Looking for growth without the hefty price tag? Consider NYSE:FN.

Uncover the potential of FABRINET (NYSE:FN), a growth stock that our stock screener found to be reasonably priced. NYSE:FN is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Looking at the Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:FN has achieved 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.
• FN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.72% yearly.
• The Earnings Per Share is expected to grow by 18.01% on average over the next years. This is quite good.
• Based on estimates for the next years, FN will show a quite strong growth in Revenue. The Revenue will grow by 16.80% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NYSE:FN's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:FN has received a 5 out of 10:

• FN's Price/Earnings ratio is a bit cheaper when compared to the industry. FN is cheaper than 72.58% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, FN is valued a bit cheaper than 75.00% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of FN to the average of the S&P500 Index (23.86), we can say FN is valued slightly cheaper.
• Based on the Enterprise Value to EBITDA ratio, FN is valued a bit cheaper than the industry average as 62.10% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, FN is valued a bit cheaper than the industry average as 68.55% of the companies are valued more expensively.
• FN has an outstanding profitability rating, which may justify a higher PE ratio.
• FN's earnings are expected to grow with 18.01% in the coming years. This may justify a more expensive valuation.

Health Assessment of NYSE:FN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:FN, the assigned 9 for health provides valuable insights:

• FN has an Altman-Z score of 11.23. This indicates that FN is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 11.23, FN belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
• FN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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 68.55% of the companies in the same industry.
• A Quick Ratio of 2.90 indicates that FN has no problem at all paying its short term obligations.
• FN has a Quick ratio of 2.90. This is in the better half of the industry: FN outperforms 75.00% of its industry peers.

How do we evaluate the Profitability for NYSE:FN?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:FN has achieved a 8:

• The Return On Assets of FN (12.65%) is better than 93.55% of its industry peers.
• FN has a Return On Equity of 16.89%. This is amongst the best in the industry. FN outperforms 86.29% of its industry peers.
• FN has a Return On Invested Capital of 12.32%. This is amongst the best in the industry. FN outperforms 87.90% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for FN is above the industry average of 9.06%.
• FN's Profit Margin of 10.28% is amongst the best of the industry. FN outperforms 83.06% of its industry peers.
• In the last couple of years the Profit Margin of FN has grown nicely.
• FN's Operating Margin of 9.68% is amongst the best of the industry. FN outperforms 80.65% of its industry peers.
• In the last couple of years the Operating Margin of FN has grown nicely.
• In the last couple of years the Gross Margin of FN has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of FN contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.