Despite its growth, NYSE:FN remains within the realm of affordability.

Last update: Nov 29, 2024

FABRINET (NYSE:FN) has caught the eye of our stock screener as an affordable growth stock. NYSE:FN is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

How We Gauge Growth for NYSE:FN

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:FN has received a 7 out of 10:

FN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.39%, which is quite impressive.
FN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.44% yearly.
The Revenue has grown by 12.20% in the past year. This is quite good.
Measured over the past years, FN shows a quite strong growth in Revenue. The Revenue has been growing by 12.72% on average per year.
The Earnings Per Share is expected to grow by 18.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 17.53% on average over the next years. This is quite good.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Evaluating Valuation: NYSE:FN

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:FN scores a 5 out of 10:

Based on the Price/Earnings ratio, FN is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
75.00% of the companies in the same industry are more expensive than FN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.22, FN is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, FN is valued a bit cheaper than 62.90% of the companies in the same industry.
67.74% of the companies in the same industry are more expensive than FN, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of FN may justify a higher PE ratio.
A more expensive valuation may be justified as FN's earnings are expected to grow with 18.72% in the coming years.

Exploring NYSE:FN's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:FN scores a 9 out of 10:

FN has an Altman-Z score of 11.46. This indicates that FN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FN (11.46) is better than 91.94% of its industry peers.
There is no outstanding debt for FN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
FN has a Current Ratio of 3.66. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.66, FN is doing good in the industry, outperforming 69.35% of the companies in the same industry.
FN has a Quick Ratio of 2.90. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
FN has a Quick ratio of 2.90. This is in the better half of the industry: FN outperforms 75.81% of its industry peers.

A Closer Look at Profitability for NYSE:FN

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:FN was assigned a score of 8 for profitability:

FN's Return On Assets of 12.65% is amongst the best of the industry. FN outperforms 95.97% of its industry peers.
With an excellent Return On Equity value of 16.89%, FN belongs to the best of the industry, outperforming 87.90% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.32%, FN belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
FN had an Average Return On Invested Capital over the past 3 years of 12.81%. This is above the industry average of 8.18%.
With an excellent Profit Margin value of 10.28%, FN belongs to the best of the industry, outperforming 84.68% of the companies in the same industry.
FN's Profit Margin has improved in the last couple of years.
FN has a better Operating Margin (9.68%) than 81.45% of its industry peers.
FN's Operating Margin has improved in the last couple of years.
FN's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of FN

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.