial position?


Financial Position Analysis

Flex is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Flex's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Flex's level of debt (107.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (103.2% vs 107.9% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Flex's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Flex's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Flex has not reported any payouts.

Unable to verify if Flex's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Flex has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Flex's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Revathi Advaithi (51yo)

0.6yrs

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

Revathi's remuneration is about average for companies of similar size in United States of America.

Insufficient data for Revathi to compare compensation growth.


Management Age and Tenure

6.4yrs

Average Tenure

54yo

Average Age

The average tenure for the Flex management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.0yrs

Average Tenure

63yo

Average Age

The tenure for the Flex board of directors is about average.


Insider Trading

Flex individual insiders have only sold shares 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$89,37124 Jun 19
Douglas Britt
EntityIndividual
Role
Senior Key Executive
President of Integrated Solutions
Shares9,343
Max PriceUS$9.57
SellUS$17,46424 Jun 19
David Bennett
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares1,827
Max PriceUS$9.56
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
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
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: 6.3yrs
    • Compensation: US$7.03m
  • Doug Britt (54yo)

    President of Integrated Solutions

    • Tenure: 6.8yrs
    • Compensation: US$8.65m
  • Revathi Advaithi (51yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$5.52m
  • Paul Humphries (64yo)

    President of High Reliability Solutions

    • Tenure: 8.4yrs
    • Compensation: US$7.11m
  • Kevin Kettler

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

    • Tenure: 2.3yrs
  • François Barbier (60yo)

    President of Global Operations & Components

    • Tenure: 7.6yrs
    • Compensation: US$6.89m
  • Kevin Kessel

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 9.9yrs
  • David Bennett (49yo)

    Chief Accounting Officer

    • Tenure: 6.2yrs
  • Gus Shahin

    Chief Information Officer

    • Tenure: 6.4yrs
  • Scott Offer (54yo)

    Executive VP & General Counsel

    • Tenure: 3yrs
    • 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: 11.7yrs
    • Compensation: US$290.00k
  • Bill Watkins (66yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$326.00k
  • Lay Koon Tan (60yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$289.97k
  • Larry Zimmerman (76yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$338.00k
  • Jill Greenthal (62yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$184.75k
  • Marc Onetto (68yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$290.00k
  • Jennifer Li (51yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$270.82k
  • Revathi Advaithi (51yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$5.52m
  • Chuck Stevens (59yo)

    Director

    • Tenure: 0.8yrs
    • 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$5.394b
  • 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 Analysis2019/09/20 23:46
End of Day Share Price2019/09/20 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.