Flex Ltd (FLEX)
NASDAQ:FLEX
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Flex
(NASDAQ:FLEX)
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Rating:75Outperform
Price Target:
$168.00
▲(105.30% Upside)
Action:Reiterated
Date:06/13/26
The score is driven primarily by improving financial strength (notably deleveraging) and strong technical momentum. Supportive FY27 guidance and a positive earnings-call outlook add to the case, while the main constraint is a very high P/E valuation and some near-term execution risks from elevated investment intensity and CPI margin pressure.
Positive Factors
Deleveraged balance sheet & strong ROE
Material deleveraging has meaningfully strengthened financial flexibility, reducing refinancing and interest risk and enabling strategic moves (M&A, buybacks, spin funding). A low-debt base supports durable capital allocation over the next 2–6 months and cushions cyclical demand drops.
Negative Factors
Choppy revenue and margin volatility
Irregular revenue trends and inconsistent margin progression indicate exposure to end-market cyclicality and program timing. That volatility makes cash conversion and earnings predictability weaker over a 2–6 month horizon and raises execution risk when scaling new, lower-margin cloud programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraged balance sheet & strong ROE
Material deleveraging has meaningfully strengthened financial flexibility, reducing refinancing and interest risk and enabling strategic moves (M&A, buybacks, spin funding). A low-debt base supports durable capital allocation over the next 2–6 months and cushions cyclical demand drops.
Read all positive factors
Flex (FLEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.85B
Dividend YieldN/A
Average Volume (3M)6.62M
Price to Earnings (P/E)63.6
Beta (1Y)1.91
Revenue Growth8.14%
EPS Growth10.64%
CountryUS
Employees148,115
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.33
Shares Outstanding366,377,930
10 Day Avg. Volume5,192,326
30 Day Avg. Volume6,618,465
Financial Highlights & Ratios
PEG Ratio3.13
Price to Book (P/B)4.76
Price to Sales (P/S)0.88
P/FCF Ratio23.27
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue1.91
Enterprise Value/Gross Profit20.54
Enterprise Value/Ebitda32.14
Forecast
1Y Price Target
$172.11Price Target Upside110.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)4.47
Revenue Forecast (FY)$33.18B
Flex Business Overview & Revenue Model
Company Description
Flex Ltd. is a global provider offering extensive design, engineering, manufacturing, and supply chain management solutions to original equipment manufacturers (OEMs) across Asia, the Americas, and Europe. Its operations are structured into three ...
How the Company Makes Money
Flex primarily makes money by providing contract manufacturing and related supply-chain services to original equipment manufacturers (OEMs) and other technology/product companies. Revenue is largely generated from: (1) manufacturing and assembly s...
Flex Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook driven by strong Q4 and full-year results, record margins, robust CPI revenue acceleration and major customer wins (including Google). Management announced a strategic spin of the Cloud & Power Infrastructure business to unlock value and highlighted an acquisition (EP2) to bolster power capabilities. Near-term negatives include CPI margin pressure from infrastructure investments and cloud ramp costs, softness in consumer/lifestyle markets, an elevated FY'27 CapEx plan and inventory build, and transactional uncertainty around the spin. Management expects to recoup CPI margin headwinds in FY'27 and to resume normalized CapEx in FY'28, supporting a constructive medium-term view.Positive Updates
Strong Quarterly Revenue Growth
Q4 revenue $7.5B, up 17% year-over-year; adjusted EPS $0.93, up 27% YoY.
Negative Updates
CPI Margin Impacted by Investment and Ramp Costs
Full-year CPI adjusted operating margin 9.2%, down 100 bps YoY due to infrastructure investments in critical power and cloud ramp costs; cloud margins are lower than power margins and cloud ramps weighed on Q4.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Quarterly Revenue Growth
Q4 revenue $7.5B, up 17% year-over-year; adjusted EPS $0.93, up 27% YoY.
