Flex Ltd. (FLEX) vs Ralliant Corporation (RAL)

Flex Ltd. and Ralliant Corporation are both Electronic Components companies. Flex Ltd. is the larger, with a market value of $24.7B against $7.0B — 3.5× the size. Ralliant Corporation has negative trailing earnings, so its P/E is not meaningful; Flex Ltd. trades at 24.3×. Flex Ltd. grew revenue faster over the last twelve months: 17.6% against 11.3%. Flex Ltd. has the higher net margin (3.35% vs −52.1%) and the higher return on invested capital (12.3% vs −28.7%). Across the 19 metrics below, Flex Ltd. leads on 13 and Ralliant Corporation on 6.

Valuation

Metric FLEX RAL Electronic Components median
P/E 24.28 n/m 24.82
P/S 0.80 3.06 2.28
P/B 4.27 4.30 2.86
Price to free cash flow 31.46 22.96 22.99
EV/EBITDA 12.98 20.89 14.69
EV/Sales 0.89 3.63 2.38
Earnings yield 4.12% (16.71%) 2.68%
Free cash flow yield 3.18% 4.35% 1.70%

Profitability

Metric FLEX RAL Electronic Components median
Gross margin 9.50% 51.59% 32.78%
Operating margin 5.06% (48.30%) 4.90%
Net margin 3.35% (52.10%) 3.46%
Free cash flow margin 2.55% 13.31% 1.66%
Return on equity 19.13% (51.80%) 5.59%
Return on assets 4.42% (26.14%) 4.13%
Return on invested capital 12.34% (28.65%) 4.66%

Growth

Metric FLEX RAL Electronic Components median
Revenue growth (TTM) 17.55% 11.30% 13.94%
EPS growth (last fiscal year) 10.43% (442.61%) 35.44%
Revenue growth, 5-year CAGR 2.96% — 6.70%
Net income growth, 5-year CAGR 7.50% — 7.53%

Health

Metric FLEX RAL Electronic Components median
Debt to equity 0.90 0.71 0.11
Current ratio 1.34 1.65 2.50
Net debt to EBITDA 0.71 2.22 0.41

Dividend

Metric FLEX RAL Electronic Components median
Dividend yield — 0.32% 1.10%
Payout ratio — — 0.28

Size

Metric FLEX RAL Electronic Components median
Market cap 24.65b 6.95b 1.16b

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