ScoreWhy is Flex Ltd. ?
1
High Management Efficiency with a high ROCE of 19.05%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.72 times
3
Healthy long term growth as Operating profit has grown by an annual rate 19.99%
4
Flat results in Jun 25
- NET PROFIT(HY) At USD 441.5 MM has Grown at -29.6%
- DEBT-EQUITY RATIO (HY) Highest at 39.79 %
5
With ROCE of 19.94%, it has a fair valuation with a 3.02 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 39.64%, its profits have fallen by -36.3%
6
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Consistent Returns over the last 3 years
- Along with generating 39.64% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow 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.
58.24%
1.70
44.27%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.37%
EBIT Growth (5y)
19.99%
EBIT to Interest (avg)
6.44
Debt to EBITDA (avg)
0.72
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
3.13
Tax Ratio
18.08%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
19.05%
ROE (avg)
20.40%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
3.65
EV to EBIT
15.17
EV to EBITDA
10.73
EV to Capital Employed
3.02
EV to Sales
0.77
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
19.94%
ROE (Latest)
17.82%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -17.05% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.3 times
NET SALES(Q)
Highest at USD 6,575 MM
-3What is not working for the Company
NET PROFIT(HY)
At USD 441.5 MM has Grown at -29.6%
DEBT-EQUITY RATIO
(HY)
Highest at 39.79 %
Here's what is working for Flex Ltd.
Net Sales
Highest at USD 6,575 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Inventory Turnover Ratio
Highest at 4.3 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -17.05% (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.
Net Profit
At USD 441.5 MM has Grown at -29.6%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Debt-Equity Ratio
Highest at 39.79 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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