Rankings Tech hardware & optics Fabrinet

Fabrinet

Tech hardware & optics · United StatesRank 100 of 829Prices 2 Nov 2026Model 1.470+ zone

15070100

In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.

Biggest deductions

Multiples vs own history and peers−9
Customer concentration−5
Customers are shifting (Nvidia)−5

Strengths

Net cash+3
Guidance and growth+2
Broader customer base+1

How the score is built

From 100 to 82, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start

82Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price: 314.70 USD
Median analyst target: 600.00 USD
Upside to median: +90.7%
Analysts: 9
Target range: 385.00 – 800.00 USD
52-week change: −29%
P/E (trailing): 23.8
Forward P/E: 16.3
PEG: n/a

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 2 findings−5 of −30

Margin
The gross margin is 12.0% (FY26) vs 12.1–12.7% in FY22–25, and the operating margin has been flat at 9.1–10.0% for five years. Revenue has grown from $2.3bn to 4.6bn, but the business has become bigger, not stronger; a contract manufacturer without pricing power. ROIC is high, though (27–31%).
stockanalysis.com
−3
Quality of earnings
Operating cash flow fell to $257m (FY26) from $413m (FY24) while net profit rose to $473m: only 54% of profit turned into cash, because inventory and receivables are tied up in growth.
stockanalysis.com
−2

Price

Today's multiples against the company's own history and its peers. · 1 finding−9 of −35

Multiples vs own history and peers
P/E 31.4 vs 15.3–39.8 in FY22–26 (average 27.1); EV/EBITDA 26.0 vs 10.6–33.7 (average 21.7); P/S 3.2 vs 1.4–4.1. Forward P/E 22.5 is below FY24–26 (26–32), but P/FCF is meaningless (FCF ≈ 0). Above its own average for a contract manufacturer with a 12% gross margin.
stockanalysis.com
−9

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 5 findings−17 of −35

Customer concentration
Four customers above 10% in FY26: Cisco 19.9%, Nvidia 16.3%, Nokia 10.7% and Amazon 10.5%, 57.4% in total (FY25: two customers, 45.8%).
sec.gov
−5
Customers are shifting (Nvidia)
Nvidia's share fell from 27.6% of $3.42bn (FY25) to 16.3% of $4.64bn (FY26), i.e. from about $944m to about 757m (−20%), while Nvidia's own revenue grew strongly: Nvidia is spreading purchases across more suppliers.
sec.gov
−5
Cash flow and capex
FCF of $4m in FY26 ($207m in FY25) and −$37m in Q4; capex has doubled to $253m, and the plan for $12.5–14bn of capacity (Building 10, Pinehurst and up to two new plants in Chonburi) requires continued heavy investment.
finance.yahoo.com
−4
Margin pressure and component shortages
The Q4 gross margin fell 30 bp to 12.2%, management warned of pressure on the Q1 gross margin and shortages of key components, and the stock fell about 8.6% despite a beat.
finance.yahoo.com
−2
Tax (Pillar Two)
Fabrinet expensed $57.4m of current tax under Pillar Two (UTPR) in FY26, and management cites uncertainty about the Thai tax regime. The very low tax rate so far is under pressure.
sec.gov
−1

Plus

Only documented strengths. · 3 findings+6 of +15

Net cash
Net cash $871m ($24 per share) and almost no debt ($4m).
stockanalysis.com
+3
Guidance and growth
Q4 revenue of $1.316bn (+45%) beat guidance; data centre +68%. Q1 FY27 is guided at $1.375–1.425bn (+43% at the midpoint) and non-GAAP EPS of $4.10–4.25.
finance.yahoo.com
+2
Broader customer base
Amazon and Nokia are new customers above 10% in FY26, so dependence on Nvidia is reduced.
sec.gov
+1

Caveats

What the score does not capture, or where the data is weak.

Price targets (median $750, only 9 analysts) have not been cut after the fall to $410 (−44% from the peak). Nvidia revenue fell about 20% in FY26, and four customers account for 57%. FCF is about 0 due to factory expansion towards $12.5–14bn of capacity, and operating cash flow is only 54% of net income. The Amazon warrant and Pillar Two tax are not fully explained.