Core Insights - JetCool, a Flex company, has introduced its next-generation SmartPlate™ System, a self-contained liquid cooling solution for select Dell PowerEdge systems [1][3] - The SmartPlate System offers significant performance and efficiency improvements, achieving an average total IT power savings of 15% in third-party thermal testing [2][3] Company Overview - JetCool specializes in direct-to-chip liquid cooling solutions aimed at AI and high-density computing applications, enhancing performance and energy efficiency [6] - As part of Flex, JetCool benefits from advanced manufacturing capabilities and a global footprint, enabling the deployment of liquid cooling solutions at any scale [3][5] Product Features - The SmartPlate System is fully sealed and eliminates the need for facility water, simplifying the adoption of liquid cooling in data centers [2][3] - The system is designed to improve thermal performance and power consumption, allowing for more compute per rack in environments without water hookups [3] Market Presence - JetCool's technology can be experienced at Dell Customer Solution Centers in Round Rock, Texas, and during Dell Technologies World 2025 in Las Vegas [4] - The company is positioned as a leader in advanced thermal management, trusted by top chipmakers, OEMs, and data centers [6]

Core Insights - The article compares Flex (FLEX) and Garmin (GRMN) to determine which stock is a better undervalued investment option for investors in the Electronics - Miscellaneous Products sector [1] Valuation Metrics - FLEX has a forward P/E ratio of 14.46, while GRMN has a forward P/E of 25.20, indicating that FLEX is more attractively priced [5] - The PEG ratio for FLEX is 1.60, compared to GRMN's PEG ratio of 2.22, suggesting that FLEX offers better value relative to its expected earnings growth [5] - FLEX's P/B ratio is 3.23, while GRMN's P/B ratio is 4.72, further supporting the notion that FLEX is undervalued [6] Analyst Outlook - FLEX holds a Zacks Rank of 2 (Buy), indicating a positive analyst outlook, while GRMN has a Zacks Rank of 4 (Sell), reflecting a less favorable view [3] - The stronger estimate revision activity for FLEX suggests a more favorable earnings outlook compared to GRMN [7] Value Grades - FLEX has a Value grade of A, while GRMN has a Value grade of D, highlighting the relative undervaluation of FLEX [6]

Core Viewpoint - Flex (FLEX) has shown strong year-to-date performance compared to the broader Computer and Technology sector, which has experienced negative returns [1][4]. Company Performance - Flex has returned 9.6% year-to-date, significantly outperforming the Computer and Technology sector's average return of -1.3% [4]. - The Zacks Consensus Estimate for Flex's full-year earnings has increased by 2.5% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3]. Industry Context - Flex is part of the Electronics - Miscellaneous Products industry, which consists of 34 companies and currently ranks 155 in the Zacks Industry Rank. This industry has seen an average gain of 6.8% year-to-date, further highlighting Flex's superior performance [5]. - In contrast, Bentley Systems, Incorporated, another stock in the Computer and Technology sector, has a year-to-date return of 2.7% and belongs to the Internet - Software industry, which has performed better with a 10.1% increase year-to-date [4][6].

