Flex (FLEX) AI Stock Analysis

• Market Cap: $23.69B
• Dividend Yield: N/A
• Average Volume (3M): 3.83M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.71
• Revenue Growth: 0.77%
• EPS Growth: 0.51%
• Country: US
• Employees: 148,115
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.87
• Shares Outstanding: 367,673,920
• 10 Day Avg. Volume: 5,366,206
• 30 Day Avg. Volume: 3,826,201
• PEG Ratio: -1.16
• Price to Book (P/B): 2.59
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 12.12
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 11.05
• Enterprise Value/Ebitda: 15.31
• 1Y Price Target: $74.20
• Price Target Upside: 15.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $65.00 ▲(0.90% Upside)

Score is driven primarily by solid financial fundamentals (improved leverage and strong cash generation) and a constructive earnings update with raised guidance and continued margin progress. These positives are tempered by weaker near-term technicals (trading below key moving averages with subdued momentum) and a valuation that is not especially cheap given thin margins and no stated dividend yield.

Positive Factors

Strong cash generation & FCF conversion

Management's guidance for >80% free cash flow conversion and reported strong operating cash flow indicate durable internal funding. This supports ongoing capex, opportunistic buybacks, debt reduction and strategic investments without relying on external financing, bolstering financial resilience.

Improved leverage and balance sheet flexibility

Material reduction in total debt and a conservative debt/equity profile enhance financial flexibility. A stronger balance sheet reduces interest/ refinancing risk, enables disciplined capital allocation (M&A, capex, buybacks), and better insulates the company through cyclical shocks.

Diversified model with data-center momentum & partnerships

Broad EMS/ODM footprint across industrial, networking and data-center segments plus strategic partnerships (NVIDIA, LG, Equinix) position Flex to capture secular AI/cloud infrastructure growth. Modular platforms deepen customer ties and create durable revenue streams above consumer cyclicality.

Negative Factors

Thin net margins and profit volatility

Persistently low single-digit net margins and historical swings limit the firm's earnings cushion and make profitability sensitive to cost changes or pricing pressure. Over time thin margins constrain reinvestment and reduce runway for margin-enhancing initiatives during downturns.

Free cash flow growth variability

Although FCF levels are generally strong, recent TTM FCF growth turning negative and past variability highlight cyclical cash generation. This unpredictability can impair consistent capital returns, complicate planning for buybacks, debt paydown or strategic investments over medium term.

Supply allocation risk and ongoing capacity investment needs

Exposure to memory price and allocation dynamics concentrates risk with large data-center customers; combined with management's stated need for continued compute capacity investment, this can raise capex and working capital needs and pressure margins if supply costs or timing mismatch demand.

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

Financial statements show a healthier profile: solid profitability with improving gross margin, meaningfully reduced leverage, and strong operating/free cash flow. Offsets include thin net margins and historical volatility in revenue and free cash flow, with recent TTM free cash flow growth turning negative.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly versus the prior period, and profitability remains solid with positive operating and net margins. Gross margin has improved versus earlier years, supporting steadier earnings power. Offsetting this, margins are still thin for the industry (low single-digit net margin) and results have shown some volatility over the past few years, with periods of revenue decline and fluctuating operating profitability.

Balance Sheet

Leverage has improved materially: total debt is much lower in the latest TTM (Trailing-Twelve-Months) snapshot and debt relative to equity is now conservative versus prior years. Equity has remained consistently positive and returns on equity have been healthy and fairly steady. The main watch-out is that the balance sheet previously carried higher leverage (notably in earlier annual periods), so the sustainability of the lower-debt profile is important to maintain.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are strong and comfortably positive, and cash conversion relative to earnings is solid (free cash flow running at roughly ~70% of net income). However, free cash flow growth has recently turned negative in the TTM period, and the company has shown historical variability in free cash flow (including a negative year), which adds some cyclicality risk.

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

• Technical Analysis Sentiment: Positive
• Last Price: 64.42
• 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 64.42 is above the 20-day moving average (MA) of 64.16, above the 50-day MA of 64.18, and above the 200-day MA of 55.41, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 69.64 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
PLXS	76 Outperform	$5.25B	30.67	12.63%	―	1.82%	56.52%
JBL	73 Outperform	$27.18B	40.04	47.87%	0.14%	13.18%	-38.37%
FLEX	72 Outperform	$23.69B	29.46	16.85%	―	0.77%	0.51%
SANM	71 Outperform	$8.01B	35.37	9.74%	―	7.40%	13.79%
FTV	67 Neutral	$18.04B	32.84	7.78%	0.43%	-8.96%	-30.29%
TRMB	63 Neutral	$15.61B	38.08	7.32%	―	-0.86%	-75.37%
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.

The most recent analyst rating on (FLEX) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Flex stock, see the FLEX Stock Forecast page.