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 2.28 times
3
Healthy long term growth as Operating profit has grown by an annual rate 13.29%
4
With a growth in Operating Profit of 11.89%, the company declared Very Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at USD 1,685 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 4.65 times
- NET SALES(Q) Highest at USD 7,477 MM
5
With ROCE of 21.80%, it has a expensive valuation with a 3.93 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 248.28%, its profits have fallen by -18%
6
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Market Beating performance in long term as well as near term
- Along with generating 248.28% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
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.
248.28%
5.92
61.56%
S&P 500
22.78%
1.73
13.14%
Quality
Management Risk
Growth
Capital StructureQuality 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)
2.97
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
26
Industry P/E
Price to Book Value
4.72
EV to EBIT
18.04
EV to EBITDA
13.12
EV to Capital Employed
3.93
EV to Sales
0.95
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
21.80%
ROE (Latest)
18.09%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,685 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 4.65 times
NET SALES(Q)
Highest at USD 7,477 MM
RAW MATERIAL COST(Y)
Fallen by -8.09% (YoY
OPERATING PROFIT(Q)
Highest at USD 556 MM
PRE-TAX PROFIT(Q)
Highest at USD 389 MM
NET PROFIT(Q)
Highest at USD 308.73 MM
EPS(Q)
Highest at USD 0.67
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.57 times
Here's what is working for Flex Ltd.
Operating Cash Flow
Highest at USD 1,685 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 7,477 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Inventory Turnover Ratio
Highest at 4.65 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Operating Profit
Highest at USD 556 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 389 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 308.73 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.67
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -8.09% (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.
Debtors Turnover Ratio
Lowest at 5.57 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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