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FLEX trades against a final fair-value range of $65.15-$128.29, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs.
Fading the elevated near-term returns over a five-year period to explicitly account for legacy cyclical hardware risks and broader macro volatilityVolatilityVolatility is a price, risk, or intrinsic-value metric used to compare market price with estimated value or historical return behavior. It should be read as one input in a broader valuation range..
Macroeconomic slowdown and cyclical downturn in consumer devices heavily offset growth in industrial and AI solutions.
Severe margin compression from input cost inflation and supply chain disruptions causing operating margins to contract below 5.5%.
AI infrastructure super-cycle demand fades prematurely before legacy business units can fundamentally recover.
| Line item | 2022-03-31 | 2023-03-31 | 2024-03-31 | 2025-03-31 | Trend |
|---|---|---|---|---|---|
| Revenue | $24.63B | $28.50B+15.7% | $26.42B-7.3% | $25.81B-2.3% | +1.6% |
| Gross profit | $1.78B | $1.98B | $1.87B | $2.16B | +6.6% |
| Operating income | $890.0M | $1.02B | $873.0M | $1.19B | +10.0% |
| Net income | $936.0M | $793.0M-15.3% | $1.01B+27.4% | $838.0M-17.0% | -3.6% |
| EPS (diluted) | $1.94 | $1.72 | $2.28 | $2.11 | +2.8% |
| EBITDA | $1.61B | $1.54B | $1.41B | $1.78B | +3.3% |
| R&D | — | — | — | — | — |
| SG&A | $830.0M | $874.0M | $922.0M | $904.0M | +2.9% |
Cash-flow quality is reflected in the OCFOperating cash flowCash generated from the company's core operations after working-capital changes but before capital expenditures. The first line of the cash-flow statement. / net incomeNet IncomeNet Income is an income-statement line item used to reconcile revenue to operating profit, pre-tax income, net income, or per-share earnings. It should be compared across periods and against peer disclosure conventions., accounting-quality, and ROICROICReturn on invested capital. Operating profit (after tax) divided by invested capital. The single best gauge of capital-efficiency. Spread over WACC = economic value created. rows above.
Capital allocation should be evaluated against reinvestment needs, balance-sheet strength, and shareholder returns.
| Deterioration versus the report thesis |
| Free cash flow conversion dropping below historical baselines (OCF to Net Income < 1.0x). | Monitor | Deterioration versus the report thesis |
| Increase in inventory days signaling supply chain bottlenecks or demand weakness. | Monitor | Deterioration versus the report thesis |
