Fabrinet Story

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FN -- USA Stock  

USD 61.61  0.66  1.06%

As many millenniums are trying to avoid consumer goods space, it makes sense to outline Fabrinet a little further and try to understand its current market patterns. As we have suggested previously, Fabrinet is beginning its slide as institutional investors shift to be more bearish due to the increased sector volatility. Fabrinet moves indifferently to market moves. The returns on investing in Fabrinet and the market returns of the last few months appear not sensitive to each other. Persistent forward indicators of the company may entail signs of short-term price drift for institutional investors. Fabrinet is scheduled to announce its earnings today. The next earnings report is expected on the 2nd of November 2020.
Published over a month ago
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Our latest technical analysis of Fabrinet (NYSE:FN)
This firm's average rating is Buy from 5 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Fabrinet market sentiment investors' perception of the future value of Fabrinet. Let us look at a few aspects of Fabrinet technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Fabrinet. In general, we focus on analyzing Fabrinet stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Fabrinet's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Fabrinet's intrinsic value. In addition to deriving basic predictive indicators for Fabrinet, we also check how macroeconomic factors affect Fabrinet price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

How does Fabrinet Stands against Peers?

Analyzing Fabrinet competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Fabrinet across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Fabrinet Competition Details

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

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.

Closer look at Fabrinet Downside Variance

Fabrinet has current Downside Variance of 6.82. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.

Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.

Downside Variance 
 = 
SUM(RET DEV)2 
N(ER) 
 = 
6.82
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N(ER) = Number of points with returns less than expected return for the period
Let's now compare Fabrinet Downside Variance to its closest peers:
FN
MU
DSWL
ELTK
FN6.82
MU9.97
DSWL5.49
ELTK21.17

Our take on Fabrinet small slide

Market Risk Adjusted Performance just dropped to -3.13, may entail upcoming price decline. Fabrinet currently demonstrates below-verage downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.42. 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.

Whereas other entities 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. To conclude, as of the 17th of August 2020, we see that Fabrinet moves indifferently to market moves. The company is overvalued with very low probability of distress within the next 24 months. Our actual 30 days Buy-Hold-Sell recommendation on the company is Cautious Hold.

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 Gabriel Shpitalnik do not own shares of Fabrinet. Please refer to our Terms of Use for any information regarding our disclosure principles.

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