Fabrinet Ordinary Shares (FN)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $427.82 on 2026-10-13, Fabrinet looks like a fast-growing manufacturer with a premium price. It provides optical packaging and precision opto-mechanical and electronic manufacturing services, mostly for technology customers. As a contract manufacturer, its moat is probably thin: scale, process engineering, and supply-chain execution help, but customers can squeeze pricing. Growth has been strong. In fiscal 2026, the year ended 2026-06-26, revenue was $4.6B, net income $473.0M, and diluted EPS $13.05, up from fiscal 2025 revenue of $3.4B, net income $332.5M, and diluted EPS $9.17. In fiscal Q3 2026, the quarter ended 2026-03-27, revenue was $1.2B, net income $125.2M, and diluted EPS $3.45, versus fiscal Q3 2025 revenue of $871.8M, net income $81.3M, and diluted EPS $2.25. The balance sheet is conservative: D/E is 0.00 and the Altman Z-Score is 8.22. FairStock labels it a FAST GROWER, with profit growing 26.1% a year and revenue 19.8% over five years. But cash conversion is weak: trailing free cash flow is only $3.0M and FCF yield is 0.0%; ROCE is 8.59% and Piotroski is 4/9. Valuation leaves little room: P/E 32.76, P/B 6.25, EV/EBITDA 24.04, Graham Number $141.87, and margin of safety -201.56%. PEG 0.61 is the bull argument, but I prefer a margin of safety and durable cash generation. This is a strong grower, not a cheap one.

In plain English: Fabrinet makes optical and electronic parts for other technology companies. Sales and profits have grown quickly, and it has no debt, but the stock price is very high compared with what it earns and owns, and it produces very little spare cash. At the recent close, the price looks expensive relative to its reported numbers even though the business is growing fast.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-27) · fiscal Q2 2026 10-Q (period ended 2025-12-26) · fiscal Q1 2026 10-Q (period ended 2025-09-26) · fiscal Q3 2025 10-Q (period ended 2025-03-28) · FY2026 10-K (period ended 2026-06-26) · FY2025 10-K (period ended 2025-06-27) · FY2024 10-K (period ended 2024-06-28)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer