FABRINET (FN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FN - KYG3323L1005 - Common Stock
466.401 USD
-0.51 (-0.11%)
Taking everything into account, FN scores 7 out of 10 in our fundamental rating. FN was compared to 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. This makes FN very considerable for growth and 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.
- In the past 5 years FN has always been profitable.
- FN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FN's Return On Assets of 11.67% is amongst the best of the industry. FN outperforms 92.68% of its industry peers.
- With an excellent Return On Equity value of 17.03%, FN belongs to the best of the industry, outperforming 86.18% of the companies in the same industry.
- The Return On Invested Capital of FN (12.89%) is better than 90.24% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FN 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
- Looking at the Profit Margin, with a value of 9.77%, FN belongs to the top of the industry, outperforming 82.11% 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 9.55%. This is in the better half of the industry: FN outperforms 76.42% of its industry peers.
- FN's Operating Margin has improved in the last couple of years.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FN is still creating some value.
- FN has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for FN has been reduced compared to 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 13.84 indicates that FN is not in any danger for bankruptcy at the moment.
- FN has a Altman-Z score of 13.84. This is amongst the best in the industry. FN outperforms 91.87% of its industry peers.
- 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 | 13.84 |
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.
- The Current ratio of FN (2.83) is comparable to the rest of the 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.
- The Quick ratio of FN (2.03) is better than 60.98% 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.
- Measured over the past years, FN shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.15% on average per year.
- The Revenue has grown by 19.71% in the past year. This is quite good.
- Measured over the past years, FN shows a quite strong growth in Revenue. The Revenue has been growing by 15.80% on average per year.
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
- 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
- The Price/Earnings ratio is 43.59, which means the current valuation is very expensive for FN.
- Compared to the rest of the industry, the Price/Earnings ratio of FN is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, FN is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 28.94, the valuation of FN can be described as expensive.
- Based on the Price/Forward Earnings ratio, FN is valued a bit cheaper than 60.98% of the companies in the same industry.
- FN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.59 | ||
| Fwd PE | 28.94 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.19 | ||
| 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.
- 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 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.