Fabrinet (FN) AI Stock Analysis

Fabrinet provides comprehensive optical packaging and precision manufacturing services across North America, the Asia-Pacific region, and Europe. The company specializes in advanced optical and electro-mechanical manufacturing, including process design, engineering, printed circuit board assembly, packaging, integration, and testing. Its product portfolio spans optical switching products such as reconfigurable optical add-drop multiplexers, amplifiers, modulators, tunable lasers, transceivers, transponders, and active optical cables for data centers. In addition, Fabrinet builds solid-state, diode-pumped, gas, and fiber lasers for semiconductor processing and medical applications, along with specialized sensors like differential pressure and micro-gyro sensors for automotive and healthcare clients.

Revenue expanded at a 5-year compound annual growth rate of 19.8% from FY2021 to FY2026, advancing from $2.26B in FY2022 to $4.64B in FY2026. Growth accelerated in FY2026 to 35.7%, up from 18.6% in FY2025 and 9.0% in FY2024. Operating margin held steady across this period, moving from 9.0% in FY2022 to 10.0% in FY2026, while gross margin registered at 12.0% in FY2026. Diluted earnings per share climbed from $6.13 in FY2022 to $13.92 in FY2026, with net income totaling $473.0M. For the latest quarter ended June 30, 2026, quarterly revenue grew 44.6% year-over-year and quarterly earnings rose 58.1%.

As of June 30, 2026, Fabrinet held $875.1M in cash and short-term investments against $4.0M in total debt, resulting in a net cash position of $871.0M. The company reported a current ratio of 2.25 and a debt-to-equity ratio of 0.00 on shareholders' equity of $2.45B. During FY2026, operating cash flow generated $256.7M, while capital expenditures absorbed $253.7M, leaving free cash flow at $3.0M. Fabrinet deployed $5.2M toward share buybacks in FY2026, contributing to a 3.5% reduction in share count over 5 years.

Fabrinet trades at a trailing price-to-earnings ratio of 27.9x, comparable to the 28.1x median of its US-listed Technology peers. Its forward P/E ratio stands at 12.8x, below the peer group median of 18.8x, while its enterprise value-to-EBITDA multiple is 21.6x versus the peer median of 16.6x. The company's price-to-sales ratio of 2.8x matches the sector peer median of 2.8x. Over the past year, the stock fell 11.9% compared to a 16.8% gain for the S&P 500 (SPY), though its 5-year return of 270.2% outpaced SPY's 83.0% advance.

Wall Street coverage consists of 4 Strong Buy, 3 Buy, and 2 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $715.56, representing a 96.8% premium to the last close of $363.51. For the current fiscal year ending June 30, 2027, consensus estimates project revenue of $6.10B and EPS of $18.20, representing 29.2% earnings growth. Over the trailing four quarters, Fabrinet beat EPS estimates in all 4 periods. The next earnings announcement is scheduled for November 2, 2026.

This page is an AI-written research summary of Fabrinet (FN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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