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Fabrinet

NYSE:FN
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FN
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The last earnings update was 41 days ago. More info.


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FN Share Price and Events
7 Day Returns
-2.9%
NYSE:FN
3%
US Electronic
2.9%
US Market
1 Year Returns
64.5%
NYSE:FN
-1%
US Electronic
1.4%
US Market
FN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fabrinet (FN) -2.9% -1.7% 6.3% 64.5% 90.6% 170.5%
US Electronic 3% 2.3% 17.7% -1% 59.1% 59.1%
US Market 2.9% 2.5% 10% 1.4% 38.3% 42%
1 Year Return vs Industry and Market
  • FN outperformed the Electronic industry which returned -1% over the past year.
  • FN outperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
FN
Industry
5yr Volatility vs Market

Value

 Is Fabrinet undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fabrinet to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fabrinet.

NYSE:FN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:FN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.071 (1 + (1- 21%) (3.2%))
1.066
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.066 * 5.96%)
9.08%

Discounted Cash Flow Calculation for NYSE:FN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fabrinet is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:FN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.08%)
2019 134.50 Analyst x1 123.30
2020 148.20 Analyst x1 124.55
2021 159.45 Est @ 7.59% 122.84
2022 169.22 Est @ 6.13% 119.52
2023 177.87 Est @ 5.11% 115.17
2024 185.69 Est @ 4.4% 110.22
2025 192.93 Est @ 3.9% 104.98
2026 199.77 Est @ 3.55% 99.65
2027 206.37 Est @ 3.3% 94.37
2028 212.83 Est @ 3.13% 89.22
Present value of next 10 years cash flows $1,103.82
NYSE:FN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $212.83 × (1 + 2.73%) ÷ (9.08% – 2.73%)
$3,441.60
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,441.60 ÷ (1 + 9.08%)10
$1,442.77
NYSE:FN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,103.82 + $1,442.77
$2,546.59
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,546.59 / 36.85
$69.11
NYSE:FN Discount to Share Price
Calculation Result
Value per share (USD) From above. $69.11
Current discount Discount to share price of $54.31
= -1 x ($54.31 - $69.11) / $69.11
21.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Fabrinet is available for.
Intrinsic value
21%
Share price is $54.31 vs Future cash flow value of $69.11
Current Discount Checks
For Fabrinet to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fabrinet's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Fabrinet's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Fabrinet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fabrinet's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:FN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-28) in USD $2.80
NYSE:FN Share Price ** NYSE (2019-03-15) in USD $54.31
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.59x
United States of America Market PE Ratio Median Figure of 3,054 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fabrinet.

NYSE:FN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FN Share Price ÷ EPS (both in USD)

= 54.31 ÷ 2.80

19.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fabrinet is good value based on earnings compared to the US Electronic industry average.
  • Fabrinet is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Fabrinet's expected growth come at a high price?
Raw Data
NYSE:FN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
19.1%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.38x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

NYSE:FN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.42x ÷ 19.1%

1.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fabrinet is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Fabrinet's assets?
Raw Data
NYSE:FN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-28) in USD $21.75
NYSE:FN Share Price * NYSE (2019-03-15) in USD $54.31
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.11x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NYSE:FN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FN Share Price ÷ Book Value per Share (both in USD)

= 54.31 ÷ 21.75

2.5x

* Primary Listing of Fabrinet.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fabrinet is overvalued based on assets compared to the US Electronic industry average.
X
Value checks
We assess Fabrinet's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Fabrinet has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fabrinet expected to grow at an attractive rate?
  • Fabrinet's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Fabrinet's earnings growth is expected to exceed the United States of America market average.
  • Fabrinet's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:FN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:FN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 19.1%
NYSE:FN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 14.2%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:FN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:FN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 2,758 1
2022-06-30 2,398 1
2021-06-30 2,085 1
2020-06-30 1,712 182 138 5
2019-06-30 1,568 138 118 5
NYSE:FN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-28 1,458 170 103
2018-09-28 1,392 176 91
2018-06-29 1,372 138 84
2018-03-30 1,397 100 89
2017-12-29 1,432 88 89
2017-09-29 1,446 69 95
2017-06-30 1,420 71 97
2017-03-31 1,326 66 89
2016-12-30 1,210 43 89
2016-09-30 1,092 42 83
2016-06-24 977 47 62
2016-03-25 907 54 55

