Fabrinet (FN) - 42.32% Below 52-Week High: Buy or Wait?

Stock Details

Fabrinet (FN), a prominent company in the technology sector within the electronic components industry, is based in Cayman Islands and primarily trades on the NYQ.Currently, the stock is trading at $431.97. Over the past 52 weeks, it has ranged between $309.91 and $748.89. This places the current price at 57.7% of its 52-week high and 39.4% above its 52-week low. Recent trading volume was recorded at 817,491. The 14-day Relative Strength Index (RSI) stands at 39.32, suggesting neutral conditions. The stock is currently trading below its 50-day moving average of $511.04 by 15.47%. Similarly, it is below its 200-day moving average of $537.15 by 19.58%. The MACD histogram is -11.74, indicating bearish momentum (MACD Line: -17.90, Signal Line: -6.16).

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

32.25

Above market average

Forward P/E

19.33

Earnings expected to grow

Price to Book

6.15

EV/EBITDA

26.79

EPS (TTM)

$13.06

Price to Sales

3.25

Beta

1.22

Similar volatility to market

Q:How is FN valued relative to its earnings and growth?

Fabrinet trades at a P/E ratio of 32.25, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 19.33 is lower than the current P/E, indicating analysts expect earnings to grow over the next year.

Q:What is FN's risk profile compared to the market?

With a beta of 1.22, Fabrinet is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 6.15 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

10.19%

Operating Margin

10.23%

EBITDA

$530.73M

Return on Equity

21.33%

Return on Assets

8.59%

Revenue Growth (YoY)

44.60%

Earnings Growth (YoY)

58.10%

Q:How profitable and efficient is FN's business model?

Fabrinet achieves a profit margin of 10.19%, meaning it retains $10.19 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 10.23% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 21.33% and ROA at 8.59%, the company generates strong returns on invested capital.

Q:What are FN's recent growth trends?

Fabrinet's revenue grew by 44.60% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 58.10% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against Electronic Components industry averages for proper context.

Company Size & Market

Market Cap

$15.1B

Revenue (TTM)

$4.64B

Revenue/Share (TTM)

$129.59

Shares Outstanding

35.83M

Book Value/Share

$68.49

Asset Type

EQUITY

Q:What is FN's market capitalization and position?

Fabrinet has a market capitalization of $15.1B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 35.83M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Electronic Components industry, it competes with other firms in this sector.

Q:How does FN's price compare to its book value?

Fabrinet's book value per share is $68.49, while the current stock price is $431.97, resulting in a price-to-book (P/B) ratio of 6.31. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$734.11

69.94% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for FN?

9 analysts cover FN with 78% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $734.11 implies 69.9% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on FN?

Current analyst recommendations:3 Strong Buy, 4 Buy, 2 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Aug 25, 2026, 02:15 AM

Technical Indicators

RSI (14-day)

39.32

Neutral

50-Day Moving Average

$511.04

-15.47% below MA-50

200-Day Moving Average

$537.15

-19.58% below MA-200

MACD Line

-17.90

MACD Signal

-6.16

MACD Histogram

-11.74

Bearish

Q:What does FN's RSI value tell investors?

The RSI (Relative Strength Index) for FN is currently 39.32, indicating the stock is showing bearish momentum (30-40 range). Selling pressure is evident but not extreme. This often occurs during pullbacks in uptrends or early stages of downtrends. Combined with the price being below the 50-day moving average, this confirms bearish conditions.

Q:How should traders interpret FN's MACD and moving average crossovers?

MACD analysis shows the MACD line at -17.90 below the signal line at -6.16, with histogram at -11.74. This bearish crossover indicates downward pressure. The wide histogram confirms strong momentum. The 50-day MA ($511.04) is below the 200-day MA ($537.15), forming a death cross pattern that often warns of extended weakness. Price is currently below both MAs, confirming weakness.

Indicators last updated: Aug 26, 2026, 01:01 AM

Fabrinet (FN) Stock