Flextronics Story

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FLEX -- USA Stock  

USD 17.80  0.89  4.76%

As many millenniums are trying to avoid technology space, it makes sense to break down Flex a little further and try to understand its current market patterns. We will try to explain if it is still possible for Flex to generate above-average margins. Is Flex valuation sustainable? Here I will cover a perspective on valuation of Flex to give you a better outlook on taking a position in this stock.
Published over three weeks ago
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Is Flex (NASDAQ:FLEX) ready for a correction?
The company currently holds 4.47 B in liabilities with Debt to Equity (D/E) ratio of 1.43, which is about average as compared to similar companies. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Flex has an asset utilization ratio of 266.98 percent. This suggests that the company is making $2.67 for each dollar of assets. An increasing asset utilization means that Flex is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Flextronics Intl using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Flextronics Intl based exclusively on its fundamental and basic technical indicators. By analyzing Flextronics Intl's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Flextronics Intl's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Flextronics Intl. We calculate exposure to Flextronics Intl's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Flextronics Intl's related companies.

Flextronics Intl Investment Alerts

Flextronics investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Flextronics Intl performance across your portfolios.Please check all investment alerts for Flextronics

Flextronics Intl Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Flextronics value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Flextronics Intl competition to find correlations between indicators driving the intrinsic value of Flextronics.

How Flextronics utilizes its cash?

To perform a cash flow analysis of Flextronics Intl, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Flextronics Intl is receiving and how much cash it distributes out in a given period. The Flextronics Intl cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Flextronics Intl Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Flextronics Intl reported Net Cash Flow from Operations of (1.38 Billion) in 2020

Sale by Advaithi Revathi of 24214 shares of Flextronics Intl

Legal trades by Flextronics Intl insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Flextronics insider trading alert for sale of ordinary shares by Advaithi Revathi, Chief Executive Officer, on 12th of February 2021. This event was filed by Flex Ltd with SEC on 2021-02-12. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Flextronics Intl

The current price rise of Flex could raise concerns from investors as the firm it trading at a share price of 18.00 on 1,977,031 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.3. The current volatility is consistent with the ongoing market swings in December 2020 as well as with Flex unsystematic, company-specific events.

Margins Breakdown

Flex profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Flex itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Flex profit margins.
Profit Margin
EBITDA Margin0.0508
Gross Margin0.0663
Profit Margin0.003695

Flex Average Assets is increasing over the last 8 years. The previous year's value of Flex Average Assets was 15,719,800,461. Flex Average Assets is fairly stable at the moment.

Another 3 percent rise for Flex

Flex current market risk adjusted performance rises over 0.31. As of the 28th of January, Flex shows the Downside Deviation of 2.3, mean deviation of 1.88, and Coefficient Of Variation of 698.45. Flex technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Flex, which can be compared to its rivals. Please confirm Flex variance, as well as the relationship between the value at risk and skewness to decide if Flex is priced favorably, providing market reflects its regular price of 18.0 per share. Given that Flex has jensen alpha of 0.2251, we urge you to verify Flex's prevailing market performance to make sure the company can sustain itself at a future point.

While some other firms under the electronic components industry are still a bit expensive, Flex may offer a potential longer-term growth to investors. In closing, as of the 28th of January 2021, we see that Flex almost mirrors the market. The company is fairly valued with low odds of financial distress within the next 24 months. Our current 30 days buy-hold-sell advice on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Flextronics Intl. Please refer to our Terms of Use for any information regarding our disclosure principles.

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