Evaluating Flex: Insights From 5 Financial Analysts

Flex FLEX has been analyzed by 5 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $39.6, a high estimate of $42.00, and a low estimate of $37.00. This upward trend is apparent, with the current average reflecting a 19.1% increase from the previous average price target of $33.25.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Flex. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Flex. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Flex compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Flex's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Flex's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Flex analyst ratings.

Delving into Flex's Background

Flex Ltd is a contract manufacturing company providing comprehensive electronics design, manufacturing, and product management services to electronics and technology companies. The company's operating segments include Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). Flex Agility Solutions segment includes markets such as Communications, Enterprise and Cloud; Lifestyle; and Consumer Devices. Flex Reliability Solutions segment includes markets such as Automotive, Health Solutions, and Industrial.

Financial Insights: Flex

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Negative Revenue Trend: Examining Flex's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -8.39% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.2%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Flex's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.69% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.77%, the company showcases effective utilization of assets.

Debt Management: With a high debt-to-equity ratio of 0.74, Flex faces challenges in effectively managing its debt levels, indicating potential financial strain.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.