FABRINET (FN) Stock Fundamental Analysis
NYSE:FN - New York Stock Exchange, Inc. - KYG3323L1005 - Common Stock - Currency: USD
FN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 124 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 is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make FN suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
FN had positive earnings in the past year.
FN had a positive operating cash flow in the past year.
Each year in the past 5 years FN has been profitable.
In the past 5 years FN always reported a positive cash flow from operatings.
1.2 Ratios
FN has a Return On Assets of 12.82%. This is amongst the best in the industry. FN outperforms 92.74% of its industry peers.
FN's Return On Equity of 17.69% is amongst the best of the industry. FN outperforms 87.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.67%, FN belongs to the top of the industry, outperforming 87.90% 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 9.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.82% | ||
| ROE | 17.69% | ||
| ROIC | 12.67% |
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
The Profit Margin of FN (10.44%) is better than 83.87% of its industry peers.
In the last couple of years the Profit Margin of FN has grown nicely.
With an excellent Operating Margin value of 9.65%, FN belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
In the last couple of years the Operating Margin of FN has grown nicely.
FN has a worse Gross Margin (12.27%) than 74.19% of its industry peers.
FN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.65% | ||
| PM (TTM) | 10.44% | ||
| GM | 12.27% |
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
FN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
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 9.05 indicates that FN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.05, FN belongs to the best of the industry, outperforming 90.32% 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 | 9.05 |
ROIC/WACC1.41
WACC8.98%
2.3 Liquidity
A Current Ratio of 3.32 indicates that FN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.32, FN is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
FN has a Quick Ratio of 2.58. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.58, FN is doing good in the industry, outperforming 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.58 |
3. Growth
3.1 Past
FN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.37%, which is quite impressive.
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.
The Revenue has grown by 14.83% 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 12.72% on average per year.
EPS 1Y (TTM)24.37%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%25.48%
Revenue 1Y (TTM)14.83%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%16.97%
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 16.20% yearly.
Based on estimates for the next years, FN will show a quite strong growth in Revenue. The Revenue will grow by 15.63% on average per year.
EPS Next Y18.44%
EPS Next 2Y15.72%
EPS Next 3Y16.2%
EPS Next 5YN/A
Revenue Next Year18.05%
Revenue Next 2Y15.52%
Revenue Next 3Y15.63%
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
With a Price/Earnings ratio of 18.74, FN is valued on the expensive side.
70.97% of the companies in the same industry are more expensive than FN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FN to the average of the S&P500 Index (28.29), we can say FN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.45, the valuation of FN can be described as correct.
75.00% of the companies in the same industry are more expensive than FN, based on the Price/Forward Earnings ratio.
FN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 15.45 |
4.2 Price Multiples
FN's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, FN is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.96 | ||
| EV/EBITDA | 14.53 |
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.
A more expensive valuation may be justified as FN's earnings are expected to grow with 16.20% in the coming years.
PEG (NY)1.02
PEG (5Y)1.02
EPS Next 2Y15.72%
EPS Next 3Y16.2%
5. Dividend
5.1 Amount
FN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
183.66
-3.04 (-1.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners106.36%
Inst Owner Change-0.29%
Ins Owners0.28%
Ins Owner Change0.17%
Market Cap6.58B
Analysts77.5
Price Target276.57 (50.59%)
Short Float %5.77%
Short Ratio2.65
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)-0.57%
Min EPS beat(2)-2.55%
Max EPS beat(2)1.4%
EPS beat(4)3
Avg EPS beat(4)3.25%
Min EPS beat(4)-2.55%
Max EPS beat(4)9.92%
EPS beat(8)6
Avg EPS beat(8)2.19%
EPS beat(12)8
Avg EPS beat(12)2.31%
EPS beat(16)11
Avg EPS beat(16)2.55%
Revenue beat(2)1
Avg Revenue beat(2)0.37%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)1.35%
Revenue beat(4)1
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-0.2%
Revenue beat(12)3
Avg Revenue beat(12)-0.65%
Revenue beat(16)6
Avg Revenue beat(16)-0.34%
PT rev (1m)2.71%
PT rev (3m)2.59%
EPS NQ rev (1m)-2.62%
EPS NQ rev (3m)-0.62%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)4.09%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 15.45 | ||
| P/S | 2.11 | ||
| P/FCF | 20.96 | ||
| P/OCF | 17.18 | ||
| P/B | 3.57 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 14.53 |
EPS(TTM)9.8
EY5.34%
EPS(NY)11.89
Fwd EY6.47%
FCF(TTM)8.76
FCFY4.77%
OCF(TTM)10.69
OCFY5.82%
SpS87.15
BVpS51.44
TBVpS51.38
PEG (NY)1.02
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.82% | ||
| ROE | 17.69% | ||
| ROCE | 16.03% | ||
| ROIC | 12.67% | ||
| ROICexc | 25.2% | ||
| ROICexgc | 25.25% | ||
| OM | 9.65% | ||
| PM (TTM) | 10.44% | ||
| GM | 12.27% | ||
| FCFM | 10.05% |
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-Score6
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 136.37% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.84% | ||
| Profit Quality | 96.31% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.58 | ||
| Altman-Z | 9.05 |
F-Score6
WACC8.98%
ROIC/WACC1.41
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)24.37%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%25.48%
EPS Next Y18.44%
EPS Next 2Y15.72%
EPS Next 3Y16.2%
EPS Next 5YN/A
Revenue 1Y (TTM)14.83%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%16.97%
Revenue Next Year18.05%
Revenue Next 2Y15.52%
Revenue Next 3Y15.63%
Revenue Next 5YN/A
EBIT growth 1Y14.51%
EBIT growth 3Y22.56%
EBIT growth 5Y17.47%
EBIT Next Year37.25%
EBIT Next 3Y22.94%
EBIT Next 5YN/A
FCF growth 1Y187%
FCF growth 3Y70.03%
FCF growth 5Y23.2%
OCF growth 1Y123.07%
OCF growth 3Y51.55%
OCF growth 5Y22.89%