# Flex (FLEX.US)

Canonical: https://gigainvestors.com/s/FLEX

Analysis as of: 2026-10-16T07:28:33.270Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $98.50 per share; close as of 2026-10-15.

Estimated value: low $45.28 per share, central $62.07 per share, high $71.84 per share. Buy at or below the central value $62.07 per share. Valuation as of 2026-10-16T07:28:33.270Z; scenarios are not confidence intervals.

Expected annual return: 7.3% at the stated quote. About 7.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.37×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.02×

- FY2018: 0.02×

- FY2019: 0.02×

- FY2020: 0.02×

- FY2021: 0.03×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.03×

- FY2025: 0.05×

- FY2026: 0.05×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 16.0%

- ROIC, second-lowest year: 9.8%

- Typical minus recent gross margin: -1.4 pp

- Typical gross margin (annual median): 7.0%

- Recent gross margin (lower of latest and 3-year median): 8.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.1%

- ROIC including acquisitions, ten-year median: 11.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 15.6%

- FY2018: 12.2%

- FY2019: 9.8%

- FY2020: 8.4%

- FY2021: 16.8%

- FY2022: 16.9%

- FY2023: 16.4%

- FY2024: 15.2%

- FY2025: 17.3%

- FY2026: 20.3%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.6B

- Net income, five-year total: $4.5B

- Return on incremental invested capital: 32.6%

- Working capital / revenue, annual change: 1.6 pp

- Working capital / revenue, change between three-year averages: 11.1 pp

- Working capital / revenue, final three-year average: 16.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.04×

- FY2023: 1.00×

- FY2024: 1.01×

- FY2025: 1.12×

- FY2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 12.2% vs 17.3%

- Per-share earnings: 0.59 to 2.28 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -6.6%

- Ordinary dilution, 5-year annual growth: -10.9%

- Market cap gain: $15B

- Cumulative retained earnings: $5.7B

- Diluted shares, 10-year annual growth: -6.6%

- Diluted shares, 5-year annual growth: -10.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 18.4%

- Per-share value change: $1.69

- Per-share value, starting three-year median: $0.59

- Per-share value, ending three-year median: $2.28

- Buybacks concentrated in cheaper years (correlation): 0.43

- Average buyback yield: 5.8%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $750M

- Cumulative net income, 10 years: $6.0B

- ROIC, first three-year median: 12.2%

- ROIC, last three-year median: 17.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.44

- FY2018: $0.60

- FY2019: $0.13

- FY2020: $0.13

- FY2021: $0.91

- FY2022: $1.94

- FY2023: $1.72

- FY2024: $2.28

- FY2025: $2.11

- FY2026: $2.33

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 1.24×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.91×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.32×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -6.6%

- FY2018: -2.4%

- FY2019: 22.7%

- FY2020: 11.8%

- FY2021: 3.0%

- FY2022: -0.5%

- FY2023: -0.7%

- FY2024: -1.8%

- FY2025: -3.6%

- FY2026: -3.6%

## Holders

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Daniel Loeb](https://gigainvestors.com/tp): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 39% since Jun 2026 · "FLEX Falls 10.6% in the Past Month as AI Growth Meets Execution Risk" (finance.yahoo.com, Aug 2026) · sales +8.1%

Story as of 2026-10-16T09:58:45.914Z; price observation 2026-10-15.

Price needs cash profits to grow 12.8% a year for ten years

- 2025-05-07: Flex (NASDAQ:FLEX) Posts Better-Than-Expected Sales In Q1 But Quarterly Revenue Guidance Misses Expectations ([finance.yahoo.com](https://finance.yahoo.com/news/flex-nasdaq-flex-posts-better-123119106.html))

- 2025-06-11: FLEX Q1 Earnings Call: Data Center Momentum and Tariff Uncertainty Shape Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/flex-q1-earnings-call-data-095421564.html))

- 2026-03-31: Flex to Acquire Electrical Power Products to Boost Power Capabilities ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/flex-acquire-electrical-power-products-155300473.html))

- 2026-04-05: Flex (FLEX) Announces $1.1B Acquisition to Boost Power Infrastructure Capabilities ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/flex-flex-announces-1-1b-091247943.html))

- 2026-05-23: Flex Pitches AI Data Center Spin-Off as Power and Cooling Growth Accelerates ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/flex-pitches-ai-data-center-200215633.html))

- 2026-06-13: Flex Spin Offs AI Data Center Power Unit As Growth Story Shifts ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/flex-spin-offs-ai-data-180937781.html))

### Sales · FY2025–2026

sales +8.1%; source https://www.sec.gov/Archives/edgar/data/866374/000086637426000012/flex-20260331.htm; observed 2026-05-20.

- FY2017: $24B 

- FY2018: $25B 

- FY2019: $26B 

- FY2020: $24B 

- FY2021: $24B 

- FY2022: $25B 

- FY2023: $29B 

- FY2024: $26B 

- FY2025: $26B 

- FY2026: $28B 

### Gross margin · FY2026

gross margin 9.2%; source https://www.sec.gov/Archives/edgar/data/866374/000086637426000012/flex-20260331.htm; observed 2026-05-20.

