Flextronics: Solid Free Cash Flow Deployment And Cost Controls To Drive Further Upside
- At over 12%, Flextronics' free cash flow yield is the highest in its peer group.
- Tight cost controls are set to underpin expanding operating profit and margins.
- Flextronics has demonstrated a commitment to returning capital, having bought back almost 10% of the company in fiscal 2014 alone.
- The company's upcoming May 21 analyst and investor day will likely feature further updates on capital allocation and cost controls, which may drive further upside.
- Diversity of customer base may limit ability for short-term momentum rallies, but offers long-term stability.