Fabrinet (FN) AI Stock Analysis

• Market Cap: $11.07B
• Dividend Yield: N/A
• Average Volume (3M): 500.05K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 2.00
• Revenue Growth: 17.14%
• EPS Growth: 18.90%
• Country: US
• Employees: 14,213
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.52
• Shares Outstanding: 35,830,654
• 10 Day Avg. Volume: 407,096
• 30 Day Avg. Volume: 500,053
• PEG Ratio: 100.37
• Price to Book (P/B): 5.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.73
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 26.62
• Enterprise Value/Ebitda: 7.16
• 1Y Price Target: $305.33
• Price Target Upside: -1.15% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 81 Outperform
• Price Target: $356.00 ▲(15.25%Upside)

Fabrinet's overall stock score is driven by strong financial performance and positive earnings call highlights, including robust sector growth and strategic partnerships. Technical indicators suggest current overbought conditions, and valuation metrics indicate potential overvaluation, which are factors to watch.

Positive Factors

Earnings

FN results exceeded expectations with significant growth driven by the Telecom segment.

Growth Strategy

Management remains committed to its massive Building 10 capacity expansion to meet anticipated demand.

New Contracts

The new Amazon contract is expected to have a material impact.

Negative Factors

Performance Issues

Datacom disappointed again likely due to NVDA share loss at 800G to aggressive industry pricing.

Product Launch Risks

Datacom segment struggled with a decline in performance ahead of new product launches.

Fabrinet Business Overview & Revenue Model

Company Description

Fabrinet (FN) is a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services. The company operates in the technology and telecommunications sectors, specializing in engineering and manufacturing services for original equipment manufacturers (OEMs) of complex products such as optical communications components, modules, and sub-systems. Fabrinet serves a diverse range of markets including data communications, telecommunications, and industrial and automotive applications.

How the Company Makes Money

Fabrinet makes money primarily through its contract manufacturing services. The company generates revenue by providing high-precision manufacturing services to OEMs, who outsource their manufacturing needs to Fabrinet to benefit from its expertise in optical and electro-mechanical assembly. Key revenue streams include the production of optical communication products, which are crucial for data transmission and telecommunications networks. Fabrinet's partnerships with leading technology companies ensure a steady demand for its services. Additionally, the company benefits from long-term contracts and repeat business due to the high cost and complexity of switching manufacturing partners, which contributes significantly to its earnings.

Fabrinet Financial Statement Overview

Summary

Fabrinet demonstrates strong financial health with robust revenue growth, solid profit margins, low leverage, and effective cash flow management. Minor concerns include increased capital expenditures affecting free cash flow growth.

Income Statement

Fabrinet exhibits strong revenue growth with a TTM (Trailing-Twelve-Months) total revenue increase from previous years. Gross profit margin and net profit margin have remained robust, demonstrating effective cost control and profitability. The EBIT and EBITDA margins are healthy, indicating solid operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting prudent financial leverage and strong equity position. Return on equity is impressive, reflecting efficient use of shareholders' funds to generate profit. The equity ratio is solid, indicating a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow is strong relative to net income, indicating good cash conversion. However, the free cash flow growth rate is negative, reflecting higher capital expenditures. The free cash flow to net income ratio remains positive, showing the company can generate cash beyond its net income.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.88B	2.65B	2.26B	1.88B	1.64B
Gross Profit	356.12M	336.27M	278.59M	221.36M	186.10M
EBITDA	326.01M	304.81M	245.20M	187.05M	152.12M
Net Income	296.18M	247.91M	200.38M	148.34M	113.48M
Balance Sheet
Total Assets	2.34B	1.98B	1.84B	1.62B	1.38B
Cash, Cash Equivalents and Short-Term Investments	858.60M	550.47M	478.15M	547.93M	488.12M
Total Debt	4.99M	13.42M	31.24M	45.96M	59.52M
Total Liabilities	592.77M	510.99M	581.96M	503.60M	407.57M
Stockholders Equity	1.75B	1.47B	1.25B	1.11B	974.41M
Cash Flow
Free Cash Flow	365.62M	151.04M	33.66M	74.18M	107.15M
Operating Cash Flow	413.15M	213.31M	124.25M	118.67M	150.66M
Investing Cash Flow	-169.75M	-98.72M	-135.54M	-5.44M	-71.25M
Financing Cash Flow	-64.85M	-80.98M	-92.93M	-42.75M	-35.30M

Fabrinet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 308.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 308.89 is above the 20-day moving average (MA) of 297.29, above the 50-day MA of 265.63, and above the 200-day MA of 233.76, indicating a bullish trend. The MACD of 12.00 indicates Positive momentum. The RSI at 67.32 is Neutral, neither overbought nor oversold. The STOCH value of 69.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FN.

Fabrinet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FN	81 Outperform	$11.07B	34.43	18.30%	―	17.14%	18.90%
SANM	77 Outperform	$5.27B	22.81	11.03%	―	-1.50%	1.84%
ITRI	74 Outperform	$6.20B	24.79	17.73%	―	7.10%	58.52%
MKSI	74 Outperform	$6.67B	29.65	9.50%	0.88%	-1.14%	―
COHR	73 Outperform	$15.57B	―	1.25%	―	21.68%	92.07%
PLXS	68 Neutral	$3.34B	20.97	12.12%	―	2.31%	48.63%
Sector *	63 Neutral	S$646.40M	16.17	0.69%	3.51%	-0.63%	-32.22%

Fabrinet Corporate Events

Fabrinet Director Rollance Olson Announces Retirement

On May 22, 2025, Rollance Olson informed Fabrinet‘s board of directors of his decision to retire and not seek re-election at the 2025 annual general meeting. His retirement was not due to any disagreements with the company’s operations, policies, or practices.

The most recent analyst rating on (FN) stock is a Hold with a $230.00 price target. To see the full list of analyst forecasts on Fabrinet stock, see the FN Stock Forecast page.