FABRINET (FN) Stock Fundamental Analysis
USA - NYSE:FN - KYG3323L1005 - Common Stock
407.55 USD
-2.35 (-0.57%)
407.39 USD
-0.16 (-0.04%)
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 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. With these ratings, FN could be worth investigating further 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
Looking at the Return On Assets, with a value of 11.74%, FN belongs to the top of the industry, outperforming 91.06% of the companies in the same industry.
With an excellent Return On Equity value of 16.78%, FN belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
FN has a Return On Invested Capital of 12.73%. This is amongst the best in the industry. FN outperforms 89.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FN is above the industry average of 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 16.78% | ||
| ROIC | 12.73% |
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
The Profit Margin of FN (9.72%) is better than 81.30% of its industry peers.
In the last couple of years the Profit Margin of FN has grown nicely.
FN has a Operating Margin of 9.53%. This is in the better half of the industry: FN outperforms 75.61% of its industry peers.
FN's Operating Margin has improved in the last couple of years.
FN has a Gross Margin of 12.09%. This is in the lower half of the industry: FN underperforms 75.61% of its industry peers.
FN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.53% | ||
| PM (TTM) | 9.72% | ||
| GM | 12.09% |
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.
Compared to 1 year ago, FN has less shares outstanding
Compared to 5 years ago, FN has less shares outstanding
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 13.59 indicates that FN is not in any danger for bankruptcy at the moment.
The Altman-Z score of FN (13.59) is better than 90.24% 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 | 13.59 |
ROIC/WACC1.4
WACC9.12%
2.3 Liquidity
FN has a Current Ratio of 3.00. This indicates that FN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.00, FN is in the better half of the industry, outperforming 61.79% of the companies in the same industry.
A Quick Ratio of 2.28 indicates that FN has no problem at all paying its short term obligations.
FN has a Quick ratio of 2.28. This is in the better half of the industry: FN outperforms 64.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.53% over the past year.
Measured over the past years, FN shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.15% on average per year.
The Revenue has grown by 18.60% 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 15.80% on average per year.
EPS 1Y (TTM)14.53%
EPS 3Y18.38%
EPS 5Y22.15%
EPS Q2Q%9.96%
Revenue 1Y (TTM)18.6%
Revenue growth 3Y14.76%
Revenue growth 5Y15.8%
Sales Q2Q%20.77%
3.2 Future
FN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.45% yearly.
The Revenue is expected to grow by 16.65% on average over the next years. This is quite good.
EPS Next Y23.3%
EPS Next 2Y19.78%
EPS Next 3Y20.45%
EPS Next 5YN/A
Revenue Next Year17.74%
Revenue Next 2Y16.52%
Revenue Next 3Y16.65%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 40.07, the valuation of FN can be described as expensive.
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 (27.69), we can say FN is valued slightly more expensively.
A Price/Forward Earnings ratio of 32.50 indicates a quite expensive valuation of FN.
The rest of the industry has a similar Price/Forward Earnings ratio as FN.
FN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.07 | ||
| Fwd PE | 32.5 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as FN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.5 | ||
| EV/EBITDA | 34.27 |
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 20.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.72
PEG (5Y)1.81
EPS Next 2Y19.78%
EPS Next 3Y20.45%
5. Dividend
5.1 Amount
No dividends for FN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
407.55
-2.35 (-0.57%)
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-0.43%
Ins Owners0.29%
Ins Owner Change-0.99%
Market Cap14.56B
Analysts78.89
Price Target330.28 (-18.96%)
Short Float %5.46%
Short Ratio2.76
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)0
Avg EPS beat(2)-2.18%
Min EPS beat(2)-2.44%
Max EPS beat(2)-1.91%
EPS beat(4)1
Avg EPS beat(4)-1.37%
Min EPS beat(4)-2.55%
Max EPS beat(4)1.4%
EPS beat(8)4
Avg EPS beat(8)1.57%
EPS beat(12)7
Avg EPS beat(12)1.82%
EPS beat(16)9
Avg EPS beat(16)1.84%
Revenue beat(2)0
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.19%
Revenue beat(4)1
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)3
Avg Revenue beat(12)-0.21%
Revenue beat(16)5
Avg Revenue beat(16)-0.47%
PT rev (1m)0%
PT rev (3m)26.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)0%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.07 | ||
| Fwd PE | 32.5 | ||
| P/S | 4.26 | ||
| P/FCF | 70.5 | ||
| P/OCF | 44.35 | ||
| P/B | 7.35 | ||
| P/tB | 7.36 | ||
| EV/EBITDA | 34.27 |
EPS(TTM)10.17
EY2.5%
EPS(NY)12.54
Fwd EY3.08%
FCF(TTM)5.78
FCFY1.42%
OCF(TTM)9.19
OCFY2.25%
SpS95.7
BVpS55.47
TBVpS55.41
PEG (NY)1.72
PEG (5Y)1.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 16.78% | ||
| ROCE | 16.12% | ||
| ROIC | 12.73% | ||
| ROICexc | 23.68% | ||
| ROICexgc | 23.72% | ||
| OM | 9.53% | ||
| PM (TTM) | 9.72% | ||
| GM | 12.09% | ||
| FCFM | 6.04% |
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%
ROICexcg growth 3Y6.17%
ROICexcg 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-Score4
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 227.98% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.57% | ||
| Profit Quality | 62.12% | ||
| Current Ratio | 3 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 13.59 |
F-Score4
WACC9.12%
ROIC/WACC1.4
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)14.53%
EPS 3Y18.38%
EPS 5Y22.15%
EPS Q2Q%9.96%
EPS Next Y23.3%
EPS Next 2Y19.78%
EPS Next 3Y20.45%
EPS Next 5YN/A
Revenue 1Y (TTM)18.6%
Revenue growth 3Y14.76%
Revenue growth 5Y15.8%
Sales Q2Q%20.77%
Revenue Next Year17.74%
Revenue Next 2Y16.52%
Revenue Next 3Y16.65%
Revenue Next 5YN/A
EBIT growth 1Y17.38%
EBIT growth 3Y16.77%
EBIT growth 5Y22.58%
EBIT Next Year40.75%
EBIT Next 3Y24.74%
EBIT Next 5YN/A
FCF growth 1Y-43.37%
FCF growth 3Y83.07%
FCF growth 5Y14.03%
OCF growth 1Y-20.52%
OCF growth 3Y38.26%
OCF growth 5Y16.86%