📊 FN Key Takeaways
Is Fabrinet (FN) a Good Investment?
Fabrinet demonstrates strong financial stability with zero debt and healthy margins, but faces significant headwinds with flat revenue growth (0% YoY) and critically low free cash flow generation (1.2% FCF margin). Net income growth is driven entirely by operational margin expansion rather than top-line growth, raising sustainability concerns in a capital-intensive telecom equipment sector.
Fabrinet shows strong fundamental quality through solid profitability, double-digit earnings growth, and an exceptionally clean balance sheet with no long-term debt. Financial health is a clear strength given high liquidity and strong asset coverage, though flat revenue and relatively weak free cash flow conversion temper the overall outlook. The business appears fundamentally sound, but sustained top-line growth and better cash generation will be important to support a stronger conviction.
Why Buy Fabrinet Stock? FN Key Strengths
- Fortress balance sheet with zero long-term debt and $356.6M cash position providing financial flexibility
- Strong liquidity ratios (2.55x current, 1.79x quick) and solid profitability metrics (10% net margin, 9.5% ROA)
- Net income and EPS growth (+12.3% and +13.2% respectively) driven by operational efficiency improvements despite flat revenue
- Debt-free balance sheet with strong liquidity, including a 2.68x current ratio and 1.91x quick ratio
- Healthy profitability profile with 12.0% gross margin and 9.9% operating and net margins
- Net income and diluted EPS grew double digits year over year despite flat revenue
FN Stock Risks: Fabrinet Investment Risks
- Zero revenue growth (0% YoY) indicates lack of market demand or competitive pressures in core segments
- Free cash flow margin of only 1.2% is extremely low; CapEx consumes 80% of operating cash flow limiting growth investment and shareholder returns
- Margin expansion sustainability questionable on flat revenue; operational leverage may be at peak with limited room for further improvements
- Revenue was flat year over year, which may indicate limited near-term demand growth or customer concentration pressure
- Free cash flow margin of 2.5% is modest relative to net margin, suggesting weaker cash conversion
- ROE of 9.5% is respectable but not especially strong for a company with no leverage
Key Metrics to Watch
- Quarterly revenue trends for signs of recovery or continued stagnation
- Free cash flow generation and CapEx requirements going forward
- Gross margin trajectory and whether further expansion is possible without revenue growth
- Revenue growth and order momentum
- Free cash flow conversion relative to net income
Fabrinet (FN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.2% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.55x current ratio provides a solid financial cushion.
FN Profit Margin, ROE & Profitability Analysis
FN vs Telecom Sector: How Fabrinet Compares
How Fabrinet compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fabrinet Stock Overvalued? FN Valuation Analysis 2026
Based on fundamental analysis, Fabrinet has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fabrinet Balance Sheet: FN Debt, Cash & Liquidity
FN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fabrinet's revenue has grown significantly by 82% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.73 reflects profitable operations.
FN Revenue Growth, EPS Growth & YoY Performance
FN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $871.8M | $81.3M | $2.25 |
| Q2 2026 | $833.6M | $86.6M | $2.38 |
| Q1 2026 | $804.2M | $77.4M | $2.13 |
| Q3 2025 | $731.5M | $80.9M | $2.21 |
| Q2 2025 | $712.7M | $69.1M | $1.89 |
| Q1 2025 | $685.5M | $65.1M | $1.78 |
| Q3 2024 | $665.3M | $59.4M | $1.60 |
| Q2 2024 | $668.7M | $63.2M | $1.71 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fabrinet Dividends, Buybacks & Capital Allocation
FN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fabrinet (CIK: 0001408710)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FN
What is the AI rating for FN?
Fabrinet (FN) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FN's key strengths?
Claude: Fortress balance sheet with zero long-term debt and $356.6M cash position providing financial flexibility. Strong liquidity ratios (2.55x current, 1.79x quick) and solid profitability metrics (10% net margin, 9.5% ROA). ChatGPT: Debt-free balance sheet with strong liquidity, including a 2.68x current ratio and 1.91x quick ratio. Healthy profitability profile with 12.0% gross margin and 9.9% operating and net margins.
What are the risks of investing in FN?
Claude: Zero revenue growth (0% YoY) indicates lack of market demand or competitive pressures in core segments. Free cash flow margin of only 1.2% is extremely low; CapEx consumes 80% of operating cash flow limiting growth investment and shareholder returns. ChatGPT: Revenue was flat year over year, which may indicate limited near-term demand growth or customer concentration pressure. Free cash flow margin of 2.5% is modest relative to net margin, suggesting weaker cash conversion.
What is FN's revenue and growth?
Fabrinet reported revenue of $3.3B.
Does FN pay dividends?
Fabrinet pays dividends, with $30.8M distributed to shareholders in the trailing twelve months.
Where can I find FN SEC filings?
Official SEC filings for Fabrinet (CIK: 0001408710) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FN's EPS?
Fabrinet has a diluted EPS of $9.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Fabrinet has a BUY rating with 71% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FN stock overvalued or undervalued?
Valuation metrics for FN: ROE of 14.5% (sector avg: 15%), net margin of 10.0% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy FN stock in 2026?
Our dual AI analysis gives Fabrinet a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FN's free cash flow?
Fabrinet's operating cash flow is $201.8M, with capital expenditures of $160.6M. FCF margin is 1.2%.
How does FN compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 10.0% (avg: 14%), ROE 14.5% (avg: 15%), current ratio 2.55 (avg: 1).