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Fabrinet
(NYSE:FN)
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Rating:66Neutral
Price Target:
$521.00
▲(9.44% Upside)
Action:Downgraded
Date:08/19/26
The score is driven by strong fundamentals (rapid revenue growth, solid profitability, and an exceptionally low-debt balance sheet) and a generally positive earnings outlook/guidance. These positives are tempered by weak technical positioning (price below major moving averages), a high valuation multiple (P/E ~45), and the key fundamental watch item: 2026 cash flow deterioration with free cash flow near breakeven.
Positive Factors
Strong Revenue and Earnings Growth
Fabrinet is scaling rapidly while converting growth into earnings, indicating strong customer demand and effective execution. Sustained expansion across multiple end markets could support revenue and profit growth over the next several quarters.
Negative Factors
Sharp Free-Cash-Flow Compression
Near-breakeven free cash flow weakens earnings quality and reduces internally generated funds available for expansion. Although capacity investment may support future growth, prolonged working-capital needs or heavy capital spending could constrain financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and Earnings Growth
Fabrinet is scaling rapidly while converting growth into earnings, indicating strong customer demand and effective execution. Sustained expansion across multiple end markets could support revenue and profit growth over the next several quarters.
Read all positive factors
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.
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The Fly
The FlyFabrinet (FN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.45B
Dividend YieldN/A
Average Volume (3M)966.86K
Price to Earnings (P/E)45.3
Beta (1Y)1.89
Revenue Growth35.73%
EPS Growth43.02%
CountryUS
Employees16,457
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)13.21
Shares Outstanding35,829,740
10 Day Avg. Volume709,379
30 Day Avg. Volume966,860
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)7.66
Price to Sales (P/S)4.05
P/FCF Ratio4.45K
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$726.00Price Target Upside52.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)17.39
Revenue Forecast (FY)$5.69B
Fabrinet Business Overview & Revenue Model
Company Description
Fabrinet (FN) is a contract manufacturing and advanced optical packaging company that provides design, manufacturing, and supply-chain services for complex products, primarily for the optical communications market and select industrial, automotive...
How the Company Makes Money
Fabrinet makes money by providing outsourced manufacturing services to original equipment manufacturers (OEMs) and component companies that design the end products but rely on Fabrinet to build, assemble, package, and test them at scale. Revenue i...
Fabrinet Earnings Call Summary
Earnings Call Date:Aug 17, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall: management reported record quarterly and annual revenue and EPS growth, accelerating data‑center demand (data center revenue +68% YoY), broad‑based strength across communications infrastructure and automotive/industrial, and aggressive capacity expansions with clear runway to materially increase revenue capacity. Offsetting risks include ongoing component supply constraints (affecting near‑term sequencing), a $57M Thailand tax provision and a $57M accounting gain (both non‑cash in nature but adding volatility), modest YoY gross margin compression, and heavy near‑term capital deployment that produced a small full‑year free cash flow result. On balance, the highlights (strong top‑line acceleration, operating leverage, capacity expansion, and confident guidance) outweigh the lowlights, but investors should monitor supply chain execution, tax/regulatory outcomes in Thailand, and cash flow as capacity ramps.Positive Updates
Record Quarterly and Annual Revenue Growth
Q4 revenue of $1.316B, up 45% year‑over‑year and above the high end of guidance; fiscal 2026 revenue of $4.6B, up 36% year‑over‑year.
Negative Updates
Component Supply Constraints and Inventory Positioning
Management cited component supply tightness that affected certain subcategories (datacom slightly down sequentially) and increased inventory as the company positioned material to support upcoming ramps; supply risks are factored into guidance but remain a near‑term headwind.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly and Annual Revenue Growth
Q4 revenue of $1.316B, up 45% year‑over‑year and above the high end of guidance; fiscal 2026 revenue of $4.6B, up 36% year‑over‑year.
Read all positive updates
Company Guidance
Fabrinet guided Q1 FY27 revenue of $1.375–$1.425 billion (implying ~43% year‑over‑year growth at the midpoint) and non‑GAAP EPS of $4.10–$4.25, noting that this outlook assumes continued broad‑based strength in data center (transceivers, DCI and HPC), communications infrastructure, and automotive/industrial end markets; management expects sequential growth in data center after Q4’s $669 million (51% of revenue, +68% y/y, +13% q/q) while communications infrastructure was $413 million (+40% y/y, +1% q/q) and automotive/industrial $234 million (+8% y/y, +9% q/q), and said first‑quarter expense seasonality will create a temporary margin headwind but operating leverage should continue (Q4 non‑GAAP EPS was $4.10, gross margin 12.2%, operating margin 10.9%, operating expenses ~1.3% of revenue).Fabrinet Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
58
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.64B | 3.42B | 2.88B | 2.65B | 2.26B |
| Gross Profit | 556.51M | 413.35M | 356.12M | 336.27M | 278.59M |
| EBITDA | 555.20M | 408.61M | 360.50M | 305.40M | 246.14M |
| Net Income | 473.03M | 332.53M | 296.18M | 247.91M | 200.38M |
Balance Sheet | |||||
| Total Assets | 3.91B | 2.83B | 2.34B | 1.98B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 875.05M | 934.24M | 858.60M | 550.47M | 478.15M |
| Total Debt | 4.01M | 9.15M | 8.63M | 13.42M | 31.15M |
| Total Liabilities | 1.46B | 849.62M | 592.77M | 510.99M | 581.96M |
| Stockholders Equity | 2.45B | 1.98B | 1.75B | 1.47B | 1.25B |
Cash Flow | |||||
| Free Cash Flow | 4.22M | 206.55M | 365.62M | 151.04M | 33.66M |
| Operating Cash Flow | 256.73M | 328.37M | 413.15M | 213.31M | 124.25M |
| Investing Cash Flow | -183.57M | -286.30M | -169.75M | -98.72M | -135.54M |
| Financing Cash Flow | -30.69M | -147.01M | -64.85M | -80.98M | -92.93M |
Fabrinet Technical Analysis
Negative
476.04
Price Trends
526.93
Negative
591.03
Negative
537.55
Negative
Market Momentum
9.84
Negative
44.28
Neutral
61.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FN, the sentiment is Negative. The current price of 476.04 is below the 20-day moving average (MA) of 508.77, below the 50-day MA of 526.93, and below the 200-day MA of 537.55, indicating a bearish trend. The MACD of 9.84 indicates Negative momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 61.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $38.76B | 41.92 | 62.42% | 0.10% | 17.80% | 55.75% | |
69 Neutral | $7.31B | 39.62 | 12.46% | ― | 14.20% | 15.36% | |
66 Neutral | $21.45B | 45.31 | 20.88% | ― | 35.73% | 43.02% | |
64 Neutral | $21.69B | 49.04 | 12.24% | 0.28% | 16.23% | 65.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $11.63B | 38.08 | 12.57% | ― | 58.56% | 19.37% | |
56 Neutral | $68.78B | 80.74 | 8.37% | ― | 22.51% | ― |
* Technology Sector Average
FN
Fabrinet
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197.36
69.19%
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Fabrinet Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Fabrinet Reports Record Earnings and Updates Executive Incentives
Positive
Aug 17, 2026
Fabrinet, listed on the NYSE as FN, is a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services for original equipment manufacturers of complex products. Its manufacturing por...
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.