Fabrinet Ordinary Shares (FN)

FairStock Score: 40/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 18.7% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility
• Altman Z-Score of 16.1 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 35.9% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($120) with negative 493% margin of safety—limited downside protection

AI Analysis

Fabrinet Ordinary Shares is a mid-cap technology company valued at $25.4 billion. The business generates $3.9 billion in annual revenue with a 2.9% net margin. From a quality standpoint, Fabrinet shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 16.1 confirms fortress-level solvency. On valuation, the stock is commanding a steep 66.2x multiple, with trades far above its Graham Number ($120) with no margin of safety. Growth dynamics show revenue growing at 35.9% and profit growth of 30.0%. Our composite FairStock Score of 44/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Fabrinet's 36% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 66x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer