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FN

FabrinetNYSE:FN Stock Report

Market Cap

US$4.0b

7D

6.2%

1Y

72.7%

Updated

27 Sep, 2021

Data

Company Financials +
FN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends0/6

FN Overview

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe.

Fabrinet Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fabrinet
Historical stock prices
Current Share PriceUS$108.81
52 Week HighUS$59.45
52 Week LowUS$109.56
Beta1.02
1 Month Change7.36%
3 Month Change12.56%
1 Year Change72.71%
3 Year Change139.88%
5 Year Change143.37%
Change since IPO912.19%

Recent News & Updates

Sep 22
Should You Be Adding Fabrinet (NYSE:FN) To Your Watchlist Today?

Should You Be Adding Fabrinet (NYSE:FN) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

FNUS ElectronicUS Market
7D6.2%2.6%2.0%
1Y72.7%48.1%32.8%

Return vs Industry: FN exceeded the US Electronic industry which returned 48.1% over the past year.

Return vs Market: FN exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is FN's price volatile compared to industry and market?
FN volatility
FN Beta1.02
Industry Beta1.32
Market Beta1

Stable Share Price: FN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199912,189Seamus Gradyhttps://www.fabrinet.com

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.

Fabrinet Fundamentals Summary

How do Fabrinet's earnings and revenue compare to its market cap?
FN fundamental statistics
Market CapUS$4.00b
Earnings (TTM)US$148.34m
Revenue (TTM)US$1.88b

27.0x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FN income statement (TTM)
RevenueUS$1.88b
Cost of RevenueUS$1.66b
Gross ProfitUS$221.36m
ExpensesUS$73.02m
EarningsUS$148.34m

Last Reported Earnings

Jun 25, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.03
Gross Margin11.78%
Net Profit Margin7.89%
Debt/Equity Ratio3.6%

How did FN perform over the long term?

See historical performance and comparison

Valuation

Is Fabrinet undervalued compared to its fair value and its price relative to the market?

19.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FN ($108.81) is trading below our estimate of fair value ($134.98)

Significantly Below Fair Value: FN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FN is poor value based on its PE Ratio (27x) compared to the US Electronic industry average (21.8x).

PE vs Market: FN is poor value based on its PE Ratio (27x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FN is overvalued based on its PB Ratio (3.6x) compared to the US Electronic industry average (2.7x).


Future Growth

How is Fabrinet forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FN's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if FN's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FN's revenue (9.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: FN's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FN's Return on Equity is forecast to be low in 3 years time (15.5%).


Past Performance

How has Fabrinet performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FN has high quality earnings.

Growing Profit Margin: FN's current net profit margins (7.9%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: FN's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: FN's earnings growth over the past year (30.7%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: FN earnings growth over the past year (30.7%) underperformed the Electronic industry 40.3%.


Return on Equity

High ROE: FN's Return on Equity (13.3%) is considered low.


Financial Health

How is Fabrinet's financial position?


Financial Position Analysis

Short Term Liabilities: FN's short term assets ($1.4B) exceed its short term liabilities ($444.4M).

Long Term Liabilities: FN's short term assets ($1.4B) exceed its long term liabilities ($59.2M).


Debt to Equity History and Analysis

Debt Level: FN's debt to equity ratio (3.6%) is considered satisfactory.

Reducing Debt: FN's debt to equity ratio has reduced from 10.9% to 3.6% over the past 5 years.

Debt Coverage: FN's debt is well covered by operating cash flow (300.3%).

Interest Coverage: FN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Fabrinet current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FN is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Seamus Grady (54 yo)

4yrs

Tenure

US$7,843,473

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 ($USD7.84M) is above average for companies of similar size in the US market ($USD5.22M).

Compensation vs Earnings: Seamus's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: FN's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: FN's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FN 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 employee growth, exchange listings and data sources


Key Information

  • Name: Fabrinet
  • Ticker: FN
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$4.004b
  • Shares outstanding: 36.80m
  • Website: https://www.fabrinet.com

Number of Employees


Location

  • Fabrinet
  • 190 Elgin Avenue
  • George Town
  • Grand Cayman
  • KY1-9005
  • Cayman Islands

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:01
End of Day Share Price2021/09/27 00:00
Earnings2021/06/25
Annual Earnings2021/06/25


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.