FLEX

Flex Ltd

TMT, Industrial/Transportation, Event Driven/Special Sit


Presented:11/28/2022
Price:$20.55
Cap:$9.30B
Current Price:$34.38
Cap:$13.65B

Presented

Date11/28/2022
Price$20.55
Market Cap$9.30B
Ent Value$9.79B
P/E Ratio11.6x
Book Value$9.21
Div Yield0%
Shares O/S452.78M
Ave Daily Vol4,153,372
Short Int2.84%

Current

Price$34.38
Market Cap$13.65B
Flex Ltd. operates as a manufacturing services company. It delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets. The firm operates through the following segments: Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). The Flex Agility Solutions segment comprised of Communications, Enterprise and Cloud (CEC) includes data infrastructure, edge infrastructure and communications infrastructure, Lifestyle includes appliances, consumer packaging, floorcare, micro mobility and audio and, Consumer Devices include mobile and high velocity consumer devices. The Flex Reliability Solutions segment comprised of Automotive includes autonomous, connectivity, electrification, and smart technologies, Health Solutions includes medical devices, medical equipment and drug delivery and Industrial includes capital equipment, industrial devices, renewable including Nextracker business, grid edge, and power systems. The company was founded in May 1990 and is headquartered in Singapore.

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

Highlights

The presenter is long Flex based on the emergence of a solar technology subsidiary poised to take advantage of massive new U.S. federal subsidies. In outlining the story, the presenter believes it is important first to acknowledge a difficult history for investors in FLEX. In 2018, with the company beset by poor management and M&A moves, the stock lost more than half its value. A year later, the company hired a new CEO, Revathi Advaithi, who has proven to be an excellent manager. From the start of her tenure, Advaithi began transitioning the company away from cyclical, low-margin R&D products in favor of higher-margin electrical components in autos, healthcare, and energy. This migration to higher-margin products continues, and Advaithi and her team have done a great job of managing earnings.

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Idea Discussion

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