FABRINET (FN)
KYG3323L1005 - Common Stock
Overall FN gets a fundamental rating of 7 out of 10. We evaluated FN against 127 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making FN a very profitable company, without any liquidiy or solvency issues. FN has a correct valuation and a medium growth rate. With these ratings, FN could be worth investigating further 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.
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
Looking at the Return On Assets, with a value of 11.93%, FN belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
The Return On Equity of FN (15.79%) is better than 84.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.63%, FN belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FN is above the industry average of 9.42%.
The 3 year average ROIC (12.09%) for FN is below the current ROIC(12.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 15.79% | ||
| ROIC | 12.63% |
ROA(3y)10.87%
ROA(5y)10.09%
ROE(3y)15.4%
ROE(5y)14.37%
ROIC(3y)12.09%
ROIC(5y)11.11%
1.3 Margins
Looking at the Profit Margin, with a value of 9.36%, FN belongs to the top of the industry, outperforming 81.75% of the companies in the same industry.
In the last couple of years the Profit Margin of FN has grown nicely.
FN has a Operating Margin of 9.68%. This is in the better half of the industry: FN outperforms 76.98% of its industry peers.
In the last couple of years the Operating Margin of FN has grown nicely.
FN has a Gross Margin of 12.54%. This is in the lower half of the industry: FN underperforms 71.43% 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) | 9.36% | ||
| GM | 12.54% |
OM growth 3Y10.89%
OM growth 5Y7.01%
PM growth 3Y10.67%
PM growth 5Y8.83%
GM growth 3Y3.9%
GM growth 5Y2.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FN is creating some value.
The number of shares outstanding for FN has been reduced compared to 1 year ago.
Compared to 5 years ago, FN has less shares outstanding
Compared to 1 year ago, FN has an improved debt to assets ratio.
2.2 Solvency
FN has an Altman-Z score of 10.75. This indicates that FN is financially healthy and has little risk of bankruptcy at the moment.
FN has a better Altman-Z score (10.75) than 91.27% 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 | 0.02 | ||
| Altman-Z | 10.75 |
ROIC/WACC1.37
WACC9.23%
2.3 Liquidity
A Current Ratio of 3.71 indicates that FN has no problem at all paying its short term obligations.
The Current ratio of FN (3.71) is better than 70.63% of its industry peers.
FN has a Quick Ratio of 2.86. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
FN has a better Quick ratio (2.86) than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.86 |
3. Growth
3.1 Past
FN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.77%, which is quite good.
The Earnings Per Share has been growing by 20.73% on average over the past years. This is a very strong growth
FN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.81%.
FN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.03% yearly.
EPS 1Y (TTM)11.77%
EPS 3Y27.05%
EPS 5Y20.73%
EPS growth Q2Q9.47%
Revenue 1Y (TTM)9.81%
Revenue growth 3Y17.23%
Revenue growth 5Y14.03%
Revenue growth Q2Q6.58%
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 11.99% on average per year.
The Revenue is expected to grow by 9.98% on average over the next years. This is quite good.
EPS Next Y11.82%
EPS Next 2Y11.66%
EPS Next 3Y11.99%
EPS Next 5YN/A
Revenue Next Year8.05%
Revenue Next 2Y9.63%
Revenue Next 3Y9.98%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.74, the valuation of FN can be described as rather expensive.
62.70% of the companies in the same industry are more expensive than FN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.28. FN is around the same levels.
Based on the Price/Forward Earnings ratio of 18.74, the valuation of FN can be described as rather expensive.
FN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FN is cheaper than 70.63% of the companies in the same industry.
FN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
60.32% of the companies in the same industry are more expensive than FN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FN indicates a somewhat cheap valuation: FN is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.45 | ||
| EV/EBITDA | 16.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)1.1
EPS Next 2Y11.66%
EPS Next 3Y11.99%
5. Dividend
5.1 Amount
FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FABRINET
NYSE:FN (5/3/2024, 7:04:00 PM)
After market: 179.22 0 (0%)179.22
+5.03 (+2.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 18.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.92
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 15.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.68% | ||
| PM (TTM) | 9.36% | ||
| GM | 12.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.77%
EPS 3Y27.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.81%
Revenue growth 3Y17.23%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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