FABRINET (FN) Stock Fundamental Analysis
USA - NYSE:FN - KYG3323L1005 - Common Stock
378.01 USD
+19.8 (+5.53%)
370 USD
-8.01 (-2.12%)
FN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. FN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FN shows excellent growth, but is valued quite expensive already. With these ratings, FN could be worth investigating further 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.
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
The Return On Assets of FN (11.74%) is better than 92.00% of its industry peers.
FN has a Return On Equity of 16.78%. This is amongst the best in the industry. FN outperforms 88.00% of its industry peers.
FN has a Return On Invested Capital of 12.73%. This is amongst the best in the industry. FN outperforms 88.80% of its industry peers.
FN had an Average Return On Invested Capital over the past 3 years of 12.90%. This is above the industry average of 9.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 16.78% | ||
| ROIC | 12.73% |
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
FN has a Profit Margin of 9.72%. This is amongst the best in the industry. FN outperforms 83.20% of its industry peers.
In the last couple of years the Profit Margin of FN has grown nicely.
FN's Operating Margin of 9.53% is fine compared to the rest of the industry. FN outperforms 76.00% of its industry peers.
FN's Operating Margin has improved in the last couple of years.
FN has a worse Gross Margin (12.09%) than 75.20% 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 | 9.53% | ||
| PM (TTM) | 9.72% | ||
| GM | 12.09% |
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.
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
An Altman-Z score of 12.35 indicates that FN is not in any danger for bankruptcy at the moment.
FN's Altman-Z score of 12.35 is amongst the best of the industry. FN outperforms 92.00% of its industry peers.
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 | 12.35 |
ROIC/WACC1.37
WACC9.3%
2.3 Liquidity
FN has a Current Ratio of 3.00. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
FN has a better Current ratio (3.00) than 63.20% of its industry peers.
A Quick Ratio of 2.28 indicates that FN has no problem at all paying its short term obligations.
The Quick ratio of FN (2.28) is better than 65.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.53% over the past year.
FN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.15% yearly.
The Revenue has grown by 18.60% in the past year. This is quite good.
The Revenue has been growing by 15.80% on average over the past years. This is quite good.
EPS 1Y (TTM)14.53%
EPS 3Y18.38%
EPS 5Y22.15%
EPS Q2Q%9.96%
Revenue 1Y (TTM)18.6%
Revenue growth 3Y14.76%
Revenue growth 5Y15.8%
Sales Q2Q%20.77%
3.2 Future
The Earnings Per Share is expected to grow by 20.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.62% on average over the next years. This is quite good.
EPS Next Y22.01%
EPS Next 2Y21.15%
EPS Next 3Y20.45%
EPS Next 5YN/A
Revenue Next Year17.74%
Revenue Next 2Y16.52%
Revenue Next 3Y15.62%
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
The Price/Earnings ratio is 37.17, which means the current valuation is very expensive for FN.
Compared to the rest of the industry, the Price/Earnings ratio of FN is on the same level as its industry peers.
FN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.41.
FN is valuated quite expensively with a Price/Forward Earnings ratio of 30.46.
The rest of the industry has a similar Price/Forward Earnings ratio as FN.
FN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.17 | ||
| Fwd PE | 30.46 |
4.2 Price Multiples
FN's Enterprise Value to EBITDA is on the same level as the industry average.
FN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.39 | ||
| EV/EBITDA | 29.62 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as FN's earnings are expected to grow with 20.45% in the coming years.
PEG (NY)1.69
PEG (5Y)1.68
EPS Next 2Y21.15%
EPS Next 3Y20.45%
5. Dividend
5.1 Amount
No dividends for FN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
378.01
+19.8 (+5.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners110.16%
Inst Owner Change1.51%
Ins Owners0.23%
Ins Owner Change-1.1%
Market Cap13.51B
Analysts77.78
Price Target330.28 (-12.63%)
Short Float %5.15%
Short Ratio2.7
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)0
Avg EPS beat(2)-2.18%
Min EPS beat(2)-2.44%
Max EPS beat(2)-1.91%
EPS beat(4)1
Avg EPS beat(4)-1.37%
Min EPS beat(4)-2.55%
Max EPS beat(4)1.4%
EPS beat(8)4
Avg EPS beat(8)1.57%
EPS beat(12)7
Avg EPS beat(12)1.82%
EPS beat(16)9
Avg EPS beat(16)1.84%
Revenue beat(2)0
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.19%
Revenue beat(4)1
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)3
Avg Revenue beat(12)-0.21%
Revenue beat(16)5
Avg Revenue beat(16)-0.47%
PT rev (1m)14.72%
PT rev (3m)29.2%
EPS NQ rev (1m)2.8%
EPS NQ rev (3m)2.17%
EPS NY rev (1m)3.64%
EPS NY rev (3m)4.07%
Revenue NQ rev (1m)1.85%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)4.2%
Revenue NY rev (3m)4.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.17 | ||
| Fwd PE | 30.46 | ||
| P/S | 3.95 | ||
| P/FCF | 65.39 | ||
| P/OCF | 41.13 | ||
| P/B | 6.82 | ||
| P/tB | 6.82 | ||
| EV/EBITDA | 29.62 |
EPS(TTM)10.17
EY2.69%
EPS(NY)12.41
Fwd EY3.28%
FCF(TTM)5.78
FCFY1.53%
OCF(TTM)9.19
OCFY2.43%
SpS95.7
BVpS55.47
TBVpS55.41
PEG (NY)1.69
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 16.78% | ||
| ROCE | 16.12% | ||
| ROIC | 12.73% | ||
| ROICexc | 23.68% | ||
| ROICexgc | 23.72% | ||
| OM | 9.53% | ||
| PM (TTM) | 9.72% | ||
| GM | 12.09% | ||
| FCFM | 6.04% |
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%
ROICexcg growth 3Y6.17%
ROICexcg 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-Score4
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 227.98% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.57% | ||
| Profit Quality | 62.12% | ||
| Current Ratio | 3 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 12.35 |
F-Score4
WACC9.3%
ROIC/WACC1.37
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)14.53%
EPS 3Y18.38%
EPS 5Y22.15%
EPS Q2Q%9.96%
EPS Next Y22.01%
EPS Next 2Y21.15%
EPS Next 3Y20.45%
EPS Next 5YN/A
Revenue 1Y (TTM)18.6%
Revenue growth 3Y14.76%
Revenue growth 5Y15.8%
Sales Q2Q%20.77%
Revenue Next Year17.74%
Revenue Next 2Y16.52%
Revenue Next 3Y15.62%
Revenue Next 5YN/A
EBIT growth 1Y17.38%
EBIT growth 3Y16.77%
EBIT growth 5Y22.58%
EBIT Next Year34.56%
EBIT Next 3Y24.74%
EBIT Next 5YN/A
FCF growth 1Y-43.37%
FCF growth 3Y83.07%
FCF growth 5Y14.03%
OCF growth 1Y-20.52%
OCF growth 3Y38.26%
OCF growth 5Y16.86%