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fabrinet's earnings are expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).
  • Fabrinet's revenue is expected to grow by 14.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:FN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Fabrinet Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30
2020-06-30 3.45 3.45 3.45 1.00
2019-06-30 3.11 3.11 3.11 1.00
NYSE:FN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-28 2.80
2018-09-28 2.46
2018-06-29 2.26
2018-03-30 2.38
2017-12-29 2.39
2017-09-29 2.56
2017-06-30 2.63
2017-03-31 2.44
2016-12-30 2.44
2016-09-30 2.30
2016-06-24 1.73
2016-03-25 1.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Fabrinet will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Fabrinet's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fabrinet has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Fabrinet performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fabrinet's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fabrinet's year on year earnings growth rate has been positive over the past 5 years.
  • Fabrinet's 1-year earnings growth exceeds its 5-year average (15.3% vs 7.4%)
  • Fabrinet's earnings growth has not exceeded the US Electronic industry average in the past year (15.3% vs 48.8%).
Earnings and Revenue History
Fabrinet's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fabrinet Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-28 1,457.80 103.18 54.47
2018-09-28 1,391.79 90.98 54.90
2018-06-29 1,371.93 84.17 56.14
2018-03-30 1,397.05 88.80 54.51
2017-12-29 1,431.68 89.40 58.82
2017-09-29 1,445.76 95.38 63.21
2017-06-30 1,420.49 97.12 61.96
2017-03-31 1,326.42 89.38 59.51
2016-12-30 1,210.48 88.55 54.72
2016-09-30 1,092.36 83.06 50.89
2016-06-24 976.75 61.90 49.75
2016-03-25 906.82 55.26 47.63
2015-12-25 845.38 45.29 45.00
2015-09-25 800.70 34.21 41.60
2015-06-26 773.59 43.64 39.46
2015-03-27 727.22 40.94 34.93
2014-12-26 705.42 77.76 32.61
2014-09-26 695.63 83.57 29.21
2014-06-27 677.85 91.73 27.66
2014-03-28 677.70 96.54 26.30
2013-12-27 665.60 70.00 25.75
2013-09-27 654.47 72.15 24.62
2013-06-28 641.54 68.97 23.79
2013-03-29 624.37 61.28 23.37
2012-12-28 607.83 -6.17 23.16
2012-09-28 537.01 -56.10 22.69
2012-06-29 564.73 -56.47 23.47
2012-03-30 612.32 -47.27 25.06

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Fabrinet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Fabrinet used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
  • Fabrinet has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fabrinet's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Fabrinet has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Fabrinet's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fabrinet's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fabrinet is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fabrinet's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Fabrinet's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 14.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Fabrinet Company Filings, last reported 2 months ago.

NYSE:FN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-28 801.53 64.09 382.50
2018-09-28 766.16 64.22 352.36
2018-06-29 740.94 65.16 332.37
2018-03-30 735.54 66.22 311.85
2017-12-29 721.77 69.65 284.23
2017-09-29 707.46 68.07 263.27
2017-06-30 681.57 72.47 285.28
2017-03-31 649.10 76.12 289.24
2016-12-30 619.67 69.17 256.13
2016-09-30 585.03 71.95 253.56
2016-06-24 554.42 60.41 284.51
2016-03-25 530.70 50.00 272.77
2015-12-25 506.22 55.50 266.56
2015-09-25 483.98 39.00 247.59
2015-06-26 478.94 40.50 255.84
2015-03-27 463.68 42.00 254.34
2014-12-26 450.03 13.50 253.27
2014-09-26 439.55 15.00 244.68
2014-06-27 426.84 16.50 233.48
2014-03-28 415.01 21.66 233.66
2013-12-27 365.48 24.08 180.06
2013-09-27 346.03 26.49 163.86
2013-06-28 325.32 28.91 149.72
2013-03-29 309.01 31.33 157.48
2012-12-28 286.20 33.75 128.10
2012-09-28 268.11 36.16 115.39
2012-06-29 250.71 38.58 115.51
2012-03-30 242.52 41.00 125.41
  • Fabrinet's level of debt (8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (6.6% vs 8% today).
  • Debt is well covered by operating cash flow (265.7%, greater than 20% of total debt).
  • Fabrinet earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Fabrinet's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Fabrinet has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Fabrinet dividends.
If you bought $2,000 of Fabrinet shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Fabrinet's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Fabrinet's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:FN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:FN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30
2020-06-30
2019-06-30
NYSE:FN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2011-11-07 0.000 0.000
2011-08-31 0.000 0.000
2011-08-15 0.000 0.000
2011-05-04 0.000 0.000
2011-05-02 0.000 0.000
2011-02-02 0.000 0.000
2011-01-31 0.000 0.000
2010-11-03 0.000 0.000
2010-09-08 0.000 0.000
2010-06-25 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Fabrinet has not reported any payouts.
  • Unable to verify if Fabrinet's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Fabrinet's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Fabrinet has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Fabrinet's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fabrinet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fabrinet has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Fabrinet's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Seamus Grady
COMPENSATION $5,199,931
AGE 51
TENURE AS CEO 1.5 years
CEO Bio