Summary of Flex (FLEX) FY Conference Call - May 14, 2025 Company Overview - **Company**: Flex (FLEX) - **Industry**: Hardware and Networking Key Points Macro Environment and Guidance - The macroeconomic environment remains volatile, but demand in the data center business is strong, with a revenue of approximately $3.5 billion from cloud and $1.3 billion from power products and industrial units [4][6] - The automotive sector faces uncertainty in the near term, but long-term fundamentals are strong due to technology transitions like EV and hybrid vehicles [5][6] - Consumer-related businesses show stable demand, with potential growth from strategic partnerships in the lifestyle sector [6][7] - Health solutions are steady, with strong device sales but challenges in equipment [7] Tariff and Supply Chain Considerations - Companies are actively planning for potential macro impacts from tariffs, with heightened activity in supply chain robustness [8][10] - Flex has not included direct tariff impacts in its guidance but is prepared for drastic changes [11][12] - The company is experiencing increased customer inquiries about supply chain de-risking, indicating a broad-based concern across industries [15][16] Margin Improvement and Business Strategy - Flex has been focusing on improving margins by matching high-value customers with high-value locations, which has been a successful strategy over the past few years [19] - The EMS plus products plus services strategy aims to enhance margins by integrating more products and services into customer offerings [23][27] - Services revenue is growing faster than the company average, particularly in cloud and lifestyle sectors [33] Data Center Business Insights - The data center business is focused on addressing challenges related to power, heat, and scale, with significant growth expected in both power and cloud segments [35][44] - Flex has diversified its customer base in the data center sector, reducing reliance on any single hyperscaler [41][42] - The company is investing in liquid cooling technologies and has acquired JetCool to enhance its capabilities in this area [39][54] Competitive Landscape - Flex differentiates itself from traditional EMS players by offering both critical and embedded power solutions, which is not common in the industry [64][66] - The company is positioned to compete with established power product companies while leveraging its EMS capabilities [66] Future Growth Opportunities - Significant growth opportunities exist in the data center, health solutions, and automotive sectors, with a focus on premium brands in consumer-related businesses [70][72] - Flex is optimistic about long-term growth in agility and reliability businesses, particularly in the data center and health solutions sectors [74] Automation and Labor Market - Automation is a priority for Flex, with a focus on balancing automation with flexibility in manufacturing processes [75] - The company is investing in harmonizing data to optimize factories and enhance automation capabilities [76] Additional Insights - The company is actively working on integrating AI into its manufacturing processes to improve efficiency and productivity [76] - Flex's strategy includes a long-term goal of increasing the penetration of value-added services across all business units [34] This summary captures the essential insights and strategic directions discussed during the Flex FY Conference Call, highlighting the company's focus on growth, margin improvement, and adaptation to macroeconomic challenges.

Flex is expanding in Poland as part of its global growth strategy to invest in essential power and data center technologies and sites to meet the growing customer demand. The new Polish site comes after opening a second facility in Dundalk, adding 120,000 square feet3, doubling Anord Mardix's capacity in Ireland. The Dundalk facility, named D2, assembles switchgear products to efficiently meet the rising global demand for reliable data center power, fueled by AI growth. Additionally, the company recently op ...

Core Insights - Flex Ltd. reported strong fiscal full-year results, particularly highlighting significant growth in its data center segments, which has been positively received by the investing community [1]. Financial Performance - The company’s data center segments are experiencing rapid growth, contributing to overall positive fiscal results [1]. Investment Perspective - The results indicate a favorable outlook for long-term investors, especially those focused on a 5-10 year horizon, suggesting that Flex Ltd. may be a compelling option for a diversified portfolio that includes growth, value, and dividend-paying stocks [1].

Flex Ltd. (FLEX) reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of 73 cents, which surpassed the Zacks Consensus Estimate by 5.8%. The bottom line compared favorably with 57 cents posted in the prior-year quarter.Revenues increased 3.7% year over year to $6.4 billion. Also, it beat the consensus mark by 2.7%. The uptick was driven by strong demand across its data center, networking and automotive power electronics.For fiscal 2026, the company anticipates sustained strong demand from i ...

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $6.4 billion, growing nearly 4% year over year [5][22] - Adjusted operating margin reached a record 6.2%, marking the second consecutive quarter above 6% [5][22] - Adjusted EPS for Q4 was $0.73, up 28% from the previous year [6][22] - For the full fiscal year, adjusted operating margins were 5.7%, with adjusted EPS reaching a record $2.65, up 23% [6][25] Business Line Data and Key Metrics Changes - In the Reliability segment, revenue was $2.9 billion, down 1.3%, with operating income at $180 million and a margin of 6.2% [23] - The Agility segment saw revenue of $3.5 billion, growing 8.2%, with operating income of $230 million and a margin of 6.6% [23] - Data center revenue grew approximately 50% year over year, reaching about $4.8 billion, driven by cloud and power solutions [12][14] Market Data and Key Metrics Changes - The company reported strong growth in key markets such as data centers, with cloud programs generating about $3.5 billion [12][14] - The power products segment generated approximately $1.3 billion in revenue [12] - The company expects data center revenue to grow around the mid-thirty percent level in the next fiscal year [14] Company Strategy and Development Direction - The company is executing its FlexForward strategy, focusing on higher value businesses and operational efficiency [8][9] - The EMS plus products plus services strategy aims to enhance vertical integration and customization [10][11] - The company is positioned to benefit from regionalization trends and has expanded its operational footprint in North America [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 6% adjusted operating margin a year ahead of schedule, despite macroeconomic uncertainties [21][35] - The company is navigating tariff impacts and is well-positioned to support customers through regionalization [15][20] - Management highlighted the importance of operational excellence and efficiency in driving record-level operating margins [30] Other Important Information - The company generated over $1 billion in free cash flow, maintaining an 80% plus free cash flow conversion target [6][25] - Inventory levels were reduced significantly, with net inventory down 18% year on year [26] - The company repurchased approximately $1.3 billion of stock, representing about 9% of outstanding shares [28] Q&A Session Summary Question: What are the drivers for the strong margin guidance for fiscal 2026? - Management indicated that continued growth in cloud and data center products, along with service business growth, will drive favorable mix impacts [40][42] Question: What is the demand for capacity in the U.S. and Mexico? - Management noted strong customer interest in capacity, with ongoing conversations about increasing utilization and productivity [43][45] Question: Can you elaborate on the scale advantages in data centers? - Management highlighted the unique capability of integrating compute and power, which differentiates the company from competitors [49][51] Question: How does customer-sourced inventory impact revenues and margins? - Management confirmed that while customer-sourced inventory primarily affects cloud business, it positively impacts margins [64][66] Question: What are the expectations for inventory and working capital in fiscal 2026? - Management expects some improvement in inventory rates but emphasizes continued focus on managing days of inventory effectively [101][104]

