FABRINET (FN) Stock Fundamental Analysis
USA - NYSE:FN - KYG3323L1005 - Common Stock
447.49 USD
-1.8 (-0.4%)
446.38 USD
-1.11 (-0.25%)
Overall FN gets a fundamental rating of 7 out of 10. We evaluated FN against 123 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making FN a very profitable company, without any liquidiy or solvency issues. FN is valued quite expensive, but it does show an excellent growth. These ratings could make FN a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year FN was profitable.
In the past year FN had a positive cash flow from operations.
FN had positive earnings in each of the past 5 years.
In the past 5 years FN always reported a positive cash flow from operatings.
1.2 Ratios
FN's Return On Assets of 11.67% is amongst the best of the industry. FN outperforms 91.06% of its industry peers.
Looking at the Return On Equity, with a value of 17.03%, FN belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
FN's Return On Invested Capital of 12.89% is amongst the best of the industry. FN outperforms 88.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FN is above the industry average of 9.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 17.03% | ||
| ROIC | 12.89% |
ROA(3y)12.31%
ROA(5y)11.41%
ROE(3y)16.88%
ROE(5y)15.99%
ROIC(3y)12.9%
ROIC(5y)12.26%
1.3 Margins
With a decent Profit Margin value of 9.77%, FN is doing good in the industry, outperforming 78.86% of the companies in the same industry.
FN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.55%, FN is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
FN's Operating Margin has improved in the last couple of years.
FN has a Gross Margin of 11.99%. This is in the lower half of the industry: FN underperforms 76.42% of its industry peers.
In the last couple of years the Gross Margin of FN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.55% | ||
| PM (TTM) | 9.77% | ||
| GM | 11.99% |
OM growth 3Y1.75%
OM growth 5Y5.86%
PM growth 3Y3.16%
PM growth 5Y7.07%
GM growth 3Y-0.62%
GM growth 5Y1.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FN is still creating some value.
Compared to 1 year ago, FN has less shares outstanding
Compared to 5 years ago, FN has less shares outstanding
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
FN has an Altman-Z score of 13.41. This indicates that FN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FN (13.41) is better than 91.87% 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 | 13.41 |
ROIC/WACC1.41
WACC9.15%
2.3 Liquidity
A Current Ratio of 2.83 indicates that FN has no problem at all paying its short term obligations.
FN's Current ratio of 2.83 is fine compared to the rest of the industry. FN outperforms 60.98% of its industry peers.
A Quick Ratio of 2.03 indicates that FN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.03, FN is in the better half of the industry, outperforming 60.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.43% over the past year.
Measured over the past years, FN shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.15% on average per year.
Looking at the last year, FN shows a quite strong growth in Revenue. The Revenue has grown by 19.71% in the last year.
The Revenue has been growing by 15.80% on average over the past years. This is quite good.
EPS 1Y (TTM)15.43%
EPS 3Y18.38%
EPS 5Y22.15%
EPS Q2Q%22.18%
Revenue 1Y (TTM)19.71%
Revenue growth 3Y14.76%
Revenue growth 5Y15.8%
Sales Q2Q%21.62%
3.2 Future
The Earnings Per Share is expected to grow by 21.20% on average over the next years. This is a very strong growth
FN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.26% yearly.
EPS Next Y23.62%
EPS Next 2Y20.03%
EPS Next 3Y21.2%
EPS Next 5YN/A
Revenue Next Year17.95%
Revenue Next 2Y16.66%
Revenue Next 3Y17.26%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.82 indicates a quite expensive valuation of FN.
FN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.34, FN is valued quite expensively.
The Price/Forward Earnings ratio is 30.54, which means the current valuation is very expensive for FN.
The rest of the industry has a similar Price/Forward Earnings ratio as FN.
When comparing the Price/Forward Earnings ratio of FN to the average of the S&P500 Index (34.43), we can say FN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.82 | ||
| Fwd PE | 30.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FN.
FN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.6 | ||
| EV/EBITDA | 36.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FN's earnings are expected to grow with 21.20% in the coming years.
PEG (NY)1.77
PEG (5Y)1.89
EPS Next 2Y20.03%
EPS Next 3Y21.2%
5. Dividend
5.1 Amount
FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
447.49
-1.8 (-0.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners113.39%
Inst Owner Change-2.06%
Ins Owners0.29%
Ins Owner Change-0.99%
Market Cap15.99B
Revenue(TTM)3.59B
Net Income(TTM)351.06M
Analysts78.89
Price Target368.49 (-17.65%)
Short Float %5.25%
Short Ratio2.79
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)-0.96%
Min EPS beat(2)-2.44%
Max EPS beat(2)0.53%
EPS beat(4)2
Avg EPS beat(4)-0.61%
Min EPS beat(4)-2.44%
Max EPS beat(4)1.4%
EPS beat(8)4
Avg EPS beat(8)1.09%
EPS beat(12)7
Avg EPS beat(12)1.02%
EPS beat(16)9
Avg EPS beat(16)1.49%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-0.19%
Max Revenue beat(2)1.71%
Revenue beat(4)1
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)1.71%
Revenue beat(8)2
Avg Revenue beat(8)-0.09%
Revenue beat(12)3
Avg Revenue beat(12)-0.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.42%
PT rev (1m)11.57%
PT rev (3m)32.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)0.26%
EPS NY rev (3m)5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.45%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.82 | ||
| Fwd PE | 30.54 | ||
| P/S | 4.45 | ||
| P/FCF | 79.6 | ||
| P/OCF | 45.98 | ||
| P/B | 7.76 | ||
| P/tB | 7.77 | ||
| EV/EBITDA | 36.18 |
EPS(TTM)10.7
EY2.39%
EPS(NY)14.65
Fwd EY3.27%
FCF(TTM)5.62
FCFY1.26%
OCF(TTM)9.73
OCFY2.17%
SpS100.57
BVpS57.69
TBVpS57.63
PEG (NY)1.77
PEG (5Y)1.89
Graham Number117.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 17.03% | ||
| ROCE | 16.31% | ||
| ROIC | 12.89% | ||
| ROICexc | 23.89% | ||
| ROICexgc | 23.94% | ||
| OM | 9.55% | ||
| PM (TTM) | 9.77% | ||
| GM | 11.99% | ||
| FCFM | 5.59% |
ROA(3y)12.31%
ROA(5y)11.41%
ROE(3y)16.88%
ROE(5y)15.99%
ROIC(3y)12.9%
ROIC(5y)12.26%
ROICexc(3y)23.01%
ROICexc(5y)21.57%
ROICexgc(3y)23.06%
ROICexgc(5y)21.65%
ROCE(3y)16.33%
ROCE(5y)15.52%
ROICexgc growth 3Y6.17%
ROICexgc growth 5Y7.2%
ROICexc growth 3Y6.25%
ROICexc growth 5Y7.33%
OM growth 3Y1.75%
OM growth 5Y5.86%
PM growth 3Y3.16%
PM growth 5Y7.07%
GM growth 3Y-0.62%
GM growth 5Y1.3%
F-Score3
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 264.45% | ||
| Cap/Sales | 4.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.24% | ||
| Profit Quality | 57.22% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 13.41 |
F-Score3
WACC9.15%
ROIC/WACC1.41
Cap/Depr(3y)156.27%
Cap/Depr(5y)165.07%
Cap/Sales(3y)2.53%
Cap/Sales(5y)2.79%
Profit Quality(3y)82.06%
Profit Quality(5y)62.6%
High Growth Momentum
Growth
EPS 1Y (TTM)15.43%
EPS 3Y18.38%
EPS 5Y22.15%
EPS Q2Q%22.18%
EPS Next Y23.62%
EPS Next 2Y20.03%
EPS Next 3Y21.2%
EPS Next 5YN/A
Revenue 1Y (TTM)19.71%
Revenue growth 3Y14.76%
Revenue growth 5Y15.8%
Sales Q2Q%21.62%
Revenue Next Year17.95%
Revenue Next 2Y16.66%
Revenue Next 3Y17.26%
Revenue Next 5YN/A
EBIT growth 1Y18.04%
EBIT growth 3Y16.77%
EBIT growth 5Y22.58%
EBIT Next Year40.75%
EBIT Next 3Y25.47%
EBIT Next 5YN/A
FCF growth 1Y-14.2%
FCF growth 3Y83.07%
FCF growth 5Y14.03%
OCF growth 1Y16.8%
OCF growth 3Y38.26%
OCF growth 5Y16.86%
FABRINET / FN FAQ
Can you provide the ChartMill fundamental rating for FABRINET?
ChartMill assigns a fundamental rating of 7 / 10 to FN.
Can you provide the valuation status for FABRINET?
ChartMill assigns a valuation rating of 3 / 10 to FABRINET (FN). This can be considered as Overvalued.
Can you provide the profitability details for FABRINET?
FABRINET (FN) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for FN stock?
The Earnings per Share (EPS) of FABRINET (FN) is expected to grow by 23.62% in the next year.
Can you provide the dividend sustainability for FN stock?
The dividend rating of FABRINET (FN) is 0 / 10 and the dividend payout ratio is 0%.