Yahoo Finance If You Invested $1000 in Flex 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Flex (FLEX) ten years ago? It may not have been easy to hold on to FLEX for all that time, but if you did, how much would your investment be worth today?
Flex's Business In-Depth
With that in mind, let's take a look at Flex's main business drivers.
Singapore-based Flex Ltd (formerly known as Flextronics International Ltd) has a diverse workforce across 30 countries and offers advanced manufacturing solutions and supply chain services throughout the product lifecycle development, including fulfillment, after-market support, and circular economy solutions.
Flex serves companies of all sizes in various industries and end-markets including medical, automotive, industrial, home appliances, capital equipment, energy, telecom, networking, enterprise compute, wearables, connected living, and mobile.
The company has expanded and enhanced its service offering by capabilities in 3D printing, automation, innovation labs, real-time supply chain software, machine-to-machine communications, advanced simulation & visualization, and AR/VR.
In the last couple of years, Flex’s business model has shifted toward a higher mix of businesses that possess longer product life cycles and higher operating margins. Flex thrives on low-cost manufacturing which improves competitiveness of the company’s customers. We note that the low cost strategy along with “Sketch-to-Scale” approach in diversified end-markets has made Flex a ready-to-go partner for brands and companies like Fossil, Skullcandy, Nike, Savari, Caruma Technologies among others.
The company reports revenue in three segments - Flex Agility Solutions Group, Flex Reliability Solutions Group and Nextracker.
Flex Agility Solutions Group comprises Communications & Enterprise Compute or CEC, Lifestyle and Consumer Devices businesses.
Flex Reliability Solutions Group comprises Health Solutions, Automotive and Industrial businesses.
Nextracker is a leading provider of solar tracker and software solutions for utility-scale and ground-mounted solar projects worldwide.
In third-quarter fiscal 2023, revenues totaled $7.8 billion. Flex Agility Solutions represented 51.3% of total revenues, Reliability Solutions Group contributed 41% to total revenues, and Nextracker contributed the remaining 7.7% to total revenues.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Flex ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2013 would be worth $3,726.54, or a 272.65% gain, as of January 31, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 167.50% and the price of gold increased 10.89% over the same time frame in comparison.
Analysts are anticipating more upside for FLEX.
Flex’s Q3 performance benefited from strength across the Agility Solutions and Reliability Solutions segments. The company’s automotive sector is likely to benefit owing to increasing demand for electric vehicles and next-generation mobility. The industrial business gained momentum owing to ongoing secular trends. The company’s Communications, Enterprise and Cloud business is likely to benefit from continued strength within the cloud and communications sector. However, semiconductor shortages is weighing down on the company's performance, while industry-wide lack of panel availability is affecting Nextracker segment performance. Stiff competition and rising uncertainties in the global macroeconomic environment are likely to affect margins. Leveraged balance sheet and softness in the consumer-end market are major concerns.
Over the past four weeks, shares have rallied 7.32%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Flex Ltd. (FLEX) : Free Stock Analysis Report
