Flex Ltd.
Flex Ltd. Fundamental Analysis
Flex Ltd. (FLEX) shows weak financial fundamentals with a PE ratio of 29.05, profit margin of 3.17%, and ROE of 16.83%. The company generates $26.4B in annual revenue with weak year-over-year growth of -2.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FLEX's fundamental strength across five key dimensions:
Efficiency Score
WeakFLEX struggles to generate sufficient returns from assets.
Valuation Score
ModerateFLEX shows balanced valuation metrics.
Growth Score
WeakFLEX faces weak or negative growth trends.
Financial Health Score
ModerateFLEX shows balanced financial health with some risks.
Profitability Score
ModerateFLEX maintains healthy but balanced margins.
Key Financial Metrics
Is FLEX Expensive or Cheap?
P/E Ratio
FLEX trades at 29.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FLEX's PEG of -16.49 indicates potential undervaluation.
Price to Book
The market values Flex Ltd. at 4.83 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.41 times EBITDA. This signals the market has high growth expectations.
How Well Does FLEX Make Money?
Net Profit Margin
For every $100 in sales, Flex Ltd. keeps $3.17 as profit after all expenses.
Operating Margin
Core operations generate 4.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.83 in profit for every $100 of shareholder equity.
ROA
Flex Ltd. generates $4.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Flex Ltd. generates limited operating cash flow of $1.68B, signaling weaker underlying cash strength.
Free Cash Flow
Flex Ltd. produces free cash flow of $1.14B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.09 in free cash annually.
FCF Yield
FLEX converts 4.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-16.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How FLEX Stacks Against Its Sector Peers
| Metric | FLEX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.05 | 35.19 | Better (Cheaper) |
| ROE | 16.83% | 1155.00% | Weak |
| Net Margin | 3.17% | -127067.00% (disorted) | Weak |
| Debt/Equity | 1.09 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.40 | 4.71 | Neutral |
| ROA | 4.09% | -314918.00% (disorted) | Weak |
FLEX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Flex Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.74%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
1139.11%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
227.74%
Industry Style: Growth, Innovation, High Beta
High Growth