📊 FN Key Takeaways
Is FN a Good Investment? Thesis Analysis
Fabrinet demonstrates solid financial health with strong liquidity (2.68x current ratio), zero debt, and robust interest coverage, but faces concerning fundamental headwinds including flat revenue growth and weak free cash flow conversion (2.5% FCF margin) despite 12.3% net income growth. The company's low profitability margins (9.9% operating margin) and modest returns on capital (6.4% ROA, 9.5% ROE) suggest limited operational leverage and capital efficiency in a capital-intensive manufacturing business.
Why Buy FN? Key Strengths
- Zero long-term debt with strong balance sheet providing financial flexibility
- Excellent liquidity position (2.68x current ratio, 1.91x quick ratio) reducing near-term refinancing risk
- Net income growth of 12.3% YoY with EPS growth of 13.2% demonstrating earnings expansion
FN Investment Risks to Consider
- Stagnant revenue growth (0.0% YoY) indicates market saturation or competitive pressure in core business
- Weak free cash flow conversion (2.5% FCF margin) with capex consuming 65% of operating cash flow, limiting dividend capacity and growth investments
- Low profitability margins (9.9% net/operating) and modest returns on assets (6.4%) suggest limited competitive moat in a commodity-like hardware manufacturing business
Key Metrics to Watch
- Revenue growth trajectory and new customer/product wins to break current stagnation
- Free cash flow margin improvement and capital expenditure efficiency trends
- Gross margin sustainability as input costs and competition may compress pricing
FN Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.5% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.68x current ratio provides a solid financial cushion.
FN Profitability Ratios
FN vs Default Sector
How Fabrinet compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FN Overvalued or Undervalued?
Based on fundamental analysis, Fabrinet has mixed fundamental signals relative to the Default 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.
FN Balance Sheet & Liquidity
FN 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
FN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q1 2024 | $655.4M | $64.6M | $1.76 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FN Capital Allocation
FN SEC 10-K & 10-Q Filing 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 an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FN's key strengths?
Claude: Zero long-term debt with strong balance sheet providing financial flexibility. Excellent liquidity position (2.68x current ratio, 1.91x quick ratio) reducing near-term refinancing risk.
What are the risks of investing in FN?
Claude: Stagnant revenue growth (0.0% YoY) indicates market saturation or competitive pressure in core business. Weak free cash flow conversion (2.5% FCF margin) with capex consuming 65% of operating cash flow, limiting dividend capacity and growth investments.
What is FN's revenue and growth?
Fabrinet reported revenue of $2.1B.
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 $5.77.
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 March 2026, Fabrinet has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FN stock overvalued or undervalued?
Valuation metrics for FN: ROE of 9.5% (sector avg: 15%), net margin of 9.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FN stock in 2026?
Our dual AI analysis gives Fabrinet a combined HOLD 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 $148.8M, with capital expenditures of $96.9M. FCF margin is 2.5%.
How does FN compare to other Default stocks?
Vs Default sector averages: Net margin 9.9% (avg: 12%), ROE 9.5% (avg: 15%), current ratio 2.68 (avg: 1.8).