IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
FN Stock Analysis: Hold (Score 46.9/100) | Blank Capital Research | Blank Capital Research
FN
Fabrinet
$672.43
+54.17 (+8.76%)
Score46.9
Data as of Apr 6, 2026
FN
Fabrinet
TechnologyElectronic Equipment
$672.43
+54.17 (+8.76%)
Open $632.95High $679.57Low $617.30Prev $618.26Vol ---52W: $148.55 – $632.99
Catalyst IntelligenceBullish Factor
Context:Accumulation identified following news: "Fabrinet (FN): One of the Best Strong Buy AI Stocks to Invest In Now". This headline is the primary catalyst for the 8.8% move.
Hold
Composite score
01234567890123456789.0123456789
Global rank
#704
Percentile
Top 16%
Business quality
50th
percentile
Standard operational efficiency. The business maintains stable margins and returns in line with broader market averages.
Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
17.2%
Sector: -1.4%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, Fabrinet (FN) receives a "Hold" rating with a composite score of 46.9/100, ranked #704 out of 4446 stocks. Key factor scores: Quality 50/100, Value 40/100, Momentum 72/100. This is quantitative analysis only — not investment advice.
Fabrinet (FN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Fabrinet Do?
Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company's products also comprise tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. In addition, it provides solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. Further, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components, and substrates; and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company was incorporated in 1999 and is based in George Town, the Cayman Islands. Fabrinet (FN) is classified as a large-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Seamus Grady and employs approximately 14,200 people, headquartered in George Town, California. With a market capitalization of $19.2B, FN is one of the prominent companies in the Technology sector.
Fabrinet (FN) Stock Rating — Hold (April 2026)
As of April 2026, Fabrinet receives a Hold rating with a composite score of 46.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FN ranks #704 out of 4,446 stocks in our coverage universe. Within the Technology sector, Fabrinet ranks #64 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FN Stock Price and 52-Week Range
Fabrinet (FN) currently trades at $672.43. The stock gained $54.17 (8.8%) in the most recent trading session. The 52-week high for FN is $632.99, which means the stock is currently trading 6.2% from its annual peak. The 52-week low is $148.55, putting the stock 352.7% above its annual trough. Recent trading volume was 1.1M shares, reflecting moderate market activity.
Is FN Overvalued or Undervalued? — Valuation Analysis
Fabrinet (FN) carries a value factor score of 40/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 53.07x, compared to the Technology sector average of 45.27x — a premium of 17%. The price-to-book ratio stands at 9.15x, versus the sector average of 3.16x. The price-to-sales ratio is 5.24x, compared to 1.06x for the average Technology stock. On an enterprise value basis, FN trades at 47.07x EV/EBITDA, versus 12.79x for the sector.
Overall, FN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Fabrinet Profitability — ROE, Margins, and Quality Score
Fabrinet (FN) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 17.2%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at 11.5% versus the sector average of -1.0%.
On a margin basis, Fabrinet reports gross margins of 12.0%, compared to 50.9% for the sector. The operating margin is 9.6% (sector: -0.5%). Net profit margin stands at 9.9%, versus -1.5% for the average Technology stock. Revenue growth is running at 40.9% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FN Debt, Balance Sheet, and Financial Health
Fabrinet has a debt-to-equity ratio of 50.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.68x, indicating strong short-term liquidity.
FN has a beta of 2.02, meaning it is more volatile than the broader market — a $10,000 investment in FN would be expected to move 102.2% more than the S&P 500 on any given day. The stability factor score for Fabrinet is 36/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
Fabrinet Revenue and Earnings History — Quarterly Trend
In TTM 2026, Fabrinet reported revenue of $3.82B and earnings per share (EPS) of $3.14. Net income for the quarter was $376M. Gross margin was 12.0%. Operating income came in at $367M.
In Q2 2026, Fabrinet reported revenue of $1.13B and earnings per share (EPS) of $3.14. Net income for the quarter was $113M. Gross margin was 12.2%. Revenue grew 35.9% year-over-year compared to Q2 2025. Operating income came in at $114M.
