WallStSmart

Flex Ltd (FLEX)vsFabrinet (FN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Flex Ltd generates 589% more annual revenue ($26.83B vs $3.89B). FN leads profitability with a 9.7% profit margin vs 3.2%. FLEX appears more attractively valued with a PEG of 0.94. FN earns a higher WallStSmart Score of 65/100 (C+).

FLEX

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.14

FN

Buy

65

out of 100

Grade: C+

Growth: 9.3Profit: 7.0Value: 3.3Quality: 8.0
Piotroski: 2/9Altman Z: 4.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FLEXUndervalued (+43.3%)

Margin of Safety

+43.3%

Fair Value

$114.26

Current Price

$96.45

$17.81 discount

UndervaluedFair: $114.26Overvalued
FNSignificantly Overvalued (-85.2%)

Margin of Safety

-85.2%

Fair Value

$251.41

Current Price

$661.36

$409.95 premium

UndervaluedFair: $251.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FLEX1 strengths · Avg: 8.0/10
PEG RatioValuation
0.948/10

Growing faster than its price suggests

FN4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
35.9%10/10

Revenue surging 35.9% year-over-year

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7410/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
30.7%8/10

Earnings expanding 30.7% YoY

Areas to Watch

FLEX4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Debt/EquityHealth
1.093/10

Elevated debt levels

P/E RatioValuation
41.1x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-4.5%2/10

Earnings declined 4.5%

FN4 concerns · Avg: 2.8/10
Price/BookValuation
10.8x4/10

Trading at 10.8x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
67.5x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-5.35M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : FLEX

The strongest argument for FLEX centers on PEG Ratio. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bull Case : FN

The strongest argument for FN centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 35.9% demonstrates continued momentum. PEG of 1.19 suggests the stock is reasonably priced for its growth.

Bear Case : FLEX

The primary concerns for FLEX are Profit Margin, Debt/Equity, P/E Ratio. A P/E of 41.1x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.

Bear Case : FN

The primary concerns for FN are Price/Book, Piotroski F-Score, P/E Ratio. A P/E of 67.5x leaves little room for execution misses.

Key Dynamics to Monitor

FLEX profiles as a value stock while FN is a hypergrowth play — different risk/reward profiles.

FLEX carries more volatility with a beta of 1.45 — expect wider price swings.

FN is growing revenue faster at 35.9% — sustainability is the question.

FLEX generates stronger free cash flow (272M), providing more financial flexibility.

Bottom Line

FN scores higher overall (65/100 vs 52/100) and 35.9% revenue growth. FLEX offers better value entry with a 43.3% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Flex Ltd

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Flex Ltd. provides design, engineering, manufacturing and supply chain services and solutions to OEMs in Asia, the Americas and Europe. The company is headquartered in Singapore.

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Fabrinet

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Fabrinet offers optical packaging and precision electronic, electromechanical and optical manufacturing services in North America, Asia-Pacific and Europe. The company is headquartered in George Town, the Cayman Islands.

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