FABRINET (FN)
KYG3323L1005 - Common Stock
Taking everything into account, FN scores 7 out of 10 in our fundamental rating. FN was compared to 126 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 priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make FN a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year FN was profitable.
In the past year FN had a positive cash flow from operations.
In the past 5 years FN has always been profitable.
In the past 5 years FN always reported a positive cash flow from operatings.
1.2 Ratios
FN has a Return On Assets of 12.65%. This is amongst the best in the industry. FN outperforms 93.39% of its industry peers.
FN has a better Return On Equity (16.89%) than 85.95% of its industry peers.
With an excellent Return On Invested Capital value of 12.32%, FN belongs to the best of the industry, outperforming 87.60% 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 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 16.89% | ||
| ROIC | 12.33% |
ROA(3y)12.04%
ROA(5y)10.7%
ROE(3y)16.61%
ROE(5y)14.96%
ROIC(3y)12.81%
ROIC(5y)11.49%
1.3 Margins
FN's Profit Margin of 10.28% is amongst the best of the industry. FN outperforms 82.64% of its industry peers.
In the last couple of years the Profit Margin of FN has grown nicely.
FN has a Operating Margin of 9.68%. This is amongst the best in the industry. FN outperforms 80.17% of its industry peers.
FN's Operating Margin has improved in the last couple of years.
FN has a worse Gross Margin (12.35%) than 74.38% of its industry peers.
In the last couple of years the Gross Margin of FN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.68% | ||
| PM (TTM) | 10.28% | ||
| GM | 12.35% |
OM growth 3Y6.27%
OM growth 5Y4.22%
PM growth 3Y9.19%
PM growth 5Y6.11%
GM growth 3Y1.59%
GM growth 5Y1.78%
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 remains at a similar level compared to 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
An Altman-Z score of 11.60 indicates that FN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.60, FN belongs to the top of the industry, outperforming 89.26% of the companies in the same industry.
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 | 11.6 |
ROIC/WACC1.19
WACC10.34%
2.3 Liquidity
FN has a Current Ratio of 3.66. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
FN's Current ratio of 3.66 is fine compared to the rest of the industry. FN outperforms 67.77% of its industry peers.
A Quick Ratio of 2.90 indicates that FN has no problem at all paying its short term obligations.
The Quick ratio of FN (2.90) is better than 74.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.66 | ||
| Quick Ratio | 2.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.39% over the past year.
FN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.44% yearly.
FN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.20%.
The Revenue has been growing by 12.72% on average over the past years. This is quite good.
EPS 1Y (TTM)20.39%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%19.5%
Revenue 1Y (TTM)12.2%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%17.32%
3.2 Future
FN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.01% yearly.
FN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.80% yearly.
EPS Next Y17.3%
EPS Next 2Y15.88%
EPS Next 3Y18.01%
EPS Next 5YN/A
Revenue Next Year15.81%
Revenue Next 2Y14.49%
Revenue Next 3Y16.8%
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.
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
Based on the Price/Earnings ratio of 25.11, the valuation of FN can be described as expensive.
FN's Price/Earnings ratio is a bit cheaper when compared to the industry. FN is cheaper than 71.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, FN is valued at the same level.
With a Price/Forward Earnings ratio of 19.52, FN is valued on the expensive side.
73.55% of the companies in the same industry are more expensive than FN, based on the Price/Forward Earnings ratio.
FN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | 19.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FN.
Based on the Price/Free Cash Flow ratio, FN is valued a bit cheaper than the industry average as 66.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.71 | ||
| EV/EBITDA | 20.31 |
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 an outstanding 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 18.01% in the coming years.
