Fabrinet (FN): a potential bargain?

Buy — the crash followed a record beat-and-raise quarter, not bad news; the market just got scared about AI-stock valuations.

🔥 HOT Fundamentals72/100

Fell 28% in 7 trading day(s) — now $431.54

Why FN dropped

Fabrinet reported record Q4 fiscal 2026 results on Aug 17 — revenue up 45% and non-GAAP EPS up beating guidance, with fiscal Q1 2027 guidance of 43% revenue growth — yet the stock fell nearly 20% the next day and kept sliding as the broader "AI optical" trade (Marvell, Coherent, Lumentum, Corning) sold off together on fears that a huge prior run-up had priced in perfection.

Fwd P/E 19.8Op margin 10.2%Rev growth 44.6%Debt/equity 0.2%Analyst upside 70.1%

How this scored 72/100

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

✅ Makes money Net profit margin 10.2%

✅ Generates cash Free cash flow $-58M

✅ 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 67.2% 8/8

Value Is it cheap right now? 16/25

Forward P/E 19.8 6/10

PEG ratio unknown 2/8

Analyst target upside 70.1% 7/7

Balance sheet Will it survive? 17/25

Debt / equity 0.2% 10/10

Current ratio 2.3 7/8

Free cash flow $-58M 0/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-26. Research only — not financial advice.