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, at Sanmina Corporation from October 2012 to May 2017. Mr. Grady held various operations roles at Sanmina beginning in 2000, including as Senior Vice President Medical Division from June 2011 to October 2012 and Senior Vice President Global Medical Operations from March 2009 to June 2011. From 1999 to 2000, Mr. Grady served as Director of Materials and Supply Chain Management at Lucent Technologies Inc. (formerly Ascend Communications). From 1989 to 1999, Mr. Grady served in a variety of operations roles at Manufacturers Services Limited. Mr. Grady holds a B. Tech in Manufacturing Technology from the National University of Ireland, Galway (NUIG).

CEO Compensation
  • Insufficient data for Seamus to compare compensation growth.
  • Seamus's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Fabrinet management team in years:

2
Average Tenure
64.5
Average Age
  • The tenure for the Fabrinet management team is about average.
Management Team

Tom Mitchell

TITLE
Founder & Chairman
COMPENSATION
$12M
AGE
76

Seamus Grady

TITLE
CEO & Director
COMPENSATION
$5M
AGE
51
TENURE
1.5 yrs

Harpal Gill

TITLE
President & COO
COMPENSATION
$5M
AGE
65

TS Ng

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
64
TENURE
7 yrs

Colin Campbell

TITLE
VP & General Counsel
TENURE
2.6 yrs

Mark O’Connor

TITLE
Executive Vice President of Corporate Development
TENURE
1.2 yrs

George Mitchell

TITLE
Senior Vice President of Europe
Board of Directors Tenure

Average tenure and age of the Fabrinet board of directors in years:

8.2
Average Tenure
65
Average Age
  • The tenure for the Fabrinet board of directors is about average.
Board of Directors

Tom Mitchell

TITLE
Founder & Chairman
COMPENSATION
$12M
AGE
76
TENURE
19.2 yrs

Seamus Grady

TITLE
CEO & Director
COMPENSATION
$5M
AGE
51
TENURE
1.5 yrs

Frank Levinson

TITLE
Director
COMPENSATION
$260K
AGE
65
TENURE
18.2 yrs

Tom Kelly

TITLE
Director
COMPENSATION
$267K
AGE
65
TENURE
8.4 yrs

Homa Bahrami

TITLE
Director
COMPENSATION
$254K
AGE
63
TENURE
6.6 yrs

Rollie Olson

TITLE
Lead Independent Director
COMPENSATION
$354K
AGE
75
TENURE
8.2 yrs

Greg Dougherty

TITLE
Director
AGE
58
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • Fabrinet insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
26. Feb 19 Sell Toh-Seng Ng Individual 22. Feb 19 25. Feb 19 -24,518 $58.85 $-1,423,731
21. Feb 19 Sell Rollance Olson Individual 19. Feb 19 19. Feb 19 -5,000 $55.62 $-278,080
15. Feb 19 Sell Thomas Kelly Individual 14. Feb 19 14. Feb 19 -3,000 $54.79 $-164,364
15. Feb 19 Sell Toh-Seng Ng Individual 14. Feb 19 15. Feb 19 -20,000 $55.03 $-1,094,560
30. Nov 18 Sell Toh-Seng Ng Individual 28. Nov 18 29. Nov 18 -30,000 $52.91 $-1,580,850
30. Nov 18 Sell Harpal Gill Individual 28. Nov 18 28. Nov 18 -33,479 $52.00 $-1,740,908
16. Nov 18 Sell Seamus Grady Individual 15. Nov 18 15. Nov 18 -6,081 $51.54 $-313,396
31. Aug 18 Sell Toh-Seng Ng Individual 29. Aug 18 31. Aug 18 -40,000 $47.95 $-1,911,180
29. Aug 18 Sell Toh-Seng Ng Individual 27. Aug 18 27. Aug 18 -20,000 $47.77 $-955,440
24. Aug 18 Sell Rollance Olson Individual 23. Aug 18 23. Aug 18 -5,000 $48.03 $-240,130
30. May 18 Sell Harpal Gill Individual 29. May 18 29. May 18 -16,041 $37.05 $-594,287
26. May 18 Sell Harpal Gill Individual 25. May 18 25. May 18 -40,044 $37.04 $-1,483,070
22. May 18 Sell Harpal Gill Individual 22. May 18 22. May 18 -27,898 $37.05 $-1,033,677
22. May 18 Sell Harpal Gill Individual 21. May 18 21. May 18 -21,457 $37.06 $-795,089
X
Management checks
We assess Fabrinet's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Fabrinet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why We’re Not Keen On Fabrinet’s (NYSE:FN) 12% Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Fabrinet (NYSE:FN): Should The Recent Earnings Drop Worry You?

