Fabrinet
FN
Telephone & Telegraph Apparatus
Mkt Cap
$8.889BPE
32.22Debt
$3.039MCash
$385.1MEV
$8.507BFCF
$348.4MP/E Ratio
32.22Debt
$3.039MCash
$385.1MEV
$8.507BFCF
$348.4MCharts data: {"Earnings":[{"time":"2014-06-26","value":91731000},{"time":"2015-06-25","value":43642000},{"time":"2016-06-23","value":61897000},{"time":"2017-06-29","value":97115000},{"time":"2018-06-28","value":84167000},{"time":"2019-06-27","value":120955000},{"time":"2020-06-25","value":113479000},{"time":"2021-06-24","value":148341000},{"time":"2022-06-23","value":200380000},{"time":"2023-06-29","value":247913000}],"Sales":[{"time":"2014-06-26","value":677854000},{"time":"2015-06-25","value":773587000},{"time":"2016-06-23","value":976747000},{"time":"2017-06-29","value":1420490000},{"time":"2018-06-28","value":1371925000},{"time":"2019-06-27","value":1584335000},{"time":"2020-06-25","value":1641836000},{"time":"2021-06-24","value":1879350000},{"time":"2022-06-23","value":2262224000},{"time":"2023-06-29","value":2645237000}],"Net Margins":[{"time":"2014-06-26","value":0.13532560108813993},{"time":"2015-06-25","value":0.05641511555907739},{"time":"2016-06-23","value":0.06337055552768527},{"time":"2017-06-29","value":0.06836725355335131},{"time":"2018-06-28","value":0.061349563569437104},{"time":"2019-06-27","value":0.07634433374254813},{"time":"2020-06-25","value":0.06911713471991113},{"time":"2021-06-24","value":0.07893207758001437},{"time":"2022-06-23","value":0.08857655121685562},{"time":"2023-06-29","value":0.09372052485278257}],"Assets":[{"time":"2014-06-26","value":564557000},{"time":"2015-06-25","value":672503000},{"time":"2016-06-23","value":856450000},{"time":"2017-06-29","value":1033075000},{"time":"2018-06-28","value":1088018000},{"time":"2019-06-27","value":1255318000},{"time":"2020-06-25","value":1381387000},{"time":"2021-06-24","value":1616122000},{"time":"2022-06-23","value":1835641000},{"time":"2023-06-29","value":1979648000}],"Stockholders Equity":[{"time":"2014-06-26","value":426836000},{"time":"2015-06-25","value":478944000},{"time":"2016-06-23","value":554419000},{"time":"2017-06-29","value":681574000},{"time":"2018-06-28","value":740939000},{"time":"2019-06-27","value":863099000},{"time":"2020-06-25","value":974409000},{"time":"2021-06-24","value":1112520000},{"time":"2022-06-23","value":1253682000},{"time":"2023-06-29","value":1468658000}],"ROE":[{"time":"2014-06-26","value":0.21490923914571405},{"time":"2015-06-25","value":0.09112130019375961},{"time":"2016-06-23","value":0.11164299924786128},{"time":"2017-06-29","value":0.14248636244927182},{"time":"2018-06-28","value":0.11359504628586159},{"time":"2019-06-27","value":0.14014035469859193},{"time":"2020-06-25","value":0.11645931020752066},{"time":"2021-06-24","value":0.13333782763455937},{"time":"2022-06-23","value":0.15983319533980705},{"time":"2023-06-29","value":0.1688024032824524}],"ROA":[{"time":"2014-06-26","value":0.16629498881423843},{"time":"2015-06-25","value":0.07173499597771311},{"time":"2016-06-23","value":0.08150621752583338},{"time":"2017-06-29","value":0.10374658180674201},{"time":"2018-06-28","value":0.08623386745439873},{"time":"2019-06-27","value":0.1048451468074225},{"time":"2020-06-25","value":0.08852407037274855},{"time":"2021-06-24","value":0.09379489914746535},{"time":"2022-06-23","value":0.11274862568443395},{"time":"2023-06-29","value":0.13138497349023665}]}
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 in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company's products also comprise tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. In addition, it provides solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. Further, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components, and substrates; and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company was incorporated in 1999 and is based in George Town, the Cayman Islands.
DCF
Discounted Cash Flow Valuation of Fabrinet
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $348.4M | $452.9M | $576.2M | $717.1M | $872.5M | $1.037B | $1.204B | $1.365B | $1.509B | $1.626B | $1.708B | $17.08B |
| DCF | $393.9M | $435.7M | $471.5M | $498.8M | $515.7M | $520.7M | $513.1M | $493.3M | $462.3M | $422.1M | $4.221B | |
| Value | $8.948B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 21%
Earnings Stability 93%
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 5.6% | 6.3% | 6.8% | 6.1% | 7.6% | 6.9% | 7.9% | 8.9% | 9.4% | 9.9% |
| ROA | 7.2% | 8.2% | 10% | 8.6% | 10% | 8.9% | 9.4% | 11% | 13% | 13% |
| ROE | 9.1% | 11% | 14% | 11% | 14% | 12% | 13% | 16% | 17% | 17% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +7.8%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.6%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +10.29%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.73%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +13.87%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +1.01%.
Safety & Stabiliy
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 29.24 | 3.80 | 18.11 | 0.03 | 0.47 | 0.48 | 0.52 | 0.79 | 0.08 | 0.01 |
| Debt Equity | 0.08 | 0.04 | 0.07 | 0.00 | 0.07 | 0.05 | 0.04 | 0.02 | 0.01 | 0.00 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 0.01.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.04.
What is the Graham’s Stability?
Graham’s Stability measure stands at 1.00.
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 | 06-2016 | 06-2018 | 06-2020 | 06-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 15% | 14% | 17% | 17% | -1% |
| Net Income | 22% | 24% | 30% | 24% | 4% |
| Stockholders Equity | 15% | 15% | 15% | 17% | -0.046% |
| FCF | 57% | 7.8% | 12% | 340% | -58% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +14.03%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -1.02%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +24.12%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +3.99%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +14.66%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -0.05%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +7.83%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -57.59%.