- FY2017: 6.4% 

- FY2018: 6.3% 

- FY2019: 5.8% 

- FY2020: 5.5% 

- FY2021: 7.0% 

- FY2022: 7.2% 

- FY2023: 6.9% 

- FY2024: 7.1% 

- FY2025: 8.4% 

- FY2026: 9.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronic components; annual sales are USD 27.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/866374/000086637426000012/flex-20260331.htm (filed 2026-05-20); FY2026: revenue 27914000000; grossProfit 2558000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FLEX.US: Flex Ltd. provides technology innovation, supply chain, and manufacturing solutions to data center, communications, enterprise, consumer, automotive, healthcare, industrial, and power industries in the Americas, Asia, and Europe. The company operates through three segments: Integrated Technology Solutions (ITS), Regulated Manufacturing Solutions (RMS), and Cloud and Power Infrastructure (CPI). The ITS segment offers flexible supply and manufacturing solutions for communications, including high speed networking, enterprise, and satellite communications systems, as well as lifestyle solutions comprising products across commercial, home, and personal product categories. Its RMS segment includes industrial products, such as mission critical automation, energy, and industrial infrastructure; automotive products, including compute and power electronics platforms and integrated systems; and healthcare products comprising regulated manufacturing for medical devices, drug delivery, and equipment. The CPI segment provides cloud and cooling products, such as integrated compute systems supporting power dense digital infrastructure deployments and advanced liquid cooling solutions supporting higher density, power intensive rack architectures; and power products that include utility and facility level electrical infrastructure enabling power delivery and high density rack and board level power systems. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1969 and is headquartered in Austin, Texas.

### Why customers stay

Margins ranged from 7.1% to 9.2% during 2024–26; it earns 16% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2024: grossProfit / revenue = 7.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2025: grossProfit / revenue = 8.4%.

- Source: https://www.sec.gov/Archives/edgar/data/866374/000086637426000012/flex-20260331.htm (filed 2026-05-20); FY2026: grossProfit / revenue = 9.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); 10-year return on capital observations [[2017,0.1556056453581175],[2018,0.12169254104978607],[2019,0.0979814260495817],[2020,0.08403426791277259],[2021,0.1683626089804447],[2022,0.16859942212856552],[2023,0.16407402630717402],[2024,0.1522398714974121],[2025,0.17347776502755463],[2026,0.203345328940161]]; median 0.15983983583264577. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 7% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/866374/000086637426000012/flex-20260331.htm (filed 2026-05-20); Gross margin observations: [[2021,0.06993035980766042],[2022,0.07226078837332034],[2023,0.06932846817767174]]; range within 2 percentage points.

### Where the cash goes

Spends 8% of cash earnings on expansion; earns 32.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2017: growth capex 0; upkeep 525111000; owner earnings 404113000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2018: growth capex 6633000; upkeep 555364000; owner earnings 428534000. Growth capex / owner earnings = 0.015478351776055109.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2019: growth capex 0; upkeep 725606000; owner earnings 132394000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2020: growth capex 0; upkeep 462000000; owner earnings 252000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2021: growth capex 0; upkeep 351000000; owner earnings 831000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2022: growth capex 0; upkeep 443000000; owner earnings 977000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2023: growth capex 134000000; upkeep 501000000; owner earnings 793000000. Growth capex / owner earnings = 0.16897856242118536.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2024: growth capex 0; upkeep 530000000; owner earnings 1013000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); FY2025: growth capex 0; upkeep 438000000; owner earnings 939000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/866374/000086637426000012/flex-20260331.htm (filed 2026-05-20); FY2026: growth capex 70000000; upkeep 563000000; owner earnings 880000000. Growth capex / owner earnings = 0.07954545454545454.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); Incremental return on capital 0.325606330765572, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); Dividend observations: [[2017,312741000],[2018,1366000000],[2019,3199460000],[2020,0],[2021,0],[2022,488000000],[2023,22000000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/866374/000086637426000012/flex-20260331.htm (filed 2026-05-20); FY2026: cash repurchases 944000000 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FLEX.US SharesStats.PercentInsiders = 0.599 percentage points; cache date 2026-10-16.

### What could break it

"Customer order cancellations, production changes, and demand variability could adversely affect our business." (SEC filing, May 2026)

- Source: https://www.sec.gov/Archives/edgar/data/866374/000086637426000012/flex-20260331.htm (filed 2026-05-20); Customer order cancellations, production changes, and demand variability could adversely affect our business.

