Fabrinet

Fabrinet

FNยทNYSE

$725.00

+16%
TechnologyHardware, Equipment & Parts

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.

At a Glance

Live Snapshot
Market Cap$25.98B
EPS9.2300
P/E Ratio78.55
Earnings Date08/17/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 78.5).

Valuation inputs: P/E 78.5, earnings yield +1.3%, momentum +16.5%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +16.8%, ROIC +15.0%).

Profitability stack: net margin +9.7%, ROE +16.8%, ROIC +15.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +30.0%, momentum +16.5%, net margin +9.7%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Fabrinet Market vs Earnings Trajectory

FN ยท NYSE

Loading price and EPS data...

Fabrinet

Fabrinet Fair Value Envelope

FN ยท NYSE

Our analysis suggests that FN has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $725, this represents a potential HIDDEN relative to our calculated worth for Fabrinet.

Intrinsic Value
Current Price: $725
3Y+70.0%
5Y+201.0%
10Y+434.0%
3Y+51.0%
5Y+108.0%
10Y+250.0%
3Y+66.0%
5Y+193.0%
10Y+437.0%
3Y+164.0%
5Y+118.0%
10Y+597.0%
3Y+514.0%
5Y+93.0%
10Y+3290.0%
3Y+54.0%
5Y+105.0%
10Y+231.0%
Fabrinet

Fabrinet Profit Bridge

FN ยท NYSE
Revenue3.42B
Cost of Goods Sold (3.01B)
Gross Profit413.35M
Operating Expenses (88.90M)
Operating Income324.45M
Interest Expense (0.00)
Other Income/Expense30.73M
Pretax Income355.18M
Income Tax (22.65M)
Net Income332.53M
Net Income
332.53M

Profitability Analysis

Gross Margin

12.1%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

9.5%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

9.7%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

6.4%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

12.09%
Gross Profit Margin
-2%
3Y-2.0%
5Y+7.0%
10Y-1.0%
9.49%
Operating Profit Margin
-1%
3Y+5.0%
5Y+33.0%
10Y+33.0%
9.72%
Net Profit Margin
-5%
3Y+10.0%
5Y+41.0%
10Y+53.0%
16.78%
Return on Equity
-1%
3Y+5.0%
5Y+44.0%
10Y+50.0%
11.74%
Return on Assets
-7%
3Y+8.0%
5Y+43.0%
10Y+62.0%
15.01%
Return on Invested Capital
1%
3Y-1.0%
5Y+43.0%
10Y+48.0%
FN

Fabrinet Cash Conversion Engine

FN ยท NYSE
Net Income332.53M
Depreciation & Amortization53.43M
Stock-Based Compensation33.00M
Change in Working Capital-89.16M
Others4.29M
Capital Expenditures-121.82M
Free Cash Flow206.55M

Cash Flow Quality Analysis

FCF Conversion Rate

62.1%

Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.

CapEx Intensity

37.1%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

-43.5%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$89.16M

Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.

Cash Flow Quality Insight

Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.

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Fabrinet Funding & Solvency Profile

FN ยท NYSE
Cash & Cash Equivalents356.56M
Net Receivables908.54M
Inventory875.99M
Other Current Assets177.48M
Total Current Assets3 B
Property, Plant & Equipment529.41M
Goodwill & Intangible Assets2.39M
Long-Term Investments694.00K
Other Non-Current Assets13.79M
Total Non-Current Assets544 M
Total Assets
3.51B

Financial Health Analysis

Current Ratio

2.55x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.52x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

2 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

84% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Fabrinet Street Expectations Map

FN ยท NYSE

Wall Street analysts project that FN stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 653.00, with estimates ranging from a low of 540.00 to a high of 800.00.

Lowest Target
540.00
-25.52%
Consensus Target
653.00
-9.93%
Highest Target
800.00
10.34%

The consensus 1-year price target stands at 653.00, with estimates ranging from a low of 540.00 to a high of 800.00.

Analyst Consensus Analysis

Upside Potential

-9.9%

Downside risk. Current price above analyst targets indicates potential overvaluation. Exercise caution and review catalysts.

Analyst Agreement

39.8% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Risk-Reward Profile

0.41x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Low

Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Fabrinet Insider Positioning

FN ยท NYSE

During the last 12 months, insiders have sold $2.26M worth of FN shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

2.5K

1.78M

Net Activity

-1.8M

-$1.78M

3-6 Months

Bought

0

0.00

Sold

770

479.30K

Net Activity

-479K

-$479K

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
BH

Bahrami Homa

Director

2.5K sharesโ€ข1 transactions

$1.78M

2
KTF

Kelly Thomas F

Director

770 sharesโ€ข1 transactions

$479K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $2.26M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$1.78M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

2 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Persistent selling pressure: Consistent insider selling with weak buy/sell ratio suggests insiders may be capitalizing on current valuation. Exercise caution and review recent earnings quality and management commentary.

No Dividend Yield Data

FN has not reported any dividend yield values in the available annual periods.

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fn Dividend History

FN
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%