Flex Ltd (FLEX)
NASDAQ:FLEX
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Flex
(NASDAQ:FLEX)
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Rating:75Outperform
Price Target:
$90.00
▲(9.98% Upside)
Action:ReiteratedDate:04/16/26
The score is driven primarily by improved financial health (lower leverage and strong cash generation) and a constructive earnings call with raised guidance and sustained data-center/power momentum. Technicals are supportive but show overextended conditions (high RSI/Stoch), while valuation is only mid-range given a ~23.8 P/E and no dividend yield support in the data.
Positive Factors
Strong cash generation and high FCF conversion
Sustained operating cash flow and management guidance for 80%+ FCF conversion indicate durable cash-generation capability. This supports disciplined capital allocation—debt reduction, opportunistic buybacks, targeted capex and M&A—improving financial resilience across cycles.
Negative Factors
Thin, volatile net margins
Net margins remain thin and historically volatile, reflecting the low-margin nature of contract manufacturing and mix sensitivity. Sustained margin expansion depends on scaling higher-value programs; failure to do so would keep profitability exposed to program mix swings and cost pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and high FCF conversion
Sustained operating cash flow and management guidance for 80%+ FCF conversion indicate durable cash-generation capability. This supports disciplined capital allocation—debt reduction, opportunistic buybacks, targeted capex and M&A—improving financial resilience across cycles.
Read all positive factors
Flex (FLEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.30B
Dividend YieldN/A
Average Volume (3M)3.32M
Price to Earnings (P/E)23.8
Beta (1Y)1.68
Revenue Growth0.77%
EPS Growth0.51%
CountryUS
Employees148,115
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.87
Shares Outstanding367,673,920
10 Day Avg. Volume3,513,730
30 Day Avg. Volume3,318,546
Financial Highlights & Ratios
PEG Ratio-1.16
Price to Book (P/B)2.59
Price to Sales (P/S)0.50
P/FCF Ratio12.12
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue1.29
Enterprise Value/Gross Profit14.25
Enterprise Value/Ebitda19.75
Forecast
1Y Price Target
$78.83Price Target Upside-3.66% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)3.65
Revenue Forecast (FY)$29.14B
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 Reliabilit...
How the Company Makes Money
Flex primarily makes money by providing manufacturing and supply chain services to other companies, generating revenue from contracts to produce customers’ products and deliver related services across the product lifecycle. A key revenue stream is...
Flex Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented multiple clear operational and financial positives: revenue and EPS growth, record/expanded margins, strong cash generation, raised full-year guidance, and pronounced momentum in data center and power businesses supported by strategic partnerships and new product platforms. Offsets include softness in consumer end markets that temper Agility upside, flat Agility margins, a modest inventory increase, and near-term limits on benefit from the AWS warrant arrangement. Management reiterated continued investment needs (notably for compute capacity) and flagged memory allocation dynamics that could introduce some supply-side risk. Overall the positives (top-line growth, margin expansion, guidance raise, cash returns and strategic AI/data-center progress) materially outweigh the set of manageable headwinds.Positive Updates
Revenue and EPS Growth
Total Q3 revenue of $7.1 billion, up 8% year-over-year; adjusted EPS reached $0.87, up 13% YoY and a company record.
Negative Updates
Softness in Consumer End Markets
Consumer-related end markets (lifestyle and consumer devices) are soft and partially offset Agility's data-center-related growth, pressuring upside in that segment.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue and EPS Growth
Total Q3 revenue of $7.1 billion, up 8% year-over-year; adjusted EPS reached $0.87, up 13% YoY and a company record.
