Flex Ltd. Ordinary Shares (FLEX)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and can be bought at a sensible price. Flex is a large contract manufacturer and supply-chain partner with 149,686 employees. Its scale is real: in fiscal Q1 2027, the quarter ended 2026-06-26, revenue was $7.9B and net income was $285.0M, or $0.76 diluted EPS. In fiscal year 2026, the year ended 2026-03-31, revenue was $27.9B, net income $880.0M, and diluted EPS $2.33, up from $25.8B revenue, $838.0M net income, and $2.11 EPS in fiscal year 2025. But fiscal year 2024 net income was $1.0B, so the profit trend is not steadily upward. I do not see a wide competitive moat: contract manufacturing is competitive, capital-intensive, and thin-margined. FairStock's numbers at the 2026-10-13 close of $110.88 show a P/E of 42.81, P/B of 7.45, EV/EBITDA of 22.33, and FCF yield of 2.6%. Return on equity is 18.38%, but ROCE is only 4.42%, and debt to equity is 1.08. The Graham Number is $28.63, leaving a margin of safety of -287.29%, which tells me the price is far above a conservative asset-and-earnings value. The Piotroski F-Score is 5/9 and Altman Z-Score is 2.22, so financial strength is middling. FairStock classifies it as a SLOW GROWER, with profit compounding at 7.5% a year over five years and revenue at 3.0%. I would want much better capital returns and a lower price before calling this a value opportunity.

In plain English: Flex makes technology products and provides manufacturing and supply-chain services for many industries. Sales are growing slowly and recent profit has improved, but returns on the money invested in the business are low and debt is meaningful. At the recent price, the shares look expensive compared with the company's profits and assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-26) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-26) · fiscal Q1 2026 10-Q (period ended 2025-06-27) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer