FABRINET (FN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FN - KYG3323L1005 - Common Stock
447.31 USD
+5.73 (+1.3%)
448.11 USD
+0.8 (+0.18%)
Overall FN gets a fundamental rating of 7 out of 10. We evaluated FN against 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 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.
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
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.
FN has a Return On Equity of 17.03%. This is amongst the best in the industry. FN outperforms 85.60% of its industry peers.
The Return On Invested Capital of FN (12.89%) is better than 89.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FN is above the industry average of 9.17%.
| 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.
FN has a better Operating Margin (9.55%) than 76.00% of its industry peers.
In the last couple of years the Operating Margin of FN has grown nicely.
FN's Gross Margin of 11.99% is on the low side compared to the rest of the industry. FN is outperformed by 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.
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.
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 13.40 indicates that FN is not in any danger for bankruptcy at the moment.
FN's Altman-Z score of 13.40 is amongst the best of the industry. FN outperforms 91.20% 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 | 13.4 |
ROIC/WACC1.45
WACC8.88%
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.
Looking at the Current ratio, with a value of 2.83, FN is in the better half of the industry, outperforming 61.60% of the companies in the same industry.
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.
FN has a Quick ratio of 2.03. This is in the better half of the industry: FN outperforms 61.60% of its industry peers.
| 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.
FN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.15% yearly.
FN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.71%.
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
FN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.46% yearly.
FN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.98% yearly.
EPS Next Y23.62%
EPS Next 2Y20.03%
EPS Next 3Y24.46%
EPS Next 5YN/A
Revenue Next Year17.95%
Revenue Next 2Y16.66%
Revenue Next 3Y20.98%
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
With a Price/Earnings ratio of 41.80, FN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as FN.
When comparing the Price/Earnings ratio of FN to the average of the S&P500 Index (26.37), we can say FN is valued expensively.
FN is valuated quite expensively with a Price/Forward Earnings ratio of 30.53.
FN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FN to the average of the S&P500 Index (36.20), we can say FN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.8 | ||
| Fwd PE | 30.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FN is on the same level as its industry peers.
FN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.79 | ||
| EV/EBITDA | 36.11 |
4.3 Compensation for Growth
FN's 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 24.46% in the coming years.
PEG (NY)1.77
PEG (5Y)1.89
EPS Next 2Y20.03%
EPS Next 3Y24.46%
5. Dividend
5.1 Amount
No dividends for FN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
447.31
+5.73 (+1.3%)
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-2.38%
Ins Owners0.29%
Ins Owner Change-1.17%
Market Cap16.03B
Revenue(TTM)3.59B
Net Income(TTM)351.06M
Analysts78.89
Price Target496.67 (11.03%)
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)50.38%
PT rev (3m)55.51%
EPS NQ rev (1m)9.46%
EPS NQ rev (3m)11.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)9.1%
Revenue NQ rev (3m)12.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.8 | ||
| Fwd PE | 30.53 | ||
| P/S | 4.46 | ||
| P/FCF | 79.79 | ||
| P/OCF | 46.09 | ||
| P/B | 7.78 | ||
| P/tB | 7.78 | ||
| EV/EBITDA | 36.11 |
EPS(TTM)10.7
EY2.39%
EPS(NY)14.65
Fwd EY3.28%
FCF(TTM)5.61
FCFY1.25%
OCF(TTM)9.71
OCFY2.17%
SpS100.29
BVpS57.53
TBVpS57.47
PEG (NY)1.77
PEG (5Y)1.89
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 | 13.4 |
F-Score3
WACC8.88%
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 Y23.62%
EPS Next 2Y20.03%
EPS Next 3Y24.46%
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 3Y20.98%
Revenue Next 5YN/A
EBIT growth 1Y18.04%
EBIT growth 3Y16.77%
EBIT growth 5Y22.58%
EBIT Next Year40.75%
EBIT Next 3Y29.4%
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%.