Executive Summary
Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe.
Rewards
Risk Analysis
No risks detected for FAN from our risk checks.
Snowflake Analysis
Excellent balance sheet with proven track record.
Similar Companies
Share Price & News
How has Fabrinet's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FAN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-4.1%
FAN
-0.4%
DE Electronic
0.1%
DE Market
1 Year Return
20.5%
FAN
10.9%
DE Electronic
14.1%
DE Market
Return vs Industry: FAN exceeded the German Electronic industry which returned 10.9% over the past year.
Return vs Market: FAN exceeded the German Market which returned 14.1% over the past year.
Shareholder returns
| FAN | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.1% | -0.4% | 0.1% |
| 30 Day | -1.7% | 7.3% | 0.2% |
| 90 Day | 8.3% | 6.3% | 3.3% |
| 1 Year | 20.5%20.5% | 13.4%10.9% | 17.6%14.1% |
| 3 Year | 25.7%25.7% | 47.9%43.0% | 14.8%4.8% |
| 5 Year | 287.8%287.8% | 113.8%98.5% | 22.2%5.4% |
Price Volatility Vs. Market
How volatile is Fabrinet's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Fabrinet undervalued compared to its fair value and its price relative to the market?
4.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FAN (€58.5) is trading below our estimate of fair value (€61.02)
Significantly Below Fair Value: FAN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FAN is good value based on its PE Ratio (20.2x) compared to the Electronic industry average (33.9x).
PE vs Market: FAN is good value based on its PE Ratio (20.2x) compared to the German market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: FAN is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: FAN is overvalued based on its PB Ratio (2.6x) compared to the DE Electronic industry average (1.8x).
Next Steps
Future Growth
How is Fabrinet forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
13.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FAN's forecast earnings growth (13.1% per year) is above the savings rate (-0.4%).
Earnings vs Market: FAN's earnings (13.1% per year) are forecast to grow slower than the German market (13.3% per year).
High Growth Earnings: FAN's earnings are forecast to grow, but not significantly.
Revenue vs Market: FAN's revenue (11% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: FAN's revenue (11% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FAN's Return on Equity is forecast to be low in 3 years time (14.8%).
Next Steps
Past Performance
How has Fabrinet performed over the past 5 years?
18.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FAN has high quality earnings.
Growing Profit Margin: FAN's current net profit margins (7.3%) are higher than last year (7.1%).
Past Earnings Growth Analysis
Earnings Trend: FAN's earnings have grown by 18.2% per year over the past 5 years.
Accelerating Growth: FAN's earnings growth over the past year (15.3%) is below its 5-year average (18.2% per year).
Earnings vs Industry: FAN earnings growth over the past year (15.3%) exceeded the Electronic industry -3.9%.
Return on Equity
High ROE: FAN's Return on Equity (12.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Fabrinet's financial position?
Financial Position Analysis
Short Term Liabilities: FAN's short term assets ($1.1B) exceed its short term liabilities ($313.4M).
Long Term Liabilities: FAN's short term assets ($1.1B) exceed its long term liabilities ($73.3M).
Debt to Equity History and Analysis
Debt Level: FAN's debt to equity ratio (6.6%) is considered satisfactory.
Reducing Debt: FAN's debt to equity ratio has increased from 3.1% to 6.6% over the past 5 years.
Debt Coverage: FAN's debt is well covered by operating cash flow (211.7%).
Interest Coverage: FAN earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: FAN has a high level of physical assets or inventory.
Debt Coverage by Assets: FAN's debt is covered by short term assets (assets are 17.3x debt).
Next Steps
Dividend
What is Fabrinet's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate FAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate FAN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FAN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FAN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: FAN is not paying a notable dividend for the German market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of FAN's dividend in 3 years as they are not forecast to pay a notable one for the German market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Seamus Grady (52yo)
2.4yrs
Tenure
US$5,733,172
Compensation
Mr. Seamus Grady has been Chief Executive Officer and Director at Fabrinet since September 22, 2017. Mr. Grady served as Executive Vice President and Chief Operating Officer, Mechanical Systems Division, a ...
CEO Compensation Analysis
Compensation vs Market: Seamus's total compensation ($USD5.73M) is above average for companies of similar size in the German market ($USD2.01M).
Compensation vs Earnings: Insufficient data to compare Seamus's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 20.1yrs | US$591.05k | 0.23% $5.1m | |
| CEO & Director | 2.4yrs | US$5.73m | 0.28% $6.3m | |
| President & COO | 0yrs | US$6.37m | 0.17% $3.9m | |
| Executive VP & CFO | 7.9yrs | US$5.09m | no data | |
| VP & General Counsel | 3.5yrs | no data | no data | |
| Executive Vice President of Corporate Development | 2.1yrs | no data | no data | |
| Executive Vice President of Sales & Marketing | 0.8yrs | no data | 0.071% $1.6m | |
| Senior Vice President of Europe | 0yrs | no data | no data |
2.4yrs
Average Tenure
65yo
Average Age
Experienced Management: FAN's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 20.1yrs | US$591.05k | 0.23% $5.1m | |
| CEO & Director | 2.4yrs | US$5.73m | 0.28% $6.3m | |
| Independent Director | 1yrs | US$179.73k | no data | |
| Independent Director | 19.1yrs | US$298.47k | 0.11% $2.6m | |
| Independent Director | 7.5yrs | US$291.85k | 0.055% $1.2m | |
| Independent Director | 9.3yrs | US$307.97k | 0.10% $2.2m | |
| Lead Independent Director | 9.1yrs | US$315.97k | 0.11% $2.5m |
9.1yrs
Average Tenure
66yo
Average Age
Experienced Board: FAN's board of directors are considered experienced (9.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FAN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Fabrinet's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Fabrinet
- Ticker: FAN
- Exchange: DB
- Founded: 1999
- Industry: Electronic Manufacturing Services
- Sector: Tech
- Market Cap: US$2.408b
- Listing Market Cap: US$2.226b
- Shares outstanding: 37.05m
- Website: https://www.fabrinet.com
Number of Employees
Location
- Fabrinet
- 190 Elgin Avenue
- George Town
- Grand Cayman
- KY1-9005
- Cayman Islands
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FN | NYSE (New York Stock Exchange) | Yes | Ordinary Shares | US | USD | Jun 2010 |
| FAN | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2010 |
Biography
Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company’s products also comprise tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. In addition, it provides solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. Further, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components, and substrates; and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company was incorporated in 1999 and is based in George Town, the Cayman Islands.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 21:58 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/12/27 |
| Annual Earnings | 2019/06/28 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.