Read all positive updates
Company Guidance
Management guided fiscal 2027 revenue of $32.3B–$33.8B (≈+18% at the midpoint) with adjusted operating margin of 7.0%–7.1% (≈+80 bps), adjusted EPS of $4.21–$4.51 (≈+32% at the midpoint), an adjusted tax rate of ~21%, CapEx of $1.4B–$1.6B and free cash flow conversion of ~60% (excluding spin costs). Segment guidance calls for CPI revenue growth of 65%–75% in FY27 (80%+ expected in FY28), RMS up low- to mid-single digits and ITS flat to up low-single digits; management said FY27 CapEx will be elevated for CPI but should normalize in FY28 with CPI CapEx ~2.5%–3% of revenue and ITS/RMS <2%. CPI margin dynamics: FY26 margin 9.2%, management expects to recoup ~100 bps of FY26 investment in FY27 and drive another 50–100 bps of expansion in FY28. Q1 guidance: total revenue $7.35B–$7.65B (≈+14% at midpoint), adjusted operating income $469M–$499M, adjusted EPS $0.86–$0.92 (≈+24% at midpoint on ~374M weighted shares), interest & other ≈ $65M, and Q1 segment comps of RMS up high-single to low-double digits, ITS up high-single to low-double digits, and CPI up 20%–30%.Flex Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.91B | 25.81B | 26.41B | 28.50B | 24.63B |
| Gross Profit | 2.56B | 2.16B | 1.86B | 1.98B | 1.78B |
| EBITDA | 1.92B | 1.78B | 1.41B | 1.54B | 1.61B |
| Net Income | 880.00M | 838.00M | 1.01B | 793.00M | 936.00M |
Balance Sheet | |||||
| Total Assets | 22.06B | 18.38B | 18.26B | 21.41B | 19.32B |
| Cash, Cash Equivalents and Short-Term Investments | 2.39B | 2.29B | 2.47B | 3.16B | 2.96B |
| Total Debt | 4.32B | 4.15B | 3.89B | 4.20B | 4.75B |
| Total Liabilities | 16.92B | 13.38B | 12.93B | 15.70B | 15.12B |
| Stockholders Equity | 5.14B | 5.00B | 5.33B | 5.35B | 4.13B |
Cash Flow | |||||
| Free Cash Flow | 1.05B | 1.07B | 796.00M | 315.00M | 581.00M |
| Operating Cash Flow | 1.69B | 1.50B | 1.33B | 950.00M | 1.02B |
| Investing Cash Flow | -672.00M | -838.00M | -492.00M | -604.00M | -951.00M |
| Financing Cash Flow | -924.00M | -821.00M | -1.66B | 2.00M | 280.00M |
Flex Technical Analysis
Positive
81.83
Price Trends
115.53
Positive
89.89
Positive
75.29
Positive
Market Momentum
9.42
Positive
59.22
Neutral
31.92
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 81.83 is below the 20-day moving average (MA) of 144.68, below the 50-day MA of 115.53, and above the 200-day MA of 75.29, indicating a bullish trend. The MACD of 9.42 indicates Positive momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 31.92 is Neutral, 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 | $54.85B | 63.63 | 17.26% | ― | 8.14% | 10.64% | |
72 Outperform | $13.68B | 53.32 | 10.88% | ― | 44.48% | 8.59% | |
71 Outperform | $7.89B | 42.10 | 12.83% | ― | 8.64% | 32.91% | |
70 Neutral | $11.75B | 25.92 | 7.95% | ― | 3.25% | -68.85% | |
69 Neutral | $40.60B | 50.66 | 58.99% | 0.14% | 19.00% | 78.70% | |
64 Neutral | $18.33B | 34.25 | 7.39% | 0.43% | -23.36% | -26.77% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FLEX
Flex
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Flex Corporate Events
Business Operations and StrategyExecutive/Board Changes
Flex Adopts New Performance-Based Executive Bonus Plan
Positive
Jun 12, 2026
On June 11, 2026, Flex Ltd.’s board approved an Annual Incentive Bonus Plan for fiscal 2027 that ties executive cash bonuses to operating profit, free cash flow, and revenue targets at the company level. The plan differentiates target award ...
Business Operations and StrategyPrivate Placements and Financing
Flex Establishes New $1.45 Billion Term Loan Facility
Positive
Jun 2, 2026
On May 29, 2026, Flex Ltd. entered into a new $1.45 billion senior term loan credit facility with a syndicate of lenders and Citibank, N.A. as administrative agent, which was fully funded on the closing date and matures on November 29, 2027. The f...
Business Operations and StrategyFinancial Disclosures
Flex posts record results, plans cloud business spinoff
Positive
May 5, 2026
On May 5, 2026, Flex reported strong results for its fourth quarter and fiscal year ended March 31, 2026, with Q4 net sales of $7.5 billion and full-year net sales of $27.9 billion, representing year-over-year growth of 17% and 8%, respectively. T...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Flex Completes EP² Acquisition, Expanding Critical Power Portfolio
Positive
May 4, 2026
On April 30, 2026, Flex Ltd. secured a $1.45 billion senior delayed draw term loan facility led by Citibank, maturing 364 days after first funding and carrying floating-rate interest tied to Term SOFR or a base rate with margins linked to its debt...
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.