FLEX

Flex Ltd

TMT, Industrial/Transportation


Presented:08/13/2021
Price:$18.21
Cap:$8.89B
Current Price:$34.38
Cap:$13.65B

Presented

Date08/13/2021
Price$18.21
Market Cap$8.89B
Ent Value$10.71B
P/E Ratio11.76x
Book Value$7.17
Div Yield0%
Shares O/S488.23M
Ave Daily Vol3,183,428
Short Int2.45%

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 (CTG), 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.
Please note, this is an update to Flex Ltd (FLEX) – Long, first presented on 11/13/2020.

Publicly traded companies mentioned herein: Array Technologies Inc (ARRY), Flex Ltd (FLEX)

Highlights

The presenter remains long shares of Flex Ltd (FLEX), which was his biggest winner last year but has been flat this year despite strong returns from other cyclical stocks. FLEX’s primary business is contract manufacturing, but the company also owns the largest solar tracking company (NEXTracker), which is twice the size of the next largest player. The presenter believes last quarter was an inflection point for the company and sees upside from the current $18 per share. Comping NEXTracker to other solar tracker businesses allows investors to receive the rest of FLEX at 4x earnings. 

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