PEG (NY)1.45
PEG (5Y)1.36
EPS Next 2Y15.88%
EPS Next 3Y18.01%
5. Dividend
5.1 Amount
FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FABRINET
NYSE:FN (1/6/2025, 7:00:00 PM)
After market: 232.79 0 (0%)232.79
+3.1 (+1.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners106.26%
Inst Owner Change0%
Ins Owners0.29%
Ins Owner Change0.35%
Market Cap8.44B
Analysts76.25
Price Target269.57 (15.8%)
Short Float %5.37%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)0.84%
Min EPS beat(2)-2.55%
Max EPS beat(2)4.22%
EPS beat(4)2
Avg EPS beat(4)2.78%
Min EPS beat(4)-2.55%
Max EPS beat(4)9.92%
EPS beat(8)5
Avg EPS beat(8)1.83%
EPS beat(12)7
Avg EPS beat(12)2.19%
EPS beat(16)11
Avg EPS beat(16)2.65%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)1.35%
Revenue beat(4)1
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-0.19%
Revenue beat(12)4
Avg Revenue beat(12)-0.53%
Revenue beat(16)7
Avg Revenue beat(16)-0.2%
PT rev (1m)0%
PT rev (3m)-0.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.8%
EPS NY rev (1m)0%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.68%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | 19.52 | ||
| P/S | 2.81 | ||
| P/FCF | 28.71 | ||
| P/OCF | 24.03 | ||
| P/B | 4.62 | ||
| P/tB | 4.63 | ||
| EV/EBITDA | 20.31 |
EPS(TTM)9.27
EY3.98%
EPS(NY)11.92
Fwd EY5.12%
FCF(TTM)8.11
FCFY3.48%
OCF(TTM)9.69
OCFY4.16%
SpS82.76
BVpS50.36
TBVpS50.3
PEG (NY)1.45
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 16.89% | ||
| ROCE | 15.6% | ||
| ROIC | 12.33% | ||
| ROICexc | 24.07% | ||
| ROICexgc | 24.12% | ||
| OM | 9.68% | ||
| PM (TTM) | 10.28% | ||
| GM | 12.35% | ||
| FCFM | 9.8% |
ROA(3y)12.04%
ROA(5y)10.7%
ROE(3y)16.61%
ROE(5y)14.96%
ROIC(3y)12.81%
ROIC(5y)11.49%
ROICexc(3y)21.7%
ROICexc(5y)20.16%
ROICexgc(3y)21.77%
ROICexgc(5y)20.26%
ROCE(3y)16.21%
ROCE(5y)14.55%
ROICexcg growth 3Y7.43%
ROICexcg growth 5Y3.89%
ROICexc growth 3Y7.59%
ROICexc growth 5Y4.15%
OM growth 3Y6.27%
OM growth 5Y4.22%
PM growth 3Y9.19%
PM growth 5Y6.11%
GM growth 3Y1.59%
GM growth 5Y1.78%
F-Score5
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 114.91% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.2% | ||
| Profit Quality | 95.35% | ||
| Current Ratio | 3.66 | ||
| Quick Ratio | 2.9 | ||
| Altman-Z | 11.6 |
F-Score5
WACC10.34%
ROIC/WACC1.19
Cap/Depr(3y)158.37%
Cap/Depr(5y)147.7%
Cap/Sales(3y)2.68%
Cap/Sales(5y)2.61%
Profit Quality(3y)66.94%
Profit Quality(5y)69.06%
High Growth Momentum
Growth
EPS 1Y (TTM)20.39%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%19.5%
EPS Next Y17.3%
EPS Next 2Y15.88%
EPS Next 3Y18.01%
EPS Next 5YN/A
Revenue 1Y (TTM)12.2%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%17.32%
Revenue Next Year15.81%
Revenue Next 2Y14.49%
Revenue Next 3Y16.8%
Revenue Next 5YN/A
EBIT growth 1Y11.62%
EBIT growth 3Y22.56%
EBIT growth 5Y17.47%
EBIT Next Year36.69%
EBIT Next 3Y24.77%
EBIT Next 5YN/A
FCF growth 1Y268.6%
FCF growth 3Y70.03%
FCF growth 5Y23.2%
OCF growth 1Y137.54%
OCF growth 3Y51.55%
OCF growth 5Y22.89%