Q4 FY25 Earnings Presentation Quarter End: March 31, 2025 Earnings Announcement: May 7, 2025 Risks and non-GAAP disclosures This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions invo ...

Financial Performance - Flex reported fourth quarter net sales of $6.4 billion, an increase from $6.2 billion in the same period last year, representing a growth of approximately 3.7%[17] - The company achieved a GAAP operating income of $305 million for Q4 FY 2025, compared to $159 million in Q4 FY 2024, marking an increase of 92%[17] - Adjusted net income attributable to Flex Ltd. for FY 2025 was $1,055 million, up from $947 million in FY 2024, reflecting a growth of 11.4%[24] - Flex's adjusted earnings per share (EPS) for FY 2025 was $2.65, compared to $2.15 in FY 2024, indicating a year-over-year increase of 23.3%[24] - Flex's GAAP net income for FY 2025 was $838 million, down from $1,006 million in FY 2024, a decrease of 16.7%[18] - The company reported a gross profit of $563 million for Q4 FY 2025, up from $437 million in Q4 FY 2024, representing a growth of 28.8%[17] - Flex's adjusted operating income for Q4 FY 2025 was $396 million, compared to $333 million in Q4 FY 2024, an increase of 18.9%[21] - The company experienced a diluted EPS of $0.57 for Q4 FY 2025, down from $0.93 in Q4 FY 2024, a decline of 38.7%[17] - Flex's total net sales for FY 2025 were $25.8 billion, a decrease from $26.4 billion in FY 2024, reflecting a decline of 2.3%[18] Guidance and Projections - The company provided guidance for FY 2026, projecting net sales between $25.0 billion and $26.8 billion, and adjusted EPS between $2.81 and $3.01[8] Assets and Liabilities - Total assets increased to $18,381 million as of March 31, 2025, compared to $18,257 million as of March 31, 2024, reflecting a growth of 0.68%[26] - Total current liabilities rose to $9,850 million as of March 31, 2025, from $8,539 million in 2024, marking an increase of 15.4%[26] - Long-term debt, net of current portion, decreased to $2,483 million as of March 31, 2025, from $3,261 million in 2024, a reduction of 23.8%[26] Cash Flow and Investments - Net cash provided by operating activities increased to $1,505 million for the twelve-month period ended March 31, 2025, compared to $1,326 million in 2024, an increase of 13.5%[27] - The company reported a net cash used in investing activities of $838 million for the twelve-month period ended March 31, 2025, compared to $492 million in 2024, an increase of 70.3%[27] - Cash and cash equivalents decreased to $2,289 million at the end of the fiscal year 2025 from $2,474 million in 2024, a decline of 7.5%[27] Restructuring and Impairments - The company recognized approximately $84 million in restructuring charges for the twelve-month period ended March 31, 2025, compared to $172 million in 2024, a decrease of 51.8%[33] - The company incurred $4 million in customer-related asset impairments for the twelve-month period ended March 31, 2025, down from $14 million in 2024, a decrease of 71.4%[33] Foreign Exchange Impact - The effect of exchange rates on cash and cash equivalents resulted in a loss of $31 million for the fiscal year 2025, compared to a gain of $2 million in 2024[27]