Flex (FLEX) AI Stock Analysis

• Market Cap: $21.60B
• Dividend Yield: N/A
• Average Volume (3M): 3.66M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 1.60
• Revenue Growth: -3.63%
• EPS Growth: 2.26%
• Country: US
• Employees: 148,115
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.72
• Shares Outstanding: 375,324,830
• 10 Day Avg. Volume: 4,047,093
• 30 Day Avg. Volume: 3,655,324
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 9.31
• Enterprise Value/Ebitda: 12.41
• 1Y Price Target: $58.88
• Price Target Upside: 1.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $55.00 ▼(-5.19% Downside)

Flex's overall stock score reflects strong financial performance and strategic corporate actions, particularly in the data center sector. While technical analysis shows mixed signals, the company's fair valuation and positive earnings call sentiment underscore its resilience and potential for growth. The strategic financial restructuring and leadership incentives further bolster confidence in its future trajectory.

Positive Factors

Strategic Partnership with Amazon

The partnership with Amazon positions Flex for long-term growth and revenue expansion, enhancing its market positioning and potential client base.

Strong Data Center Growth

The robust growth in the data center sector reflects Flex's strategic focus on high-growth markets, contributing significantly to revenue and market leadership.

Financial Flexibility

The new credit agreement enhances Flex's financial flexibility, allowing for strategic investments and supporting long-term operational stability.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth indicates potential market challenges, which could impact Flex's ability to sustain long-term expansion and profitability.

Impact of Tariffs

The impact of tariffs on margins could strain profitability, affecting Flex's competitive pricing and operational efficiency in the long term.

Facility Damage in Ukraine

The damage to the Ukraine facility could disrupt operations and supply chains, impacting revenue and operational continuity, albeit limited to a small revenue portion.

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 contract manufacturing services, where it partners with clients to produce electronic components and systems. Key revenue streams include the assembly of printed circuit boards (PCBs), the manufacture of complex electronic devices, and supply chain management solutions. The company also earns income from engineering services, which include design and prototyping for new products. Significant partnerships with major industry players in sectors like automotive and consumer electronics contribute to its earnings, as does its ability to leverage global manufacturing capabilities to meet diverse client needs.

Flex Financial Statement Overview

Summary

Flex displays strong operational efficiency and cash flow generation, positioning it well within the hardware industry. While the income statement reflects stable profitability and prudent cost management, revenue growth fluctuations warrant attention. The balance sheet indicates strong leverage management but could benefit from improved equity ratios. Overall, Flex is financially stable with opportunities for growth.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.07B	25.81B	26.41B	28.50B	24.63B	24.12B
Gross Profit	2.26B	2.16B	1.86B	1.98B	1.78B	1.69B
EBITDA	1.70B	1.78B	1.32B	1.54B	1.61B	1.43B
Net Income	891.00M	838.00M	1.01B	793.00M	936.00M	613.00M
Balance Sheet
Total Assets	19.13B	18.38B	18.26B	21.41B	19.32B	15.84B
Cash, Cash Equivalents and Short-Term Investments	2.24B	2.29B	2.47B	3.16B	2.96B	2.64B
Total Debt	4.26B	4.15B	3.75B	4.20B	4.75B	4.34B
Total Liabilities	14.04B	13.38B	12.93B	15.70B	15.12B	12.40B
Stockholders Equity	5.09B	5.00B	5.33B	5.35B	4.13B	3.44B
Cash Flow
Free Cash Flow	1.10B	1.07B	796.00M	315.00M	581.00M	-207.00M
Operating Cash Flow	1.56B	1.50B	1.33B	950.00M	1.02B	144.00M
Investing Cash Flow	-935.00M	-838.00M	-492.00M	-604.00M	-951.00M	-202.00M
Financing Cash Flow	-636.00M	-821.00M	-1.66B	2.00M	280.00M	743.00M

Flex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.01
• 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 58.01 is above the 20-day moving average (MA) of 57.35, above the 50-day MA of 53.62, and above the 200-day MA of 43.62, indicating a bullish trend. The MACD of 1.21 indicates Positive momentum. The RSI at 60.27 is Neutral, neither overbought nor oversold. The STOCH value of 63.56 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	$6.21B	24.94	10.13%	―	5.87%	20.66%
PLXS	77 Outperform	$3.93B	24.78	11.46%	―	2.31%	48.63%
FTV	75 Outperform	$16.94B	22.11	7.41%	0.56%	-0.12%	-11.27%
FLEX	74 Outperform	$21.60B	25.27	17.67%	―	-3.63%	2.26%
TRMB	70 Outperform	$18.90B	67.81	26.18%	―	-3.72%	-80.83%
JBL	67 Neutral	$23.06B	36.68	43.42%	0.15%	3.18%	-46.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Flex Corporate Events

Flex Files Prospectus Supplement with SEC

On September 4, 2025, Flex Ltd. filed a prospectus supplement to its automatic shelf registration statement with the Securities and Exchange Commission. This filing was made to include the legal opinion of Allen & Gledhill LLP regarding the legality of the shares covered by the prospectus.

Flex Enters Agreement with Amazon for Equity Warrants

On August 15, 2025, Flex Ltd. entered into a Transaction Agreement with Amazon.com, Inc., issuing a warrant to Amazon’s subsidiary to purchase up to 3,859,851 ordinary shares at $51.29 per share, expiring in 2030. This agreement, which includes conditions for vesting and potential extension, aims to strengthen the commercial relationship between Flex and Amazon, though it does not grant voting rights or shareholder rights to the warrantholder until exercised.

Flex Approves Share Repurchase Plan at AGM

On August 6, 2025, Flex Ltd. held its 2024 Annual General Meeting, where shareholders re-elected nine directors, re-appointed Deloitte & Touche LLP as auditors for the 2026 fiscal year, and approved executive compensation and share issuance authorizations. Additionally, shareholders approved a mandate allowing Flex to repurchase up to 20% of its outstanding shares, with the Board authorizing a share repurchase plan up to $1.7 billion, subject to market conditions and legal requirements.

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.

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.

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.