Fabrinet FN
Fabrinet delivered record Q4 FY2026 results with revenue surging 45% YoY to $1.316B and non-GAAP EPS of $4.10 beating the $3.85 consensus, resolving the uncertainty that justified a prior hold and signaling accelerating AI-driven optics demand. At $598.58, the stock trades at 45.3x earnings — a 30.5% premium to the peer median — but the growth acceleration from FY2025's 18.6% revenue growth, near-zero debt of $9.15M, and strong technical momentum (MACD histogram of 14.3, price above both 50-day and 200-day MAs) support a buy despite the 96.4% EV/EBITDA premium to peers and $106.4M in 24-month net insider selling.
What could go wrong
- Valuation compression. At 45.3x P/E and 39.3x EV/EBITDA — 96.4% above the peer median — any growth deceleration could trigger sharp multiple contraction.
- Cycle peak risk. Q4 FY2026 revenue grew 45% YoY, a dramatic acceleration from FY2025's 18.6%; optics manufacturing is cyclical and this may represent peak demand.
- Persistent insider selling. 24-month insider activity shows net selling of $106.4M with 91 dispositions versus 46 acquisitions, including recent code-A grants that are not open-market purchases.
- FCF deterioration. FY2025 FCF margin compressed to 6.04% from 12.68% as capex tripled to $121.8M from $47.5M, signaling capacity investment that may not yield near-term returns.
What would change my mind
Where this comes from: MarketBeat news, published 2026-08-17 · Zacks news, published 2026-08-17 · peer_relative · peer_relative. Orin's read on FN; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All FN filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 10-K | 18 Aug | Fabrinet reported revenue of $4.64 billion for the fiscal year ended June 26, 2026, an increase of 35.7% from $3.42 billion in the prior year. | read |
| 8-K | 17 Aug | Fabrinet's wholly-owned subsidiary, Fabrinet Co., Ltd., entered into an amendment to its Credit Facility Agreement, increasing the facility to THB 2.61 billion ($78.3 million) and… | read |
| 13G/A | 6 Aug | — | on file |
| 13G/A | 28 Jul | — | on file |
| 13G/A | 8 Jul | — | on file |
| 10-Q | 5 May | Revenues for the three months ended March 27, 2026, were $1,214.3 million, an increase of 39.3% year-over-year. | read |
| 8-K | 4 May | Fabrinet reported financial results for the fiscal quarter ended March 27, 2026, via a press release filed on May 4, 2026. | read |
| 13G | 28 Apr | — | on file |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Price T Rowe Associates /Md/ | $1.1B | 0.1% of fund |
| Vanguard Portfolio Management | $1.1B | 0.0% of fund |
| Fmr | $1.0B | 0.0% of fund |
| Vanguard Capital Management | $908.3M | 0.0% of fund |
| Jpmorgan Chase & | $833.0M | 0.0% of fund |
| State Street | $737.0M | 0.0% of fund |
91 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 120 Form 4 filings, net −$86.0M. Of the 50 on hand, 0 were open-market purchases and 14 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about FN
Orin answers questions about FN from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 30.3× | — | 53.3× |
| EV/EBITDA | 25.3× | — | — |
| P/S | 3.09× | — | — |
| P/B | 5.8× | — | — |
87.9%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$770
$739 – $800 · +92% against today's price
- 18 buy or overweight
- 6 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| FNFabrinet | $14B | 30.3× | 25.3× | 12.0% | 10.2% | 21% |
| ENTGEntegris, Inc. | $23B | 75.5× | 30.5× | 45.5% | 9.2% | 8% |
| FTVFortive Corporation | $17B | 32.7× | 18.8× | 63.2% | 12.4% | 9% |
| GENGen Digital Inc. | $16B | 15.1× | 10.1× | 78.0% | 20.7% | 42% |
| LITELumentum Holdings Inc. | $73B | — | — | 41.7% | -230.1% | -300% |
| MKSIMKS Inc. | $18B | 40.2× | 22.8× | 44.1% | 10.1% | 16% |
| TRMBTrimble Inc. | $14B | — | 57.3× | 68.4% | -2.8% | -2% |
| ZBRAZebra Technologies Corporation | $18B | 34.7× | 17.8× | 48.9% | 9.2% | 15% |
The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 12.6% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.