FLEX

Flex Ltd

TMT


Presented:01/29/2020
Price:$13.09
Cap:$6.65B
Current Price:$34.38
Cap:$13.65B

Presented

Date01/29/2020
Price$13.09
Market Cap$6.65B
Ent Value$7.12B
P/E RatioN/A
Book Value$5.51
Div Yield0%
Shares O/S508.31M
Ave Daily Vol4,134,516
Short Int2.43%

Current

Price$34.38
Market Cap$13.65B
Flex Ltd. engages in provision of real-time supply chain insight and logistics services to companies. It operates through the following segments: Communications and Enterprise Compute (CEC), Consumer Technologies Group (CTC), Industrial and Emerging Industries (IEI), High Reliability Solutions (HRS), and Corporate and Others. The Communications and Enterprise Compute segment includes telecom business of radio access base stations, remote radio heads, and small cells for wireless infrastructure; networking business; server and storage platforms for both enterprise and cloud-based deployments; next generation storage and security appliance products; and rack level solutions, converged infrastructure, and software-defined product solutions. The Consumer Technologies Group segment offers consumer-related businesses in Internet of Things enabled devices, audio, and consumer power electronics, mobile devices; and supply chain solutions for consumer, computing, and printing devices. The Industrial and Emerging Industries segment comprises of metering infrastructure, energy storage, smart lighting, smart solar energy; and industrial, including semiconductor and capital equipment, office solutions, household industrial, and lifestyle, industrial automation and kiosks. The High Reliability Solutions segment relates to health solutions business and automotive business. The company was founded in May 1990 and is headquartered in Singapore.

Publicly traded companies mentioned herein: Abbott Laboratories (ABT), Eaton Corp PLC (ETN), Flex Ltd (FLEX), Plexus Corp (PLXS)

Highlights

The presenter is long shares of Flex Ltd (FLEX), the Singapore-based company that provides design, engineering, manufacturing, and supply chain solutions to OEMs globally. 2018 was a difficult year for the stock, which saw its share price fall from ~$20 in early 2018 to ~$8 by December due to misexecution on multiple growth projects. Today, shares are trading at ~$13 and the presenter sees catalysts that could provide a boon to fundamentals and cause the stock to rerate. In his view, there is a reasonable path to ~$22 per share in the next 18 months. 

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