Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on FLEX

Flex Ltd.'s recent performance has been impacted by softness in the automotive segment, rising customer concentration risk, and ongoing investigations into potential securities law violations. Despite strong data center momentum and acquisitions driving 45% year-over-year revenue growth, the company's bottom-line performance has seen year-over-year improvement, but the stock has been volatile. The expansion of Flex's U.S. manufacturing capacity to meet growing demand for data center critical power solutions is a positive development, as is the introduction of the SmartSense Coolant Distribution Unit for AI and HPC applications.

1.c. Company Highlights

2. Flex Delivers Exceptional Q2 FY 2026 Results

Flex reported revenue of $6.8 billion, growing 4% year-over-year, with operating margin at 6%, the fourth consecutive quarter at or above this level. Adjusted EPS came in at $0.79, beating analyst estimates of $0.75, a 23% increase from the previous year. Gross profit totaled $632 million, with gross margin improving to 9.3%, up 80 basis points. Operating profit was $409 million, with operating margins at 6%, up 55 basis points.

Publication Date: Oct -30

📋 Highlights
  • Revenue Growth:: Q2 revenue reached $6.8 billion, up 4% year-over-year.
  • Operating Margin Stability:: Operating margin held at 6%, the fourth consecutive quarter above 6%.
  • Adjusted EPS Record:: Adjusted EPS rose 23% to $0.79, driven by higher-value business growth.
  • Data Center Momentum:: Data center revenue on track for at least 35% annual growth, with $632 million gross profit and 9.3% gross margin.
  • Full-Year Guidance Raised:: FY 2026 revenue now projected at $26.7–$27.3 billion, up $500 million from prior guidance.

Data Center Business Drives Growth

The company's data center business continues to deliver outstanding results, with revenue expected to grow at least 35% this year. Revathi Advaithi, CEO, expressed optimism about the company's growth trajectory, stating that the vertical integration in compute, power, and cooling is expected to contribute to margin expansion and higher revenue growth rates. The guidance for the full year was raised by $500 million, with a significant portion of the growth expected to come from the data center and health solutions markets.

Margin Expansion and Valuation

The company's operating margin is expected to continue to improve, with the possibility of reaching mid-to-high 6% levels in the future. With a current P/E Ratio of 28.67 and EV/EBITDA of 15.45, the market is pricing in a certain level of growth. The company's ROIC of 10.31% and ROE of 17.42% indicate a strong return on investment. Analysts estimate next year's revenue growth at 4.9%, which is slightly higher than the current year's growth rate.

Future Outlook

Looking ahead to the fourth quarter, the company expects accelerating growth and higher margins, driven by the growth of their products and services businesses. The company is investing significantly in its compute operations and cooling manufacturing capabilities to support the growth in the data center market. However, the company expects to need to make meaningful increases in its CapEx levels in the future to support the growth in this space.

Operational Efficiency

The company is also exploring the use of AI and automation to drive efficiency and productivity in its operations. The recent announcement of a pilot with NVIDIA is seen as an exciting development, and the company is exploring the use of AI and robotics to drive productivity and efficiency in its factories.

3. NewsRoom

Card image cap

Flex Ltd. (FLEX) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -04

Source: seekingalpha.com

Card image cap

Flex Ltd. (FLEX) Presents at Goldman Sachs Industrials and Materials Conference 2025 Transcript

Dec -04

Source: seekingalpha.com

Card image cap

Muscles, the New Flex: Abbott Launches Two New Ensure® Max Protein Shakes to Tap into Growing Muscle Health Movement

Dec -04

Source: prnewswire.com

Card image cap

How is Flex Accelerating Its Expansion in the Data Center Market?

Dec -03

Source: zacks.com

Card image cap

Falcon Flex Adoption to Aid CrowdStrike's Subscription Revenues in Q3

Dec -01

Source: zacks.com

Card image cap

Flex Stock Surges 40% in the Past 6 Months: Will the Uptrend Continue?

Dec -01

Source: zacks.com

Card image cap

Coldstream Capital Management Inc. Sells 1,372 Shares of Flex Ltd. $FLEX

Nov -28

Source: defenseworld.net

Card image cap

This Nvidia Flex by the Company's CFO May Have Exposed a Massive Future Growth Weakness

Nov -25

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Flex Agility Solutions

Expected Growth: 12.4%

Flex Ltd.'s growth is driven by increasing demand for flexible agile solutions, accelerated digital transformation, and strategic partnerships, positioning it for sustained growth in the technology industry.

Flex Reliability Solutions

Expected Growth: 5.2%

Flex Ltd.'s reliability solutions are expected to grow driven by increasing demand for IoT devices, autonomous vehicles, and renewable energy systems, as well as the need for efficient supply chain management and advanced manufacturing technologies.

7. Detailed Products

Sketch-to-Scale

A comprehensive product design and manufacturing service that takes ideas from concept to production-ready products.

Cloud and Edge Computing

A range of cloud and edge computing solutions that enable real-time data processing and analytics.

Internet of Things (IoT) Solutions

Custom IoT solutions that connect devices, collect data, and enable real-time insights.

Automotive Solutions

Custom automotive solutions for autonomous vehicles, electrification, and connectivity.

Industrial and Commercial Solutions

Custom industrial and commercial solutions for industrial automation, medical devices, and aerospace.

Supply Chain and Logistics

End-to-end supply chain and logistics services for global product delivery.

8. Flex Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Flex Ltd. faces moderate threat from substitutes due to the presence of alternative manufacturing services providers.

Bargaining Power Of Customers

Flex Ltd. has a high bargaining power of customers due to the concentration of customers in the industry.

Bargaining Power Of Suppliers

Flex Ltd. has a low bargaining power of suppliers due to the availability of multiple suppliers in the market.

Threat Of New Entrants

Flex Ltd. faces moderate threat from new entrants due to the moderate barriers to entry in the industry.

Intensity Of Rivalry

Flex Ltd. operates in a highly competitive industry, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.95%
Debt Cost 4.07%
Equity Weight 61.05%
Equity Cost 9.80%
WACC 7.57%
Leverage 63.79%

11. Quality Control: Flex Ltd. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Flex

A-Score: 5.9/10

Value: 3.2

Growth: 7.1

Quality: 6.5

Yield: 0.0

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Garmin

A-Score: 5.6/10

Value: 1.3

Growth: 6.4

Quality: 8.4

Yield: 3.8

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
TE Connectivity

A-Score: 5.5/10

Value: 1.8

Growth: 6.6

Quality: 6.8

Yield: 2.5

Momentum: 8.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Grab

A-Score: 5.5/10

Value: 0.5

Growth: 8.6

Quality: 6.4

Yield: 0.0

Momentum: 9.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
KCE Electronics

A-Score: 5.3/10

Value: 3.5

Growth: 5.3

Quality: 7.0

Yield: 8.3

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Hana Microelectronics

A-Score: 4.5/10

Value: 6.2

Growth: 4.6

Quality: 5.6

Yield: 3.3

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

61.61$

Current Price

61.61$

Potential

-0.00%

Expected Cash-Flows