Flex Ltd. FLEX
Flex's FY2026 results show genuine operational improvement—revenue grew 8.1% to $27.9B with gross margin expanding to 9.2% and operating margin to 5.4%, while the planned CPI spin-off could unlock value in its fastest-growing AI data-center business. However, at a trailing P/E of 46.4x—95% above the peer median of 23.8x—and with insiders net selling $179M of stock over the past 24 months, the risk-reward is balanced rather than compelling at $120.24.
The stock has pulled back below its 50-day MA of $133.42 but remains well above the 200-day MA of $91.75, suggesting the post-AI-hype re-rating has partially deflated but not enough to justify a new position at these levels.
What could go wrong
- Premium valuation. At 46.4x trailing P/E (95.4% above peer median of 23.8x) and 25.0x EV/EBITDA (32.9% above median), FLEX leaves little room for execution missteps, particularly given its 3.15% net margin profile.
- Persistent insider selling. Over the trailing 24 months, insiders executed 211 dispositions versus 86 acquisitions, netting -$531,657 shares and -$178.9M in value, a sustained bearish signal from those closest to the business.
- Rising debt and capex. Total debt increased to $4.32B in FY2026 from $4.15B in FY2025, while capex jumped to $633M from $438M, pressuring free cash flow which dipped to $1.05B from $1.07B despite higher revenue.
- CPI spin-off execution risk. Separating the fastest-growing Cloud and Power Infrastructure unit could dilute the remaining company's growth profile and complicate capital allocation during the transition.
What would change my mind
Where this comes from: FMP annual fundamentals + derived_metrics, fiscal year ended 2026-03-31 · peer_relative composite, as of 2026-08-18 · insider summary, 24-month window ending 2026-08-05 · technicals, as of 2026-08-18. Orin's read on FLEX; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All FLEX filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 8-K | 4 Sep | — | on file |
| 13G/A | 13 Aug | — | on file |
| 13G/A | 13 Aug | — | on file |
| 8-K | 7 Aug | Flex Ltd. received shareholder approval on August 5, 2026, to renew its Share Purchase Mandate, permitting the acquisition of up to 20% of its issued and outstanding Ordinary… | read |
| 13G/A | 6 Aug | — | on file |
| 13G | 6 Aug | — | on file |
| 10-Q | 31 Jul | Flex Ltd. reported net sales of $7.93 billion for the three months ended June 26, 2026, an increase of 20.9% year-over-year from $6.58 billion in the prior year period. Diluted… | read |
| 13G/A | 31 Jul | — | on file |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Capital Management | $3.9B | 0.1% of fund |
| Fmr | $3.2B | 0.1% of fund |
| Vanguard Portfolio Management | $3.1B | 0.1% of fund |
| Wellington Management Group Llp | $2.9B | 0.5% of fund |
| State Street | $2.8B | 0.1% of fund |
| Geode Capital Management | $1.7B | 0.1% of fund |
119 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 288 Form 4 filings, net −$178.6M. Of the 50 on hand, 0 were open-market purchases and 32 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about FLEX
Orin answers questions about FLEX from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 43.4× | — | 53.3× |
| EV/EBITDA | 23.4× | — | — |
| P/S | 1.42× | — | — |
| P/B | 7.6× | — | — |
16.9%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.1B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$148
$95 – $180 · +35% against today's price
- 19 buy or overweight
- 7 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| FLEXFlex Ltd. | $41B | 43.4× | 23.4× | 9.5% | 3.3% | 19% |
| BRBroadridge Financial Solutions, Inc. | $19B | 16.9× | 11.6× | 31.8% | 15.0% | 40% |
| FTVFortive Corporation | $17B | 32.7× | 18.8× | 63.2% | 12.4% | 9% |
| JBLJabil Inc. | $32B | 38.1× | 16.4× | 9.2% | 2.6% | 62% |
| LDOSLeidos Holdings, Inc. | $16B | 11.5× | 9.4× | 17.4% | 7.9% | 28% |
| NTAPNetApp, Inc. | $39B | 27.3× | 18.4× | 70.6% | 19.2% | 114% |
| PTCPTC Inc. | $16B | 13.5× | 10.4× | 84.1% | 41.4% | 33% |
| TDYTeledyne Technologies Incorporated | $29B | 29.9× | 19.2× | 39.0% | 15.3% | 9% |
| TRMBTrimble Inc. | $14B | — | 57.3× | 68.4% | -2.8% | -2% |
| TTDThe Trade Desk, Inc. | $6B | 15.1× | 6.6× | 83.0% | 13.6% | 16% |
| VRSNVeriSign, Inc. | $27B | 31.8× | 23.3× | 88.5% | 49.8% | -39% |
The median is of the 9 peers listed above and nothing else — check it against the column. This company trades 58.6% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.