Fabrinet (FN)
NYSE:FN
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Fabrinet
(NYSE:FN)
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Rating:79Outperform
Price Target:
$809.00
▲(17.27% Upside)
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
Extremely conservative balance sheet
An almost debt-free capital structure provides durable financial flexibility: management can fund capex, absorb cyclical dips, and pursue capacity expansion without refinancing risk or covenant pressure. This materially lowers insolvency risk and supports multi-year organic growth investments.
Negative Factors
Free cash flow volatility
Material swings in free cash flow reflect working-capital swings and higher reinvestment. Over a multi-quarter horizon this can constrain discretionary returns, slow buybacks or force tradeoffs between capex and liquidity despite a strong balance sheet, raising execution risk on planned ramps.
Read all positive and negative factors
Positive Factors
Negative Factors
Extremely conservative balance sheet
An almost debt-free capital structure provides durable financial flexibility: management can fund capex, absorb cyclical dips, and pursue capacity expansion without refinancing risk or covenant pressure. This materially lowers insolvency risk and supports multi-year organic growth investments.
Read all positive factors
Fabrinet (FN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.31B
Dividend YieldN/A
Average Volume (3M)663.17K
Price to Earnings (P/E)38.0
Beta (1Y)1.99
Revenue Growth24.65%
EPS Growth16.84%
CountryUS
Employees14,213
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)10.53
Shares Outstanding35,826,120
10 Day Avg. Volume697,539
30 Day Avg. Volume663,169
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 Cap0.99
Enterprise Value/Revenue6.42
Enterprise Value/Gross Profit53.47
Enterprise Value/Ebitda54.58
Forecast
1Y Price Target
$766.25Price Target Upside11.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)13.62
Revenue Forecast (FY)$4.55B
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:Aug 24, 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
551.59
Positive
510.50
Positive
435.70
Positive
Market Momentum
41.19
Negative
66.58
Neutral
85.31
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 594.81, above the 50-day MA of 551.59, and above the 200-day MA of 435.70, indicating a bullish trend. The MACD of 41.19 indicates Negative momentum. The RSI at 66.58 is Neutral, neither overbought nor oversold. The STOCH value of 85.31 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 | $25.31B | 38.01 | 18.39% | ― | 24.65% | 16.84% | |
73 Outperform | $7.09B | 27.85 | 12.83% | ― | 8.64% | 32.91% | |
70 Outperform | $11.97B | 18.96 | 7.33% | ― | 44.48% | 8.59% | |
69 Neutral | $36.13B | 31.64 | 58.99% | 0.14% | 19.00% | 78.70% | |
69 Neutral | $18.81B | 36.46 | 11.54% | 0.54% | 9.59% | 55.93% | |
67 Neutral | $64.34B | 48.81 | 3.58% | ― | 18.63% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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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.