Flex Ltd. (NASDAQ:FLEX) persists its position slightly strong in context of buying side, while shares price inched up 0.18% during latest trading session. Flex (FLEX) and Savari Inc. are on a mission to improve global traffic safety and efficiency. As part of a new collaboration that expands on their existing design and manufacturing partnership, Flex and Savari will jointly develop Connected Car and Smart City V2X hardware and software connectivity solutions. Chris Obey, president of Automotive at Flex, said, “Every year, there are 1.25 million traffic-related fatalities worldwide; in 2015, there were over 35 thousand in the U.S. alone. We believe the answer to reducing these terrible statistics lies in vehicle connectivity, which is the primary focus of our work with Savari.”
Profitability Ratio Analysis; To measure firm’s performance and profitability, we focus on ordinary profitability ratio, FLEX has gross profit margin of 6.50% for trailing twelve months and operating margin is calculated as 1.80%, these are a better detectors to find consistency or positive/negative trends in a firm’s earnings. Following in trace line, returns on investment amplify the findings, the Flex Ltd. (NASDAQ:FLEX)’s ROI concludes as 10%; it gives idea for personal financial decisions, to compare a firm’s profitability or to compare the efficiency of different investments. The returns on assets of firm also on noticeable level, it has ROA of 2.30%, which signifies how profitable a firm is relative to its total assets.
Experts’ Critical Views
Finally to see some strong financial remarks by WSJ over FLEX performance. Out of the pool of analysts 11 gave their BUY ratings on the stock in previous month as 11 analysts having BUY in current month. Majority ranked Buy from the pool of analysts.
The next year first quarter EPS estimates trend for current period shows $0.29 while one month ago this estimate trend was for $0.29. EPS indicator shows the robustness of the stock and its analysis opens up the clear picture of company’s profitability. On annual basis of EPS, FY 2017 Estimate Trends at current were for $1.34 and for the one month was for $1.34 as compared to three months ago was for $1.36. FLEX received highest price target of 22 and low target of 15. The stock price target chart showed average price target of 17.75 as compared to current price of 16.64.
Flex Ltd. (NASDAQ:FLEX) holds price to book ratio of 3.45 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 31.04, which is authentic method to judge but not universal for all situation.
Taking look on ratio analysis, FLEX has forward price to earnings ratio of 12.46, compare to its price to earnings ratio of 31.04. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 1.94. The co is presenting price to cash flow as 4.78 and while calculating price to free cash flow it concluded at 12.65, the low single digit may indicate stock is undervalued and vice versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
To make strengthen these views, the active industry firm has Quick Ratio of 0.70, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the Flex Ltd. (NASDAQ:FLEX) has debt to equity ratio of 1.10, sometimes it remain same with long term debt to equity ratio. The firm has price volatility of 2.17% for a week and 1.74% for a month. Its beta stands at 0.76 times. Narrow down four to firm performance, its weekly performance was -1.30% and monthly performance was -0.72%.