Fabrinet Story

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FN -- USA Stock  

USD 61.61  1.39  2.21%

Fabrinet Price to Sales Ratio is quite stable at the moment as compared to the past year. The company's current value of Price to Sales Ratio is estimated at 1.15. Return on Average Assets is expected to rise to 0.11 this year, although the value of Average Assets will most likely fall to about 905.7 M. As many of us are excited about consumer goods space, it is fair to outline Fabrinet. What exactly are Fabrinet shareholders getting in September? This post is to show some fundamental factors affecting Fabrinet's products and services. I will also disclose how it may impact the investing outlook for the firm in September.
Published over a month ago
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Should you hold on to your Fabrinet position?
This firm generated the yearly revenue of 1.64 B. Reported Net Income was 118.41 M with gross profit of 179.22 M. About 103.0% of the company shares are owned by institutional investors. The book value of Fabrinet was currently reported as 25.42. Fabrinet has Price/Earnings To Growth (PEG) ratio of 2.33. The entity last dividend was issued on the 29th of October 2010.

How important is Fabrinet's Liquidity

Fabrinet financial leverage refers to using borrowed capital as a funding source to finance Fabrinet ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Fabrinet financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Fabrinet's total debt and its cash.

How Fabrinet utilizes its cash?

To perform a cash flow analysis of Fabrinet, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Fabrinet is receiving and how much cash it distributes out in a given period. The Fabrinet cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Fabrinet Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 116.63 Million

What did Fabrinet file with SEC?

The SEC filings are financial statements or other formal documents of Fabrinet that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Fabrinet shareholders may or may not be submitted as SEC does not always require it.
Financial Statements and Exhibits. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers. Results of Operations and Financial Condition
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Unclassified Corporate Event
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Fabrinet shareholders may or may not be submitted as SEC does not always require it.

Payment of 6082 shares by Seamus Grady of Fabrinet subject to Rule 16b-3

Legal trades by Fabrinet insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Fabrinet insider trading alert for payment of ordinary shares by Seamus Grady, Chief Executive Officer, on 24th of September 2020. This event was filed by Fabrinet with SEC on 2020-09-24. Statement of changes in beneficial ownership - SEC Form 4. Seamus Grady currently serves as chief executive officer, director of Fabrinet [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for Fabrinet

Fabrinet retains a total of 36.72 Million outstanding shares. The majority of Fabrinet outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Fabrinet to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Fabrinet. Please pay attention to any change in the institutional holdings of Fabrinet as this could imply that something significant has changed or about to change at the company. Also note that almost one million four hundred sixty-eight thousand eight hundred invesors are currently shorting Fabrinet expressing very little confidence in its future performance.
 2011 2016 2019 2020 (projected)
Cost of Revenue857.22 M1.41 B1.25 B1.13 B
Consolidated Income61.9 M120.95 M97.11 M87.05 M

Ownership Breakdown

Institutions
102.75%
Retail Investors-3.87
Insiders1.12
Institutions102.75

Will Fabrinet slide impact its fundamentals?

Potential upside is down to 3.67. It may entail a possible volatility slide. Fabrinet currently demonstrates below-verage downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.15. However, we do advice investors to further question Fabrinet expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Current Takeaway on Fabrinet Investment

Whereas some firms in the electronic equipment industry are either recovering or due for a correction, Fabrinet may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 16th of August 2020, we believe that Fabrinet is currently fairly valued with very low odds of financial distress in the next two years. Our present 30 days buy-sell recommendation on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Fabrinet. Please refer to our Terms of Use for any information regarding our disclosure principles.

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