How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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 additional value to customers through a wide array of services, including design and engineering, component services, rapid prototyping, fulfilment, and circular economy solutions.
The company believes that growing complexity in markets, goods, and environmental, social, and governance ("ESG") standards will propel expansion in the contract manufacturing services sector.
The company has expanded and enhanced its service offering by capabilities in software, robotics, artificial intelligence, factory automation, simulation, digital twins, and other disruptive technologies.
The company reports revenues in two segments - Flex Agility Solutions Group (FAS) and Flex Reliability Solutions (FRS) Group.
Flex Agility Solutions Group comprises Communications & Enterprise Compute or CEC, Lifestyle and Consumer Devices businesses. The FAS segment is optimized for speed to market, based on a highly flexible supply and manufacturing system.
Flex Reliability Solutions Group comprises Health Solutions, Automotive and Industrial businesses. The FRS category is designed to accommodate longer product lifecycles, which call for intricate ramps, specialised manufacturing models, and crucial conditions.
Nextracker is a leading provider of solar tracker and software solutions for utility-scale and ground-mounted solar projects worldwide. In February 2023, Nextracker announced its initial public offering of 23,255,814 shares of its common stock. In January, 2024, the company announced that it had completed the spin-off of all its remaining interest in Nextracker to its shareholders (on a pro-rata basis)
Post the spin-off of Nextracker in the fourth-quarter fiscal 2024, its historical financials are now reported under discontinued operations.
In fiscal 2025, revenues totaled $25.8 billion. Flex Agility Solutions represented 55% of total revenues and Reliability Solutions Group contributed 45%.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Flex ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2015 would be worth $3,360.77, or a 236.08% gain, as of May 15, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 177.81% and the price of gold increased 150.18% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for FLEX.
Flex’s fourth quarter fiscal 2025 gained from strong demand across its data center, networking and automotive power electronics. For fiscal 2026, it anticipates sustained strong demand from its data center customers as it continues to shift its portfolio toward higher-margin businesses. Strong execution and a favorable product mix are supporting its margins. In fiscal 2025, Flex reported $1.1 billion in free cash flow and expects to generate robust free cash flow in fiscal 2026. However, softness in the Reliability Solutions segment remains a concern. For first-quarter fiscal 2026, management forecasts sales to remain flat to down high-single digits from this segment. Tariffs, high debt, and competition are added headwinds. For fiscal 2026, it expects revenues to range between $25-$26.8 billion, compared to $25.8 billion in fiscal 2025.
Shares have gained 35.98% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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Flex Ltd. (FLEX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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