FABRINET (FN) Stock Fundamental Analysis
USA - NYSE:FN - KYG3323L1005 - Common Stock
449.29 USD
-17.94 (-3.84%)
450.45 USD
+1.16 (+0.26%)
We assign a fundamental rating of 7 out of 10 to FN. FN was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. FN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FN shows excellent growth, but is valued quite expensive already. These ratings would make FN suitable 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.
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 11.67%. This is amongst the best in the industry. FN outperforms 91.06% of its industry peers.
FN's Return On Equity of 17.03% is amongst the best of the industry. FN outperforms 85.37% of its industry peers.
The Return On Invested Capital of FN (12.89%) is better than 88.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FN is above the industry average of 9.58%.
| 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 is in the better half of the industry, outperforming 78.86% of the companies in the same industry.
In the last couple of years the Profit Margin of FN has grown nicely.
With a decent Operating Margin value of 9.55%, FN is doing good in the industry, outperforming 75.61% of the companies in the same industry.
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 76.42% of its industry peers.
In the last couple of years the Gross Margin of FN has remained more or less at the same level.
| 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
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
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
FN has an Altman-Z score of 13.41. This indicates that FN is financially healthy and has little risk of bankruptcy at the moment.
FN has a Altman-Z score of 13.41. This is amongst the best in the industry. FN outperforms 91.87% 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 | 13.41 |
ROIC/WACC1.41
WACC9.15%
2.3 Liquidity
A Current Ratio of 2.83 indicates that FN has no problem at all paying its short term obligations.
FN has a Current ratio of 2.83. This is in the better half of the industry: FN outperforms 60.98% of its industry peers.
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 better Quick ratio (2.03) than 60.16% 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.
FN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.15% yearly.
Looking at the last year, FN shows a quite strong growth in Revenue. The Revenue has grown by 19.71% in the last year.
FN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.80% yearly.
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 21.20% on average per year.
The Revenue is expected to grow by 17.26% on average over the next years. This is quite good.
EPS Next Y23.62%
EPS Next 2Y20.03%
EPS Next 3Y21.2%
EPS Next 5YN/A
Revenue Next Year17.95%
Revenue Next 2Y16.66%
Revenue Next 3Y17.26%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FN is valuated quite expensively with a Price/Earnings ratio of 41.99.
Compared to the rest of the industry, the Price/Earnings ratio of FN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FN to the average of the S&P500 Index (26.35), we can say FN is valued expensively.
The Price/Forward Earnings ratio is 30.66, which means the current valuation is very expensive for FN.
FN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of FN to the average of the S&P500 Index (33.72), we can say FN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.99 | ||
| Fwd PE | 30.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FN is on the same level as its industry peers.
FN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.92 | ||
| EV/EBITDA | 36.18 |
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 a very decent 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 21.20% in the coming years.
PEG (NY)1.78
PEG (5Y)1.9
EPS Next 2Y20.03%
EPS Next 3Y21.2%
5. Dividend
5.1 Amount
No dividends for FN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
449.29
-17.94 (-3.84%)
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-2.06%
Ins Owners0.29%
Ins Owner Change-0.99%
Market Cap16.05B
Revenue(TTM)3.59B
Net Income(TTM)351.06M
Analysts78.89
Price Target368.49 (-17.98%)
Short Float %5.25%
Short Ratio2.79
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)11.57%
PT rev (3m)32.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)0.26%
EPS NY rev (3m)5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.45%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.99 | ||
| Fwd PE | 30.66 | ||
| P/S | 4.47 | ||
| P/FCF | 79.92 | ||
| P/OCF | 46.16 | ||
| P/B | 7.79 | ||
| P/tB | 7.8 | ||
| EV/EBITDA | 36.18 |
EPS(TTM)10.7
EY2.38%
EPS(NY)14.65
Fwd EY3.26%
FCF(TTM)5.62
FCFY1.25%
OCF(TTM)9.73
OCFY2.17%
SpS100.57
BVpS57.69
TBVpS57.63
PEG (NY)1.78
PEG (5Y)1.9
Graham Number117.85
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 | 13.41 |
F-Score3
WACC9.15%
ROIC/WACC1.41
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 3Y21.2%
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 3Y17.26%
Revenue Next 5YN/A
EBIT growth 1Y18.04%
EBIT growth 3Y16.77%
EBIT growth 5Y22.58%
EBIT Next Year40.75%
EBIT Next 3Y25.47%
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%.