After looking at Fabrinet's (NYSE:FN) latest earnings update (28 September 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … Was FN's recent earnings decline indicative of a tough track record. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 5.9%, indicating the rate at which FN is growing has slowed down

Simply Wall St -

Investors Are Undervaluing Fabrinet (NYSE:FN) By 38.59%

How far off is Fabrinet (NYSE:FN) from its intrinsic value? … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

What Should Investors Know About Fabrinet's (NYSE:FN) Capital Returns?

As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand Fabrinet’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Does Fabrinet's (NYSE:FN) PE Ratio Signal A Selling Opportunity?

But can investors make a closing judgement of the company’s value based on this low multiple. … The answer is no, since important variables like the company’s potential to grow and debt levels are ignored in the PE’s calculation … In this article, I am going to take you through some key things to consider in order to identify which multiple is the most relevant for

Simply Wall St -

Should You Buy Fabrinet (NYSE:FN) At US$036.23?

Fabrinet (NYSE:FN), a electronic company based in Cayman Islands,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Fabrinet’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Fabrinet (NYSE:FN) Has Attractive Fundamentals, Here's Why

Fabrinet (NYSE:FN) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … is a company that has been able to sustain great financial health, trading at an attractive share price.

Simply Wall St -

Can Fabrinet's (NYSE:FN) ROE Continue To Surpass The Industry Average?

Check out our latest analysis for Fabrinet What you must know about ROE Return on Equity (ROE) weighs Fabrinet’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Fabrinet’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:FN Last Perf Jun 7th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Should Fabrinet's (NYSE:FN) Recent Earnings Worry You?

After looking at Fabrinet's (NYSE:FN) latest earnings announcement (29 December 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … View our latest analysis for Fabrinet Have FN's earnings improved against past performances and the industry? … For Fabrinet, its most recent earnings (trailing twelve month) is US$89.40M, which, against last year’s level, Given that these values may be fairly short-term, I’ve estimated an annualized five-year value for Fabrinet's earnings, which stands at US$52.78M This means that, on average, Fabrinet has been able to increase its earnings over the past few years.

Simply Wall St -

Is There An Opportunity With Fabrinet's (NYSE:FN) 47% Undervaluation?

The sum of these cash flows is then discounted to today's value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $106.40 $120.40 $142.07 $166.22 $192.82 Source Analyst x1 Analyst x1 Extrapolated @ (18%, capped from 20.39%) Extrapolated @ (17%, capped from 20.39%) Extrapolated @ (16%, capped from 20.39%) Present Value Discounted @ 9.44% $97.23 $100.53 $108.40 $115.89 $122.85 Present Value of 5-year Cash Flow (PVCF)= $545 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … NYSE:FN Intrinsic Value Apr 17th 18 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Company Info

Description

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 optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, packaging, integration, final assembly, and test. Its products comprise switching products, such as 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 and speeds, and over various distances; tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as for Infiniband, Ethernet, fiber channel, and optical backplane connectivity. The company also offers 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. In addition, it designs and fabricates application-specific crystals, lenses, prisms, mirrors, and laser components and substrates, as well as other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. The company serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, medical devices, and sensors. Fabrinet was incorporated in 1999 and is based in George Town, the Cayman Islands.

Details
Name: Fabrinet
FN
Exchange: NYSE
Founded: 1999
$2,001,272,231
36,849,056
Website: http://www.fabrinet.com
Address: Fabrinet
190 Elgin Avenue,
George Town,
Grand Cayman, KY1-9005,
Cayman Islands
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FN Ordinary Shares New York Stock Exchange US USD 25. Jun 2010
DB FAN Ordinary Shares Deutsche Boerse AG DE EUR 25. Jun 2010
Number of employees
Current staff
Staff numbers
10,579
Fabrinet employees.
Industry
Electronic Manufacturing Services
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 00:18
End of day share price update: 2019/03/15 00:00
Last estimates confirmation: 2019/03/11
Last earnings filing: 2019/02/05
Last earnings reported: 2018/12/28
Last annual earnings reported: 2018/06/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.