Fabrinet (FN)
NYSE:FN
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Fabrinet
(NYSE:FN)
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Rating:79Outperform
Price Target:
$635.00
▼(-7.96% Downside)
Action:ReiteratedDate:02/25/26
The score is driven by strong financial quality (growth, profitability, and an extremely low-leverage balance sheet) and a very upbeat earnings outlook with robust guidance. Technicals also support the thesis via a strong uptrend, though momentum looks somewhat stretched. The main constraint is valuation, with a high P/E and no dividend support, alongside cash-flow variability that bears monitoring.
Positive Factors
Balance sheet strength
An almost debt-free balance sheet provides durable financial flexibility to fund capex, absorb revenue cyclicality, and pursue capacity buildouts without refinancing risk. This lowers financial distress probability and preserves operational optionality across multi-quarter industry cycles.
Negative Factors
Free cash flow volatility
Material swings in free cash flow and weaker cash conversion indicate working-capital sensitivity and reinvestment timing risk. Over multiple quarters, this can constrain discretionary investment, pressure liquidity during down cycles, and increase reliance on near-term operational execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
An almost debt-free balance sheet provides durable financial flexibility to fund capex, absorb revenue cyclicality, and pursue capacity buildouts without refinancing risk. This lowers financial distress probability and preserves operational optionality across multi-quarter industry cycles.
Read all positive factors
Fabrinet (FN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.72B
Dividend YieldN/A
Average Volume (3M)669.16K
Price to Earnings (P/E)38.0
Beta (1Y)2.09
Revenue Growth19.71%
EPS Growth14.83%
CountryUS
Employees14,213
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)3.36
Shares Outstanding35,826,120
10 Day Avg. Volume660,724
30 Day Avg. Volume669,156
Financial Highlights & Ratios
PEG Ratio2.47
Price to Book (P/B)5.37
Price to Sales (P/S)3.11
P/FCF Ratio51.55
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue6.19
Enterprise Value/Gross Profit51.56
Enterprise Value/Ebitda52.64
Forecast
1Y Price Target
$561.88Price Target Upside-18.56% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)13.58
Revenue Forecast (FY)$4.54B
Fabrinet Business Overview & Revenue Model
Company 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 advanced optical and electro-mechanical capabilities...
How the Company Makes Money
Fabrinet makes money by providing contract manufacturing services to OEM customers and recognizing revenue from the sale of manufactured products and assemblies it builds to customer specifications. Its core revenue stream is manufacturing and ass...
Fabrinet Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue by region, exposing where Fabrinet earns sales and how dependent it is on particular markets such as North America, Asia, or Europe. Geographic trends highlight demand shifts, supply‑chain and geopolitical risk, and currency exposure, and show whether the company’s manufacturing footprint supports customer proximity and growth in key markets. Useful for assessing revenue stability and where future expansion or vulnerability may lie.
Breaks down revenue by region, exposing where Fabrinet earns sales and how dependent it is on particular markets such as North America, Asia, or Europe. Geographic trends highlight demand shifts, supply‑chain and geopolitical risk, and currency exposure, and show whether the company’s manufacturing footprint supports customer proximity and growth in key markets. Useful for assessing revenue stability and where future expansion or vulnerability may lie.
Data provided by:
The Fly
The FlyFabrinet Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based growth: record revenue and EPS, robust telecom/DCI and rapidly expanding HPC and non-optical businesses, plus confident guidance and aggressive capacity expansion funded from a strong balance sheet. Headwinds are present but appear manageable: FX pressures, recent component-driven datacom constraints (mitigating with approved second sources), a small quarterly free cash flow outflow, and lumpy early-stage HPC ramps. Overall the positives—significant revenue and earnings beats, strong margins/operating leverage, clear capacity plans, and upbeat guidance—substantially outweigh the manageable challenges.Positive Updates
Record Revenue
Q2 revenue of $1.13 billion, a company record, up 36% year-over-year and 16% sequentially.
