Flex Ltd. (FLEX) vs TE Connectivity Ltd. (TEL)

Flex Ltd. and TE Connectivity Ltd. are both Electronic Components companies. TE Connectivity Ltd. is the larger, with a market value of $61.9B against $42.0B — 1.5× the size. TE Connectivity Ltd. trades at the lower P/E: 21.2× against 44.3×. TE Connectivity Ltd. grew revenue faster over the last twelve months: 16.5% against 12.3%. TE Connectivity Ltd. has the higher net margin (15.6% vs 3.32%) and the higher return on invested capital (13.6% vs 11.5%). Only TE Connectivity Ltd. pays a dividend (1.68%). Across the 23 metrics below, TE Connectivity Ltd. leads on 18 and Flex Ltd. on 5.

Valuation

Metric FLEX TEL Electronic Components median
P/E 44.28 21.24 39.06
P/S 1.43 3.29 3.22
P/B 7.63 4.80 3.30
Price to free cash flow 50.39 19.13 26.65
EV/EBITDA 22.40 14.27 19.69
EV/Sales 1.54 3.56 3.53
Earnings yield 2.26% 4.71% 1.34%
Free cash flow yield 1.98% 5.23% 0.40%

Profitability

Metric FLEX TEL Electronic Components median
Gross margin 9.37% 36.12% 33.21%
Operating margin 4.95% 19.74% 3.53%
Net margin 3.32% 15.61% 2.57%
Free cash flow margin 2.85% 17.21% 0.20%
Return on equity 18.38% 23.54% 2.60%
Return on assets 4.39% 11.84% 2.50%
Return on invested capital 11.49% 13.59% 2.28%

Growth

Metric FLEX TEL Electronic Components median
Revenue growth (TTM) 12.25% 16.53% 12.01%
EPS growth (last fiscal year) 10.43% (40.37%) —
Revenue growth, 5-year CAGR 2.96% 7.24% 7.19%
Net income growth, 5-year CAGR 7.50% 0.00% 0.00%

Health

Metric FLEX TEL Electronic Components median
Debt to equity 0.95 0.42 0.16
Current ratio 1.38 1.88 2.41
Net debt to EBITDA 0.71 0.89 0.32

Dividend

Metric FLEX TEL Electronic Components median
Dividend yield 0.00% 1.68% 1.18%
Payout ratio 0.00 0.35 0.00

Size

Metric FLEX TEL Electronic Components median
Market cap 42.00b 61.86b 780.25m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack