FABRINET (FN)
KYG3323L1005 - Common Stock
We assign a fundamental rating of 7 out of 10 to FN. FN was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. FN gets an excellent profitability rating and is at the same time showing great financial health properties. FN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make FN suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year FN was profitable.
FN had a positive operating cash flow in the past year.
Each year in the past 5 years FN has been profitable.
FN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.65%, FN belongs to the best of the industry, outperforming 95.97% of the companies in the same industry.
FN has a Return On Equity of 16.89%. This is amongst the best in the industry. FN outperforms 87.90% of its industry peers.
FN's Return On Invested Capital of 12.32% is amongst the best of the industry. FN outperforms 89.52% of its industry peers.
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%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 16.89% | ||
| ROIC | 12.33% |
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 10.28% is amongst the best of the industry. FN outperforms 84.68% of its industry peers.
In the last couple of years the Profit Margin of FN has grown nicely.
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.
Looking at the Gross Margin, with a value of 12.35%, FN is doing worse than 75.81% of the companies in the same industry.
In the last couple of years the Gross Margin of FN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.68% | ||
| PM (TTM) | 10.28% | ||
| GM | 12.35% |
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
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 about the same amount of shares outstanding.
FN has less shares outstanding than it did 5 years ago.
FN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 11.46 indicates that FN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.46, FN belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.46 |
ROIC/WACC1.23
WACC9.98%
2.3 Liquidity
A Current Ratio of 3.66 indicates that FN has no problem at all paying its short term obligations.
FN has a better Current ratio (3.66) than 69.35% of its industry peers.
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 75.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.66 | ||
| Quick Ratio | 2.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.39% over the past year.
Measured over the past years, FN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.44% on average per year.
Looking at the last year, FN shows a quite strong growth in Revenue. The Revenue has grown by 12.20% in the last year.
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.
EPS 1Y (TTM)20.39%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%19.5%
Revenue 1Y (TTM)12.2%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%17.32%
3.2 Future
Based on estimates for the next years, FN will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.72% on average per year.
FN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.53% yearly.
EPS Next Y16.84%
EPS Next 2Y15.71%
EPS Next 3Y18.72%
EPS Next 5YN/A
Revenue Next Year15.94%
Revenue Next 2Y15.45%
Revenue Next 3Y17.53%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.31, FN can be considered very expensive at the moment.
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.
Compared to an average S&P500 Price/Earnings ratio of 29.55, FN is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.73, the valuation of FN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, FN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
FN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 19.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FN is valued a bit cheaper than 62.90% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FN indicates a somewhat cheap valuation: FN is cheaper than 67.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.93 | ||
| EV/EBITDA | 19.9 |
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 an outstanding 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 18.72% in the coming years.
PEG (NY)1.5
PEG (5Y)1.37
EPS Next 2Y15.71%
EPS Next 3Y18.72%
5. Dividend
5.1 Amount
FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FABRINET
NYSE:FN (11/29/2024, 1:15:00 PM)
After market: 234.58 0 (0%)234.58
+8.73 (+3.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 19.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.5
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 16.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.68% | ||
| PM (TTM) | 10.28% | ||
| GM | 12.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.66 | ||
| Quick Ratio | 2.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.39%
EPS 3Y23.89%
EPS 5Y
EPS Q2Q%
EPS Next Y16.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.2%
Revenue growth 3Y15.33%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y