Helix Investment Research
Long only, special situations, contrarian, growth

Flextronics: Solid Free Cash Flow Deployment And Cost Controls To Drive Further Upside

On the surface, Flextronics' (NASDAQ:FLEX) most notable feature is its size. The company, incorporated in Singapore with its U.S. operations based in San Jose, is the world's 2nd largest contract electronics manufacturer, behind Hon Hai Precision. The company's customer base consists of many of the world's largest electronics companies, including Motorola, Apple (NASDAQ:AAPL), Samsung, Cisco (NASDAQ:CSCO), and Alcatel-Lucent (ALU). However, although Flextronics is the world's 2nd largest contract electronics manufacturer, it ranks first in a metric that we believe is far more important: free cash flow yield. With a trailing-12 month free cash flow yield of well over 12%, Flextronics's free cash flow yield is well above that of its peers. Combined with revenue...

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