### What the price says

The price assumes cash profits grow 12.8% yearly over ten years; actual growth was 14.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-20); Ten-year compound average after fade. Initial solved rate 0.172407852507925. Price 98.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.5987530399026316 → FY2026 2.328042328042328. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-11: $10.73 per share

- 2016-12: $10.83 per share

- 2017-01: $11.81 per share

- 2017-02: $12.43 per share

- 2017-03: $12.66 per share

- 2017-04: $11.65 per share

- 2017-05: $13.01 per share

- 2017-06: $12.29 per share

- 2017-07: $12.05 per share

- 2017-08: $12.26 per share

- 2017-09: $12.49 per share

- 2017-10: $13.41 per share

- 2017-11: $13.62 per share

- 2017-12: $13.56 per share

- 2018-01: $13.57 per share

- 2018-02: $13.64 per share

- 2018-03: $12.31 per share

- 2018-04: $9.80 per share

- 2018-05: $10.47 per share

- 2018-06: $10.63 per share

- 2018-07: $10.52 per share

- 2018-08: $10.39 per share

- 2018-09: $9.89 per share

- 2018-10: $5.92 per share

- 2018-11: $6.59 per share

- 2018-12: $5.73 per share

- 2019-01: $7.25 per share

- 2019-02: $7.94 per share

- 2019-03: $7.54 per share

- 2019-04: $8.32 per share

- 2019-05: $6.74 per share

- 2019-06: $7.21 per share

- 2019-07: $8.40 per share

- 2019-08: $7.26 per share

- 2019-09: $7.89 per share

- 2019-10: $8.85 per share

- 2019-11: $8.94 per share

- 2019-12: $9.51 per share

- 2020-01: $9.91 per share

- 2020-02: $8.37 per share

- 2020-03: $6.31 per share

- 2020-04: $7.35 per share

- 2020-05: $7.32 per share

- 2020-06: $7.72 per share

- 2020-07: $8.66 per share

- 2020-08: $8.18 per share

- 2020-09: $8.39 per share

- 2020-10: $10.66 per share

- 2020-11: $12.23 per share

- 2020-12: $13.55 per share

- 2021-01: $13.29 per share

- 2021-02: $13.71 per share

- 2021-03: $13.80 per share

- 2021-04: $13.11 per share

- 2021-05: $13.77 per share

- 2021-06: $13.47 per share

- 2021-07: $13.54 per share

- 2021-08: $14.00 per share

- 2021-09: $13.32 per share

- 2021-10: $12.74 per share

- 2021-11: $12.89 per share

- 2021-12: $13.81 per share

- 2022-01: $12.19 per share

- 2022-02: $12.43 per share

- 2022-03: $13.98 per share

- 2022-04: $12.43 per share

- 2022-05: $12.86 per share

- 2022-06: $10.90 per share

- 2022-07: $12.66 per share

- 2022-08: $13.42 per share

- 2022-09: $12.55 per share

- 2022-10: $14.76 per share

- 2022-11: $16.56 per share

- 2022-12: $16.17 per share

- 2023-01: $17.60 per share

- 2023-02: $17.15 per share

- 2023-03: $17.34 per share

- 2023-04: $15.50 per share

- 2023-05: $19.13 per share

- 2023-06: $20.83 per share

- 2023-07: $20.62 per share

- 2023-08: $20.79 per share

- 2023-09: $20.33 per share

- 2023-10: $19.38 per share

- 2023-11: $19.18 per share

- 2023-12: $22.95 per share

- 2024-01: $23.74 per share

- 2024-02: $28.15 per share

- 2024-03: $28.61 per share

- 2024-04: $28.65 per share

- 2024-05: $33.13 per share

- 2024-06: $29.49 per share

- 2024-07: $32.15 per share

- 2024-08: $32.49 per share

- 2024-09: $33.43 per share

- 2024-10: $34.67 per share

- 2024-11: $38.97 per share

- 2024-12: $38.39 per share

- 2025-01: $41.65 per share

- 2025-02: $37.89 per share

- 2025-03: $33.08 per share

- 2025-04: $34.34 per share

- 2025-05: $42.30 per share

- 2025-06: $49.92 per share

- 2025-07: $49.87 per share

- 2025-08: $53.62 per share

- 2025-09: $57.97 per share

- 2025-10: $62.52 per share

- 2025-11: $59.11 per share

- 2025-12: $60.42 per share

- 2026-01: $63.04 per share

- 2026-02: $63.02 per share

- 2026-03: $65.46 per share

- 2026-04: $91.55 per share

- 2026-05: $150.78 per share

- 2026-06: $162.07 per share

- 2026-07: $113.75 per share

- 2026-08: $109.25 per share

- 2026-09: $109.99 per share

- 2026-10: $110.88 per share

## Annual estimated value (USD per share)

- FY2017: low $7.96 per share, central $8.80 per share, high $9.92 per share

- FY2018: low $7.97 per share, central $8.88 per share, high $10.09 per share

- FY2019: low $8.57 per share, central $9.52 per share, high $10.78 per share

- FY2020: low $8.68 per share, central $9.58 per share, high $10.79 per share

- FY2021: low $9.82 per share, central $10.74 per share, high $11.95 per share

- FY2022: low $14.51 per share, central $15.80 per share, high $17.52 per share

- FY2023: low $28.83 per share, central $38.60 per share, high $44.35 per share

- FY2024: low $30.74 per share, central $39.65 per share, high $45.68 per share

- FY2025: low $34.61 per share, central $44.89 per share, high $51.81 per share

- FY2026: low $34.21 per share, central $38.25 per share, high $43.64 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/866374/000086637426000012/flex-20260331.htm); period 2026-03-31, filed 2026-05-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.