One-glance verdict
Overvalued
$39.66 our estimate vs market $107.90
Wall Street consensus: $160.50 (304.7% higher than our fair-value estimate)
172% above our estimate, beyond the bull case
Fundamentals snapshot
Flex Ltd.
FLEX · NMS · Technology · Electronic Components
Current price
$107.90
52-week range
$53.07 - $166.86
Market cap
$39.86B
Balance sheet
Watch
6.73x Adequate
Net debt $3.09B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.8% last year.
- Reward Returns 18.4% on equity, ahead of 50% of its peers.
- Risk Stock trades 151.0% above its 5-year average P/E.
- Risk Net debt grew 86.4% over 3 years.
What this company does
Flex Ltd.
Flex is like a giant, high-tech factory-for-hire that builds complex products for other companies in industries ranging from healthcare and automotive to cloud computing. They make money by managing the entire supply chain (the process of designing, sourcing materials, and manufacturing a product) for their clients, allowing brands to sell things without owning their own factories. This is important because Flex serves many different types of customers, so a slowdown in one industry may be balanced out by growth in another.
How the company got here
Founded in Silicon Valley in 1969 as Flextronics, the company started by making circuit boards for the booming electronics industry. A key moment was its 2007 acquisition of competitor Solectron, which greatly increased its size and capabilities. In 2016, the company rebranded from Flextronics to Flex, reflecting its expansion beyond just electronics assembly to a broader range of design and manufacturing services. Over the years, Flex has grown into a global manufacturing powerhouse by helping other companies design, build, and deliver their products.
What it actually does
Flex is a company that other businesses hire to design, manufacture, and deliver their products. You won't find many products with the 'Flex' brand on the shelf because they are the behind-the-scenes partner for many well-known brands in industries like healthcare, automotive, and consumer electronics. Think of them as a giant, high-tech workshop that can make anything from medical devices and car components to smart home gadgets and the equipment that powers the internet. They handle the entire process, from the initial idea to managing the complex supply chain (the network of companies that supply parts and materials) to get the final product to customers.
Flex Agility Solutions
This part of the business focuses on products that have shorter lifecycles and where demand can change quickly. This includes things like consumer electronics, networking equipment, and servers for data centers. Companies in these fast-moving markets pay Flex to quickly and efficiently manufacture their products at a large scale. This segment is all about speed and adapting to the rapid pace of the technology industry.
Flex Reliability Solutions
This segment is dedicated to manufacturing products that have long lifespans and are often used in critical situations where failure is not an option. This includes medical devices, automotive components, and industrial equipment. The customers for these products, such as carmakers and healthcare companies, need to be sure their products are built to the highest standards of quality and will last for a long time. This part of Flex's business is focused on precision, quality, and dependability for products that are built to endure.
What management is betting on now
Flex is focusing on expanding its services beyond just manufacturing to include more design, engineering, and supply chain management. The company is also making significant investments in high-growth areas like electric vehicles, renewable energy, and advanced healthcare technologies. Another key part of their strategy is helping companies redesign their supply chains to be less risky, which often means producing goods closer to where they will be sold. They are also concentrating on providing more complex and higher-value components, especially for data centers and power infrastructure.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$216.00M
FY2025 Q3
$301.00M
FY2025 Q4
$321.00M
FY2026 Q1
$266.00M
FY2026 Q2
$303.00M
FY2026 Q3
$272.00M
FY2026 Q4
$211.00M
FY2027 Q1
$40.00M
Revenue
$7.93B
Net income
—
Diluted EPS
0.76
Operating cash flow
$276.00M
Free cash flow
$40.00M
Fetching…
Sources
Revenue
$7.48B
Net income
$250.00M
Diluted EPS
0.67
Operating cash flow
$413.00M
Free cash flow
$211.00M
Fetching…
Sources
Revenue
$7.06B
Net income
$239.00M
Diluted EPS
0.64
Operating cash flow
$420.00M
Free cash flow
$272.00M
Fetching…
Sources
Revenue
$6.80B
Net income
$199.00M
Diluted EPS
0.52
Operating cash flow
$453.00M
Free cash flow
$303.00M
Fetching…
Sources
Revenue
$6.58B
Net income
$192.00M
Diluted EPS
0.50
Operating cash flow
$399.00M
Free cash flow
$266.00M
Fetching…
Sources
Revenue
$6.40B
Net income
$222.00M
Diluted EPS
0.57
Operating cash flow
$433.00M
Free cash flow
$321.00M
Fetching…
Sources
Revenue
$6.56B
Net income
$263.00M
Diluted EPS
0.67
Operating cash flow
$413.00M
Free cash flow
$301.00M
Fetching…
Sources
Revenue
$6.54B
Net income
$214.00M
Diluted EPS
0.54
Operating cash flow
$319.00M
Free cash flow
$216.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $39.66 vs current price $107.90
Wall Street consensus is the average analyst price target: $160.50 (304.7% higher than our fair-value estimate).
Our most-likely fair value is $39.66 a share — about 63.2% below today's price of $107.90, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $3.1B. Interest coverage 6.7x.
Net debt
$3.09B
Interest coverage
6.73x
Flex Ltd.'s profit covers its interest bill about 6.7 times over.
Watch
Worse cushion
Baseline
Better cushion
FLEX
BASELINE
Flex Ltd.
Total debt $5.93B Interest coverage 6.73x This is the baseline the peer rows are being compared against.
Total debt $3.94B Interest coverage 9.77x +45% vs FLEX Carries about 1.5x more debt cushion than FLEX.
Total debt $2.43B Interest coverage 19.60x +191% vs FLEX Carries about 2.9x more debt cushion than FLEX.
Total debt $306.96M Interest coverage 17.84x +165% vs FLEX Carries about 2.7x more debt cushion than FLEX.
Total debt $981.20M Interest coverage 20.35x +202% vs FLEX Carries about 3.0x more debt cushion than FLEX.
Total debt $291.82M Interest coverage 5.24x -22% vs FLEX Carries about 1.3x less debt cushion than FLEX.
What you should know
The case for and against FLEX
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.8% last year.
-
Returns 18.4% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
-
Stock trades 151.0% above its 5-year average P/E.
-
Net debt grew 86.4% over 3 years.
-
Insider ownership is only 0.6% (peer median: 1.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
41.66x
Forward P/E
15.17x
P/B
7.25x
P/S
1.36x
EV/EBITDA
20.25x
PEG ratio
0.94x
Profitability
How much profit each dollar creates
Gross margin
9.5%
Operating margin
5.0%
Net margin
3.3%
ROE
18.4%
ROA
4.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.08x
Current ratio
1.38x
Quick ratio
0.70x
Total debt
$5.93B
Total cash
$2.84B
Growth
How the business has been compounding
Revenue TTM
$29.27B
Revenue 5Y CAGR
40.1%
EPS TTM
2.59
EPS 5Y CAGR
10.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.56B
Free CF TTM
$1.05B
FCF margin
3.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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