In Q1 2026, Fabrinet reported revenue of $978M and earnings per share (EPS) of $2.68. Net income for the quarter was $96M. Gross margin was 11.9%. Revenue grew 21.6% year-over-year compared to Q1 2025. Operating income came in at $94M.
In FY 2025, Fabrinet reported revenue of $3.42B and earnings per share (EPS) of $9.23. Net income for the quarter was $333M. Gross margin was 12.1%. Revenue grew 18.6% year-over-year compared to FY 2024. Operating income came in at $324M.
Over the past 8 quarters, Fabrinet has demonstrated a growth trajectory, with revenue expanding from $2.88B to $3.82B. Investors analyzing FN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FN Dividend Yield and Income Analysis
Fabrinet (FN) does not currently pay a dividend. This is common among growth-oriented companies in the Electronic Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
FN Momentum and Technical Analysis Profile
Fabrinet (FN) has a momentum factor score of 72/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 23/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 20/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FN vs Competitors — Technology Sector Ranking and Peer Comparison
Comparing FN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FN vs S&P 500 (SPY) comparison to assess how Fabrinet stacks up against the broader market across all factor dimensions.
FN Next Earnings Date
No upcoming earnings date has been announced for Fabrinet (FN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FN? — Investment Thesis Summary
Fabrinet presents a balanced picture with arguments on both sides. Price momentum is positive at 72/100, suggesting the trend favors buyers. High volatility (stability score 36/100) increases portfolio risk.
In summary, Fabrinet (FN) earns a Hold rating with a composite score of 46.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FN stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
Fabrinet (FN) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Fabrinet (FN) currently holds a "Hold" rating, a position supported by a balanced assessment of its financial performance and valuation. While the company demonstrates robust revenue growth and profitability metrics that surpass sector averages, its elevated valuation multiples, particularly its P/E and EV/EBITDA ratios, suggest that much of its future growth is already priced into the stock. The "Hold" rating reflects the view that Fabrinet's strengths are counterbalanced by its premium valuation, warranting a neutral stance until a more compelling entry point emerges or the company's growth trajectory justifies its current multiples.
The most critical takeaway is that Fabrinet, despite its impressive operational performance and growth, faces the challenge of justifying its high valuation. Investors should closely monitor the company's ability to sustain its growth momentum and maintain its profitability margins in the face of potential economic headwinds and increasing competition. A significant deceleration in growth or a contraction in margins could lead to a downward revision of its valuation, while continued strong performance could validate its premium.
Business Strategy & Overview
Fabrinet operates as a contract manufacturer specializing in optical packaging and precision optical, electro-mechanical, and electronic manufacturing services. The company's core business revolves around providing manufacturing solutions to original equipment manufacturers (OEMs) in the optical communication, industrial laser, automotive, medical device, and sensor industries. Fabrinet differentiates itself through its advanced manufacturing capabilities, including process design and engineering, supply chain management, printed circuit board assembly, advanced packaging, integration, final assembly, and testing. This vertically integrated approach allows Fabrinet to offer a comprehensive suite of services, catering to the complex needs of its diverse customer base.
Fabrinet's revenue streams are primarily derived from manufacturing optical components, modules, and sub-systems used in optical communication networks. These products include switching products, tunable lasers, transceivers, transponders, and active optical cables. The company also serves the industrial laser market, providing solid state, diode-pumped, gas, and fiber lasers used in various applications, including semiconductor processing, biotechnology, and material processing. Furthermore, Fabrinet manufactures sensors for the automotive and medical industries, as well as custom and standard glass products.
Strategically, Fabrinet focuses on building long-term relationships with its OEM customers, acting as an extension of their manufacturing operations. This collaborative approach allows Fabrinet to gain a deep understanding of its customers' needs and develop customized manufacturing solutions. The company also invests in research and development to stay at the forefront of technological advancements in optical packaging and precision manufacturing. This commitment to innovation enables Fabrinet to offer cutting-edge solutions and maintain its competitive edge.
