FABRINET (FN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FN - KYG3323L1005 - Common Stock
447.31 USD
+5.73 (+1.3%)
443.55 USD
-3.76 (-0.84%)
FN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 is valued quite expensively, but it does show have an excellent growth rating. 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
The Return On Assets of FN (11.67%) is better than 91.20% of its industry peers.
FN's Return On Equity of 17.03% is amongst the best of the industry. FN outperforms 85.60% of its industry peers.
FN has a better Return On Invested Capital (12.89%) than 89.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FN is above the industry average of 9.09%.
| 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 has a Profit Margin of 9.77%. This is in the better half of the industry: FN outperforms 80.00% of its industry peers.
FN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.55%, FN is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
FN's Operating Margin has improved in the last couple of years.
FN has a worse Gross Margin (11.99%) than 76.80% 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.
Compared to 1 year ago, FN has less shares outstanding
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 13.27 indicates that FN is not in any danger for bankruptcy at the moment.
FN's Altman-Z score of 13.27 is amongst the best of the industry. FN outperforms 91.20% 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 | 13.27 |
ROIC/WACC1.44
WACC8.94%
2.3 Liquidity
A Current Ratio of 2.83 indicates that FN has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.83, FN is doing good in the industry, outperforming 61.60% of the companies in the same 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.
FN has a Quick ratio of 2.03. This is in the better half of the industry: FN outperforms 61.60% 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.
The Revenue has grown by 19.71% in the past year. This is quite good.
The Revenue has been growing by 15.80% on average over the past years. This is quite good.
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
Based on estimates for the next years, FN will show a very strong growth in Earnings Per Share. The EPS will grow by 24.46% on average per year.
FN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.98% yearly.
EPS Next Y23.62%
EPS Next 2Y20.03%
EPS Next 3Y24.46%
EPS Next 5YN/A
Revenue Next Year17.95%
Revenue Next 2Y16.66%
Revenue Next 3Y20.98%
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.
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 41.80, which means the current valuation is very expensive for FN.
FN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.15, FN is valued quite expensively.
The Price/Forward Earnings ratio is 30.53, which means the current valuation is very expensive for FN.
FN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.22. FN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.8 | ||
| Fwd PE | 30.53 |
4.2 Price Multiples
FN's Enterprise Value to EBITDA ratio is in line with the industry average.
FN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.79 | ||
| EV/EBITDA | 35.6 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FN may justify a higher PE ratio.
FN's earnings are expected to grow with 24.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.77
PEG (5Y)1.89
EPS Next 2Y20.03%
EPS Next 3Y24.46%
5. Dividend
5.1 Amount
FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
447.31
+5.73 (+1.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners113.39%
Inst Owner Change-2.38%
Ins Owners0.29%
Ins Owner Change-1.17%
Market Cap16.03B
Revenue(TTM)3.59B
Net Income(TTM)351.06M
Analysts78.89
Price Target496.67 (11.03%)
Short Float %3.8%
Short Ratio2.32
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)-0.96%
Min EPS beat(2)-2.44%
Max EPS beat(2)0.53%
EPS beat(4)2
Avg EPS beat(4)-0.61%
Min EPS beat(4)-2.44%
Max EPS beat(4)1.4%
EPS beat(8)4
Avg EPS beat(8)1.09%
EPS beat(12)7
Avg EPS beat(12)1.02%
EPS beat(16)9
Avg EPS beat(16)1.49%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-0.19%
Max Revenue beat(2)1.71%
Revenue beat(4)1
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)1.71%
Revenue beat(8)2
Avg Revenue beat(8)-0.09%
Revenue beat(12)3
Avg Revenue beat(12)-0.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.42%
PT rev (1m)50.38%
PT rev (3m)55.51%
EPS NQ rev (1m)9.46%
EPS NQ rev (3m)11.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)9.1%
Revenue NQ rev (3m)12.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.8 | ||
| Fwd PE | 30.53 | ||
| P/S | 4.46 | ||
| P/FCF | 79.79 | ||
| P/OCF | 46.09 | ||
| P/B | 7.78 | ||
| P/tB | 7.78 | ||
| EV/EBITDA | 35.6 |
EPS(TTM)10.7
EY2.39%
EPS(NY)14.65
Fwd EY3.28%
FCF(TTM)5.61
FCFY1.25%
OCF(TTM)9.71
OCFY2.17%
SpS100.29
BVpS57.53
TBVpS57.47
PEG (NY)1.77
PEG (5Y)1.89
Graham Number117.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 17.03% | ||
| ROCE | 16.31% | ||
| ROIC | 12.89% | ||
| ROICexc | 23.89% | ||
| ROICexgc | 23.94% | ||
| OM | 9.55% | ||
| PM (TTM) | 9.77% | ||
| GM | 11.99% | ||
| FCFM | 5.59% |
ROA(3y)12.31%
ROA(5y)11.41%
ROE(3y)16.88%
ROE(5y)15.99%
ROIC(3y)12.9%
ROIC(5y)12.26%
ROICexc(3y)23.01%
ROICexc(5y)21.57%
ROICexgc(3y)23.06%
ROICexgc(5y)21.65%
ROCE(3y)16.33%
ROCE(5y)15.52%
ROICexgc growth 3Y6.17%
ROICexgc growth 5Y7.2%
ROICexc growth 3Y6.25%
ROICexc growth 5Y7.33%
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%
F-Score3
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 264.45% | ||
| Cap/Sales | 4.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.24% | ||
| Profit Quality | 57.22% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 13.27 |
F-Score3
WACC8.94%
ROIC/WACC1.44
Cap/Depr(3y)156.27%
Cap/Depr(5y)165.07%
Cap/Sales(3y)2.53%
Cap/Sales(5y)2.79%
Profit Quality(3y)82.06%
Profit Quality(5y)62.6%
High Growth Momentum
Growth
EPS 1Y (TTM)15.43%
EPS 3Y18.38%
EPS 5Y22.15%
EPS Q2Q%22.18%
EPS Next Y23.62%
EPS Next 2Y20.03%
EPS Next 3Y24.46%
EPS Next 5YN/A
Revenue 1Y (TTM)19.71%
Revenue growth 3Y14.76%
Revenue growth 5Y15.8%
Sales Q2Q%21.62%
Revenue Next Year17.95%
Revenue Next 2Y16.66%
Revenue Next 3Y20.98%
Revenue Next 5YN/A
EBIT growth 1Y18.04%
EBIT growth 3Y16.77%
EBIT growth 5Y22.58%
EBIT Next Year40.75%
EBIT Next 3Y29.4%
EBIT Next 5YN/A
FCF growth 1Y-14.2%
FCF growth 3Y83.07%
FCF growth 5Y14.03%
OCF growth 1Y16.8%
OCF growth 3Y38.26%
OCF growth 5Y16.86%
FABRINET / FN FAQ
Can you provide the ChartMill fundamental rating for FABRINET?
ChartMill assigns a fundamental rating of 7 / 10 to FN.
Can you provide the valuation status for FABRINET?
ChartMill assigns a valuation rating of 3 / 10 to FABRINET (FN). This can be considered as Overvalued.
Can you provide the profitability details for FABRINET?
FABRINET (FN) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for FN stock?
The Earnings per Share (EPS) of FABRINET (FN) is expected to grow by 23.62% in the next year.
Can you provide the dividend sustainability for FN stock?
The dividend rating of FABRINET (FN) is 0 / 10 and the dividend payout ratio is 0%.