Flex (FLEX) AI Stock Analysis

• Market Cap: $23.76B
• Dividend Yield: N/A
• Average Volume (3M): 6.62M
• Price to Earnings (P/E): 28.1
• Beta (1Y): 1.74
• Revenue Growth: 0.77%
• EPS Growth: 0.51%
• Country: US
• Employees: 148,115
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.79
• Shares Outstanding: 369,790,300
• 10 Day Avg. Volume: 10,462,325
• 30 Day Avg. Volume: 6,615,588
• PEG Ratio: -2.10
• Price to Book (P/B): 2.59
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 12.12
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 10.09
• Enterprise Value/Ebitda: 12.67
• 1Y Price Target: $76.71
• Price Target Upside: 20.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 3.12
• Revenue Forecast (FY): $27.09B

• Rating: 74 Outperform
• Price Target: $76.00 ▲(19.16% Upside)

Flex's overall stock score is driven by strong financial performance and positive earnings call results, highlighting growth in key segments and increased guidance. Technical indicators show bullish momentum, although valuation metrics suggest potential overvaluation. Challenges in Ukraine and market pressures are noted but are outweighed by the company's strategic growth initiatives.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand across sectors and enhances the company's market position, supporting long-term stability.

Data Center Business Expansion

Strong growth in the data center segment highlights Flex's strategic focus on high-margin, technology-driven markets, ensuring future profitability.

Improved Balance Sheet

A stronger balance sheet with reduced leverage enhances financial stability and flexibility, supporting long-term operational resilience.

Negative Factors

Challenges in Ukraine

Operational disruptions in Ukraine highlight geopolitical risks that could affect supply chain reliability and revenue continuity.

Softness in Automotive and Consumer Markets

Weakness in key markets like automotive and consumer electronics could limit growth potential and affect revenue diversification.

Cash Flow Volatility

Volatile cash flow can impact the company's ability to invest in growth opportunities and manage financial obligations effectively.

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 generates revenue primarily through its electronics manufacturing services (EMS) and original design manufacturer (ODM) services. The company earns money by providing manufacturing services for a diverse array of electronic components and systems, often engaging in long-term contracts with major clients in various industries. Key revenue streams include production assembly, supply chain management, and logistics operations. Flex also benefits from partnerships with leading technology companies, which often require custom manufacturing solutions, allowing Flex to secure substantial contracts. Additionally, the company may generate revenue from advanced services such as product design, engineering support, and after-market services, enhancing its value proposition to clients and contributing to its overall earnings.

Flex Financial Statement Overview

Summary

Flex demonstrates strong revenue growth and improved profitability in the TTM period, with a healthier balance sheet and positive cash flow metrics. While the company has managed to reduce leverage and enhance equity, historical revenue and cash flow fluctuations suggest potential volatility.

Income Statement

Flex has shown a strong revenue growth rate of 99.3% in the TTM period, indicating robust sales performance. Gross profit margin improved to 8.9%, and net profit margin is stable at 3.3%. EBIT and EBITDA margins are healthy at 4.9% and 7.1% respectively, showing efficient operational management. However, the company experienced revenue declines in previous years, which could indicate volatility.

Balance Sheet

The debt-to-equity ratio has improved significantly to 0.25 in the TTM period, indicating reduced leverage and a stronger equity position. Return on equity is solid at 17.4%, reflecting effective use of shareholder funds. The equity ratio is not explicitly provided, but the overall balance sheet shows improved financial stability.

Cash Flow

Flex's free cash flow growth is positive at 7.88% in the TTM period, and the operating cash flow to net income ratio is 0.16, indicating decent cash generation relative to profits. The free cash flow to net income ratio is 0.70, suggesting a good conversion of profits into cash. However, historical fluctuations in free cash flow growth highlight potential cash flow volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.33B	25.81B	26.41B	28.50B	24.63B	24.12B
Gross Profit	2.34B	2.16B	1.86B	1.98B	1.78B	1.69B
EBITDA	1.87B	1.78B	1.41B	1.54B	1.61B	1.44B
Net Income	876.00M	838.00M	1.01B	793.00M	936.00M	613.00M
Balance Sheet
Total Assets	19.55B	18.38B	18.26B	21.41B	19.32B	15.84B
Cash, Cash Equivalents and Short-Term Investments	2.25B	2.29B	2.47B	3.16B	2.96B	2.64B
Total Debt	4.29B	4.15B	3.75B	4.20B	4.75B	4.34B
Total Liabilities	14.51B	13.38B	12.93B	15.70B	15.12B	12.40B
Stockholders Equity	5.04B	5.00B	5.33B	5.35B	4.13B	3.44B
Cash Flow
Free Cash Flow	1.19B	1.07B	796.00M	315.00M	581.00M	-207.00M
Operating Cash Flow	1.70B	1.50B	1.33B	950.00M	1.02B	144.00M
Investing Cash Flow	-966.00M	-838.00M	-492.00M	-604.00M	-951.00M	-202.00M
Financing Cash Flow	-1.07B	-821.00M	-1.66B	2.00M	280.00M	743.00M

Flex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 63.78 is above the 20-day moving average (MA) of 63.14, above the 50-day MA of 62.31, and above the 200-day MA of 49.76, indicating a bullish trend. The MACD of 1.20 indicates Positive momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 12.39 is Positive, 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
SANM	79 Outperform	$8.27B	34.31	10.81%	―	7.40%	13.79%
PLXS	75 Outperform	$4.10B	24.47	12.44%	―	1.82%	56.52%
FLEX	74 Outperform	$23.76B	28.15	17.45%	―	0.77%	0.51%
TRMB	74 Outperform	$19.24B	55.73	6.13%	―	-0.86%	-75.37%
JBL	73 Outperform	$24.21B	35.24	47.87%	0.14%	13.18%	-38.37%
FTV	72 Outperform	$17.44B	31.35	7.79%	0.43%	-8.96%	-30.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Flex Corporate Events

Flex Completes $750 Million Notes Sale

On November 13, 2025, Flex Ltd. completed the sale of $750 million in notes, comprising $150 million of 5.250% Notes due 2032 and $600 million of 5.375% Notes due 2035. This issuance was part of a strategic financial maneuver to consolidate and expand their existing debt structure, with the notes being senior unsecured obligations. The company has structured these notes with certain covenants and redemption options, reflecting a focus on maintaining financial flexibility and stability. The underwriting agreement with major financial institutions underscores the company’s strong market positioning and commitment to adhering to customary financial practices.