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Flex Ltd.
$41.0B
Market Cap
28.1
P/E
1.33
PEG
15.1%
ROCE
17.3%
ROE
0.84
D/E
4.9%
OPM
-34.2%
% from 52W High
87
α RS
🔍 FLEX is showing a high-conviction setup because it matches 4 of 37 tracked screener presets, RS Rating is 87, and an ECS of 56.5 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating ECS
Sources
Conviction 4/37 · RS Rating 87 · ECS 56.5
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Currency-adjusted total returns for FLEX including FX impact
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📈 Price History
Ratio Health
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About

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.

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Good quarter Investor Presentation One-Pager? Q1 2027
Revenue
$7.9B
+21% YoY
Operating Income
$534M
+35% YoY
Operating Margin
6.7%
+70bps YoY
Net Income
$374M
N/A (adj. EPS +39% YoY)
What Went Right
  • All three segments expanded margins; adjusted operating margin rose 70bps to 6.7%.
  • CPI revenue grew 35% YoY to $2.2B, driven by strong Power growth and Cloud/Cooling ramps.
  • Record adjusted EPS of $1.00 was up 39% YoY, with total revenue up 21% to $7.9B.
What to Watch
  • Free cash flow conversion guidance was cut to ~40% due to spin-related costs; Q1 FCF was just $41M.
  • CPI margin expanded only 20bps YoY to 9.7% as new program ramps and investments temper near-term profitability.
  • Inventory rose 10% sequentially and 24% YoY, and ITS continues to see weakness in consumer-related end markets.
Management Guidance
  • Q2 FY27 revenue: $7.95B-$8.25B, up ~19% at the midpoint; adjusted operating income $535M-$565M; adjusted EPS $1.00-$1.07, up 32%.
  • FY27 revenue raised to $33.7B-$35.2B, up 23% at the midpoint; adjusted operating margin 7.0%-7.2%; adjusted EPS $4.42-$4.74, up 39%.
  • CPI segment expected to grow 45%-55% in Q2 and 65%-75% for FY27; RMS up mid-to-high single digits and ITS up high single to low double digits for the year.
Investor Lens
The thesis is stronger after this call: CPI growth is accelerating as planned, FY27 guidance was raised, and the tax-free spin remains on track for Q1 calendar 2027. Record EPS and broad-based margin expansion show execution despite heavy investment. Offsets are lower free cash flow conversion (~40%) and still-modest CPI margin gains until the back-half capacity ramp lands. Management cites 90%+ booked visibility for the next three quarters, underpinning near-term confidence.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record Q1 with CPI growth of 35% and EPS of $1.00; FY27 outlook raised
Revenue
Revenue rose 21% YoY to $7.9B. RMS grew 12% to $2.7B, ITS grew 20% to $3.1B, and CPI grew 35% to $2.2B, with power growing faster than cloud.
Profitability
Adjusted operating income increased 35% YoY to $534M, and adjusted net income was $374M. Record adjusted EPS of $1.00 was up 39% YoY.
Margins
Adjusted gross margin expanded 50bps to 9.6%, and adjusted operating margin expanded 70bps to 6.7%. Segment margins were RMS 6.6% (+130bps), ITS 5.2% (+10bps), and CPI 9.7% (+20bps).
Balance Sheet
Q1 free cash flow was $41M, held back by $24M of spin-off costs, and FY27 FCF conversion guidance was lowered to ~40%. CapEx was $235M, roughly 3% of revenue, while inventory rose 10% sequentially and 24% YoY.
Key Risks
Management flagged spin-related costs pressuring cash conversion, CPI margin expansion limited to 20bps YoY by investment and program ramps, and continued softness in consumer-related end markets within ITS.
Outlook
Q2 revenue is guided to $7.95B-$8.25B, with adjusted operating income of $535M-$565M and adjusted EPS of $1.00-$1.07. FY27 revenue was raised to $33.7B-$35.2B, with adjusted EPS of $4.42-$4.74, up 39% at the midpoint.
Generated by AI · Q1 2027 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2027 Q1 2027 2026-07-29
Q1 delivered strong revenue and margin growth, with record adjusted EPS and robust performance across all segments. The company raised FY27 guidance, driven by AI infrastructure demand, and is on track for the CPI spin-off, supported by significant CapEx and strategic partnerships.
Q4 2026 Q4 2026 2026-05-06
Announced spin-off of Cloud and Power Infrastructure segment, targeting 65%-75% revenue growth in FY 2027 and 80%+ in FY 2028, with strong multi-year contracts and record FY 2026 results. FY 2027 guidance calls for 18% revenue growth and 32% EPS growth.
Q3 2026 Q3 2026 2026-02-04
Q3 revenue rose 8% year-over-year to $7.1B, with record adjusted EPS of $0.87 and strong margin expansion. Data center, power, and industrial segments drove growth, while consumer markets remained soft. Full-year revenue and EPS guidance were raised, reflecting continued momentum.
Q2 2026 Q2 2026 2025-10-29
Revenue grew 4% year-over-year to $6.8B, with operating margin at 6% and adjusted EPS up 23%. FY2026 guidance was raised, driven by robust data center and health solutions growth, despite Ukraine-related headwinds. AI-driven demand and new partnerships are fueling long-term optimism.
Q1 2026 Q1 2026 2025-07-24
Q1 delivered strong revenue and record EPS, driven by robust data center growth and margin expansion. FY26 guidance was raised, with continued investments in capacity and a focus on high-growth markets like cloud, power, and healthcare.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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