FABRINET (FN) Stock Fundamental Analysis
NYSE:FN - New York Stock Exchange, Inc. - KYG3323L1005 - Common Stock - Currency: USD
Taking everything into account, FN scores 7 out of 10 in our fundamental rating. FN was compared to 125 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 has a correct valuation and a medium growth rate. These ratings could make FN a good candidate for 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.
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
Looking at the Return On Assets, with a value of 12.46%, FN belongs to the top of the industry, outperforming 92.80% of the companies in the same industry.
With an excellent Return On Equity value of 17.11%, FN belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.60%, FN belongs to the top of the industry, outperforming 89.60% of the companies in the same industry.
FN had an Average Return On Invested Capital over the past 3 years of 12.81%. This is above the industry average of 9.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 17.11% | ||
| ROIC | 12.6% |
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
Looking at the Profit Margin, with a value of 10.00%, FN belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
FN's Profit Margin has improved in the last couple of years.
FN has a Operating Margin of 9.50%. This is in the better half of the industry: FN outperforms 78.40% of its industry peers.
In the last couple of years the Operating Margin of FN has grown nicely.
With a Gross Margin value of 12.09%, FN is not doing good in the industry: 73.60% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of FN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 10% | ||
| GM | 12.09% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FN is still creating some value.
The number of shares outstanding for FN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FN has less shares outstanding
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
FN has an Altman-Z score of 11.24. This indicates that FN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.24, FN belongs to the top of the industry, outperforming 89.60% 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 | 11.24 |
ROIC/WACC1.4
WACC9.03%
2.3 Liquidity
A Current Ratio of 3.32 indicates that FN has no problem at all paying its short term obligations.
FN has a Current ratio of 3.32. This is in the better half of the industry: FN outperforms 68.80% of its industry peers.
FN has a Quick Ratio of 2.54. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
FN's Quick ratio of 2.54 is fine compared to the rest of the industry. FN outperforms 66.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.54 |
3. Growth
3.1 Past
FN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.21%, which is quite good.
Measured over the past years, FN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.44% on average per year.
Looking at the last year, FN shows a quite strong growth in Revenue. The Revenue has grown by 17.13% in the last year.
Measured over the past years, FN shows a quite strong growth in Revenue. The Revenue has been growing by 12.72% on average per year.
EPS 1Y (TTM)19.21%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%5.44%
Revenue 1Y (TTM)17.13%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%19.17%
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 15.97% yearly.
The Revenue is expected to grow by 14.43% on average over the next years. This is quite good.
EPS Next Y17.75%
EPS Next 2Y15.87%
EPS Next 3Y15.97%
EPS Next 5YN/A
Revenue Next Year18.49%
Revenue Next 2Y15.62%
Revenue Next 3Y14.43%
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
With a Price/Earnings ratio of 26.74, FN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, FN is valued a bit cheaper than 62.40% of the companies in the same industry.
FN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.27, the valuation of FN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, FN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.74 | ||
| Fwd PE | 22.27 |
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 a bit cheaper when compared to the industry. FN is cheaper than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.94 | ||
| EV/EBITDA | 21.23 |
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.
FN's earnings are expected to grow with 15.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)1.45
EPS Next 2Y15.87%
EPS Next 3Y15.97%
5. Dividend
5.1 Amount
FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
265.57
+6.78 (+2.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners108.82%
Inst Owner Change4.77%
Ins Owners0.23%
Ins Owner Change-0.58%
Market Cap9.52B
Analysts77.65
Price Target255.64 (-3.74%)
Short Float %5.84%
Short Ratio2.81
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)-0.26%
Min EPS beat(2)-1.91%
Max EPS beat(2)1.4%
EPS beat(4)2
Avg EPS beat(4)0.29%
Min EPS beat(4)-2.55%
Max EPS beat(4)4.22%
EPS beat(8)5
Avg EPS beat(8)1.89%
EPS beat(12)8
Avg EPS beat(12)2.51%
EPS beat(16)10
Avg EPS beat(16)2.27%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.61%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-0.25%
Revenue beat(12)3
Avg Revenue beat(12)-0.35%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)-0.5%
PT rev (3m)-5.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.55%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.74 | ||
| Fwd PE | 22.27 | ||
| P/S | 2.92 | ||
| P/FCF | 34.94 | ||
| P/OCF | 26.7 | ||
| P/B | 4.99 | ||
| P/tB | 4.99 | ||
| EV/EBITDA | 21.23 |
EPS(TTM)9.93
EY3.74%
EPS(NY)11.92
Fwd EY4.49%
FCF(TTM)7.6
FCFY2.86%
OCF(TTM)9.95
OCFY3.74%
SpS91.07
BVpS53.23
TBVpS53.17
PEG (NY)1.51
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 17.11% | ||
| ROCE | 15.95% | ||
| ROIC | 12.6% | ||
| ROICexc | 24.66% | ||
| ROICexgc | 24.71% | ||
| OM | 9.5% | ||
| PM (TTM) | 10% | ||
| GM | 12.09% | ||
| FCFM | 8.35% |
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-Score7
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 162.68% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.51% | ||
| Profit Quality | 83.44% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.54 | ||
| Altman-Z | 11.24 |
F-Score7
WACC9.03%
ROIC/WACC1.4
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)19.21%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%5.44%
EPS Next Y17.75%
EPS Next 2Y15.87%
EPS Next 3Y15.97%
EPS Next 5YN/A
Revenue 1Y (TTM)17.13%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%19.17%
Revenue Next Year18.49%
Revenue Next 2Y15.62%
Revenue Next 3Y14.43%
Revenue Next 5YN/A
EBIT growth 1Y16.26%
EBIT growth 3Y22.56%
EBIT growth 5Y17.47%
EBIT Next Year37.09%
EBIT Next 3Y21.6%
EBIT Next 5YN/A
FCF growth 1Y173.15%
FCF growth 3Y70.03%
FCF growth 5Y23.2%
OCF growth 1Y124.82%
OCF growth 3Y51.55%
OCF growth 5Y22.89%