Flex (FLEX) AI Stock Analysis

• Market Cap: $19.44B
• Dividend Yield: N/A
• Average Volume (3M): 5.10M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.59
• Revenue Growth: -3.63%
• EPS Growth: 2.26%
• Country: US
• Employees: 148,115
• Sector: Technology
• Sector Strength: 95
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.72
• Shares Outstanding: 375,324,830
• 10 Day Avg. Volume: 4,760,419
• 30 Day Avg. Volume: 5,102,336
• PEG Ratio: 3.08
• Price to Book (P/B): 3.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.09
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 11.64
• Enterprise Value/Ebitda: 4.29
• 1Y Price Target: $58.43
• Price Target Upside: 14.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 71 Outperform
• Price Target: $55.00 ▲(7.70%Upside)

Flex demonstrates strong operational efficiency and robust earnings growth, particularly in the data center segment, which boosts its overall attractiveness. However, inconsistent revenue growth and a moderate P/E ratio suggest a balanced risk-reward profile. The technical indicators and valuation metrics indicate neutral sentiment, aligning with the fair valuation. Strategic focus and positive guidance from the earnings call provide a positive outlook.

Positive Factors

Data Center Growth

Data center revenues grew 50% y/y in F25 to $4.8bn and FLEX expects it to grow 35% y/y in F26.

Price Adjustment Strategy

FLEX has the ability to raise prices on some of its power products to offset direct tariff impact.

Revenue Guidance

Management raised full year F26 revenue guide by $600mn to $26.5bn at the mid-point.

Negative Factors

Automotive Sector Weakness

Management expects automotive to continue to be soft through the near-term.

Macroeconomic Challenges

The remaining business today is facing a weak macro in multiple end markets.

Tariff Impact

Tariffs pass-through helps rev topline but hurts OM rate.

Flex Business Overview & Revenue Model

Company Description

Flex Ltd. (FLEX) is a multinational technology and manufacturing company that provides design, engineering, manufacturing, and supply chain services to a broad range of industries. Headquartered in Singapore, Flex operates in sectors such as automotive, consumer electronics, industrial, healthcare, and communications. The company's core services include product design, electronics manufacturing, logistics, and after-market services, offering end-to-end solutions that help businesses bring their products to market efficiently and effectively.

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 displays strong operational efficiency and cash flow generation, with a solid EBIT and EBITDA margin. The balance sheet shows prudent financial leverage, though there is room for improvement in equity ratios. Revenue growth has been inconsistent, which warrants attention.

Income Statement

Flex shows a strong gross profit margin of 8.67% for the TTM, indicating efficient production and cost management. The net profit margin is 3.42%, which is modest but stable. Revenue growth has been inconsistent, with a recent decline compared to previous years, suggesting potential market challenges. However, the EBIT margin of 4.78% and EBITDA margin of 6.00% reflect solid operational efficiency.

Balance Sheet

Flex maintains a healthy debt-to-equity ratio of 0.25, indicating prudent financial leverage. The return on equity (ROE) stands at 17.51% for the TTM, showcasing effective use of shareholder funds. The equity ratio of 26.60% suggests a balanced approach between equity and liabilities, although there is room for improvement in equity strengthening.

Cash Flow

Flex's cash flow statement highlights robust free cash flow growth and a strong operating cash flow to net income ratio of 1.75, demonstrating effective cash generation and operational efficiency. The free cash flow to net income ratio of 1.24 further supports their capacity to generate cash beyond earnings, positioning Flex well for future investments.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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
EBITDA	1.78B	1.55B	1.54B	1.59B	870.00M
Net Income	838.00M	1.01B	793.00M	936.00M	613.00M
Balance Sheet
Total Assets	18.38B	18.26B	21.41B	19.32B	15.84B
Cash, Cash Equivalents and Short-Term Investments	2.29B	2.47B	3.16B	2.96B	2.64B
Total Debt	4.28B	3.75B	4.20B	4.75B	4.34B
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: 51.07
• 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 51.07 is below the 20-day moving average (MA) of 51.76, above the 50-day MA of 47.34, and above the 200-day MA of 39.93, indicating a neutral trend. The MACD of 1.09 indicates Positive momentum. The RSI at 54.05 is Neutral, neither overbought nor oversold. The STOCH value of 43.23 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
SANM	80 Outperform	$6.43B	24.81	11.58%	―	5.87%	20.66%
ESE	77 Outperform	$5.00B	42.41	9.66%	0.17%	8.40%	20.03%
PLXS	72 Outperform	$3.48B	21.75	12.12%	―	2.31%	48.63%
FLEX	71 Outperform	$19.44B	22.43	17.67%	―	-3.63%	2.26%
BHE	68 Neutral	$1.45B	27.77	4.84%	1.73%	-7.36%	-20.46%
JBL	67 Neutral	$24.72B	44.79	32.41%	0.14%	-6.13%	-53.35%
Sector *	62 Neutral	$34.85B	5.63	-12.19%	2.01%	5.91%	-17.91%

Flex Corporate Events

Flex Enters New $2.75 Billion Credit Agreement

On July 15, 2025, Flex Ltd. entered into a new $2.75 billion Credit Agreement with Bank of America and other financial institutions, replacing its previous $2.5 billion agreement. The new facility, maturing in 2030, includes a revolving credit facility with sublimits for swing line loans and letters of credit, and allows for potential incremental term loans or increased revolving commitments up to $500 million. This agreement impacts Flex’s financial operations by providing greater flexibility and extended maturity, while maintaining certain covenants and default conditions. The termination of the 2022 Credit Facility marks a strategic financial restructuring for the company.

The most recent analyst rating on (FLEX) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Flex stock, see the FLEX Stock Forecast page.

Flex Awards CEO $25M Equity for Leadership

On June 19, 2025, Flex Ltd.’s Board of Directors approved a one-time supplemental equity award for CEO Revathi Advaithi, underlining her leadership and contributions to the company’s performance. This award, valued at $25 million, is designed to align executive compensation with shareholder value and support the company’s growth in the data center sector. The performance-based award is contingent on the success of the data center business by fiscal year 2028 and includes specific vesting conditions to ensure leadership continuity and shareholder alignment.

The most recent analyst rating on (FLEX) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Flex stock, see the FLEX Stock Forecast page.

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.