Fabrinet
- Open
- 390.65
- Day high
- 392.56
- Day low
- 380.39
- Prev close
- 395.35
- Volume
- 73K
- Mkt cap
- $14.0B
- P/E (TTM)
- 29.6
- EPS (TTM)
- $13.21
- P/B
- 5.7
- P/S
- 3.0
- Yield
- —
- Per share
- —
Fabrinet (FN) is a Technology company listed on NYSE. The stock is up 17% over the past year. Drillr has 1 published research article covering FN.
Fabrinet (FN) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 4 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 17, 2026 | $3.81 | $4.10 | +7.6% | $1.3B | +3.1% |
| May 4, 2026 | $3.58 | $3.72 | +3.9% | $1.2B | +2.2% |
| Feb 2, 2026 | $3.26 | $3.36 | +3.1% | $1.1B | -4.2% |
| Aug 18, 2025 | $2.64 | $2.65 | +0.4% | $910M | +3.0% |
| Feb 3, 2025 | $2.51 | $2.61 | +4.0% | $834M | -3.0% |
| Aug 19, 2024 | $2.25 | $2.41 | +7.1% | $753M | +2.8% |
| Aug 21, 2023 | $1.80 | $1.86 | +3.3% | $656M | +2.3% |
| Feb 6, 2023 | $1.87 | $1.90 | +1.6% | $669M | +2.5% |
| Aug 15, 2022 | $1.54 | $1.68 | +9.1% | $588M | +1.1% |
| May 2, 2022 | $1.52 | $1.50 | -1.3% | $564M | -1.9% |
| Jan 31, 2022 | $1.46 | $1.50 | +2.7% | $567M | +2.1% |
| Aug 16, 2021 | $1.22 | $1.31 | +7.4% | $510M | -2.2% |
FN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 26, 2026 | Gill Harpalofficer: PRESIDENT & COO | Tax | 1,840 | $421.14 |
| Aug 26, 2026 | Grady Seamusdirector, officer: Chief Executive Officer | Tax | 2,943 | $421.14 |
| Aug 26, 2026 | Archer Edward T.officer: EVP, Sales & Marketing | Tax | 849 | $421.14 |
| Aug 26, 2026 | Sverha Csabaofficer: Chief Financial Officer | Tax | 321 | $421.14 |
| Aug 25, 2026 | Archer Edward T.officer: EVP, Sales & Marketing | Tax | 546 | $436.67 |
| Aug 25, 2026 | Sverha Csabaofficer: Chief Financial Officer | Tax | 217 | $436.67 |
| Aug 25, 2026 | Gill Harpalofficer: PRESIDENT & COO | Tax | 1,168 | $436.67 |
| Aug 25, 2026 | Sverha Csabaofficer: Chief Financial Officer | Tax | 213 | $436.67 |
| Aug 25, 2026 | Gill Harpalofficer: PRESIDENT & COO | Tax | 1,123 | $436.67 |
| Aug 25, 2026 | Archer Edward T.officer: EVP, Sales & Marketing | Tax | 550 | $436.67 |
| Aug 25, 2026 | Grady Seamusdirector, officer: Chief Executive Officer | Tax | 1,821 | $436.67 |
| Aug 25, 2026 | Grady Seamusdirector, officer: Chief Executive Officer | Tax | 2,044 | $436.67 |
| Aug 24, 2026 | Sverha Csabaofficer: Chief Financial Officer | Grant | 2,698 | — |
| Aug 24, 2026 | Gill Harpalofficer: PRESIDENT & COO | Grant | 4,271 | — |
| Aug 24, 2026 | Archer Edward T.officer: EVP, Sales & Marketing | Grant | 2,024 | — |
Source: FN SEC Form 4 filings, latest Aug 26, 2026. For informational purposes only — not investment advice.
