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Here's How Much a $1000 Investment in Flex Made 10 Years Ago Would Be Worth Today

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Flex (FLEX - Free Report) ten years ago? It may not have been easy to hold on to FLEX for all that time, but if you did, how much would your investment be worth today?

Flex's Business In-Depth

With that in mind, let's take a look at Flex's main business drivers.

Singapore-based Flex Ltd (formerly known as Flextronics International Ltd) has a diverse workforce across 30 countries and offers advanced manufacturing solutions and additional value to customers through a wide array of services, including design and engineering, component services, rapid prototyping, fulfilment, and circular economy solutions.

The company believes that growing complexity in markets, goods, and environmental, social, and governance ("ESG") standards will propel expansion in the contract manufacturing services sector.

The company has expanded and enhanced its service offering by capabilities in software, robotics, artificial intelligence, factory automation, simulation, digital twins, and other disruptive technologies

The company reports revenue in three segments - Flex Agility Solutions Group (FAS), Flex Reliability Solutions (FRS) Group and Nextracker.

Flex Agility Solutions Group comprises Communications & Enterprise Compute or CEC, Lifestyle and Consumer Devices businesses. The FAS segment is optimized for speed to market, based on a highly flexible supply and manufacturing system.

Flex Reliability Solutions Group comprises Health Solutions, Automotive and Industrial businesses. The FRS category is designed to accommodate longer product lifecycles, which call for intricate ramps, specialised manufacturing models, and crucial conditions.

Nextracker is a leading provider of solar tracker and software solutions for utility-scale and ground-mounted solar projects worldwide. In February 2023, Nextracker announced its initial public offering of 23,255,814 shares of its common stock. In January, 2024, the company announced that it had completed the spin-off of all its remaining interest in Nextracker to its shareholders (on a pro-rata basis)

Post the spin-off of Nextracker in the fourth-quarter fiscal 2024, its historical financials are now reported under discontinued operations.

In first-quarter fiscal 2025, revenues totaled $6.3 billion. Flex Agility Solutions represented 53% of total revenues and Reliability Solutions Group contributed 47%.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Flex, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in August 2014 would be worth $2,991.49, or a 199.15% gain, as of August 16, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 183.53% and the price of gold went up 80.83% over the same time frame.

Going forward, analysts are expecting more upside for FLEX.

Flex’s fiscal first-quarter performance was aided by solid momentum in automotive, cloud and data center power. Health Solutions’ business is gaining from advanced digital health/ medical device demand amid softness in the medical equipment market. New wins and accelerating content growth amid soft EV trends are powering the automotive unit. Its share buyback policy is noteworthy. Synergies from the acquisition of FreeFlow is a tailwind. However, affected by weak macro trends in core industrial, revenues in the Reliability Solutions are likely to be down high single-digit to mid-teens in the fiscal second quarter. A slowdown in enterprise IT will keep Agility Solutions revenues flat to slightly down in the fiscal second quarter. Rising global tax rates and a dynamic macro backdrop remain woes.

The stock has jumped 8.32% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2024; the consensus estimate has moved up as well.

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