Flex Ltd. (FLEX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vertiv Holdings Co.

Advanced Energy Industries, Inc.

Sonos, Inc.

Universal Display Corp.

Flex Ltd.

Plexus Corp.

Littelfuse, Inc.

Vishay Intertechnology, Inc.

Plug Power, Inc.

Veeco Instruments, Inc.

Teradyne, Inc.

Why is Flex Ltd. ?

High Management Efficiency with a high ROCE of 19.05%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.72 times

Healthy long term growth as Operating profit has grown by an annual rate 13.29%

Flat results in Dec 25

DEBTORS TURNOVER RATIO(HY) Lowest at 6.15 times
INTEREST(Q) Highest at USD 54 MM

With ROCE of 21.08%, it has a attractive valuation with a 3.88 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 73.90%, its profits have fallen by -28.8%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 73.90% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Flex Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Flex Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Flex Ltd.

73.9%

1.80

46.12%

S&P 500

17.45%

0.90

19.38%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.83%

EBIT Growth (5y)

13.29%

EBIT to Interest (avg)

6.44

Debt to EBITDA (avg)

0.72

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

3.02

Tax Ratio

18.08%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

19.05%

ROE (avg)

20.40%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.70

EV to EBIT

18.40

EV to EBITDA

13.16

EV to Capital Employed

3.88

EV to Sales

0.97

PEG Ratio

Dividend Yield

ROCE (Latest)

21.08%

ROE (Latest)

18.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.51 times

RAW MATERIAL COST(Y)

Fallen by 1.51% (YoY

NET SALES(Q)

Highest at USD 7,058 MM

PRE-TAX PROFIT(Q)

Highest at USD 331 MM

-4What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.15 times

INTEREST(Q)

Highest at USD 54 MM

Here's what is working for Flex Ltd.

Inventory Turnover Ratio

Highest at 4.51 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at USD 7,058 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 331 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by 1.51% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Flex Ltd.

Interest

At USD 54 MM has Grown at 14.89%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 54 MM

in the last five periods and Increased by 14.89% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 6.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio