FN
Fabrinet

FabrinetFN

Technology · Electronic Components
327.13USD
+11.66%
Nov 08, 2026
FN overview ready
Precision Optical Manufacturing Enabler for AI Networking Modules
Fabrinet is a manufacturing enabler for AI optical interconnects: it provides advanced optical packaging, precision assembly, electronics manufacturing, final assembly, and testing for OEM optical modules, components, and subsystems rather than selling its own networking platform.
Primary theme is lagging
Optical / Photonics is lagging (-26.6pp vs SPY over 21 sessions; 1 of 12 members ahead of SPY).
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Fair valuation
The price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.
Low free cash flow yield
Free cash flow yield is weak.
Primary risk
Customer concentration risk.
Market Nov 6Filing Sep 25Price action Nov 7Research Oct 2

Conviction Level

PriceAction5.4BusinessPerformance7.0BusinessQuality7.8Valuation3.5ThemeMomentum1.0Improving — Revenue growth has accelerated across 4 consecutive quarters, rising from +36% to +51% year over year. Diluted EPS is up 8% year over year ($2.86), but growth has slowed from +58%. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−26.6pp
Theme return
−31.6%
Beating SPY
1 of 12
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryConstructive

Structure is constructive on both timeframes without excessive extension — a reasonable entry location.

Key Financials

Market Cap
$11.7B
Avg Volume (60D)
988.6K
60 sessions
Revenue Growth YoY
+35.7%
FY2026 vs FY2025
Gross Margin
+11.9%
Trailing twelve months
Operating Margin
+10.0%
Trailing twelve months
Free Cash Flow Yield
-1.6%
Distance from 200DMA
-37.2%
Next Earnings
2027-02-01
P/E
24.3x
EV / EBITDA
18.7x
EV / Sales
2.1x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 25, 2026
Filed balance-sheet data as of Sep 25, 2026

Business Performance

Improving

Revenue growth has accelerated across 4 consecutive quarters, rising from +36% to +51% year over year. Diluted EPS is up 8% year over year ($2.86), but growth has slowed from +58%.

Latest reported: Q1 FY2027, ended Sep 25
Revenue growthAccelerating
+51%
$1.47B in Q1 FY2027 · YoY
YoY growth, last 4 quarters
  1. +36%
  2. +39%
  3. +45%
  4. +51%
Earnings growthSlowing
+7.5%
Diluted EPS $2.86 vs $2.66 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. +31%
  2. +53%
  3. +58%
  4. +7.5%
Operating marginStable
9.9%
+0.3 pp YoY · gross margin 11.8% (-0.1 pp)
Profit is not fully converting to cash

Business Quality

7.8 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Both valuation perspectives agree this company is cheap. The published stance is held at fair because no positive free cash flow behind the low multiple.
Fabrinet has a Fair valuation stance because the price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.

What changed

  • FN rose 11.7% in one session
    FN closed +11.7% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
Fabrinet is a manufacturing enabler for AI optical interconnects: it provides advanced optical packaging, precision assembly, electronics manufacturing, final assembly, and testing for OEM optical modules, components, and subsystems rather than selling its own networking platform.
Opportunity
High opportunity
Accelerator-cluster deployment requires rapidly scaling high-bandwidth optical links and related precision optical manufacturing to connect GPUs, switches, and data-center fabrics at increasing speeds and density.
Key risk
Customer concentration risk.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Electronic Components
What they do

Fabrinet provides advanced optical packaging and precision manufacturing services, including process design, supply chain management, assembly, and testing for optical and electro-mechanical components globally.

How it earns

The company generates revenue primarily through project-based manufacturing contracts with OEM customers.

Products & services
Optical packaging
Precision optical assembly
Printed circuit board assembly
Final assembly and testing
Customers & end markets
Optical transceiver manufacturers
Data center and networking equipment OEMs
Market position

Niche provider specializing in precision optical and electro-mechanical manufacturing services for high-performance networking components.

Demand drivers
Medium cyclicality

Demand is linked to capital expenditure cycles in data center and telecom infrastructure but supported by structural growth in AI and cloud computing.

Related companies

Finding other covered companies in the same part of this story…