Last Updated: 16 Sep 2024
Executive Summary
Flex Ltd. (FLEX) is a leading provider of design, engineering, manufacturing, and supply chain solutions to OEMs worldwide. The company has a strong financial position with a market capitalization of $11.83 billion, EBITDA of $1.56 billion, and a trailing P/E ratio of 14.9. Analysts are bullish on the stock, with a consensus target price of $37.74 and a majority of Buy ratings.
Company Overview
Flex Ltd. was founded in 1969 and is headquartered in Singapore. The company operates in three segments: Electronics Manufacturing Services, Industrial & Healthcare, and Automotive & Energy. Flex has a global presence with operations in over 30 countries and serves a diverse customer base.
Fundamental Analysis
Flex Ltd.'s financial performance has been solid in recent years. Revenue has grown steadily, reaching $25.84 billion in the trailing twelve months. The company has also improved its profitability, with an operating margin of 4.09% and a net profit margin of 3.71%. Flex has a strong balance sheet with $1.56 billion in cash and equivalents and a debt-to-equity ratio of 0.46.
Technical Analysis
The technical analysis of Flex Ltd.'s stock shows a bullish trend. The stock is trading above its 50-day and 200-day moving averages, and the relative strength index (RSI) is above 50. The stock recently broke out of a resistance level at $29.50, indicating further upside potential.
Short Term Outlook
In the short term, Flex Ltd.'s stock is likely to continue its upward trend. The company is benefiting from strong demand for its products and services, and analysts expect revenue and earnings to continue to grow in the coming quarters. The stock's technical indicators are also bullish, suggesting that the uptrend is likely to continue.
Long Term Outlook
The long-term outlook for Flex Ltd. is also positive. The company is well-positioned to benefit from the growing demand for electronics and other products. Flex has a strong track record of innovation and is constantly investing in new technologies. The company is also expanding its global presence, which will help it to capture new market opportunities.
Analyst Recommendations
Analysts are bullish on Flex Ltd.'s stock. The consensus target price is $37.74, which represents a potential upside of 26.5% from the current price of $29.8. Of the 11 analysts covering the stock, 7 have Buy ratings, 3 have Strong Buy ratings, and 1 has a Hold rating.