See the full FN insider & 13F page →Fabrinet company profile
Overview
Fabrinet (NASDAQ:FN) is a leading provider of advanced optical packaging and precision manufacturing services founded in 1999 and headquartered in George Town, Cayman Islands. The company operates primarily from its manufacturing facilities in Thailand, serving original equipment manufacturers (OEMs) in the optical communications, automotive, industrial laser, and sensor industries. Since going public in 2010, Fabrinet has established itself as a critical manufacturing partner for companies developing high-speed optical interconnects, particularly for data centers and telecommunications infrastructure.
Business
Fabrinet operates as a contract manufacturer specializing in optical packaging and precision electro-mechanical manufacturing services. The company's core business revolves around manufacturing complex optical components that enable high-speed data transmission through fiber optic networks. The company's primary products include optical transceivers and modules - sophisticated devices that convert electrical signals into optical signals (light) for transmission through fiber optic cables, and then convert them back to electrical signals at the destination. These components are essential for modern data centers, telecommunications networks, and high-performance computing systems. Fabrinet manufactures various types of transceivers operating at different speeds, including 400-gigabit, 800-gigabit, and next-generation 1.6-terabit products. The business is organized into two main segments: 1. Optical Communications (approximately 75-80% of revenue): This segment manufactures components for data transmission networks and is further divided into Datacom (serving data centers and cloud computing infrastructure) and Telecom (serving telecommunications service providers). Products include switching equipment like reconfigurable optical add-drop multiplexers, optical amplifiers, tunable lasers, and active optical cables that provide high-speed connectivity for data centers. 2. Non-Optical Communications (approximately 20-25% of revenue): This diversified segment includes automotive components (particularly for electric vehicle charging infrastructure), industrial lasers used in semiconductor processing and material processing, various sensors for automotive and medical applications, and custom optical components like crystals, lenses, and prisms. The company's manufacturing process encompasses the entire value chain from initial design and engineering through final assembly and testing, including supply chain management, printed circuit board assembly, advanced packaging, and integration services.
Revenue model
Fabrinet operates on a contract manufacturing business model, generating revenue primarily through manufacturing services fees paid by original equipment manufacturers (OEMs). The company does not design or sell its own branded products; instead, it manufactures products designed by its customers using their specifications and intellectual property. Revenue is generated through several mechanisms: manufacturing service fees based on the complexity and volume of products produced, supply chain management services, and value-added engineering and design services. Customers typically enter into long-term manufacturing agreements, providing relatively predictable revenue streams once production ramps are established. The company's primary paying customers are OEMs in the optical communications industry, including major players like NVIDIA (which represents approximately 35% of annual revenue), Ciena, and various telecommunications equipment manufacturers. Additionally, Fabrinet serves automotive OEMs developing electric vehicle infrastructure, industrial laser manufacturers, and sensor companies. Several factors influence Fabrinet's margins and profitability. Positive margin drivers include the company's specialization in high-complexity, low-volume manufacturing which commands premium pricing, operational leverage from capacity utilization, favorable foreign exchange rates (Thai Baht depreciation reduces costs), and the ongoing shift toward higher-speed optical products that require more sophisticated manufacturing processes. The company's integrated manufacturing approach, handling everything from component sourcing to final assembly, also provides margin advantages. Margin pressures come from component supply chain constraints that can limit production volumes, customer concentration risk (heavy dependence on key accounts), competitive pricing pressure in mature product categories, and the cyclical nature of the telecommunications industry. New product ramps often involve temporary margin compression as manufacturing processes are optimized and volumes scale up. Additionally, the company faces potential labor cost inflation in Thailand and currency exposure on components sourced globally.
