Fabrinet FN
Fabrinet is a contract manufacturer (EMS/ODM) of precision optical, electro-optical, and electronic components, primarily serving hyperscalers and network equipment makers in the AI and data center spending cycle. Fabrinet shows exceptional growth (revenue +44.6%, earnings +58.1%) and solid financial health with net cash (DN/EBITDA -1.64), but its negative free cash flow conversion and demanding valuation (P/E 31.96) require growth to translate into cash flows to justify the price.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Fabrinet is a contract manufacturer (EMS/ODM) of precision optical, electro-optical, and electronic components, primarily serving hyperscalers and network equipment makers in the AI and data center spending cycle. Fabrinet shows exceptional growth (revenue +44.6%, earnings +58.1%) and solid financial health with net cash (DN/EBITDA -1.64), but its negative free cash flow conversion and demanding valuation (P/E 31.96) require growth to translate into cash flows to justify the price.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.6 |
| Quality / Moat | 4.6 |
| Valuation | 5.9 |
| Growth | 9.1 |
| Dividend | 1.5 |
| Momentum | 5.1 |
| Risk & Context | 5.0 |
OVERALL SCORE: 6.0/10
Context and risks
Fabrinet is domiciled in the Cayman Islands, a jurisdiction with weak minority shareholder protection and limited oversight, adding a governance risk not captured by financial metrics.
News considered in the analysis
- Fabrinet Drops 13% YTD: Should You Buy the Stock at the Dip? — Artículo de opinión sobre la caída de la acción; no aporta información nueva sobre fundamentales.
- Applied Optoelectronics Rides on AI Boom: Can It Beat LITE and FN? — Comparativa genérica entre competidores; sin datos concretos sobre Fabrinet.
- AAOI vs. Fabrinet: Which AI Data Center Stock Is the Better Buy? — Listículo comparativo; sin información nueva relevante.
- Dycom Eyes 10%-12% Growth as Data Center, Fiber Demand Accelerates — Noticia sobre otra empresa (Dycom); no afecta directamente a Fabrinet.
- Aurora Innovation Targets 30,000 Driverless Trucks, $5B Revenue by 2030 — Noticia sobre otra empresa (Aurora); sin impacto en Fabrinet.
Verdict: Hold; growth is real but already priced in, and the lack of free cash flow generation is a warning sign to watch.
Main risk: Negative free cash flow conversion (-10.9%) and dependence on the AI capex cycle of hyperscalers, which could slow if returns on capex fail to meet expectations.
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