FABRINET (FN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FN - KYG3323L1005 - Common Stock
466.91 USD
-3.48 (-0.74%)
466.91 USD
0 (0%)
FN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 123 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 not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, FN could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- FN had positive earnings in the past year.
- FN had a positive operating cash flow in the past year.
- Each year in the past 5 years FN has been profitable.
- Each year in the past 5 years FN had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 11.67%, FN belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 17.03%, FN belongs to the top of the industry, outperforming 86.18% of the companies in the same industry.
- FN's Return On Invested Capital of 12.89% is amongst the best of the industry. FN outperforms 90.24% 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 8.87%.
| 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's Profit Margin of 9.77% is amongst the best of the industry. FN outperforms 82.11% of its industry peers.
- In the last couple of years the Profit Margin of FN has grown nicely.
- FN's Operating Margin of 9.55% is fine compared to the rest of the industry. FN outperforms 76.42% of its industry peers.
- In the last couple of years the Operating Margin of FN has grown nicely.
- FN has a Gross Margin of 11.99%. This is in the lower half of the industry: FN underperforms 77.24% 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
- FN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for FN has been reduced compared to 1 year ago.
- 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 13.84 indicates that FN is not in any danger for bankruptcy at the moment.
- The Altman-Z score of FN (13.84) is better than 91.87% 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 | 13.84 |
ROIC/WACC1.45
WACC8.88%
2.3 Liquidity
- A Current Ratio of 2.83 indicates that FN has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.83, FN is in line with its industry, outperforming 59.35% of the companies in the same industry.
- A Quick Ratio of 2.03 indicates that FN has no problem at all paying its short term obligations.
- FN has a better Quick ratio (2.03) than 60.98% 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.
- FN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.15% yearly.
- Looking at the last year, FN shows a quite strong growth in Revenue. The Revenue has grown by 19.71% in the last year.
- 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
- The Revenue is expected to grow by 21.43% on average over the next years. This is a very strong growth
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
- FN is valuated quite expensively with a Price/Earnings ratio of 43.64.
- 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 (27.21), we can say FN is valued expensively.
- A Price/Forward Earnings ratio of 28.98 indicates a quite expensive valuation of FN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FN indicates a somewhat cheap valuation: FN is cheaper than 60.98% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. FN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.64 | ||
| Fwd PE | 28.98 |
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 | 83.28 | ||
| EV/EBITDA | 37.87 |
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 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 24.10% in the coming years.
PEG (NY)1.29
PEG (5Y)1.97
EPS Next 2Y25.87%
EPS Next 3Y24.1%
5. Dividend
5.1 Amount
- FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FABRINET / FN FAQ
Can you provide the ChartMill fundamental rating for FABRINET?
ChartMill assigns a fundamental rating of 7 / 10 to FN.
What is the valuation status of FABRINET (FN) stock?
ChartMill assigns a valuation rating of 4 / 10 to FABRINET (FN). This can be considered as Fairly Valued.
Can you provide the profitability details for FABRINET?
FABRINET (FN) has a profitability rating of 8 / 10.
How financially healthy is FABRINET?
The financial health rating of FABRINET (FN) is 9 / 10.