FABRINET (FN) Stock Fundamental Analysis
NYSE:FN - New York Stock Exchange, Inc. - KYG3323L1005 - Common Stock - Currency: USD
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. FN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FN has a decent growth rate and is not valued too expensively. These ratings would make FN suitable 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.
FN had positive earnings in each of the past 5 years.
FN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FN (12.46%) is better than 92.80% of its industry peers.
Looking at the Return On Equity, with a value of 17.11%, FN belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.60%, FN belongs to the best of the industry, outperforming 89.60% 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 | 12.46% | ||
| 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.
In the last couple of years the Profit Margin of FN has grown nicely.
FN's Operating Margin of 9.50% is fine compared to the rest 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.
FN's Gross Margin of 12.09% is on the low side compared to the rest of the industry. FN is outperformed by 73.60% of its industry peers.
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.
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
FN has an Altman-Z score of 12.74. This indicates that FN is financially healthy and has little risk of bankruptcy at the moment.
FN has a Altman-Z score of 12.74. This is amongst the best in 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 | 12.74 |
ROIC/WACC1.32
WACC9.55%
2.3 Liquidity
FN has a Current Ratio of 3.32. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
FN's Current ratio of 3.32 is fine compared to the rest of the industry. FN outperforms 68.80% of its industry peers.
A Quick Ratio of 2.54 indicates that FN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.54, FN is in the better half of the industry, outperforming 66.40% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 18.44% on average over the past years. This is quite good.
The Revenue has grown by 17.13% 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 12.72% yearly.
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
Based on estimates for the next years, FN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.97% on average per year.
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 2Y16.11%
EPS Next 3Y15.97%
EPS Next 5YN/A
Revenue Next Year18.52%
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
FN is valuated quite expensively with a Price/Earnings ratio of 31.05.
FN's Price/Earnings ratio is a bit cheaper when compared to the industry. FN is cheaper than 62.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of FN to the average of the S&P500 Index (27.48), we can say FN is valued inline with the index average.
With a Price/Forward Earnings ratio of 25.76, FN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as FN.
The average S&P500 Price/Forward Earnings ratio is at 36.52. FN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.05 | ||
| Fwd PE | 25.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FN.
62.40% of the companies in the same industry are more expensive than FN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.57 | ||
| EV/EBITDA | 26.14 |
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 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)1.75
PEG (5Y)1.68
EPS Next 2Y16.11%
EPS Next 3Y15.97%
5. Dividend
5.1 Amount
FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
308.36
+10.91 (+3.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners108.82%
Inst Owner Change-0.01%
Ins Owners0.23%
Ins Owner Change-0.58%
Market Cap11.05B
Analysts77.65
Price Target260.74 (-15.44%)
Short Float %6%
Short Ratio3.5
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)1.99%
PT rev (3m)-5.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.05 | ||
| Fwd PE | 25.76 | ||
| P/S | 3.39 | ||
| P/FCF | 40.57 | ||
| P/OCF | 31.01 | ||
| P/B | 5.79 | ||
| P/tB | 5.8 | ||
| EV/EBITDA | 26.14 |
EPS(TTM)9.93
EY3.22%
EPS(NY)11.97
Fwd EY3.88%
FCF(TTM)7.6
FCFY2.46%
OCF(TTM)9.95
OCFY3.23%
SpS91.07
BVpS53.23
TBVpS53.17
PEG (NY)1.75
PEG (5Y)1.68
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 | 12.74 |
F-Score7
WACC9.55%
ROIC/WACC1.32
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 2Y16.11%
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 Year18.52%
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%