# Fabrinet (FN.US)

Canonical: https://gigainvestors.com/s/FN

Analysis as of: 2026-10-16T07:28:35.785Z. Financial observations: FY2006–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $385.20 per share; close as of 2026-10-15.

Estimated value: low $198.19 per share, central $279.11 per share, high $324.23 per share. Buy at or below the central value $279.11 per share. Valuation as of 2026-10-16T07:28:35.785Z; scenarios are not confidence intervals.

Expected annual return: 8.0% at the stated quote. About 8.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.07×

- FY2018: 0.07×

- FY2019: 0.08×

- FY2020: 0.07×

- FY2021: 0.08×

- FY2022: 0.09×

- FY2023: 0.10×

- FY2024: 0.10×

- FY2025: 0.09×

- FY2026: 0.10×

### moat: pass

- ROIC, median of available years: 24.4%

- ROIC, second-lowest year: 20.5%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 12.0%

- Recent gross margin (lower of latest and 3-year median): 12.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.6%

- ROIC including acquisitions, ten-year median: 24.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 21.3%

- FY2018: 19.1%

- FY2019: 24.3%

- FY2020: 20.5%

- FY2021: 24.3%

- FY2022: 24.5%

- FY2023: 25.8%

- FY2024: 29.5%

- FY2025: 28.7%

- FY2026: 24.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.5B

- Net income, five-year total: $1.6B

- Return on incremental invested capital: 27.2%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.2 pp

- Working capital / revenue, final three-year average: 21.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.01×

- FY2025: 0.99×

- FY2026: 0.92×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 21.3% vs 28.7%

- Per-share earnings: 2.21 to 9.17 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.7%

- Market cap gain: $19B

- Cumulative retained earnings: $2.0B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 19.4%

- Per-share value change: $6.96

- Per-share value, starting three-year median: $2.21

- Per-share value, ending three-year median: $9.17

- Buybacks concentrated in cheaper years (correlation): 0.36

- Average buyback yield: 1.0%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $9.5M

- Cumulative net income, 10 years: $2.1B

- ROIC, first three-year median: 21.3%

- ROIC, last three-year median: 28.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: $2.57

- FY2018: $2.21

- FY2019: $3.23

- FY2020: $3.01

- FY2021: $3.95

- FY2022: $5.36

- FY2023: $6.73

- FY2024: $8.10

- FY2025: $9.17

- FY2026: $13.05

### accounting: pass

- Sloan accruals: 5.5%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 13.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.54×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 2.5%

- FY2018: -5.0%

- FY2019: -2.1%

- FY2020: -2.7%

- FY2021: 1.6%

- FY2022: 4.1%

- FY2023: 1.7%

- FY2024: -5.0%

- FY2025: 0.1%

- FY2026: 5.5%

## Holders

- [Henry Ellenbogen](https://gigainvestors.com/DCP): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Robert Torray](https://gigainvestors.com/T): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 44% since Apr 2026 · "Fabrinet Shares Slide Despite Earnings Beat as Margins and Cash Flow Disappoint" (finance.yahoo.com, Aug 2026) · sales +35.7%

Story as of 2026-10-16T09:58:46.525Z; price observation 2026-10-15.

Price needs cash profits to grow 11.8% a year for ten years

- 2025-11-04: Fabrinet (FN) Margin Decline Challenges Bull Case Despite Forecast-Beating Growth Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/fabrinet-fn-margin-decline-challenges-232737902.html))

- 2026-02-26: Fabrinet Leans Into Higher Margin AI Work As Earnings Profile Shifts ([finance.yahoo.com](https://finance.yahoo.com/news/fabrinet-leans-higher-margin-ai-051131454.html))

- 2026-04-07: Why Fabrinet (FN) Is Up 12.7% After Expanding iPronics Silicon Photonics Manufacturing Partnership ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/why-fabrinet-fn-12-7-051318582.html))

- 2026-08-18: Fabrinet Shares Slide Despite Earnings Beat as Margins and Cash Flow Disappoint ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/fabrinet-shares-slide-despite-earnings-102815774.html))

- 2026-09-18: Fabrinet's 2026 Outlook: Capital Expansion Powers Surging AI Hardware Demand ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/fabrinets-2026-outlook-capital-expansion-202301229.html))

### Sales · FY2025–2026

sales +35.7%; source https://www.sec.gov/Archives/edgar/data/1408710/000140871026000028/fn-20260626.htm; observed 2026-08-18.