Competitive moat
Fabrinet possesses a moderate to strong competitive moat built primarily around specialized manufacturing capabilities and customer switching costs. The company's moat stems from several key factors that create barriers to entry and customer stickiness. The most significant moat element is manufacturing complexity and specialization. Optical packaging requires extremely precise manufacturing processes, clean room environments, and specialized equipment for handling delicate optical components. The company has developed proprietary manufacturing processes and accumulated decades of experience in optical assembly, making it difficult for competitors to replicate their capabilities quickly. This expertise is particularly valuable for next-generation products like 800-gigabit and 1.6-terabit transceivers, where manufacturing tolerances become increasingly critical. Customer switching costs provide another layer of protection. Once a customer qualifies Fabrinet's manufacturing processes for a specific product, switching to an alternative manufacturer requires extensive re-qualification, testing, and potential redesign work. This process can take months or years and involves significant costs and risks, particularly for mission-critical optical components where reliability is paramount. The company's integrated supply chain management capabilities and established relationships with component suppliers create additional competitive advantages. Fabrinet manages complex supply chains involving hundreds of specialized optical and electronic components, many with long lead times. Their established supplier relationships and inventory management expertise provide value that customers would find difficult to replicate internally or source elsewhere. However, the moat faces several potential threats. Customer concentration risk represents a significant vulnerability, with NVIDIA alone representing 35% of revenue. Large customers have increasing bargaining power and may eventually decide to bring manufacturing in-house or diversify suppliers. Geographic concentration in Thailand creates operational risks, and technological disruption could potentially change manufacturing requirements or enable new competitors to enter the market. Additionally, as optical manufacturing becomes more standardized over time, some of the specialized knowledge advantages may erode.
Risks & safety
Fabrinet demonstrates strong financial safety with minimal solvency risk and reasonable valuation metrics, though trading at premium levels reflecting growth expectations. • Liquidity and Debt: Excellent financial position with $307 million in cash and short-term investments, minimal debt (debt-to-equity ratio of 0.003), and strong current ratio of 3.32. Free cash flow generation of $45 million in recent quarter provides adequate cash generation. • Valuation Metrics: Trading at premium valuations with P/E ratio of 21.8x, EV/EBITDA of 21.5x, and price-to-book of 3.7x. Graham number of $51.75 suggests stock is trading above intrinsic value estimates. • Profitability: Healthy return on equity of 4.3% (quarterly), though below historical levels. Operating margins around 10% provide reasonable profitability cushion. • Other Considerations: Strong balance sheet with $1.9 billion in net worth, minimal capital intensity relative to revenue, and diversified revenue base reducing single-point-of-failure risks.
Recent development
Over the past few years, Fabrinet has executed several key strategic initiatives positioning the company for growth in artificial intelligence and high-speed optical communications. The most significant development has been the company's emergence as a critical manufacturing partner for AI data center infrastructure, particularly through its relationship with NVIDIA for manufacturing high-speed optical interconnects required for GPU clusters and AI training systems. The company has been at the forefront of the transition to higher-speed optical products, successfully ramping production of 800-gigabit transceivers and preparing for next-generation 1.6-terabit products. This technological progression represents a significant opportunity as AI workloads demand increasingly sophisticated optical connectivity solutions. Management has indicated that 800-gigabit products will remain relevant for an extended period while 1.6-terabit products will be additive rather than cannibalistic. Capacity expansion has been a major focus, with the company opening Building 9 (1 million square feet) and breaking ground on Building 10 (2 million square feet) at its Chonburi, Thailand campus. The new Building 10 facility represents approximately $110 million in capital expenditure and is expected to support potential revenue capacity of $2.4 billion, demonstrating management's confidence in long-term demand growth. Recent strategic wins include securing a commercial relationship with Amazon Web Services and winning new business with Ciena for next-generation network modem manufacturing. The Amazon partnership, while non-exclusive, potentially opens doors to pursue other cloud service providers and expands Fabrinet's customer base beyond traditional optical equipment manufacturers. The company has also been diversifying its revenue base, with particular strength in the automotive segment where revenue has grown significantly, driven by electric vehicle charging infrastructure demand. Industrial laser business has also recovered to multi-year highs, providing additional revenue diversification beyond core optical communications.
FN company profile · for informational purposes only — not investment advice.
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