The industry context in which Fabrinet operates is characterized by rapid technological change and increasing demand for bandwidth. The growth of cloud computing, data centers, and 5G networks is driving demand for high-speed optical communication components. Fabrinet is well-positioned to capitalize on these trends, given its expertise in optical packaging and precision manufacturing. However, the company also faces challenges, including intense competition from other contract manufacturers and the potential for supply chain disruptions.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
40.9%
Sector: 14.2%
+187% VS SCTR
Economic Moat Analysis
Fabrinet's economic moat can be classified as Narrow. While the company possesses certain competitive advantages, they are not strong enough to warrant a Wide moat rating. The primary source of Fabrinet's moat stems from its specialized expertise and established relationships within the optical packaging and precision manufacturing industry. This expertise, built over years of experience, creates a barrier to entry for new competitors lacking the technical know-how and manufacturing capabilities to meet the stringent requirements of its OEM customers.
Switching costs for Fabrinet's customers are moderate. While OEMs may face some disruption and costs associated with switching to a new contract manufacturer, the process is not prohibitively expensive or time-consuming. The availability of alternative contract manufacturers and the standardization of certain manufacturing processes limit the switching costs that Fabrinet can impose on its customers. However, the complexity of some of Fabrinet's manufacturing processes and the need for close collaboration with its customers can create some stickiness in its relationships.
Fabrinet's intangible assets, such as its proprietary manufacturing processes and technical expertise, contribute to its competitive advantage. The company has invested significantly in research and development to develop advanced manufacturing capabilities, which are difficult for competitors to replicate. These intangible assets allow Fabrinet to offer differentiated services and maintain its position as a leading contract manufacturer in the optical packaging and precision manufacturing industry.
While Fabrinet benefits from some economies of scale, its cost advantages are not significant enough to create a substantial moat. The company's manufacturing operations are capital-intensive, requiring significant investments in equipment and facilities. However, the availability of contract manufacturing services from other providers limits Fabrinet's ability to achieve significant cost advantages over its competitors. Furthermore, the company's focus on high-value, customized manufacturing solutions reduces its ability to leverage economies of scale.
Network effects are not a significant factor in Fabrinet's business model. The company's value proposition is primarily based on its manufacturing capabilities and expertise, rather than on the size or interconnectedness of its customer base. While Fabrinet benefits from its relationships with its OEM customers, these relationships do not create a network effect that would significantly enhance its competitive advantage.
Financial Health & Profitability
Fabrinet's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with a TTM revenue of $1.13 billion and a year-over-year growth rate of 40.9%, significantly exceeding the sector average of 14.0%. This growth is further evidenced by the consistent increase in quarterly revenue from $665.28 million in Q3 FY2023 to $1.13 billion in Q2 FY2026. This robust revenue growth indicates strong demand for Fabrinet's services and its ability to capture market share.
Profitability metrics, however, paint a less compelling picture. While Fabrinet's operating margin of 9.6% and net margin of 9.9% are positive and outperform the sector averages of -0.5% and -1.5%, respectively, its gross margin of 12.0% is significantly lower than the sector average of 51.2%. This discrepancy suggests that Fabrinet faces challenges in controlling its cost of goods sold, potentially due to the capital-intensive nature of its manufacturing operations or competitive pricing pressures. The quarterly financial history reveals a relatively stable gross margin, hovering around 12%, indicating a consistent cost structure.
Fabrinet's return on equity (ROE) of 17.2% is significantly higher than the sector average of -1.5%, indicating efficient utilization of shareholder equity to generate profits. However, without data on total cash, total debt, and free cash flow, a comprehensive assessment of the company's balance sheet leverage and cash flow generation is limited. The current ratio of 2.68 suggests a healthy level of liquidity, indicating the company's ability to meet its short-term obligations.
The absence of free cash flow data is a significant limitation in assessing Fabrinet's financial health. Free cash flow is a critical metric for evaluating a company's ability to generate cash from its operations and fund future growth. Without this data, it is difficult to determine the sustainability of Fabrinet's growth and its ability to invest in research and development or make acquisitions.
In summary, Fabrinet exhibits strong revenue growth and profitability metrics that surpass sector averages. However, its low gross margin and the absence of free cash flow data raise concerns about its cost structure and cash flow generation. A more comprehensive assessment of the company's financial health would require additional data on its balance sheet and cash flow statement.
