FABRINET (FN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FN - KYG3323L1005 - Common Stock
483.55 USD
+8.08 (+1.7%)
483.55 USD
0 (0%)
FN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 124 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 shows excellent growth, but is valued quite expensive already. These ratings could make FN a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
FN had positive earnings in the past year.
In the past year FN had a positive cash flow from operations.
Each year in the past 5 years FN has been profitable.
In the past 5 years FN always reported a positive cash flow from operatings.
1.2 Ratios
FN has a better Return On Assets (11.67%) than 91.13% of its industry peers.
FN has a Return On Equity of 17.03%. This is amongst the best in the industry. FN outperforms 85.48% of its industry peers.
FN has a Return On Invested Capital of 12.89%. This is amongst the best in the industry. FN outperforms 89.52% of its industry peers.
FN had an Average Return On Invested Capital over the past 3 years of 12.90%. This is above the industry average of 9.32%.
| 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
FN has a Profit Margin of 9.77%. This is in the better half of the industry: FN outperforms 79.84% 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 9.55%, FN is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
FN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 11.99%, FN is not doing good in the industry: 76.61% of the companies in the same industry are doing better.
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
FN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FN has less shares outstanding
The number of shares outstanding for FN has been reduced compared to 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 14.04 indicates that FN is not in any danger for bankruptcy at the moment.
FN has a better Altman-Z score (14.04) than 91.13% 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 | 14.04 |
ROIC/WACC1.45
WACC8.9%
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 in line with its industry peers.
FN has a Quick Ratio of 2.03. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of FN (2.03) is better than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
FN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.43%, which is quite good.
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
The Earnings Per Share is expected to grow by 24.10% on average over the next years. This is a very strong growth
Based on estimates for the next years, FN will show a very strong growth in Revenue. The Revenue will grow by 21.43% on average per year.
EPS Next Y33.92%
EPS Next 2Y25.87%
EPS Next 3Y24.1%
EPS Next 5YN/A
Revenue Next Year28.91%
Revenue Next 2Y23.06%
Revenue Next 3Y21.43%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 45.19 indicates a quite expensive valuation of FN.
FN's Price/Earnings ratio is in line with the industry average.
FN is valuated expensively when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
FN is valuated quite expensively with a Price/Forward Earnings ratio of 30.01.
FN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of FN to the average of the S&P500 Index (24.01), we can say FN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.19 | ||
| Fwd PE | 30.01 |
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 | 86.25 | ||
| EV/EBITDA | 38.64 |
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 24.10% in the coming years.
PEG (NY)1.33
PEG (5Y)2.04
EPS Next 2Y25.87%
EPS Next 3Y24.1%
5. Dividend
5.1 Amount
No dividends for FN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
483.55
+8.08 (+1.7%)
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-1.42%
Market Cap17.33B
Revenue(TTM)3.59B
Net Income(TTM)351.06M
Analysts78.89
Price Target531.38 (9.89%)
Short Float %4.23%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)44.2%
PT rev (3m)60.89%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)9.73%
EPS NY rev (1m)8.33%
EPS NY rev (3m)8.61%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)10.12%
Revenue NY rev (1m)9.29%
Revenue NY rev (3m)9.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.19 | ||
| Fwd PE | 30.01 | ||
| P/S | 4.82 | ||
| P/FCF | 86.25 | ||
| P/OCF | 49.82 | ||
| P/B | 8.41 | ||
| P/tB | 8.41 | ||
| EV/EBITDA | 38.64 |
EPS(TTM)10.7
EY2.21%
EPS(NY)16.11
Fwd EY3.33%
FCF(TTM)5.61
FCFY1.16%
OCF(TTM)9.71
OCFY2.01%
SpS100.29
BVpS57.53
TBVpS57.47
PEG (NY)1.33
PEG (5Y)2.04
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 | 14.04 |
F-Score3
WACC8.9%
ROIC/WACC1.45
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 Y33.92%
EPS Next 2Y25.87%
EPS Next 3Y24.1%
EPS Next 5YN/A
Revenue 1Y (TTM)19.71%
Revenue growth 3Y14.76%
Revenue growth 5Y15.8%
Sales Q2Q%21.62%
Revenue Next Year28.91%
Revenue Next 2Y23.06%
Revenue Next 3Y21.43%
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 33.92% 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%.