FABRINET (FN) Stock Fundamental Analysis
NYSE:FN - New York Stock Exchange, Inc. - KYG3323L1005 - Common Stock - Currency: USD
Overall FN gets a fundamental rating of 7 out of 10. We evaluated FN against 125 industry peers in the Electronic Equipment, Instruments & Components industry. FN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FN has a decent growth rate and is not valued too expensively. These ratings would make FN suitable for quality investing!
1. Profitability
1.1 Basic Checks
FN had positive earnings in the past year.
FN had a positive operating cash flow in the past year.
In the past 5 years FN has always been profitable.
FN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FN (12.46%) is better than 92.80% of its industry peers.
The Return On Equity of FN (17.11%) is better than 88.00% of its industry peers.
With an excellent Return On Invested Capital value of 12.60%, FN belongs to the best of the industry, outperforming 89.60% 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 9.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 17.11% | ||
| ROIC | 12.6% |
ROA(3y)12.04%
ROA(5y)10.7%
ROE(3y)16.61%
ROE(5y)14.96%
ROIC(3y)12.81%
ROIC(5y)11.49%
1.3 Margins
FN's Profit Margin of 10.00% is amongst the best of the industry. FN outperforms 84.00% of its industry peers.
FN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.50%, FN is in the better half of the industry, outperforming 78.40% of the companies in the same industry.
In the last couple of years the Operating Margin of FN has grown nicely.
FN's Gross Margin of 12.09% is on the low side compared to the rest of the industry. FN is outperformed by 73.60% of its industry peers.
FN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 10% | ||
| GM | 12.09% |
OM growth 3Y6.27%
OM growth 5Y4.22%
PM growth 3Y9.19%
PM growth 5Y6.11%
GM growth 3Y1.59%
GM growth 5Y1.78%
2. Health
2.1 Basic Checks
FN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FN remains at a similar level compared to 1 year ago.
FN has less shares outstanding than it did 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 12.16 indicates that FN is not in any danger for bankruptcy at the moment.
FN has a Altman-Z score of 12.16. This is amongst the best in the industry. FN outperforms 91.20% of its industry peers.
FN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.16 |
ROIC/WACC1.41
WACC8.93%
2.3 Liquidity
FN has a Current Ratio of 3.32. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.32, FN is doing good in the industry, outperforming 68.80% of the companies in the same industry.
A Quick Ratio of 2.54 indicates that FN has no problem at all paying its short term obligations.
FN's Quick ratio of 2.54 is fine compared to the rest of the industry. FN outperforms 66.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.54 |
3. Growth
3.1 Past
FN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.21%, which is quite good.
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 17.13% in the past year. This is quite good.
The Revenue has been growing by 12.72% on average over the past years. This is quite good.
EPS 1Y (TTM)19.21%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%5.44%
Revenue 1Y (TTM)17.13%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%19.17%
3.2 Future
FN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.97% yearly.
FN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.43% yearly.
EPS Next Y17.75%
EPS Next 2Y16.11%
EPS Next 3Y15.97%
EPS Next 5YN/A
Revenue Next Year18.49%
Revenue Next 2Y15.62%
Revenue Next 3Y14.43%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.09, the valuation of FN can be described as expensive.
62.40% of the companies in the same industry are more expensive than FN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FN to the average of the S&P500 Index (27.28), we can say FN is valued inline with the index average.
The Price/Forward Earnings ratio is 24.12, which indicates a rather expensive current valuation of FN.
FN's Price/Forward Earnings is on the same level as the industry average.
FN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 24.12 |
4.2 Price Multiples
FN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FN is valued a bit cheaper than the industry average as 63.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38 | ||
| EV/EBITDA | 24.23 |
4.3 Compensation for Growth
FN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FN may justify a higher PE ratio.
FN's earnings are expected to grow with 15.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.64
PEG (5Y)1.58
EPS Next 2Y16.11%
EPS Next 3Y15.97%
5. Dividend
5.1 Amount
FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
288.83
-0.28 (-0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners108.82%
Inst Owner Change4.77%
Ins Owners0.23%
Ins Owner Change-0.58%
Market Cap10.35B
Analysts77.65
Price Target260.74 (-9.73%)
Short Float %6.21%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.26%
Min EPS beat(2)-1.91%
Max EPS beat(2)1.4%
EPS beat(4)2
Avg EPS beat(4)0.29%
Min EPS beat(4)-2.55%
Max EPS beat(4)4.22%
EPS beat(8)5
Avg EPS beat(8)1.89%
EPS beat(12)8
Avg EPS beat(12)2.51%
EPS beat(16)10
Avg EPS beat(16)2.27%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.61%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-0.25%
Revenue beat(12)3
Avg Revenue beat(12)-0.35%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)1.49%
PT rev (3m)-3.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 24.12 | ||
| P/S | 3.17 | ||
| P/FCF | 38 | ||
| P/OCF | 29.04 | ||
| P/B | 5.43 | ||
| P/tB | 5.43 | ||
| EV/EBITDA | 24.23 |
EPS(TTM)9.93
EY3.44%
EPS(NY)11.97
Fwd EY4.15%
FCF(TTM)7.6
FCFY2.63%
OCF(TTM)9.95
OCFY3.44%
SpS91.07
BVpS53.23
TBVpS53.17
PEG (NY)1.64
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 17.11% | ||
| ROCE | 15.95% | ||
| ROIC | 12.6% | ||
| ROICexc | 24.66% | ||
| ROICexgc | 24.71% | ||
| OM | 9.5% | ||
| PM (TTM) | 10% | ||
| GM | 12.09% | ||
| FCFM | 8.35% |
ROA(3y)12.04%
ROA(5y)10.7%
ROE(3y)16.61%
ROE(5y)14.96%
ROIC(3y)12.81%
ROIC(5y)11.49%
ROICexc(3y)21.7%
ROICexc(5y)20.16%
ROICexgc(3y)21.77%
ROICexgc(5y)20.26%
ROCE(3y)16.21%
ROCE(5y)14.55%
ROICexcg growth 3Y7.43%
ROICexcg growth 5Y3.89%
ROICexc growth 3Y7.59%
ROICexc growth 5Y4.15%
OM growth 3Y6.27%
OM growth 5Y4.22%
PM growth 3Y9.19%
PM growth 5Y6.11%
GM growth 3Y1.59%
GM growth 5Y1.78%
F-Score7
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 162.68% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.51% | ||
| Profit Quality | 83.44% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.54 | ||
| Altman-Z | 12.16 |
F-Score7
WACC8.93%
ROIC/WACC1.41
Cap/Depr(3y)158.37%
Cap/Depr(5y)147.7%
Cap/Sales(3y)2.68%
Cap/Sales(5y)2.61%
Profit Quality(3y)66.94%
Profit Quality(5y)69.06%
High Growth Momentum
Growth
EPS 1Y (TTM)19.21%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%5.44%
EPS Next Y17.75%
EPS Next 2Y16.11%
EPS Next 3Y15.97%
EPS Next 5YN/A
Revenue 1Y (TTM)17.13%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%19.17%
Revenue Next Year18.49%
Revenue Next 2Y15.62%
Revenue Next 3Y14.43%
Revenue Next 5YN/A
EBIT growth 1Y16.26%
EBIT growth 3Y22.56%
EBIT growth 5Y17.47%
EBIT Next Year37.09%
EBIT Next 3Y21.6%
EBIT Next 5YN/A
FCF growth 1Y173.15%
FCF growth 3Y70.03%
FCF growth 5Y23.2%
OCF growth 1Y124.82%
OCF growth 3Y51.55%
OCF growth 5Y22.89%