Valuation Assessment
Fabrinet's valuation presents a significant challenge to investors. The company's P/E ratio of 161.2x is substantially higher than the sector average of 45.3x, indicating that the stock is trading at a significant premium to its peers. Similarly, its EV/EBITDA ratio of 34.7x is also much higher than the sector average of 13.0x, further reinforcing the notion that Fabrinet is richly valued.
This premium valuation suggests that investors have high expectations for Fabrinet's future growth and profitability. The company's strong revenue growth and profitability metrics may justify some of this premium, but the magnitude of the difference between Fabrinet's multiples and the sector averages raises concerns about the sustainability of its valuation. A significant deceleration in growth or a contraction in margins could lead to a downward revision of its valuation.
Without data on free cash flow, a discounted cash flow (DCF) analysis is not possible, which further complicates the valuation assessment. A DCF analysis would provide a more comprehensive view of Fabrinet's intrinsic value, taking into account its future cash flows and discount rate. However, in the absence of this data, investors must rely on relative valuation metrics, such as P/E and EV/EBITDA ratios.
Given Fabrinet's high valuation multiples, the stock appears to be expensive relative to its growth, its history, and its sector. While the company's strong performance may warrant some premium, the magnitude of the premium suggests that much of its future growth is already priced into the stock. Investors should exercise caution when considering an investment in Fabrinet, as the potential for downside risk is significant if the company fails to meet its high expectations.
A more nuanced valuation assessment would require a deeper understanding of Fabrinet's growth prospects, competitive landscape, and risk factors. Investors should also consider the company's management team, its track record of execution, and its ability to adapt to changing market conditions. Ultimately, the decision to invest in Fabrinet will depend on an investor's risk tolerance, investment horizon, and conviction in the company's ability to deliver on its promises.
Risk & Uncertainty
Fabrinet faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. One of the most significant risks is customer concentration. The company derives a substantial portion of its revenue from a limited number of OEM customers. A loss of one or more of these key customers could have a material adverse effect on Fabrinet's revenue and profitability. The company's ability to diversify its customer base and attract new customers is crucial to mitigating this risk.
Another significant risk is competition. The contract manufacturing industry is highly competitive, with numerous players vying for market share. Fabrinet faces competition from both large, established contract manufacturers and smaller, specialized providers. Increased competition could lead to pricing pressures, reduced margins, and loss of market share. The company's ability to differentiate itself through its advanced manufacturing capabilities and customer service is essential to maintaining its competitive edge.
Supply chain disruptions pose another significant risk to Fabrinet's business. The company relies on a global network of suppliers for raw materials, components, and equipment. Disruptions to this supply chain, such as natural disasters, geopolitical events, or trade restrictions, could lead to delays in production, increased costs, and reduced revenue. The company's ability to manage its supply chain effectively and diversify its sources of supply is critical to mitigating this risk.
Technological obsolescence is also a concern. The optical communication and precision manufacturing industries are characterized by rapid technological change. Fabrinet's ability to keep pace with these changes and invest in new technologies is essential to maintaining its competitiveness. Failure to adapt to new technologies could render its manufacturing capabilities obsolete and lead to a loss of market share.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFabrinet's strong revenue growth and profitability metrics demonstrate its ability to capitalize on the increasing demand for optical communication components and precision manufacturing services.
BULL VIEWThe company's established relationships with key OEM customers and its advanced manufacturing capabilities provide a competitive advantage that will drive future growth.
The Bear Case
BEAR VIEWFabrinet's high valuation multiples suggest that the stock is overvalued and vulnerable to a significant correction if the company fails to meet its high expectations.
BEAR VIEWThe company's customer concentration and reliance on a global supply chain expose it to significant risks that could negatively impact its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FN and 4,400+ other equities.
Fabrinet exhibits a 217% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
11.5%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
12.0%
Sector: 50.9%
Operating Margin
Core business profitability
9.6%
Sector: -0.5%
Net Margin
Bottom-line profitability
9.9%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
