Flex (FLEX) AI Stock Analysis

• Market Cap: $16.10B
• Dividend Yield: N/A
• Average Volume (3M): 3.79M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.57
• Revenue Growth: -8.07%
• EPS Growth: -8.00%
• Country: US
• Employees: 148,115
• Sector: Technology
• Sector Strength: 79
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.73
• Shares Outstanding: 373,315,600
• 10 Day Avg. Volume: 3,264,444
• 30 Day Avg. Volume: 3,792,652
• PEG Ratio: -0.75
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.47
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 5.33
• Enterprise Value/Ebitda: 1.81
• 1Y Price Target: $46.57
• Price Target Upside: 7.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 80 Outperform
• Price Target: $48.00 ▲(11.29%Upside)

The overall score is driven by strong earnings performance and positive technical indicators. Despite some valuation concerns and sector-specific challenges, Flex's strategic positioning and guidance for continued growth underpin a positive outlook.

Positive Factors

Revenue Growth

Flex's data center business increased 45% year-over-year.

Strategic Expansion

FLEX is expected to benefit from expansion into growth vectors, including power and cooling.

Negative Factors

Market Conditions

F26 end-market expectations amid macro uncertainty.

Revenue Impact

Customer-sourced inventory reduces the total revenue for FLEX, but is a tailwind to margins.

Flex Business Overview & Revenue Model

Company Description

Flex Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers in Asia, the Americas, and Europe. It operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. The company provides cross-industry technologies, including human-machine interface, internet of things platforms, power, sensor fusion, and smart audio. It also offers integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects. In addition, the company provides value-added design and engineering services; and systems assembly and manufacturing services that include enclosures, testing services, and materials procurement and inventory management services. Further, it offers chargers for smartphones and tablets; adapters for notebooks and gaming systems; power supplies for the server, storage, and networking markets; and power solutions, such as switchgear, busway, power distribution, modular power systems, and monitoring solutions and services. Additionally, the company provides after-market and forward supply chain logistics services to computing, consumer digital, infrastructure, industrial, mobile, automotive, and medical industries; and reverse logistics and repair solutions, including returns management, exchange programs, complex repair, asset recovery, recycling, and e-waste management. It serves to cloud, communications, enterprise, automotive, industrial, consumer devices, lifestyle, healthcare, and energy industries. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was incorporated in 1990 and is based in Singapore.

How the Company Makes Money

Flex Ltd. generates revenue primarily through its design, engineering, and manufacturing services. The company partners with businesses across various sectors to provide customized solutions, from initial product design to mass production and distribution. Key revenue streams include contract manufacturing services, where Flex produces and assembles products for other companies, and supply chain management services, where it optimizes logistics and distribution networks for clients. Additionally, Flex engages in strategic partnerships and collaborations to expand its service offerings and enhance its technological capabilities, contributing to its earnings. The company's diverse portfolio and global footprint allow it to capitalize on economies of scale and market opportunities across different regions and industries.

Flex Financial Statement Overview

Summary

Flex demonstrates stable financial health with a focus on maintaining margins and managing debt. Income statement shows revenue challenges, but the balance sheet is solid with strategic leverage. Cash flow is stable, although attention to free cash flow trends is needed.

Income Statement

Flex has shown a mixed performance over the recent years. The gross profit margin and EBIT margin have remained relatively stable, indicating efficient cost management. However, the net profit margin has seen some fluctuations, reflecting challenges in maintaining consistent bottom-line growth. Revenue growth has been inconsistent, with a noticeable decline in recent years, which could signal market challenges or strategic shifts.

Balance Sheet

The company maintains a solid equity base with a stable debt-to-equity ratio, suggesting a balanced approach to leveraging. However, the equity ratio indicates a moderate reliance on liabilities, which could pose risks if market conditions worsen. Return on Equity (ROE) has been satisfactory, reflecting the company's ability to generate profit from its equity base.

Cash Flow

Cash flow from operations has been robust, indicating strong internal cash generation capability. The free cash flow has seen growth, albeit with some volatility, which could impact future investment and financing decisions. The ratios of operating and free cash flow to net income suggest efficient cash management, though potential fluctuations in free cash flow growth remain a concern.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
25.81B	26.41B	28.50B	24.63B	24.12B
	Gross Profit
2.16B	1.86B	1.98B	1.78B	1.69B
	EBIT
1.17B	1.03B	1.02B	890.00M	795.00M
	EBITDA
1.78B	1.55B	1.54B	1.59B	870.00M
	Net Income Common Stockholders
838.00M	1.01B	793.00M	936.00M	613.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.29B	2.47B	3.16B	2.96B	2.64B
	Total Assets
18.38B	18.26B	21.41B	19.32B	15.84B
	Total Debt
1.67B	3.75B	4.20B	4.75B	4.34B
	Net Debt
-624.00M	1.28B	1.03B	1.78B	1.71B
	Total Liabilities
13.38B	12.93B	15.70B	15.12B	12.40B
	Stockholders Equity
5.00B	5.33B	5.35B	4.13B	3.44B
Cash Flow		Free Cash Flow
1.07B	796.00M	315.00M	581.00M	-207.00M
	Operating Cash Flow
1.50B	1.33B	950.00M	1.02B	144.00M
	Investing Cash Flow
-838.00M	-492.00M	-604.00M	-951.00M	-202.00M
	Financing Cash Flow
-821.00M	-1.66B	2.00M	280.00M	743.00M

Flex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLEX, the sentiment is Positive. The current price of 43.13 is above the 20-day moving average (MA) of 42.54, above the 50-day MA of 37.48, and above the 200-day MA of 37.06, indicating a bullish trend. The MACD of 1.44 indicates Positive momentum. The RSI at 63.92 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLEX.

Flex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLEX	80 Outperform	$16.10B	20.43	16.23%	―	-8.07%	-8.00%
SANM	79 Outperform	$4.62B	19.98	11.03%	―	-1.50%	1.84%
PLXS	75 Outperform	$3.53B	25.31	10.93%	―	-0.69%	42.26%
ESE	74 Outperform	$4.75B	40.31	9.66%	0.17%	8.40%	20.03%
JBL	70 Outperform	$18.88B	42.14	24.10%	0.18%	-14.45%	-64.32%
BHE	68 Neutral	$1.35B	25.79	4.84%	1.82%	-7.36%	-20.46%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%

Flex Corporate Events

Flex Approves 2026 Annual Incentive Bonus Plan

On June 12, 2025, Flex Ltd.’s Board of Directors approved the Annual Incentive Bonus Plan for fiscal year 2026, aimed at rewarding executive officers based on the achievement of specific performance goals such as operating profit, free cash flow, and revenue targets. The plan outlines varying bonus opportunities tied to base salaries for different executive roles, with potential payouts adjusted by company performance and individual executive contributions, reflecting Flex’s strategic focus on aligning compensation with performance outcomes.

The most recent analyst rating on (FLEX) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Flex stock, see the FLEX Stock Forecast page.