FABRINET (FN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FN - KYG3323L1005 - Common Stock
516.63 USD
+18.18 (+3.65%)
515.05 USD
-1.58 (-0.31%)
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. 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 expensively, but it does show have an excellent growth rating. 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.
In the past 5 years FN has always been profitable.
Each year in the past 5 years FN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.67%, FN belongs to the top of the industry, outperforming 91.20% of the companies in the same industry.
With an excellent Return On Equity value of 17.03%, FN belongs to the best of the industry, outperforming 85.60% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.89%, FN belongs to the best of the industry, outperforming 89.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FN is above the industry average of 9.26%.
| 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 80.00% of the companies in the same industry.
FN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.55%, FN is doing good in the industry, outperforming 76.00% of the companies in the same industry.
In the last couple of years the Operating Margin of FN has grown nicely.
FN has a worse Gross Margin (11.99%) than 76.80% of its industry peers.
FN's Gross Margin has been stable in the last couple of years.
| 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.
FN has less shares outstanding than it did 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
FN has an Altman-Z score of 14.56. This indicates that FN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.56, FN belongs to the top of the industry, outperforming 92.80% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.56 |
ROIC/WACC1.43
WACC9%
2.3 Liquidity
FN has a Current Ratio of 2.83. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
FN has a Current ratio (2.83) which is comparable to the rest of the industry.
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 60.80% 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.
The Earnings Per Share has been growing by 22.15% on average over the past years. This is a very strong growth
The Revenue has grown by 19.71% 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 15.80% yearly.
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
Based on estimates for the next years, FN will show a very strong growth in Earnings Per Share. The EPS will grow by 24.73% on average per year.
Based on estimates for the next years, FN will show a very strong growth in Revenue. The Revenue will grow by 21.01% on average per year.
EPS Next Y33.69%
EPS Next 2Y25.58%
EPS Next 3Y24.73%
EPS Next 5YN/A
Revenue Next Year28.16%
Revenue Next 2Y22.53%
Revenue Next 3Y21.01%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
FN is valuated quite expensively with a Price/Earnings ratio of 48.28.
Compared to the rest of the industry, the Price/Earnings ratio of FN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.59, FN is valued quite expensively.
A Price/Forward Earnings ratio of 32.21 indicates a quite expensive valuation of FN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FN is on the same level as its industry peers.
FN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.28 | ||
| Fwd PE | 32.21 |
4.2 Price Multiples
FN's Enterprise Value to EBITDA ratio is in line with the industry average.
FN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92.15 | ||
| EV/EBITDA | 40.71 |
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 decent profitability rating of FN may justify a higher PE ratio.
FN's earnings are expected to grow with 24.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)2.18
EPS Next 2Y25.58%
EPS Next 3Y24.73%
5. Dividend
5.1 Amount
FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
516.63
+18.18 (+3.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners110.39%
Inst Owner Change-2.37%
Ins Owners0.24%
Ins Owner Change-1.48%
Market Cap18.51B
Revenue(TTM)3.59B
Net Income(TTM)351.06M
Analysts78.89
Price Target523.55 (1.34%)
Short Float %3.8%
Short Ratio2.32
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)42.08%
PT rev (3m)63.92%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)9.72%
EPS NY rev (1m)8.15%
EPS NY rev (3m)9.58%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)9.52%
Revenue NY rev (1m)8.66%
Revenue NY rev (3m)11.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.28 | ||
| Fwd PE | 32.21 | ||
| P/S | 5.15 | ||
| P/FCF | 92.15 | ||
| P/OCF | 53.23 | ||
| P/B | 8.98 | ||
| P/tB | 8.99 | ||
| EV/EBITDA | 40.71 |
EPS(TTM)10.7
EY2.07%
EPS(NY)16.04
Fwd EY3.1%
FCF(TTM)5.61
FCFY1.09%
OCF(TTM)9.71
OCFY1.88%
SpS100.29
BVpS57.53
TBVpS57.47
PEG (NY)1.43
PEG (5Y)2.18
Graham Number117.68
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 | 14.56 |
F-Score3
WACC9%
ROIC/WACC1.43
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 Y33.69%
EPS Next 2Y25.58%
EPS Next 3Y24.73%
EPS Next 5YN/A
Revenue 1Y (TTM)19.71%
Revenue growth 3Y14.76%
Revenue growth 5Y15.8%
Sales Q2Q%21.62%
Revenue Next Year28.16%
Revenue Next 2Y22.53%
Revenue Next 3Y21.01%
Revenue Next 5YN/A
EBIT growth 1Y18.04%
EBIT growth 3Y16.77%
EBIT growth 5Y22.58%
EBIT Next Year52.73%
EBIT Next 3Y30.19%
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 33.69% 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%.