- FY2017: $1.4B 

- FY2018: $1.4B 

- FY2019: $1.6B 

- FY2020: $1.6B 

- FY2021: $1.9B 

- FY2022: $2.3B 

- FY2023: $2.6B 

- FY2024: $2.9B 

- FY2025: $3.4B 

- FY2026: $4.6B 

### Gross margin · FY2026

gross margin 12%; source https://www.sec.gov/Archives/edgar/data/1408710/000140871026000028/fn-20260626.htm; observed 2026-08-18.

- FY2017: 12.1% 

- FY2018: 11.2% 

- FY2019: 11.3% 

- FY2020: 11.3% 

- FY2021: 11.8% 

- FY2022: 12.3% 

- FY2023: 12.7% 

- FY2024: 12.4% 

- FY2025: 12.1% 

- FY2026: 12.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronic components; annual sales are USD 4.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1408710/000140871026000028/fn-20260626.htm (filed 2026-08-18); FY2026: revenue 4641097000; grossProfit 556511000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FN.US: Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, Europe, and internationally. 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, 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 transceivers, tunable lasers, 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.

### Why customers stay

Margins ranged from 12% to 12.4% during 2024–26; it earns 24.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2024: grossProfit / revenue = 12.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2025: grossProfit / revenue = 12.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1408710/000140871026000028/fn-20260626.htm (filed 2026-08-18); FY2026: grossProfit / revenue = 12%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); 10-year return on capital observations [[2017,0.21284155484413508],[2018,0.19091022953128642],[2019,0.24329852414458727],[2020,0.2047018873428159],[2021,0.2433992076705713],[2022,0.24546215163319227],[2023,0.25752547958745897],[2024,0.2948050852156565],[2025,0.28745050034613295],[2026,0.24913795480270315]]; median 0.24443067965188178. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 12% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1408710/000140871026000028/fn-20260626.htm (filed 2026-08-18); Gross margin observations: [[2021,0.11778700082475324],[2022,0.12315049261257947],[2023,0.12712395902522156]]; range within 2 percentage points.

### Where the cash goes

Spends 33.9% of cash earnings on expansion; earns 27.2% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2017: growth capex 46237000; upkeep 23793000; owner earnings 97115000. Growth capex / owner earnings = 0.4761056479431602.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2018: growth capex 0; upkeep 35402000; owner earnings 77852000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2019: growth capex 0; upkeep 18943000; owner earnings 131956000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2020: growth capex 8882346.171371028; upkeep 34624653.82862897; owner earnings 109729346.17137103. Growth capex / owner earnings = 0.08094777269062485.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2021: growth capex 11723000; upkeep 36252000; owner earnings 148341000. Growth capex / owner earnings = 0.07902737611314471.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2022: growth capex 51845000; upkeep 38738000; owner earnings 200380000. Growth capex / owner earnings = 0.2587334065275976.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2023: growth capex 18439000; upkeep 43832000; owner earnings 247913000. Growth capex / owner earnings = 0.07437689834740413.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2024: growth capex 0; upkeep 47528000; owner earnings 297670000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); FY2025: growth capex 64603889.44193413; upkeep 57212110.55806587; owner earnings 328747889.4419341. Growth capex / owner earnings = 0.19651499375890275.

- Source: https://www.sec.gov/Archives/edgar/data/1408710/000140871026000028/fn-20260626.htm (filed 2026-08-18); FY2026: growth capex 147530488.58443177; upkeep 106153511.41556823; owner earnings 435244488.58443177. Growth capex / owner earnings = 0.3389600384470182.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); Incremental return on capital 0.2722500978481417, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1408710/000140871026000028/fn-20260626.htm (filed 2026-08-18); FY2026: cash repurchases 5231000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FN.US SharesStats.PercentInsiders = 0.261 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.8% yearly over ten years; actual growth was 21.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-18); Ten-year compound average after fade. Initial solved rate 0.20821077815476252. Price 385.2; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.6786992840095465 → FY2026 12.006082108143875. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $37.96 per share

