Flex Ltd.

Technology
Electrical Products
www.flex.com

Earnings Score
Moat Score
Safety Score

Market Cap $14.17B
PE 14
Debt $4.23B
Cash $2.33B
EV $16.06B
FCF $1.34B

Earnings

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Sales & Net Margins

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Earnings	$1.01B
EBIT	$702.00M
ROE	20%
ROA	4%
FCF	$1.34B
Equity	$4.99B
Growth Stability	24%
PE	14.02
PEG	0.35
PB	2.84
P/FCF	10.54
P/S	0.59
Price/Cash	0.16
Debt/Equity	0.85
Debt/FCF	3.15
Net Margins	3%
Gross Margins	7%
Op. Margins	3%
Earnings CAGR	19%
Sales Growth YoY	-8%
Sales Growth QoQ	0%
Sales CAGR	1%
FCF CAGR	4%
Equity CAGR	9%
Earnings Stability	0.27
Earnings Growth YoY	34%
Earnings Growth QoQ	23%

Earnings CAGR 5Y	40%
Sales CAGR 5Y	3%
FCF CAGR 5Y	28%
Equity CAGR 5Y	17%
Earnings CAGR 3Y	-5%
Sales CAGR 3Y	-5%
FCF CAGR 3Y	87%
Equity CAGR 3Y	9%
Market Cap	$14.17B
Revenue	$23.92B
Assets	$18.27B
Total Debt	$4.23B
Cash	$2.33B
Shares Outstanding	384.33M
EV	16.06B
Earnings Score	15%
Moat Score	69%
Safety Score	60%
Final Score	48%
Working Capital	3.72B
Current Ratio	1.41
Gross Profit	$1.57B
Shares Growth 3y	-7%
Equity Growth QoQ	-0%
Equity Growth YoY	-23%

Assets & ROA

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Stockholders Equity & ROE

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Flex Ltd is a contract manufacturing company providing comprehensive electronics design, manufacturing, and product management services to global electronics and technology companies. The company's operating segments include Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. Flex Agility Solutions segment includes markets such as Communications, Enterprise and Cloud; Lifestyle; and Consumer Devices. Flex Reliability Solutions segment includes markets such as Automotive, Health Solutions, and Industrial. The Nextracker segment provides solar tracker technologies that optimize and increase energy production. The company's geographical segments include China, Mexico, the United States, Brazil, Malaysia, Hungary, and Others.

SEC Filings

Direct access to Flex Ltd. (FLEX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Dec 31
- 10-Q Sep 27
- 10-Q Jun 28
- 10-K Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 29
- 10-Q Jun 30
- 10-K Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jul 01
- 10-K Mar 31

Sector Comparison

How does Flex Ltd. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Flex Ltd. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 19%

Stability 27%

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Flex Ltd. Discounted Cash Flow

Fully customizable DCF calculator online for Flex Ltd..

Years

Calculation mode

= $18B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.3B	$1.4B	$1.4B	$1.5B	$1.6B	$1.6B	$1.7B	$1.8B	$1.8B	$1.9B	$2B	$20B
DCF		$1.3B	$1.2B	$1.1B	$1.1B	$1B	$953M	$899M	$849M	$802M	$757M	$7.6B
Value	$18B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Net Margins	2%	1%	2%	0%	0%	3%	4%	3%	4%	3%
ROA	-	3%	4%	1%	3%	5%	5%	6%	5%	4%
ROE	-	12%	14%	3%	3%	18%	23%	14%	19%	20%

Bad Net Margins (3.17%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Debt over FCF	-	5.56	15.64	-1	-1.5	-19.67	8.89	12.74	4.12	3.15
Debt over Equity	1.26	1.3	0.99	1.24	1.06	1.19	1.25	0.7	0.62	0.85
Growth Stability	-	-	-	24%	32%	100%	100%	100%	100%	24%

Neutral Debt/FCF ratio (3.15)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.85)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (24%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	CAGR 5Y
Revenue YoY growth	-	-2%	7%	3%	-8%	-0%	8%	17%	-13%	3%
Earnings YoY growth	-	-29%	35%	-78%	-6%	600%	53%	-15%	27%	40%
Equity YoY growth	-	3%	13%	-2%	-5%	21%	20%	38%	-7%	17%
FCF YoY growth	-	-0%	-69%	-2K%	-46%	-90%	-381%	-46%	153%	28%