Fabrinet

Utilities
Telecommunications Equipment
www.fabrinet.com

Earnings Score
Moat Score

Market Cap $7.44B
PE 23
Debt -
Cash $403.66M
EV -
FCF $314.58M

Earnings

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Sales & Net Margins

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Earnings	$326.01M
EBIT	$343.94M
ROE	18%
ROA	14%
FCF	$314.58M
Equity	$1.84B
Growth Stability	100%
PE	22.83
PEG	0.87
PB	4.04
P/FCF	23.66
P/S	2.38
Price/Cash	0.05
Net Margins	10%
Gross Margins	12%
Op. Margins	11%
Earnings CAGR	19%
Sales Growth YoY	17%
Sales Growth QoQ	4%
Sales CAGR	13%
FCF CAGR	41%
Equity CAGR	15%
Earnings Stability	0.95
Earnings Growth YoY	25%

Earnings Growth QoQ	12%
Earnings CAGR 5Y	26%
Sales CAGR 5Y	16%
FCF CAGR 5Y	37%
Equity CAGR 5Y	16%
Earnings CAGR 3Y	13%
Sales CAGR 3Y	13%
FCF CAGR 3Y	121%
Equity CAGR 3Y	17%
Market Cap	$7.44B
Revenue	$3.12B
Assets	$2.54B
Cash	$403.66M
Shares Outstanding	35.98M
Earnings Score	95%
Moat Score	93%
Working Capital	1.54B
Current Ratio	3.32
Gross Profit	$383.26M
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	14%

Assets & ROA

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Stockholders Equity & ROE

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Fabrinet is a United States-based company that is principally engaged in providing outsourced manufacturing services to original equipment manufacturers (OEM). These OEM customers are mainly companies in complex industries that require precision manufacturing capabilities. The company offers a wide range of optical and electro-mechanical manufacturing capabilities across the whole producing process. It helps its customers to manufacture various products, such as selective switching products, active optical cables, tunable transponders and transceivers, lasers, and sensors. The company generates the majority of revenue from North America and Asia-Pacific, with the rest from Europe.

SEC Filings

Direct access to Fabrinet (FN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Dec 27
- 10-Q Sep 27
- 10-K Jun 28
- 10-Q Mar 29
2023
- 10-Q Dec 29
- 10-Q Sep 29
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 30
- 10-Q Sep 30
- 10-K Jun 24
- 10-Q Mar 25

Sector Comparison

How does Fabrinet compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Fabrinet compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 19%

Stability 95%

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Fabrinet Discounted Cash Flow

Fully customizable DCF calculator online for Fabrinet.

Years

Calculation mode

= $55B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$315M	$445M	$629M	$889M	$1.3B	$1.8B	$2.5B	$3.6B	$5B	$7.1B	$10B	$100B
DCF		$404M	$520M	$668M	$858M	$1.1B	$1.4B	$1.8B	$2.3B	$3B	$3.9B	$39B
Value	$55B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	6%	6%	7%	6%	8%	7%	8%	9%	9%	10%	10%
ROA	-	8%	10%	9%	10%	9%	9%	11%	13%	13%	14%
ROE	-	11%	14%	11%	14%	12%	13%	16%	17%	17%	18%

Good Net Margins (10.02%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	3.8	18.11	0.03	0.47	0.48	0.52	0.79	0.08	0	-
Debt over Equity	0.08	0.04	0.07	0	0.07	0.05	0.04	0.02	0.01	0	-
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	26%	45%	-3%	15%	4%	14%	20%	17%	9%	16%
Earnings YoY growth	-	42%	57%	-13%	44%	-6%	31%	35%	24%	19%	26%
Equity YoY growth	-	16%	23%	9%	16%	13%	14%	13%	17%	19%	16%
FCF YoY growth	-	426%	-59%	4K%	23%	-16%	-30%	-54%	338%	141%	37%