- 2016-11: $42.80 per share

- 2016-12: $40.30 per share

- 2017-01: $42.13 per share

- 2017-02: $41.55 per share

- 2017-03: $42.03 per share

- 2017-04: $34.67 per share

- 2017-05: $35.23 per share

- 2017-06: $42.66 per share

- 2017-07: $45.01 per share

- 2017-08: $38.84 per share

- 2017-09: $37.06 per share

- 2017-10: $37.18 per share

- 2017-11: $31.91 per share

- 2017-12: $28.70 per share

- 2018-01: $24.81 per share

- 2018-02: $30.15 per share

- 2018-03: $31.38 per share

- 2018-04: $28.21 per share

- 2018-05: $35.13 per share

- 2018-06: $36.89 per share

- 2018-07: $39.12 per share

- 2018-08: $47.87 per share

- 2018-09: $46.26 per share

- 2018-10: $43.32 per share

- 2018-11: $52.73 per share

- 2018-12: $51.31 per share

- 2019-01: $56.84 per share

- 2019-02: $58.50 per share

- 2019-03: $52.36 per share

- 2019-04: $60.52 per share

- 2019-05: $42.64 per share

- 2019-06: $49.67 per share

- 2019-07: $53.68 per share

- 2019-08: $50.49 per share

- 2019-09: $52.30 per share

- 2019-10: $56.23 per share

- 2019-11: $60.49 per share

- 2019-12: $64.84 per share

- 2020-01: $63.04 per share

- 2020-02: $55.12 per share

- 2020-03: $54.56 per share

- 2020-04: $62.75 per share

- 2020-05: $63.94 per share

- 2020-06: $62.42 per share

- 2020-07: $72.63 per share

- 2020-08: $69.78 per share

- 2020-09: $63.03 per share

- 2020-10: $60.02 per share

- 2020-11: $68.31 per share

- 2020-12: $77.59 per share

- 2021-01: $78.94 per share

- 2021-02: $88.33 per share

- 2021-03: $90.39 per share

- 2021-04: $85.62 per share

- 2021-05: $89.69 per share

- 2021-06: $95.87 per share

- 2021-07: $94.52 per share

- 2021-08: $103.02 per share

- 2021-09: $102.51 per share

- 2021-10: $96.00 per share

- 2021-11: $110.56 per share

- 2021-12: $118.47 per share

- 2022-01: $113.16 per share

- 2022-02: $100.13 per share

- 2022-03: $105.13 per share

- 2022-04: $98.19 per share

- 2022-05: $86.87 per share

- 2022-06: $81.10 per share

- 2022-07: $96.06 per share

- 2022-08: $102.84 per share

- 2022-09: $95.45 per share

- 2022-10: $114.40 per share

- 2022-11: $133.41 per share

- 2022-12: $128.22 per share

- 2023-01: $131.66 per share

- 2023-02: $121.87 per share

- 2023-03: $118.76 per share

- 2023-04: $94.95 per share

- 2023-05: $113.22 per share

- 2023-06: $129.88 per share

- 2023-07: $123.64 per share

- 2023-08: $160.77 per share

- 2023-09: $166.62 per share

- 2023-10: $155.00 per share

- 2023-11: $161.90 per share

- 2023-12: $190.33 per share

- 2024-01: $213.51 per share

- 2024-02: $215.57 per share

- 2024-03: $189.02 per share

- 2024-04: $173.07 per share

- 2024-05: $239.53 per share

- 2024-06: $244.79 per share

- 2024-07: $220.56 per share

- 2024-08: $243.65 per share

- 2024-09: $236.44 per share

- 2024-10: $240.97 per share

- 2024-11: $234.58 per share

- 2024-12: $219.88 per share

- 2025-01: $216.21 per share

- 2025-02: $200.05 per share

- 2025-03: $197.51 per share

- 2025-04: $205.06 per share

- 2025-05: $232.87 per share

- 2025-06: $294.68 per share

- 2025-07: $323.73 per share

- 2025-08: $331.29 per share

- 2025-09: $364.62 per share

- 2025-10: $440.57 per share

- 2025-11: $459.41 per share

- 2025-12: $455.28 per share

- 2026-01: $489.44 per share

- 2026-02: $545.63 per share

- 2026-03: $521.52 per share

- 2026-04: $683.47 per share

- 2026-05: $654.16 per share

- 2026-06: $562.08 per share

- 2026-07: $435.41 per share

- 2026-08: $412.93 per share

- 2026-09: $424.27 per share

- 2026-10: $385.20 per share

## Annual estimated value (USD per share)

- FY2017: low $38.90 per share, central $48.89 per share, high $56.05 per share

- FY2018: low $39.09 per share, central $52.41 per share, high $60.16 per share

- FY2019: low $47.32 per share, central $62.96 per share, high $72.06 per share

- FY2020: low $51.16 per share, central $67.14 per share, high $76.72 per share

- FY2021: low $59.81 per share, central $79.18 per share, high $90.62 per share

- FY2022: low $76.50 per share, central $104.31 per share, high $120.51 per share

- FY2023: low $100.30 per share, central $140.13 per share, high $162.34 per share

- FY2024: low $123.32 per share, central $169.84 per share, high $195.79 per share

- FY2025: low $152.18 per share, central $211.05 per share, high $243.88 per share

- FY2026: low $195.91 per share, central $275.89 per share, high $320.50 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1408710/000140871026000028/fn-20260626.htm); period 2026-06-26, filed 2026-08-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.