Fabrinet (FN): a potential bargain?

Buy — a record beat-and-raise quarter got sold off on capex-driven cash burn and AI-sector jitters, not business deterioration.

🔥 HOT Fundamentals70/100

Fell 19% in 1 trading day(s) — now $482.59

Why FN dropped

Fabrinet actually beat on revenue and EPS and raised next-quarter guidance above estimates, but the stock crashed because free cash flow went negative (due to heavy capex for new factory capacity) and next quarter's sequential growth looked less explosive than the just-reported quarter, right as the stock had run up sharply and the broader AI-hardware sector sold off on Anthropic's revenue miss and rising long-term rates.

Fwd P/E 22.1Op margin 10.2%Rev growth 44.6%Debt/equity 0.2%Analyst upside 53.0%

How this scored 70/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 10.2%

✅ Generates cash Free cash flow $-93M

✅ Not drowning in debt Debt/equity 0.2% (limit 200%)

✅ Can pay its bills Current ratio 2.3 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 14/25

Operating margin 10.2% 4/9

Net profit margin 10.2% 4/8

Return on equity 21.3% 7/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 44.6% 9/9

Earnings growth 58.1% 8/8

Expected profit change 107.1% 8/8

Value Is it cheap right now? 14/25

Forward P/E 22.1 6/10

PEG ratio unknown 2/8

Analyst target upside 53.0% 6/7

Balance sheet Will it survive? 17/25

Debt / equity 0.2% 10/10

Current ratio 2.3 7/8

Free cash flow $-93M 0/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-19. Research only — not financial advice.