Flex Ltd. (FLEX) vs Fabrinet (FN)

Flex Ltd. and Fabrinet are both Electronic Components companies. Flex Ltd. is the larger, with a market value of $42.0B against $14.5B — 2.9× the size. Fabrinet trades at the lower P/E: 31.6× against 44.3×. Fabrinet grew revenue faster over the last twelve months: 35.7% against 12.3%. Fabrinet has the higher net margin (10.2% vs 3.32%) and the higher return on invested capital (18.3% vs 11.5%). Only Fabrinet pays a dividend (1.83%). Across the 23 metrics below, Fabrinet leads on 17 and Flex Ltd. on 6.

Valuation

Metric FLEX FN Electronic Components median
P/E 44.28 31.62 39.06
P/S 1.43 3.22 3.22
P/B 7.63 6.09 3.30
Price to free cash flow 50.39 3,375.98 26.65
EV/EBITDA 22.40 26.74 19.69
EV/Sales 1.54 3.03 3.53
Earnings yield 2.26% 3.16% 1.34%
Free cash flow yield 1.98% 0.03% 0.40%

Profitability

Metric FLEX FN Electronic Components median
Gross margin 9.37% 11.99% 33.21%
Operating margin 4.95% 9.97% 3.53%
Net margin 3.32% 10.19% 2.57%
Free cash flow margin 2.85% 0.10% 0.20%
Return on equity 18.38% 21.33% 2.60%
Return on assets 4.39% 14.03% 2.50%
Return on invested capital 11.49% 18.32% 2.28%

Growth

Metric FLEX FN Electronic Components median
Revenue growth (TTM) 12.25% 35.73% 12.01%
EPS growth (last fiscal year) 10.43% 42.31% —
Revenue growth, 5-year CAGR 2.96% 19.82% 7.19%
Net income growth, 5-year CAGR 7.50% 26.10% 0.00%

Health

Metric FLEX FN Electronic Components median
Debt to equity 0.95 0.00 0.16
Current ratio 1.38 2.25 2.41
Net debt to EBITDA 0.71 (1.66) 0.32

Dividend

Metric FLEX FN Electronic Components median
Dividend yield 0.00% 1.83% 1.18%
Payout ratio 0.00 0.00 0.00

Size

Metric FLEX FN Electronic Components median
Market cap 42.00b 14.51b 780.25m

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