Fabrinet (FN) Stock Analysis
Here is a fundamental analysis of Fabrinet (FN), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: FN | Industry group median |
|---|---|---|
| 1-Year Return | 137.77% | 69.29% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: FN | Industry group median |
|---|---|---|
| 1-Year Volatility | 67.00% | 53.66% |
| Beta | 1.19 | 1.32 |
Company Profile
| Profile Item | FN |
|---|---|
| Name | Fabrinet |
| Country/Region | Cayman Islands |
| GICS Sector | Information Technology |
| GICS Industry Group | Technology Hardware & Equipment |
| GICS Industry | Electronic Equipment, Instruments & Components |
| GICS Sub-Industry | Electronic Manufacturing Services |
| Market Capitalization | 21.89 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | June 25, 2010 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Fabrinet (FN) trades at P/E ratio of 52.36, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
FN
Technology Hardware & Equipment industry group
52.36
Group distribution
- Max
- 171.43
- Q3
- 83.19
- FN
- 52.36
- Median
- 39.13
- Q1
- 23.68
- Min
- 9.35
Largest peers
- STX
- 88.50
- SNDK
- 67.56
- ANET
- 56.10
- FN
- 52.36
- CSCO
- 40.37
- AAPL
- 35.20
- DELL
- 31.54
Price-to-Sales Ratio (TTM)
Fabrinet (FN) trades at 5.17 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
FN
Technology Hardware & Equipment industry group
5.17
Group distribution
- Max
- 19.39
- Q3
- 9.05
- FN
- 5.17
- Median
- 4.10
- Q1
- 1.42
- Min
- 0.00
Largest peers
- SNDK
- 22.24
- ANET
- 21.17
- STX
- 19.13
- AAPL
- 9.47
- CSCO
- 7.86
- FN
- 5.17
- DELL
- 1.91
Price-to-Book Ratio (MRQ)
Fabrinet (FN) trades at 9.50 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
FN
Technology Hardware & Equipment industry group
9.50
Group distribution
- Max
- 17.76
- FN
- 9.50
- Q3
- 9.32
- Median
- 4.56
- Q1
- 2.09
- Min
- -3.27
Largest peers
- STX
- 190.79
- AAPL
- 40.10
- SNDK
- 21.27
- ANET
- 15.24
- CSCO
- 9.77
- FN
- 9.50
- DELL
- -182.88
Valuation at a Glance
| Metric | Current stock: FN | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 52.36 | 39.13 |
| Price-to-Sales Ratio (TTM) | 5.17 | 4.10 |
| Price-to-Book Ratio (MRQ) | 9.50 | 4.56 |
| Free Cash Flow Yield | -0.36% | 1.95% |
Profitability
Return on Equity (TTM)
Fabrinet (FN) posts ROE of 19.99%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
FN
Technology Hardware & Equipment industry group
19.99%
Group distribution
- Max
- 44.16%
- FN
- 19.99%
- Q3
- 19.25%
- Median
- 10.96%
- Q1
- 0.71%
- Min
- -25.92%
Largest peers
- STX
- 1,787.97%
- AAPL
- 141.47%
- SNDK
- 39.30%
- ANET
- 31.52%
- CSCO
- 25.23%
- FN
- 19.99%
- DELL
- --
Net Profit Margin (TTM)
Fabrinet (FN) keeps 9.94% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
FN
Technology Hardware & Equipment industry group
9.94%
Group distribution
- Max
- 30.43%
- Q3
- 12.35%
- FN
- 9.94%
- Median
- 4.45%
- Q1
- 0.00%
- Min
- -14.09%
Largest peers
- ANET
- 38.32%
- SNDK
- 34.19%
- AAPL
- 27.15%
- STX
- 21.60%
- CSCO
- 19.69%
- FN
- 9.94%
- DELL
- 6.28%
Operating Profit Margin (TTM)
Fabrinet (FN) turns 9.89% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
FN
Technology Hardware & Equipment industry group
9.89%
Group distribution
- Max
- 35.67%
- Q3
- 15.55%
- FN
- 9.89%
- Median
- 6.62%
- Q1
- 1.55%
- Min
- -18.45%
Largest peers
- SNDK
- 69.98%
- ANET
- 42.74%
- STX
- 35.67%
- AAPL
- 32.28%
- CSCO
- 24.99%
- FN
- 9.89%
- DELL
- 8.86%
Profitability at a Glance
| Metric | Current stock: FN | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 19.99% | 10.96% |
| Return on Assets (TTM) | 8.52% | 4.31% |
| Net Profit Margin (TTM) | 9.94% | 4.45% |
| Operating Profit Margin (TTM) | 9.89% | 6.62% |
| Gross Profit Margin (TTM) | 12.04% | 38.82% |
Financial Strength
Current Ratio (MRQ)
Fabrinet (FN) has current ratio of 2.55, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
FN
Technology Hardware & Equipment industry group
2.55
Group distribution
- Max
- 5.80
- Q3
- 3.18
- FN
- 2.55
- Median
- 1.90
- Q1
- 1.28
- Min
- 0.40
Largest peers
- SNDK
- 4.78
- ANET
- 2.83
- FN
- 2.55
- STX
- 1.33
- AAPL
- 1.07
- DELL
- 0.95
- CSCO
- 0.93
Debt-to-Equity Ratio (MRQ)
Fabrinet (FN) has debt-to-equity ratio of 0.00, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.
FN
Technology Hardware & Equipment industry group
0.00
Group distribution
- Max
- 2.02
- Q3
- 0.88
- Median
- 0.31
- Q1
- 0.05
- FN
- 0.00
- Min
- 0.00
Largest peers
- STX
- 3.82
- AAPL
- 0.80
- CSCO
- 0.68
- SNDK
- 0.02
- FN
- 0.00
- DELL
- --
- ANET
- --
Financial Strength at a Glance
| Metric | Current stock: FN | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.55 | 1.90 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.31 |
| Net Debt / EBITDA | -1.96 | 0.91 |
Dividends
Dividend Yield (TTM)
Fabrinet (FN) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
FN
Technology Hardware & Equipment industry group
0.00%
Group distribution
- Max
- 1.30%
- Q3
- 0.54%
- FN
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CSCO
- 1.39%
- DELL
- 0.64%
- AAPL
- 0.37%
- STX
- 0.32%
- FN
- 0.00%
- SNDK
- 0.00%
- ANET
- 0.00%
Dividend Payout Ratio (TTM)
Fabrinet (FN) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
FN
Technology Hardware & Equipment industry group
0.00%
Group distribution
- Max
- 37.10%
- Q3
- 15.46%
- FN
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CSCO
- 55.00%
- STX
- 27.70%
- DELL
- 17.57%
- AAPL
- 12.59%
- FN
- 0.00%
- SNDK
- 0.00%
- ANET
- 0.00%
Dividends at a Glance
| Metric | Current stock: FN | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |