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We met with a bullish thesis A FLEX LTD. (Flex) on Easy Trader Substack. In this article, we will summarize the thesis of bulls on flex. The Flex Ltd. (Flex) was contributed to $ 34.06 from April 2n. The end of P/E de Flex was 13.90 and 11.39 respectively according to Yahoo Finance.
A technician who assembles complex solutions of devices in a factory environment, illustrating the company’s manufacturing capabilities.
Flex Ltd. It operates between racks, helping companies from industries to design and make their products. With Austin, Texas, with operations in 30 countries, Flex is a power of the supply chain, which serves sectors such as technology, automotive, health care and industrialists. The company is divided into two main divisions: Flex Agility Solutions, which focuses on technological and consumer products and flex reliability solutions, which manages more complex industries such as automobile and medical devices. For the fiscal year ending on March 31, 2024, Flex generated revenue of $ 26.4 billion, a decrease of 7% over the previous year, but improving efficiency was a 25% increase in net income. Despite the recent decrease in shares, which has placed it in excessive territory, the flex market value is around $ 13 billion, with actions trading about $ 35 from March 2025.
One of the most important strengths of flex is its strong free cash flow (FCF), a key metric that indicates financial flexibility. During the fiscal financial year, the company generated $ 1.54 million in operating cash flow while investing $ 583 million in capital expenses, leaving -with $ 957 million in FCF. This surplus cash allows flex to reinvest in growth, pay debt or return value to shareholders. Beyond the numbers, the competitive advantage of flex lies on its scale, experience and deep relationships of customers. Unlike simple contracts manufacturers, Flex integrates design and engineering services, making it an indispensable partner for important clients such as Ford, Xerox, Cisco, Abbott and Johnson & Johnson. Its global presence allows you to efficiently manage the supply chains complex, while its exposure to various industries provides resilience against specific falls in the sector. With a strong foot in emerging fields such as electric vehicle technology and cloud computing infrastructure, Flex is placed for long -term growth and growth.
From an investment perspective, the internal profitability rate (IRS) based on this cash flow and the annual growth of 6.5% suggests a return of about 10-11% a year, solid for a constant business like flex. A discount cash flow analysis (DCF), which takes a 8% discount rate and a conservative growth rate of 5% of five years followed by a 2% terminal growth rate, estimates that the intrinsic value of flex at $ 19.2 billion. With its current market value at $ 13 billion, actions are undervalued, offering potential for investors. Although the action is unlikely to double in a year, it has a convincing case as a stable and undervalued investment. The financial force, the position of the industry, and the company’s growth trajectory suggest a strong foundation for constant returns, which makes it an attractive option for investors seeking a reliable game in the space of the manufacturing and supply chain.
