Fabrinet (FN) stock analysis

P/E above its 5-year median

Fabrinet's P/E of 28.3 is above its own 5-year median of 26.9.

P/E above the industry

Fabrinet's P/E of 28.3 is above the Communications Equipment median of 24.9.

EV/EBITDA above its 5-year median

Fabrinet's EV/EBITDA of 23.2 is above its 5-year median of 20.2.

P/B above the industry

Fabrinet's price-to-book of 5.39 is above the Communications Equipment median of 2.54.

Trading above fair value

The share price of $369.01 is above our fair value estimate of $319.67.

Margin of safety under 20%

The price is 15.4% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 20.6% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 24.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 42.3% over the last twelve months, against a 5-year average of 26.1% a year.

Growing faster than the industry

Revenue grew 35.7% over the last twelve months; the Communications Equipment median is 10.9%.

Guidance issued

The latest outlook (second quarter revenue, Nov 2, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 12.0% over the last twelve months, against 12.1% a year earlier.

Return on equity over 15%

Return on equity was 21.3% over the last twelve months and averaged 18.5% over five years.

Return on capital over 10%

Return on invested capital was 30.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Fabrinet's return on equity of 21.3% is above the Communications Equipment median of -3.7%.

Earnings grew over 5 years

Net income grew 26.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 10.2% over the last twelve months, against a 5-year average of 9.7%.

Net margin above the industry

Fabrinet's net margin of 10.2% is above the Communications Equipment median of -2.2%.

No debt

Fabrinet has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 2.25 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 8.48; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Fabrinet has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.