Negative Updates
Datacom Year-over-Year Decline
Datacom revenue of $278 million declined 7% year-over-year, though it did increase 2% sequentially and management expects sequential improvement as supply dynamics ease.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue
Q2 revenue of $1.13 billion, a company record, up 36% year-over-year and 16% sequentially.
Read all positive updates
Company Guidance
Fabrinet guided Q3 revenue of $1.15–$1.20 billion (about 35% year‑over‑year growth at the midpoint) and non‑GAAP EPS of $3.45–$3.60 (≈40% YoY growth at the midpoint), saying they expect sequential revenue growth in telecom, datacom and HPC while anticipating a modest sequential decline in automotive; management cautioned FX headwinds will persist but said they plan to offset them with continued operating leverage, noting their hedging program implies roughly a 20–30 basis‑point gross‑margin headwind versus the prior quarter (Q2 results were $1.13B revenue, +36% YoY and +16% QoQ, and non‑GAAP EPS of $3.36 which included a $3.0M / $0.09 FX revaluation loss).Fabrinet Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.89B | 3.42B | 2.88B | 2.65B | 2.26B | 1.88B |
| Gross Profit | 467.60M | 413.35M | 356.12M | 336.27M | 278.59M | 221.36M |
| EBITDA | 458.04M | 408.61M | 360.50M | 305.40M | 246.14M | 187.84M |
| Net Income | 374.09M | 332.53M | 296.18M | 247.91M | 200.38M | 148.34M |
Balance Sheet | ||||||
| Total Assets | 3.27B | 2.83B | 2.34B | 1.98B | 1.84B | 1.62B |
| Cash, Cash Equivalents and Short-Term Investments | 960.77M | 934.24M | 858.60M | 550.47M | 478.15M | 547.93M |
| Total Debt | 8.08M | 9.15M | 8.63M | 13.42M | 31.15M | 45.96M |
| Total Liabilities | 1.08B | 849.62M | 592.77M | 510.99M | 581.96M | 503.60M |
| Stockholders Equity | 2.18B | 1.98B | 1.75B | 1.47B | 1.25B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 101.79M | 206.55M | 365.62M | 151.04M | 33.66M | 74.18M |
| Operating Cash Flow | 278.11M | 328.37M | 413.15M | 213.31M | 124.25M | 122.16M |
| Investing Cash Flow | -276.34M | -286.30M | -169.75M | -98.72M | -135.54M | -8.93M |
| Financing Cash Flow | -86.30M | -147.01M | -64.85M | -80.98M | -92.93M | -42.75M |
Fabrinet Technical Analysis
Positive
689.89
Price Trends
534.20
Positive
499.49
Positive
427.94
Positive
Market Momentum
29.85
Negative
68.66
Neutral
92.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FN, the sentiment is Positive. The current price of 689.89 is above the 20-day moving average (MA) of 561.01, above the 50-day MA of 534.20, and above the 200-day MA of 427.94, indicating a bullish trend. The MACD of 29.85 indicates Negative momentum. The RSI at 68.66 is Neutral, neither overbought nor oversold. The STOCH value of 92.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FN.
Fabrinet Risk Analysis
Fabrinet disclosed 41 risk factors in its most recent earnings report. Fabrinet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fabrinet Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $23.72B | 38.01 | 18.39% | ― | 19.71% | 14.83% | |
74 Outperform | $6.10B | 24.74 | 12.39% | ― | 1.82% | 56.52% | |
69 Neutral | $31.60B | 31.64 | 58.99% | 0.14% | 13.18% | -38.37% | |
69 Neutral | $18.09B | 36.46 | 11.54% | 0.54% | 8.13% | 780.20% | |
66 Neutral | $8.07B | 42.40 | 9.86% | ― | 7.40% | 13.79% | |
63 Neutral | $57.65B | 48.81 | 3.58% | ― | 20.80% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FN
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501.38
265.97%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.