Read all positive updates
Company Guidance
Flex's guidance: full‑year revenue of $27.2–$27.5 billion (midpoint +$350M vs. prior), adjusted operating margin of ~6.3%, and adjusted EPS of $3.21–$3.27 (midpoint +$0.11), with expected free‑cash‑flow conversion of 80%+; Q4 guidance calls for revenue of $6.75–$7.05 billion, adjusted operating income of $445–$475 million, an adjusted tax rate of 21%, and adjusted EPS of $0.83–$0.89 on roughly 375 million weighted average shares. Management expects full‑year Reliability and Agility revenue to be up mid‑single digits, Q4 Reliability to be up low‑double‑digits to mid‑teens and Q4 Agility up low‑to‑mid single digits, and highlighted strong data‑center growth (referenced at ~35% Y/Y) alongside continued opportunistic buybacks and disciplined capital allocation.Flex Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
80
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.84B | 25.81B | 26.41B | 28.50B | 24.63B | 24.12B |
| Gross Profit | 2.43B | 2.16B | 1.86B | 1.98B | 1.78B | 1.69B |
| EBITDA | 1.76B | 1.78B | 1.41B | 1.54B | 1.61B | 1.44B |
| Net Income | 852.00M | 838.00M | 1.01B | 793.00M | 936.00M | 613.00M |
Balance Sheet | ||||||
| Total Assets | 20.82B | 18.38B | 18.26B | 21.41B | 19.32B | 15.84B |
| Cash, Cash Equivalents and Short-Term Investments | 3.06B | 2.29B | 2.47B | 3.16B | 2.96B | 2.64B |
| Total Debt | 5.60B | 4.15B | 3.75B | 4.20B | 4.75B | 4.34B |
| Total Liabilities | 15.70B | 13.38B | 12.93B | 15.70B | 15.12B | 12.40B |
| Stockholders Equity | 5.12B | 5.00B | 5.33B | 5.35B | 4.13B | 3.44B |
Cash Flow | ||||||
| Free Cash Flow | 1.16B | 1.07B | 796.00M | 315.00M | 581.00M | -207.00M |
| Operating Cash Flow | 1.71B | 1.50B | 1.33B | 950.00M | 1.02B | 144.00M |
| Investing Cash Flow | -669.00M | -838.00M | -492.00M | -604.00M | -951.00M | -202.00M |
| Financing Cash Flow | -343.00M | -821.00M | -1.66B | 2.00M | 280.00M | 743.00M |
Flex Technical Analysis
Positive
81.83
Price Trends
66.65
Positive
64.91
Positive
60.51
Positive
Market Momentum
4.22
Negative
70.37
Negative
92.57
Negative
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 81.83 is above the 20-day moving average (MA) of 70.88, above the 50-day MA of 66.65, and above the 200-day MA of 60.51, indicating a bullish trend. The MACD of 4.22 indicates Negative momentum. The RSI at 70.37 is Negative, neither overbought nor oversold. The STOCH value of 92.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLEX.
Flex Risk Analysis
Flex disclosed 41 risk factors in its most recent earnings report. Flex reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flex Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $31.30B | 23.76 | 16.83% | ― | 0.77% | 0.51% | |
74 Outperform | $6.39B | 24.74 | 12.39% | ― | 1.82% | 56.52% | |
73 Outperform | $9.50B | 42.40 | 9.86% | ― | 7.40% | 13.79% | |
69 Neutral | $35.20B | 31.64 | 58.99% | 0.14% | 13.18% | -38.37% | |
63 Neutral | $16.13B | 43.86 | 7.46% | ― | -0.86% | -75.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $18.79B | 30.16 | 6.90% | 0.43% | -8.96% | -30.29% |
* Technology Sector Average
FLEX
Flex
85.42
50.76
146.45%
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FTV
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17.75%
Flex Corporate Events
Business Operations and StrategyM&A Transactions
Flex to Acquire EP2, Expanding Critical Power Portfolio
Positive
Mar 30, 2026
On March 30, 2026, Flex announced a definitive all-cash agreement to acquire Electrical Power Products, Inc. (EP2), a U.S. specialist in engineered-to-order electrical power control and protection systems, in a transaction valued at about $1.1 bil...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.