FABRINET (FN) Stock Fundamental Analysis
NYSE:FN - New York Stock Exchange, Inc. - KYG3323L1005 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to FN. FN was compared to 125 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.
Each year in the past 5 years FN had a positive operating cash flow.
1.2 Ratios
FN has a better Return On Assets (12.46%) than 92.80% of its industry peers.
FN's Return On Equity of 17.11% is amongst the best of the industry. FN outperforms 87.20% of its industry peers.
FN has a Return On Invested Capital of 12.60%. This is amongst the best in the industry. FN outperforms 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 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 17.11% | ||
| ROIC | 12.6% |
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
FN's Profit Margin of 10.00% is amongst the best of the industry. FN outperforms 83.20% of its industry peers.
In the last couple of years the Profit Margin of FN has grown nicely.
Looking at the Operating Margin, with a value of 9.50%, FN is in the better half of the industry, outperforming 79.20% of the companies in the same industry.
FN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 12.09%, FN is not doing good in the industry: 72.80% of the companies in the same industry are doing better.
FN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 10% | ||
| GM | 12.09% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FN is creating some value.
Compared to 1 year ago, FN has about the same amount of shares outstanding.
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
An Altman-Z score of 10.28 indicates that FN is not in any danger for bankruptcy at the moment.
FN's Altman-Z score of 10.28 is amongst the best of the industry. FN outperforms 91.20% 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 | 10.28 |
ROIC/WACC1.35
WACC9.34%
2.3 Liquidity
FN has a Current Ratio of 3.32. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
FN's Current ratio of 3.32 is fine compared to the rest of the industry. FN outperforms 72.80% of its industry peers.
A Quick Ratio of 2.54 indicates that FN has no problem at all paying its short term obligations.
FN has a Quick ratio of 2.54. This is in the better half of the industry: FN outperforms 71.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.21% over the past year.
FN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.44% yearly.
FN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.13%.
The Revenue has been growing by 12.72% on average over the past years. This is quite good.
EPS 1Y (TTM)19.21%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%5.44%
Revenue 1Y (TTM)17.13%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%19.17%
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 15.97% on average per year.
Based on estimates for the next years, FN will show a quite strong growth in Revenue. The Revenue will grow by 14.43% on average per year.
EPS Next Y17.75%
EPS Next 2Y15.87%
EPS Next 3Y15.97%
EPS Next 5YN/A
Revenue Next Year18.49%
Revenue Next 2Y15.37%
Revenue Next 3Y14.43%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
FN is valuated rather expensively with a Price/Earnings ratio of 22.86.
66.40% of the companies in the same industry are more expensive than FN, based on the Price/Earnings ratio.
FN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 19.04, which indicates a rather expensive current valuation of FN.
FN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FN is cheaper than 64.00% 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 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 19.04 |
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 65.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.86 | ||
| EV/EBITDA | 18.07 |
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.
FN's earnings are expected to grow with 15.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)1.24
EPS Next 2Y15.87%
EPS Next 3Y15.97%
5. Dividend
5.1 Amount
No dividends for FN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
226.97
-1.32 (-0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners106.36%
Inst Owner Change4.76%
Ins Owners0.28%
Ins Owner Change0.1%
Market Cap8.13B
Analysts77.65
Price Target256.92 (13.2%)
Short Float %4.32%
Short Ratio1.71
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)-0.26%
Min EPS beat(2)-1.91%
Max EPS beat(2)1.4%
EPS beat(4)2
Avg EPS beat(4)0.29%
Min EPS beat(4)-2.55%
Max EPS beat(4)4.22%
EPS beat(8)5
Avg EPS beat(8)1.89%
EPS beat(12)8
Avg EPS beat(12)2.51%
EPS beat(16)10
Avg EPS beat(16)2.27%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.61%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-0.25%
Revenue beat(12)3
Avg Revenue beat(12)-0.35%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)-7.1%
PT rev (3m)-4.95%
EPS NQ rev (1m)-1.8%
EPS NQ rev (3m)-2.76%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 19.04 | ||
| P/S | 2.49 | ||
| P/FCF | 29.86 | ||
| P/OCF | 22.82 | ||
| P/B | 4.26 | ||
| P/tB | 4.27 | ||
| EV/EBITDA | 18.07 |
EPS(TTM)9.93
EY4.38%
EPS(NY)11.92
Fwd EY5.25%
FCF(TTM)7.6
FCFY3.35%
OCF(TTM)9.95
OCFY4.38%
SpS91.07
BVpS53.23
TBVpS53.17
PEG (NY)1.29
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 17.11% | ||
| ROCE | 15.95% | ||
| ROIC | 12.6% | ||
| ROICexc | 24.66% | ||
| ROICexgc | 24.71% | ||
| OM | 9.5% | ||
| PM (TTM) | 10% | ||
| GM | 12.09% | ||
| FCFM | 8.35% |
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-Score7
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 162.68% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.51% | ||
| Profit Quality | 83.44% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.54 | ||
| Altman-Z | 10.28 |
F-Score7
WACC9.34%
ROIC/WACC1.35
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)19.21%
EPS 3Y23.89%
EPS 5Y18.44%
EPS Q2Q%5.44%
EPS Next Y17.75%
EPS Next 2Y15.87%
EPS Next 3Y15.97%
EPS Next 5YN/A
Revenue 1Y (TTM)17.13%
Revenue growth 3Y15.33%
Revenue growth 5Y12.72%
Sales Q2Q%19.17%
Revenue Next Year18.49%
Revenue Next 2Y15.37%
Revenue Next 3Y14.43%
Revenue Next 5YN/A
EBIT growth 1Y16.26%
EBIT growth 3Y22.56%
EBIT growth 5Y17.47%
EBIT Next Year37.25%
EBIT Next 3Y22.94%
EBIT Next 5YN/A
FCF growth 1Y173.15%
FCF growth 3Y70.03%
FCF growth 5Y23.2%
OCF growth 1Y124.82%
OCF growth 3Y51.55%
OCF growth 5Y22.89%